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Just had good Old Johnny on kodal telling us about Mali so I though I returns the Favour about Zimbabwe!
In 2015 alone, the ZSE market capitalization declined by approximately 30% from around USD4.3billion to US$3billion as at 31December 2015.Despite its poor performance on the back of poor operating fundamentals in the economy as reflected by company closures, retrenchment, scaling down of operations, negative inflation and limited access to affordable long term capital and others, there are several reasons that make me have a strong dislike of the ZSE as an investment option. Below are the reasons though not in order of importance.
Poor corporate governance : When a company is listed on the ZSE, the assumption is that there will be transparency and general improvement in corporate governance issues. This however is not the case with most of the ZSE listed firms. One of the major issue is with the appointment of board members which is normally viewed as being “old boys” clubs cliques of friendship, and college colleagues (Mugamu, 2005).The board should be composed of individuals of integrity, who can bring a blend of knowledge, skills, objectivity, and commitment to the board (Chella, 2007).
Another common feature of boards of ZSE listed companies is the existence of a significant number of individuals sitting on many boards of companies in different sectors of the economy. This is not ideal because even if the individuals concerned have the knowledge, skills and experience, they need sufficient time to analyse issues so that they can contribute meaningfully and add value to the companies they serve.
Audited financials are not reliable:Audit firms are paid by listed companies for their role in reviewing their financial statements to fulfil ZSE listing requirements but serious anomalies may sometimes be "swept under the carpet" to avoid alienating a client that may be contributing a significant portion of its revenue. In one of the biggest corporate scandals in the US, Andersen admitted that Enron was one of its biggest and most desirable clients such that they actually helped in concealing evidence from investigators to protect their client.
Integrity is the hallmark of the accounting profession and various stakeholders rely on what the auditors say before making investment decisions. Given the possibility that issues such as that in the Enron scandal, how can I trust these audit firms to bless the financial statements of companies listed on the ZSE?
High level movement of staff from audit firm into the industry: A look at organograms of most firms listed on the ZSE show that there is a serious movement of staff from the audit firms to listed companies which may compromise the integrity of the financial statements . In the Enron scandal, Enron on regular basis recruited key accounting staff from their auditors, Andersen and other Big 5 firms including the company's chief accounting officer and its CFO.
Low shareholder
As I said before danners some people cannot help themselves but stir trouble Johnny being one of them.
Great news for Prem and hopefully kodal will get there deal cross the line if only just to stop the the likes of Johnny being a proper tool been good the last few days olon both boards let’s try and continue that also Prem investors should call the likes of Johnny out otherwise it descend to what we had before and nobody wants that.
Well said Danners some just want to goad the machine for their own agenda.
Good news for Prem hopefully this will keep all Prem investors of the kodal board but who knows I’m sure we will have one of them to start giving it the big un.
That goes without saying clueless nobody thought there be a war in Europe but there is tell that to EUA investors and Let’s be honest the amount of envy hurdles you have to Do In the
Western world To mine is endless tell that to Rio when they wanted to mine in Serbia.
Hey useless apart from being clueless you can back off with your deramping we are old enough to make our own decisions on our board dedicated to kodal now we know your another Prem investors holding grudges I asked Lav to stop talking senses to your board as they say you can lead a horse to water but you cannot make them drink it. Bit like prem investors but that’s there choice!
Anyway I can get you a good deal on that pilot plant that don’t work how much was it 35 million on a piece of cr#p that dome work.
Can offer £2000 and I’m doing you a favour!!
Lav do kodal a favour as we have them on our board now causing crap leave it to them they know better understand I know your credentials and unfortunately it is not taken well so as I said leave it to them and leave them at it they are grown adults and they shouldn’t be investing if they don’t know the consequences.
Arrrrr straightandbiased I should say I see the amounts of post ratio you have with kodal and prem makes sense now I wonder if you have more thought in George’s interview when he didn’t even know what was happening at his plant or the fact prem could be diluted another 20% which at the moment we have no worries about that!
Good effort mate but we can see what your doing.
Time will tell my dear friend and eventually it will all come to light.
2025 first quarter is good for me by the way if that how it plays out.
Let’s hope prem can get passed its Problems for the date you mentioned.
What you with your balls dude is up to you ;)
But there is a lot that are invested in both companies also there is a few heavily invested in one company be it kodal or prem be nice for both to succeed and Lav does bring up some good points on this new technology and if it is successful I imagine will be used by many mining companies.
But as I said before there is a long way to go in both companies to be up and running and profitable it is just a matter of time and patience.