Director’s Report
for the year ended 31 December 2017 Shareholders with 5% or More Shares


Name Shareholding (Shares) Percentage
Government of Zimbabwe 67 555 968 36.77%
Messina Investments Limited [NNR] 30 698 467 16.71%
Mittal Steel African Investments 17 777 034 9.68%
National Social Security Authority 11 445 761 6.23%
Hamilton and Hamilton Trustees LTD-NNR 9 415 970 5.13%

 

SHARE CAPITAL
Authorised
As at 31 December 2017, the authorized share capital of the Company is 204 000 000 ordinary shares of USD 0.25 each.

Issued and fully paid up shares
The issued share capital at 31 December 2017 is 183 720 699 ordinary shares of USD 0.25 each.

Options
The Directors have control over the unissued ordinary shares amounting to 20 279 301 of USD 0.25 each which are set aside strictly for the Employee Share Option Scheme.

BORROWINGS
As at 31 December 2017, no loans were payable within one year (USD12.396 million in 2016) .The decrease is attributed to the restructuring of all loans under the scheme of arrangement, particularly the Zimbabwe Asset Management Corporation. Further, the Agribank loan was settled.

PROPERY, PLANT & EQUIPMENT
Capital expenditure for the year ended 31 December 2017 was USD 1 707 063 (2016 – USD 102 142) while there were no receipts from disposal of property, plant and equipment (2016 – USD 98 762)

The Company’s total property, plant and equipment amounted to USD 107 569 137 (USD 119 261 362 in 2016).

DIRECTORATE
In terms of the Articles of Association, Mr S.T Makore and Mrs N. Masuku retire from the Board by rotation but, being eligible, offer themselves for re-election.

During the year under review Messrs W. T. Kutekwatekwa and A. M Ngapo resigned from the Board of Directors effective 18th and 28th July 2017 respectively.

Mr W. Chitando who was serving as the Board Chairman resigned from the Board on the 7 December 2017 following his appointment as Minister of Mines and Mining Development.
The Company acknowledges the contribution made by the three (3) resigned Directors and wishes them well in their current and future endeavours.

DIRECT AND INDIRECT SHAREHOLDING OF DIRECTORS
During the financial year under review, no Director held, directly or indirectly, shares in the Company


INCOME AND APPROPRIATIONS
The Company’s Income and Appropriations Statements as at 31 December 2017 stood as follows:

 

2017 USD 2016 USD
Profit/(loss) before finance costs (30 712 608) (86 551 623)
Net finance charges (13 062 019) (1 992 977)
Share of profit from equity accounted investments ( 1 365 390)
Profit/(loss) before taxation (89 909 990)
Taxation
Profit/(loss) after taxation (43 837 740) (89 909 990)
Retained profit/(loss) for the year (258 591 953) (168 681 963)
Retained profit/(loss) carried forward (302 429 693) (258 591 953)

AUDITORS
Members will be asked to re-appoint Messrs Grant Thornton Chartered Accountants (Zimbabwe), as auditors of the
Company for the ensuing year and to fix their remuneration, excluding value added tax, of US$110 505 (2016 – US$97 399)
for the financial year ended 31 December 2017.

STOCK EXCHANGES

The following additional information is provided with the requirements of the stock exchanges:

i. All the Company’s sales and profit, were made and realized in Africa south of the equator;
ii There were no contracts with the Company in which any Director had an interest whether during or as at the end of the
financial year; and
iii. The borrowings as at 31 December 2017are summarized as follows:

BORROWINGS:

 

2017 USD 2016 USD
Authorised Borrowings
Three times Shareholder’s equity
Actual borrowings 151 303 807 92 107 845


By Order of the Board