Zimpapers Logo

Business Reporter
PAN-AFRICAN commodity miner, Mwana Africa Plc’s share price has plunged almost 54 percent on the Alternative Investment Market since board changes that booted out two Zimbabwean directors and founding chief executive, Kalaa Mpinga. Mwana Africa’s share price has since June 9, 2015 been on a free fall, continuing well after the annual general meeting that purged Mr Mpinga, old mining hands Herbert Mashanyare and respected executive and accountant, Ngoni Kudenga.

The share price has plummeted from 1,91 pence per share at June 9, 2015 to the current average price of 0,91 pence per share in what observers close to happenings at the AIM listed group attributed to waning investor confidence in the new board of directors.

A raft of changes to the board have been effected since the EGM in June and these also included the resignation of former non-executive director Stuart Morris who bowed to the incessant pressure and offered to step down only days before the EGM.

The generally suppressed commodity prices on global markets have not helped matters with nickel and gold, Mwana Africa’s main shipments from its two operational mines in Zimbabwe, among minerals hit by result of bearish sentiment on low growth in China.

Mwana Africa holds majority shareholding in its two producing mines, Africa’s only integrated nickel producer Bindura Nickel Corporation and Zimbabwe biggest gold producer, Freda Rebecca, making the experience of the two local directors indispensable.

The multi-commodity group’s share price has lost significant ground since the new board led by new executive director Yat Hoi Ning took over the reins on June 9, 2015 after an EGM requested by minority shareholders with 5,1 percent shareholding in the group.

But the board changes to Mwana Africa’s board of directors have not come without scrutiny from the Government, which recently summoned Mr Hoi Ning to explain the shake-up that booted out the Zimbabwean directors and the founding CEO.

Youth Development, Indigenisation and Empowerment Minister Chris Mushowe said the changes to the board threatened Mwana Africa’s indigenisation plans and its planned programme on beneficiation in line with Government’s economic policy, Zim-Asset.