Categories: Stories

Mhangura makes a $78m loss

Nothing seems to be going on well for the troubled Mhangura Copper Mines. It’s results for the 12 months ending June 1998, were seven months late and they were a disaster, and although things are reported to have improved in the six months ending December 1998, shareholders are likely to be kept in suspense unless the company speeds up its reporting.

Turnover was down by 54 percent from $118.4 million in 1997 to $54.3 million last year. The main cause of the drop in sales is said to be a drop in production mainly due to the rehabilitation at Miriam Mine which was scheduled for completion by September 1998 but was slowed down because of lack of cheap funds after the company’s bank failed to secure an offshore loan.

Ore milled at Miriam dropped from 562 000 tonnes in 1997 to 305 000 last year. Recoverable copper dropped from 3 510 tonnes to 1 751 tonnes. Copper anodes produced dropped from 7 702 tonnes in 1997 to 4 680 tonnes last year and copper sold decreased from 3 880 tonnes to1 145 tonnes while gold sales dropped from 107kgs to 26 and silver from 6 208 kgs to 1 591 kgs.

The company had an operating loss of $77.9 million down from a loss of $25.7 million the previous year. Total loss after taking into account interest paid dropped to $123.6 million compared with $53.3 million the previous year resulting in an accumulated loss of $227.4 million.

The company, however, says the rehabilitation of Miriam and the sourcing of outside concentrates for its smelter and refinery which has been operating at below capacity are expected to improve its results for the period ending December 1998.

(39 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024