Whose gold is it anyway?

🟢Is there a difference between a maize farmer & a gold miner?

🟢Zimbabweans claim looting whenever they see people with gold in bulk,is it a crime?

🟢Does gold belong to the miner, agent, or state?

🟢Who is the owner of the money from gold sales?
1/5 Gold buying in Zimbabwe

Fidelity Gold Refiners is licensed to buy gold from:

🟢Large-scale producers,
🟢Small-scale producers and
🟢Holders of gold buying permits. (+- 30% of Gold)

Fidelity Gold since mid-2021 pay international prices for gold, implying low margins.
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Revised Compensation to Former Farm Owners.

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Under the US$3.5b Global Compensation Deed (GCD)

In Sept 2022,Govt made an offer for the settlement of the GCD which was accepted by Former Farm Owners through a referendum.The agreed payment plan is in 2 parts as follows:
1/4 Part A
✳️Interim cash payment of 10% /US$350m (10% of US$3.5b), over 4yrs.

✳️Interim cash payments of US$35m per yr for 3yrs, btwn 2023-25,

✳️Balance of US$295m being paid in 2026 from sale proceeds of the FFO 12.5% Kuvimba shareholding &/or sale of any other Govt asset.
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Dr. Mangudya on 10 RBZ major achievements in 2022:

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Reversing the upward inflationary trajectory in the month-on-month inflation from a peak of 30.7% in June 2022 to 3.2% in October and to levels below 3% in November and December 2022;
1/10 Dr. Mangudya on RBZ major achievements in 2022:

Reducing the parallel market exchange rate premium from above 140% in May 2022 to current levels of below 20%, which is consistent with the levels observed in most countries;
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RBZ's Mangudya responds to IMF on the recommendation to phase out gold coins.

He says RBZ will not phase out gold coins.

"The IMF mission team to Zimbabwe did not fully appreciate the bank’s noble objective of introducing gold coins into the domestic economy."

1/6 "They view the issuance of gold coins as tantamount to intervening in the foreign exchange market,thus depleting foreign exchange reserves.

The bank, however, views the gold coins as an alternative product or asset to foreign currency in the economy’s dual currency system,."
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Kuvimba Mining House Ownership

✳️65%: state-controlled.
✳️35%: a consortium of investors.

Detailed shareholding breakdown:

✅12,5%: Meeting obligations in respect of the Global Compensation Agreement signed between the Government and former farmers.
1/5 Kuvimba Mining House Ownership

✅6,5% is held by the Sovereign Wealth Fund of Zimbabwe, a statutory fund implemented for the future benefit of the Zimbabwean citizenry.

✅21.5% is held by the government.

✅35 % is held by private sector investors which include management.
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