Broken Hill Proprietary (BHP) pulls the plug in funding Zimbabwe's largest PGM ore body mining citing losses.
Without BHP, the project teeters on the edge, as the joint partner lacks the necessary funds
THREAD 🧵: On a Date with Zimplats Holdings Limited - 1
#1. History
In 1981, geologist Peter Vanderspuy, American prospector Ray Smith, and eight private investors formed a syndicate
Their goal was to find rich deposits of precious & base metals. Their dedication paid off, leading them to acquire mine properties
1983, The syndicate, Delta Gold (DG) listed on the @ASX to fund exploration & mine development in Australia
Unlike the quick-return focus of the time, DG's board opted for a long-term view, diversifying exploration geographically and across various minerals
In 1986, Union Carbide (a Dow Chemical subsidiary) forfeited its Hartley Platinum lease in Zimbabwe.
They had abandoned the project 13 years earlier due to poor ground conditions, stope collapse, and low metal prices.
DG later acquired the lease.
In 1990, DG and BHP formed a joint venture.
BHP got a 67% stake by updating a feasibility study and funding the mine's development. BHP began trial mining on the Hartley Platinum Project.
Meanwhile DG partnered with Anglo American and Rio Tinto
The partnership was for the drilling of Mhondoro and Selous Platinum resource
In 1994, DG, BHP, & the Government of Zimbabwe (GoZ) signed a special mining lease
BHP began developing Hartley Platinum Mine in September aiming for a 67% stake in the project.
The special mining lease was applied by new mining investments exceeding US$100 million.
This lease enabled the investor to negotiate with GoZ for reduced levels of taxation, exemptions from mineral marketing regulations & other project considerations.
1995, DG bought Ngezi platinum from Anglo American (Zimbabwe), this proved to have been a successful purchase after drilling sessions
RTZ and Rio Tinto which had bought Anglo American stake in the Mhondoro platinum resource sold their interests to DG & BHP
Mhondoro Platinum project was split between DG controlling 38.7% and BHP with 61.3% in a joint venture.
1998, DG spans off its platinum interests from its gold assets into a special purpose vehicle, Zimbabwe Platinum Mines (ZPM).
This is part one of On a Date with Zimplats Holdings. On part two we look at its development.
If you are interested in investing in Zimplats Holdings which is listed on the @ASX but reside in Zimbabwe please check out this article.
greedysouth.co.zw/2022/12/how-to-invest-in-australia-and-us.html?m=1
Each Sunday will be on a Date with a company listed on the @ASX.
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares