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Freda Rebecca registered yet another milestone after producing 311kg of gold in June

Freda Rebecca Gold Mine, a subsidiary of Kuvimba Mining House, has registered yet another milestone after it produced 311 kilogrammes of gold in June.

This is 11kg more than the volume produced in May as the Government intensifies efforts to achieve a US$12 billion mining economy by 2023.

This is the first time Freda Rebecca Mine has registered such an achievement in terms of production since inception.

Kuvimba Mining House chief operating officer, Mr Cobus Bronn, yesterday confirmed the latest figures saying the mine had exceeded its set targets by far and was good news for shareholders.

“Freda Rebecca Gold Mine exceeded May’s record production of 300kg by producing 311kg of gold for June 2021,” he said.

MEIS 2022

“This is 15% above budget, and this shows the company is moving in the right trajectory.”

Employees are due for a “chairman’s bonus” for surpassing the target and breaking the record production of the mine.

Mr Bronn said focus was also on the other mines for them to register huge margins.

“Kuvimba’s exploration on Shamva Mine shows that there will be a super pit which will be producing in excess of 400kgs a month,” he said.

Government and its agencies collectively has a 65% shareholding in Kuvimba Mining House, while the other 35% is owned by management and a consortium of investors.

Kuvimba took over Freda Rebecca Mine last year when it was producing 150 kgs of gold per month.

As new investors, the shareholders recapitalised the business and provided sufficient working capital to make the mine the biggest in the country in terms of production.

Apart from Freda Rebecca and Shamva gold mines, Kuvimba also has Jena Gold Mine, which is aiming 75 kgs by December 2022.

Currently, Jena is churning out 28kgs of gold per month.

Kuvimba also has a stake in the Darwendale Platinum Project (Great Dyke Investments), Trojan Nickel Mine (Bindura Nickel Corporation), as well as in Zim Alloys Limited.

With a monthly turnover of US$25 million, the mining giant has been investing heavily in key machinery and assets at its mines as part of this expansion drive.

After successfully resuscitating the mines and increasing production, last month Kuvimba Mining House paid a US$5,2 million dividend to its seven key stakeholders.

The money was distributed as follows: Sovereign Wealth Fund of Zimbabwe (US$520 000), Public Service Pension Management Fund (US$560 000), Deposit Protection Corporation (US$400 000), Insurance and Pensions Commission (US$400 000), Datvest Nominees (US$1 million), National Venture Capital Company of Zimbabwe (Pvt) Ltd (US$600 000) and Government (US$1,72 million).

The majority shareholding in Kuvimba Mining House is held by a broad spectrum of local institutions, including a 12,5% which is for the purpose of meeting obligations in respect of compensation for white former commercial farmers under the Global Compensation Agreement signed between Government and former farmers, a 7,5% stake by the National Venture Fund, which is managed by the National Venture Capital Company of Zimbabwe (of this, 2,5% is held on behalf of youths whose projects will be supported under the Fund; 2,5% for supporting women’s projects and 2,5% is held for the account of Veterans of the Liberation Struggle.)

At least 5% shareholding is held by the Insurance and Pensions Commission and proceeds thereof are earmarked for compensation in respect of legacy pensions.

The Deposit Protection Corporation holds 5% shareholding in the company.

The DPC is working on a framework towards some compensation for small depositors for loss of value on savings.

Also 7% of shares in Kuvimba are held by the Public Service Pension Management Fund, while 6,5% shareholding is held by the Sovereign Wealth Fund of Zimbabwe, a statutory fund that is now being fully implemented for the future benefit of the Zimbabwean citizenry.

Government holds 21,5% equity in Kuvimba, and the balance of 35% is held by private sector investors, which include management.

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Staff Writer

The African Mining Market is a source of insightful information on mining & industrial markets, and developments in Africa.