MINER, Zimplats Holdings Limited (Zimplats) lost nearly US$114 million in its Australian Stock Exchange (ASX) valuation, after failing to timely file the resignation of Air Zimbabwe (Pvt) Ltd chairperson Chipo Mtasa from its board.
As previously reported by our sister paper, Zimbabwe Independent, Mtasa, resigned from the Zimplats board on January 8, 2024, and an announcement was made by the miner on January 25. Mtasa was the long-time head of the State-owned entity, TelOne.
However, a letter from the ASX Compliance Committee to Zimplats, dated January 29, 2024, indicates that ASX had revealed that the miner was supposed to have lodged the resignation letter by January 15, leaving the miner in breach of its listing rules.
ASX then demanded an explanation for the late filing from Zimplats or risk delisting to which the miner responded in a letter dated February 6, 2024, explaining that it had mistakenly filed at the wrong office.
“ZIM (Zimplats) notes that prior to Mrs Mtasa’s resignation, each director that has resigned and/or that has been appointed, notification to ASX together with the requisite appendix has been filed, in compliance with Listing Rule 3.19,” Zimplats chief financial officer Patricia Zvandasara said, in a written response to the ASX on what action it was taking to ensure such a debacle does not happen again.
“The facts pertaining to Mrs Mtasa were isolated and were notwithstanding, the unfortunate delay, rectified, as soon as the filing submission timeline oversight was noted. Following this, we assure ASX that we have taken further action and mandated the board secretariat to issue notices to the directorate of the requirement of immediate notification of any resignation and/or change of interests in ZIM to enable prompt notification to the ASX.”
While the miner revealed to Zimbabwe Independent that the issue had since been resolved between the company and ASX, and that they were now in good standing, the firm’s share price has fallen by 7,33%.
On February 6, when the matter came to light, the miner’s market capitalisation was AU$2,34 billion (US$1,54 billion) and it stood at AU$2,17 billion (US$1,43 billion) by Thursday.
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This loss translates to AU$172,22 million or nearly US$114 million.
The loss comes at a time when the miner last month announced that it had committed US$289 million to finish its major projects to scale up production.
This was in response to an increase in costs it faced during the quarter ended December 31, 2023.
Zimplats has since engaged Australian law firm, Clayton Utz to review existing procedures for the miner to ensure complete alignment of the company’s procedures and ASX Listing Rule 3,19.
The law firm is one of Australia’s oldest and largest, with offices in six cities, nearly 200 partners, and a full range of legal services for large private sector and government clients.
“It’s why, wherever you are, we give you advice that connects with you. Advice that isn’t just a one-size-fits-all solution taken off a shelf, but that reflects who you are, and what you need. Advice created by lawyers with different experiences and different views, but united by an entrepreneurial spirit, a can-do attitude, confidence in each other, and pride in helping you achieve,” read the Who We Are section of the Clayton Utz website.
“As you might have noticed, we like speaking plainly. While we like thinking creatively to help you, we won’t give you an answer hidden by legal jargon, or that doesn’t reflect our honest opinion. Our clients value that, and trust us with their most important work. And we work hard to deserve that trust.”
Zimplats is the country’s biggest platinum group of metals miner.
