Oliver Kazunga, Senior Business Reporter
LISTED mining group, RioZim says it has received an “insignificant” part payment of its gold deliveries to Fidelity Printers and Refiners (FPR) and the miner hopes the matter will be resolved expeditiously to capacitate its operations.
Recently, the company announced that it had stopped operating because of non-payment for its deliveries by FPR.
Last week, RioZim issued a cautionary statement advising shareholders to continue exercising caution when dealing in the company’s securities until an announcement to the contrary is made.
“Further to the cautionary announcement dated 15 June 2020, shareholders are advised that the company has received an insignificant part payment towards the United States dollar and Zimbabwe dollar amounts due to it from Fidelity Printers and Refiners for gold deliveries made,” it said.
It said discussions regarding payment of the long overdue sums were still in progress between itself, FPR and the Reserve Bank of Zimbabwe.
“It is therefore the company’s hope that the issue can be resolved expeditiously to capacitate the company to meet its operational expenditure requirements.
“It should be noted that there is no dispute between the company, FPR and the Reserve Bank of Zimbabwe as to the amounts payable,” it said.
FPR is a 100 percent owned subsidiary of RBZ and is Zimbabwe’s sole gold buyer.
“Accordingly, the company is confident that payments will be received eventually but delayed payment is placing enormous financial stress on the company.
“Shareholders are advised to continue exercising caution when dealing in the company’s securities until an announcement to the contrary is made.”
Under the recently announced gold trading framework, large-scale miners under which RioZim falls, are paid 70 percent in foreign currency of their total deliveries while 30 percent is paid in local currency.
The foreign currency gold sale proceeds are paid to the companies’ nostro accounts. — @okazunga