Mwana Africa PLC - Cost cutting progress
(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 03 September 2013
Release date- 30082013 - Further to the announcement made on the 24th of June, in which Mwana announced its intention to seek annualised savings from budgeted corporate costs of around $5m, the Company today announces the following measures.
The Company's Non-Executive Directors have all agreed to a 50% reduction in their fees, effective immediately.
The Chief Executive Officer has agreed to reduce his salary by 25%, effective from 1 September 2013, and has waived the GBP330,000 (c US$510,000) bonus that was awarded to him for the year to March 2013.
Senior management have agreed to salary cuts ranging from 15% to 20%, effective from 1 September 2013.
The Company has also decided to significantly scale down its London presence.
The expected annualised savings from these cost cutting measures is $2.6m. The remainder of the cost savings will primarily be achieved through a review of suppliers' contracts, reducing advisory costs and benefiting from ancillary savings associated with the scaling down of the London office.
Further updates on progress and developments will be announced in due course.
Mwana Africa PLC
Tel: +44 (0)20 7654 5580
Liberum Capital Limited
Tel: +44 (0)20 3100 2000
Tel: +44 (0)20 7920 3150
About Mwana Africa PLC
Mwana Africa PLC is a pan-African, multi-commodity mining and development company. Mwana's principal operations and exploration activities cover gold, nickel, copper and diamonds in Zimbabwe, the DRC and South Africa.
Mwana's Freda Rebecca gold mine in Zimbabwe, having restarted operations in 2009, produced 65,350 ozs of gold in the 12 months to March 2013. In February 2013, Mwana announced that the gold mineral resource at its Zani Kodo project in Democratic Republic of Congo had increased to 2.6 million ounces. In February 2013, Mwana announced it had signed a Joint Venture Agreement with Zhejiang Hailiang Company Limited to jointly explore some of its copper license areas in the Katanga Province of the DRC.
The restart of operations at The Trojan Nickel Mine (owned by Mwana's Zimbabwe subsidiary Bindura Nickel Corporation ('BNC')) followed four years during which all of the BNC assets were on care and maintenance. In September 2012, BNC carried out a restructuring and recapitalisation involving US$23m being invested into BNC which has allowed it to restart the Trojan mine. First sale of concentrate to Glencore took place in April 2013.
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