https://www.miningweekly.com

Northam buys back a further 37m Zambezi preference shares

15th October 2020

By: Donna Slater

Features Managing Editor and Chief Photographer

     

Font size: - +

Platinum group metals miner Northam has acquired an additional 37.17-million preference shares in Zambezi Platinum for about R3.5-billion, taking Northam’s preference share holding in Zambezi to about 70%.

The Zambezi acquisitions have been fully funded through Northam’s internal cash resources.

The face value of the Northam-owned preference shares as at October 15 – calculated as the initial issue price of the Zambezi preference shares plus accumulated preference share dividends – amounts to about R9.1-billion.

Northam’s acquisition of Zambezi preference shares will reduce the preference share dividend expense and liability in Northam’s consolidated financial statements, as well as Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi preference shares, should the guarantee be called upon.

Further, should Zambezi elect to redeem the Zambezi preference shares through a distribution of ordinary shares in Northam held by Zambezi, the redemption of the Zambezi preference shares held by Northam, at such time, will result in a distribution of Northam shares to Northam, thereby reducing the number of Northam shares in issue.

Northam CEO Paul Dunne says the company has continued to return significant value to shareholders by accelerating the purchase of Zambezi preference shares to the current 70% holding.

“This strategy will positively impact future earnings and earnings a share and will add to the success of our empowerment transaction.”

He adds that Northam no longer considers the back-up guarantee provided in favour of the Zambezi preference shareholders to be a dilution risk to Northam ordinary shareholders.

“This is a significant milestone for the company. Our mines and operations have proved to be resilient following the Covid-19-induced national lockdown and the commitment demonstrated by the Northam employees in restoring operations to normality has been outstanding.”

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ZF Aftermarket
ZF Aftermarket

ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.

VISIT SHOWROOM 
Vikela Aluvin (Pty) Ltd
Vikela Aluvin (Pty) Ltd

Complete range of security sealing solutions including security seals bags and labels.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.047 0.642s - 126pq - 2rq
Subscribe Now