COO resigns and sells all share..5 Dec 2016 10:07
The reply pasted below:
Regarding the sale of shares by Mr Roets, this transaction was undertaken following his recent exercise of options. Mr Roets sold his shares for personal reasons of which we are neither aware nor able to comment further. I can confirm that his position as Chief Operating Officer has not changed and he remains a central member of the company’s management team and is focussed on the delivery of the new central shaft and the capacity expansion at Blanket mine to 80koz by 2021. Moreover, all members of the management team remain heavily incentivised to the share price through the company’s LTIP program, the details of which are available on our website. We cannot comment further on the quantum of share purchases by management except to say that the purchase last week of 96,500 shares by a member of the management team and two directors is an indication of their confidence in the company. Following the purchases last week, and option exercises in mid-November, management and directors hold approximately 2% of Caledonia's shares. I would also point out that South African exchange control restrictions prevent our South African based management team members from further significant purchases.
Regarding the liquidity situation in Zimbabwe, there is a shortage of US dollar currency which has prompted the introduction of the bond notes. As highlighted in our press release on the 1st of December, we continue to be paid in US dollars for our gold sales. The bond notes are intended for use by individuals in the course of their daily business (e.g. shopping) and we have seen no suggestion that bond notes will be used for commercial transactions in the banking system. We continue to receive remittances of US dollars from our Zimbabwean operations for the import of raw materials and capital equipment and the payment of loans, dividends and management fees to the UK and South Africa respectively. The gold mining industry remains a critical earner of foreign currency for Zimbabwe and the RBZ has been very supportive of the industry. Management monitors the situation closely and we maintain a regular dialogue with the Reserve Bank of Zimbabwe at various levels, including with the Governor. If the situation were to change we would notify the market immediately in line with our reporting obligations as a listed company.
The area around Blanket remains peaceful to the best of our knowledge, as does the vast majority of Zimbabwe - unrest is confined to a small area in Harare. The Caledonia management team continue to make regular visits to the mine and we have seen no instances of any civil disruption or disturbance in Bulawayo or on the way to the mine in Gwanda: I was in Bulawayo and Gwanda 4 weeks ago, and several colleagues in Johannesburg will be at the mine at the end of this week.
I hope this addresses some of your concerns.
Sign In
Follow the stocks
