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Tinashe Makichi Business Reporter
Meikles Limited’s foreign mining partners have received approval from Government to start operating at the company’s gold mining operations in Matabeleland, Meikles chairman Mr John Moxon said in a statement accompanying the group’s financial results for the six months to September 30. Meikles this year purchased a 51 percent stake in DGL investments, which is a subsidiary of Duration Gold Limited based in Matabeleland, for $10 million while the group has also set aside funds to acquire other claims around Imviga Mine to consolidate its position.
The group also has plans to raise about $25 million from third parties to finance this gold mining venture to be spearheaded by its subsidiary, Meikles Centar Mining.
“Approvals have now been received from the Reserve Bank of Zimbabwe and the Ministry of Youth, Indigenisation and Economic Empowerment for the participation of our foreign partners in gold mining in the Matabeleland area.
“It is expected that agreements will be finalised in the foreseeable future with our partners so that this division will progress as outlined to shareholders in previous releases and reports. Shareholders will be advised of developments as they progress,” said Mr Moxon.
On the group’s trading performance, turnover for the quarter exceeded that of the quarter to June by 6 percent the main drivers being TM Supermarkets that grew by 8 percent, hotels by 36 percent and Mega Mart by 21 percent.
Stores declined by 38 percent but this was expected due to the rationalisation undertaken by the division.
Tanganda traded 22 percent lower relative to the previous year while TM Supermarkets traded in two new supermarkets for part of this period, but have also ceased operating in one supermarket following a dispute with the owner of the premises.
Year-on-year turnover for the six months, although not strictly comparable with the previous period, did increase by 3,1 percent, with positive contributions to growth from all divisions other than Stores.
Group trading was generally within the control of management, with the exception of Tanganda, where despite an excellent volume of tea produced in the past season, the company suffered from a fall in international tea prices of 24 percent, relative to the average achieved in the previous year.
Depreciation went up by 53 percent to $4,4 million, while occupancy costs and employee costs increased by 11 percent to $10 million and 7 percent to $23,2 million respectively. These increases are due to the substantial group expansion and renovation projects that have been undertaken in all divisions.
Mr Moxon said the group has not yet had an opportunity to benefit fully from these projects. He said shareholders will be pleased to learn that October turnover in TM Supermarkets relative to the previous financial year, grew by over 11 percent and that November is expected to exceed this rate of growth in comparison with November of the previous year. Hotels grew by 4 percent in October relative to the previous year.
“Combined retail division turnover does not have comparative figures for the previous financial year, but Mega Mart continues to grow month on month.
“Tanganda is beginning to benefit following the very recent commissioning of new packing machinery and shareholders are advised that acceptance by the International market of the first coffee crop following plantation development in recent years has been very encouraging,” said Mr Moxon.
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