Zimplats says GPA delays concern investors

mining_manat_workHARARE Zimbabwes platinum mining firm, Zimplats has warned that delays in fully implementing a power-sharing agreement between President Robert Mugabe and his former opposition foes remained an area of concern for investors. (Pictured: A miner at work Zimplats says delays in fully implementing the Global Political Agreement remain

Mugabe, opposition MDC leaders Morgan Tsvangirai and Arthur Mutambara last February formed a unity government under a power-sharing deal that retains Mugabe as president while making Tsvangirai Prime Minister and Mutambara his deputy.
The unity government has managed to halt hyperinflation and unveiled several measures in a bid to revive the battered economy but a host of political problems including outstanding issues from the power-sharing deal threatens to derail the new Harare administration.
Zimplats said in its quarterly report ending June 30, released last Wednesday, that although it recorded an excellent operational environment there was need to fulfill all provisions of the power-sharing or global political agreement (GPA) to calm investor nerves.
“The implementation of the intended government economic turn around programmes continue to be hampered by lack of investments funds,” the Australian listed firm said in a circular to shareholders.
“Delays in fully implementing the Global Political Agreement signed by the three parties as well as political difficulties among the coalition partners remain areas of concern for investors and donors.
The platinum firm advised shareholders to exercise extreme caution in their share dealing due to the very uncertain conditions prevailing in Zimbabwe.”
During the period under review, the group recorded a US$5 million operating profit, but said the dollarisation of the Zimbabwean economy from February 2009 also resulted in an increase in costs previously denominated in Zimbabwe dollars, the full impact of which was felt in the quarter under review, the platinum firm said.
“Going forward however, the dollarisation and the fact that 100 percent of the ore will be coming underground will result in operating costs being more stable and lower than current levels.
“Despite a marginal decline in volume of metal sold, revenue was 25 percent up on the previous quarter due to the steady increase in metal prices during the period,” it said.

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