1/
This is a good piece in trying to uncover a dubious & scandalous transaction. But more could have been investigated and cross checked. Eg ZMDC mines only Jena is producing and it’s less than 50kgs a month & not 300kgs as the article alleges.
This is a good piece in trying to uncover a dubious & scandalous transaction. But more could have been investigated and cross checked. Eg ZMDC mines only Jena is producing and it’s less than 50kgs a month & not 300kgs as the article alleges.
https://twitter.com/newswirezw/status/1347467840547397633
2/
Secondly it claims the issue of sanctions against Kuda Tagwireyi is perhaps the reason why this hocus pocus is happening. This is not true & I will explain later.
Secondly it claims the issue of sanctions against Kuda Tagwireyi is perhaps the reason why this hocus pocus is happening. This is not true & I will explain later.
3/
Thirdly like many news items it too fails to verify information that is parroted by management & others. Eg the deal amounts & said capital raises of $1bn. This is all a ruse. Caledonia that produces 60k ounces of gold is valued at US$200m, has millions of ounces in reserves
Thirdly like many news items it too fails to verify information that is parroted by management & others. Eg the deal amounts & said capital raises of $1bn. This is all a ruse. Caledonia that produces 60k ounces of gold is valued at US$200m, has millions of ounces in reserves
4/
& on going brown field projects. It too has been acquiring other assets of great potential. It’s last transactions entered into have the potential to treble its current production. It paid an initial $300k & $2.5m subject to exploration results. This was in December 2020
& on going brown field projects. It too has been acquiring other assets of great potential. It’s last transactions entered into have the potential to treble its current production. It paid an initial $300k & $2.5m subject to exploration results. This was in December 2020
5/
Exploration of an initial 350ha area, of which usually a claim is 10ha will cost in total $1m. So Caledonia will spend 18 months exploring & quantifying resources for a total cost of $2m. If the resource grades are good, they will conclude the deals & pay a total of $15m.
Exploration of an initial 350ha area, of which usually a claim is 10ha will cost in total $1m. So Caledonia will spend 18 months exploring & quantifying resources for a total cost of $2m. If the resource grades are good, they will conclude the deals & pay a total of $15m.
6/
Therefore we can use Caledonia as our base case of value & exploration.
The article alleges that Sotic/Landela/Sakunda initially bought these assets. The CEO claims the assets are worth $1.5bn.
Caledonia is worth $200m. Zimplats $800m. How does the ceo come up with $1.5bn
Therefore we can use Caledonia as our base case of value & exploration.
The article alleges that Sotic/Landela/Sakunda initially bought these assets. The CEO claims the assets are worth $1.5bn.
Caledonia is worth $200m. Zimplats $800m. How does the ceo come up with $1.5bn
7/
Kuvimba has not quantified its resource base. Since it’s a state owned firm it can produce its results. According to Canadian mining rules, unquantified resources have no accounting value. In other words Kuvimba holds a call option , that may or may Not be valuable.
Kuvimba has not quantified its resource base. Since it’s a state owned firm it can produce its results. According to Canadian mining rules, unquantified resources have no accounting value. In other words Kuvimba holds a call option , that may or may Not be valuable.
8/
These deals started happening in 2 years ago in 2018. Caledonia takes 18 months to explore & $2m. I can only guess that Sakunda established the real worth of the assets they had bought. & Kuvimba is purely an exit strategy.
These deals started happening in 2 years ago in 2018. Caledonia takes 18 months to explore & $2m. I can only guess that Sakunda established the real worth of the assets they had bought. & Kuvimba is purely an exit strategy.
9/
Gold is sold to Fidelity. Fidelity sells its gold to SA. If the assets were valuable compared to the cost paid for them they would not be in GOZ hands. The curious inclusion of $1bn debt needed to fund its operations is the key that gives it away
Gold is sold to Fidelity. Fidelity sells its gold to SA. If the assets were valuable compared to the cost paid for them they would not be in GOZ hands. The curious inclusion of $1bn debt needed to fund its operations is the key that gives it away
10/
Only GOZ with its numerous guarantees & back flips has the potential to access that kind of debt. Zimplats can’t. No private entity can.
For Caledonia if the exploration results in conamara turn out negative, it walks away having paid $300k & $1m in exploration
Only GOZ with its numerous guarantees & back flips has the potential to access that kind of debt. Zimplats can’t. No private entity can.
For Caledonia if the exploration results in conamara turn out negative, it walks away having paid $300k & $1m in exploration
11/
It’s easy to see why Kuvimba has GOZ with 65%. Its an exit strategy for whoever had bought Freda,Shamva,ZimAlloys , Bindura. Something went horribly wrong in the last 2 years.
It’s easy to see why Kuvimba has GOZ with 65%. Its an exit strategy for whoever had bought Freda,Shamva,ZimAlloys , Bindura. Something went horribly wrong in the last 2 years.
12/
My attempt as well as Zimlive could be accused of speculating. But why is it that Kuvimba has not provided public information memo or deal document carried out by professionals etc. Even Mugabe knew this was necessary during that other indigenisation hocus pocus period.
My attempt as well as Zimlive could be accused of speculating. But why is it that Kuvimba has not provided public information memo or deal document carried out by professionals etc. Even Mugabe knew this was necessary during that other indigenisation hocus pocus period.
13/
It’s even scary that Parliament is perched asleep on the bench like a dodo. Another state owned company is about to acquire $1bn debt. Never mind the arbitrary parcelling of shareholding.
Welcome to Casino Economy
It’s even scary that Parliament is perched asleep on the bench like a dodo. Another state owned company is about to acquire $1bn debt. Never mind the arbitrary parcelling of shareholding.
Welcome to Casino Economy
*** NewzWire
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