PLATINUM producer Zimplats has reduced its ownership in four key associate companies in the country, in a strategic move aligned with Zimbabwe’s economic empowerment objectives.
The divestments, detailed in the company’s financial results for the year ended June 30 2025, forms part of an approved economic empowerment plan.
“In terms of the approved economic empowerment plan, the group disposed of 5% shareholding in each of: Palmline Investments (Private) Limited, Voltron Mining (Private) Limited, Mine Support Solutions (Private) Limited and Value Bridge Investments (Private) Limited…during the year,” the report states.
These stakes were transferred to Dalebrands (Private) Limited, a special purpose vehicle wholly owned by the Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust (CSOT).
Consequently, Zimplats’ ownership interests in these entities decreased.
Palmline, Voltron, and Value Bridge now see a 5% reduction, with ownerships standing at 35%, 30%, and 30% respectively.
The most significant relative change is in Mine Support Solutions, where the group’s holding was halved from 10% to 5%. However, financially, the carrying value of these investments on the balance sheet remains notably low.
Only Value Bridge Investments is recorded with a substantial value of US$1,789 million from US$2,062 million recorded in 2024, while the other three associates are carried at zero value, suggesting they may be loss-making, immaterial, or their carrying value was fully impaired.
- FC Platinum reach Chibuku Cup last eight
- Inside sport: The right way to do it
- FC Platinum 8 points clear as Chicken Inn falters again
- FC Platinum move six points clear
Keep Reading
Beyond equity, Zimplats maintains significant financial ties to these associates through long-term loans.
The total loans receivable from them increased slightly to US$9,163 million from US$8,989 million. Palmline Investments is the largest debtor, with loans amounting to US$7,702 million, followed by Voltron Mining at US$1,129 million and Mine Support Solutions at US$332 000.
In a broader context, the company’s trade and other receivables saw a substantial increase, jumping to US$368,3 million from US$282,6 million the previous year, the report shows.
This was primarily driven by a significant rise in trade receivables from related parties, which ballooned to US$273,7 million from US$175 million, indicating a major increase in sales or services provided to connected entities on credit.
