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Business Reporter
LISTED mining group, RioZim Limited, has proposed to place up to five percent of the authorised unissued ordinary shares under the control of the company’s directors.

The proposal will be debated at the company’s Annual General Meeting set for June 21 in Harare. In a notice to shareholders, RioZim said if deemed fit, the proposal would pass with or without modification.

“That up to five percent of the authorised unissued ordinary shares of the company be placed under the control of directors, until the next AGM, to be issued, subject to the requirement of the company’s Memorandum and Articles of Association and the Zimbabwe Stock Exchange listing requirements,” it said.

Market analysts say the proposal was an indication that the company was looking at raising capital during the year prior to the next AGM. In the financial year ended December 31, 2017, RioZim announced that it was exploring various ways aimed at upgrading its Empress Nickel Refinery (ENR) as the plant was a strategic asset with potential to contribute significantly to the economy.

The group was also focused on delivering several initiatives such as accelerated exploration and development programmes aimed at identifying new mining areas and enhancing the group’s flexibility in the management of its ore grade. It is also hoped that upgrading of the ENR would go a long way in beneficiating lithium concentrates on the back of massive investor appetite to exploit the mineral in the country.

Of late, lithium has become a much-sought after mineral not only in the country, but also across the world as the automotive industry moves towards electric cars, which, among other things, use lithium batteries.

In Zimbabwe, lithium deposits occur in Bikita, Gweru, Kamativi and just outside Harare. Prospect Resources has already moved to invest $10 million to develop the Arcadia lithium mining. During the financial period ended December 31, 2017, RioZim’s revenue grew by 36 percent to $88.9 million from $65.2 million that was achieved in the prior year.

This was on the back of an average gold price of $1 255 per ounce when compared to $1 251 per oz achieved in 2016. On the overall, the group closed the year with a profit before tax of $7.9 million and this was an increase from a total of $1.8 million achieved in 2016.