ZSE lures mining companies

THE Zimbabwe Stock Exchange (ZSE) is in discussions with mining companies so that they list on the local bourse to increase mining counters.

BY VICTORIA MTOMBA

The local bourse has four counters since 2009 and the number remains the same seven years after the country adopted the multi-currency system. The four mining companies include Hwange Colliery Limited, Bindura Nickel Corporation, Falcon Gold Zimbabwe Limited and Rio Zimbabwe Limited.

Large mining companies with operations in Zimbabwe, but listed elsewhere include Zimplats, New Dawn and Mimosa. Mimosa is jointly owned by Aquarius and Implats that do not have listings in Zimbabwe.

ZSE chief executive officer Alban Chirume told NewsDay the exchange was talking to the mining firms so that they list locally.

“We have visited some of the big mining companies which are not listed on the local bourse. We are trying to get them listed.
We have been in talks with some of them, it is an interesting response. They are interested and there are issues to be sorted out on government policy. Policies such as indigenisation are important for mining companies,” Chirume said.

He refused to disclose the number of companies that are involved.

Chirume said the mining companies want ZSE to prove that the market can raise funds such as $100 million as the sector was capital intensive.

“Mining is a capital intensive business and when mining companies look for funding in most cases it will be huge sums of money.

“It is also a financial sector issue whether some of the banks local and international can raise the funds,” he said.

The stock exchange is a vehicle for raising money for companies. ZSE’s performance has been subdued a reflection of the state of the economy. In the six months to June 30, turnover on ZSE slipped by 41,69% to $137 million from $234 million in the same period last year. Market capitalisation declined by $1 billion to $3,8 billion from $4,8 billion during the same period last year.

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