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 AIM; MWA
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Company Statement
Mwana Africa PLC is a pan-African resources company with operations in Zimbabwe and South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo (DRC), Angola, Ghana and Bostwana. The group has a diverse asset base, including gold, nickel, copper, cobalt and diamonds.
In October 2005, Mwana Africa became the first African-owned, African-managed resource company to be listed on the London Stock Exchange’s Alternative Investment Market (AIM), through a reverse takeover of African Gold plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003.
The company intends to pursue further mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.
Vision
Mwana Africa intends to create value by developing a broad- based portfolio of operations and exploration programmes in a range commodities and countries across the African continent, securing production and cashflow, building trusted partnerships and being the preferred vehicle for African investors and entrepreneurs.
Mwana Africa is well positioned to build a truly pan-African resources group that brings strong returns for its shareholders and contributes significantly to the benefit of the African people and their continent.
Strategy
Mwana Africa's strategy is based on:
- Pan-African reach: activities in a portfolio of countries across the African continent
- Multi-commodity exposure: production and exploration assets in a range of commodities including nickel, gold, copper, cobalt, and diamonds
- Development of synergies: value creation through the transfer of skills and realisation of synergies across the portfolio
- Trusted partnerships: being the preferred vehicle for African investors, entrepreneurs and partners
- High-quality management: led by a highly skilled and experienced management team able to secure beneficial deals, projects and returns
Current Operations
Zimbabwe
In Zimbabwe, Mwana Africa:
- Owns the Freda Rebecca gold mine, where it is implementing a two-phase refurbishment programme
- Owns a 52.9% stake in Bindura Nickel Corporation, the only integrated nickel mine, smelter and refinery operation in Africa
- Holds mining claims and exploration permits throughout the country
Freda Rebecca Mine
In April 2005, Mwana Africa purchased 100% interest in FRM from AngloGold Ashanti Limited for US$2.5 million, with an obligation to sell 15% to a local investor. Mwana Africa's share in financial year 2009 remains 100%.
Geology and history:
The gold mine is situated near the town of Bindura, some 90km north-east of Harare. As a low-grade underground operation, the mine is highly geared to the gold price. FRM has suffered from the low revenue receipts in Zimbabwe's hyperinflationary environment. Mwana Africa also owns exploration licences around the operation.
Following introduction of a number of proactive economic policies in early 2009 by the new government in Zimbabwe, including the dollarization of the economy, the revision of export procedures for gold and permission to operate foreign currency accounts, Mwana Africa announced its intention to resume gold production at the Freda Rebecca Mine in March 2009.
The company is implementing a two-phase programme to bring the mine back into production.
Current status and prospects:
Mwana Africa has engaged contractors covering geotechnical, mining, and plant aspects of the project, and is assembling an on-site owner’s team. Dewatering of the Rebecca section of the mine has been completed. A budget of approximately £4m has been allocated to bring the mines and the first phase of the plant to production. The commencement of production from Phase I is currently scheduled for the end of September 2009. A similar amount is forecast to be required to complete the second phase of the refurbishment, scheduled for completion in September 2010.
Bindura Nickel Corp (BNC)
The company owns and operates the Shangani and Trojan nickel mines, which have hoisting and treatment capacity of 1.0Mt and 1.1Mt a year respectively.
Construction of an upgraded concentrator at Trojan, designed to improve nickel recovery and reduce the talk content of the concentrate, was completed in February 2008. Other projects include the redeepening of the Trojan shaft, and construction of a conveyor decline at Shangani. The Bindura Smelter and Refinery complex produces high quality nickel cathodes, copper sulphide and cobalt hydroxide. Alongside material from the Trojan and Shangani mines, the plant has toll treated nickel concentrates and nickel matte from third parties to utilise spare capacity. Current smelter capacity is 17,000tpa and for the refinery 14,500tpa. Construction of an oxygen injection plant was completed in 2008.
Current status and prospects:
The Shangani and Trojan mines and the Bindura Smelter and Refinery complex were placed on care and maintenance in November 2008 as a result of continued production difficulties and a sharp decline in the price of nickel. As part of the care and maintenance programme, further expenditure on capital projects has been put on hold.
Mwana and BNC, working with BNC’s stakeholders, are developing options for a new business model at BNC that may result in a lower cost of supply from BNC’s mines while maintaining BNC’s smelting and refining capacity, and are investigating the availability of external funding for any additional investment that may be required.
Hunter's Road
The Hunters Road deposit lies in the upper Bulawayan Group within the Gweru-Midlands South Greenstone belt in central Zimbabwe. Commodity prices prevailing at 31st March 2009 indicated that mining of the resources at Trojan, Shangani and Hunters Road would be uneconomic, and consequently no reserve statement has been included, consistent with the JORC resource management code. Previously stated reserves of 12,385t, 25,109t, 175,086t respectively (stated as of 31st March 2008 and calculated based on a nickel price of $7.50 / lb) have been reclassified as resources.
Maligreen
Mwana Africa has a 50% interest in the dormant Maligreen Gold Mine. The interest was acquired through the purchase of Cluff Mining in December 2005. Pan African (Private) Limited, a Zimbabwe registered company, holds the other 50% and manages the property.
Makaha
Mwana Africa has 100% ownership of the Makaha Deposit.
Reserves and resource:
A resource estimation was carried out in 1996, showing an indicated resource of approximately 350,000 ounces at 1.2 grams per tonne.
DRC
Mwana’s exploration interests in the DRC largely embrace Zani-Kodo for gold and Katanga concessions for copper and cobalt. Mwana also owns a 20% interest in MIBA. In 2008 following BHP Billiton’s withdrawal and proposed termination of joint venture and framework agreements with Mwana kimberlite and alluvial diamond exploration activities in the DRC were closed.
Zani-Kodo Project
Mwana Africa holds 80% in the Kilo Moto Joint Venture with Office des Mines d'Or de Kilomoto (Okimo) in terms of an agreement signed in June 2005.
Current status and prospects:
Ongoing analysis of an airborne geophysical survey previously completed over the entire area has allowed the geological framework of the area to be defined with greater accuracy and a series of regional target areas to be identified.
Mwana Africa continues to make good progress in its discussions with the DRC government regarding its Joint Venture with OKIMO to develop the Zani-Kodo gold prospect.
Katanga Concessions
Mwana has a 100% beneficial holding in the prospect (a part of which is subject to a Joint Venture and Option Agreement with Anglo American).
Current status and prospects:
As a result of the decline in the outlook for commodity prices, especially in the second half of the year, base metals exploration activities were scaled back significantly, while ensuring that conditions to retain exploration rights are satisfied. Nonetheless, Core and Reverse Circulation drilling programmes were completed on the Kibolwe, Kiamato and Mwombe prospects, and limited reconnaissance exploration on the Mukema, Kamungoti, Kintungulu copper prospects continues to locate significant copper and gold anomalies.
MIBA
Current status and prospects:
As a result of the decline in the outlook for commodity prices, especially in the second half of the year, base metals exploration activities were scaled back significantly, while ensuring that conditions to retain exploration rights are satisfied. Nonetheless, Core and Reverse Circulation drilling programmes were completed on the Kibolwe, Kiamato and Mwombe prospects, and limited reconnaissance exploration on the Mukema, Kamungoti, Kintungulu copper prospects continues to locate significant copper and gold anomalies.
South Africa
Klipspringer Diamond Mine
Mwana holds 61% of this project. The Klipspringer Diamond Mine in South Africa is located 250 km north of Johannesburg and 35 km south of Polokwane, the provincial capital of the Limpopo Province. The mine is a joint venture between Mwana (62%) and Naka Diamond Mining (Pty) Ltd (“Naka”) (38%), a Black Economic Empowerment company.
The development of the Klipspringer Diamond Mine commenced in 2001 with the construction of a decline down to 7 level (160m) and was in full production by February 2003. In December 2003 the joint venture partners, made a decision to temporarily suspend the mining operations at the Klipspringer Joint Venture, caused principally by the strength of the South African rand.
Following successful trials through 2006 and 2007, the mine was re-engineered and the underhand open stoping mining method introduced, resulting in a reduced tonnage but an improvement in grade and a reduction in the cost structure.
Geographical Spread
Mwana Africa has operations in Zimbabwe and South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo (DRC), Angola, Ghana and Bostwana. Its asset base is diverse – including gold, nickel, copper, cobalt and diamonds.
Board of Directors and Key Management
| Oliver Baring | Executive Chairman |
| Kalaa Mpinga | Chief Executive Officer |
| Donald McAlister | Finance Director |
| Stuart Morris | Non-executive Director |
| John Anderson | Non-executive Director |
| Etienne Denis | Non-executive Director |
Company AddressDevon House
|
Additional Address/Key ContactJohannesburg |
CapitalAuthorised - 650,000,000 ordinary shares of 10p each 65,000
|
Year End31 March |
Nominated BrokersCanaccord Adams Limited | Nominated AdvisorsCanaccord Adams Limited |
Major Shareholders
| Shareholder | No of Shares | % |
| Vidacos Nominees Limited | 42,808,468 | 10.7% |
| Kalaa Katema Mukubayi Trust | 19,981,415 | 5.0% |
| Mr D G K Fish (dec'd) | 19,393,726 | 4.8% |
| State Street Nominees Limited | 16,187,752 | 4.0% |
| African Mining Company Limited | 13,712,736 | 3.4% |
| Barclayshare Nominees Limited | 13,432,094 | 3.4% |
| Chase Nominees Limited | 12,636,325 | 3.2% |
| T D Waterhouse Nominees (Europe) Limited | 12,623,846 | 3.2% |
Related News
17/02/10 - Mwana Africa Is Quietly Confident In Zimbabwe, While In The Congo The Resource Base At The Zani Kodo Gold Project Is Rising Rapidly16/11/09 - Safety First At Freda Rebecca, Followed By Ongoing Refurbishment And Increased Gold Production
11/11/09 - The Beautiful, But Eerie Silence At Mwana Africa’s Bindura Nickel Complex May Be Shattered Before Too Long
19/10/09 - Mwana Africa Pours First Gold From Freda Rebecca
02/09/09 - Mwana Africa Reopens Its Exploration Account With A Maiden Gold Resource Next Door To The 22 Million Ounce Moto Deposit
13/07/09 - With Gold Production Now Just Weeks Away, Mwana Africa Is Confident It Can Raise New Funds To Support A Restart At Bindura Too
Most Recent Statement
15/03/10 - Applcn to Cease to be a Reporting Issuer in Canada23/02/10 - Sale of Ghana exploration prospect
15/02/10 - Increase in gold resource at Zani-Kodo
12/02/10 - Zimbabwe Update
21/12/09 - Sale of stake in Konongo gold exploration asset under option agreement; Receipt of 50m shares in Signature Metals Limited
15/12/09 - Holding(s) in Company