Support for Mugabe withered as his policies spawned a decade- long recession and the world's highest inflation rate, 100,580%, slashed exports and caused shortages of fuel and food. On March 7, he approved laws to compel foreign companies to sell 51% of assets to black citizens of Zimbabwe, which has the world's second-biggest platinum and chrome reserves.
Getting rid of Mugabe would leave hope for people and there would obviously be a significantly improved sovereign risk factor, Grant Craighead, a commodities analyst at Stock Resource, said today by phone from Sydney. It's a resource-rich country and it would open up numerous opportunities.
Guernsey-based Zimplats rose by A1.60, or 11%, to A15.90 at the 4:10 p.m. Sydney time close on the Australian Stock Exchange, its biggest gain since April 30 last year. Bermuda-based Aquarius Platinum Ltd., another producer of the metal in Zimbabwe, rose A1.30, or 8.1%, to A17.39. That was its biggest gain since Feb. 4. It has gained 33% this year, compared to a 12% decline in the benchmark index.
Post published in: Economy