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Meikles embraces indigenisation, ventures into mining

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Meikles is set to go into mining once its joint venture, Meikles Centar Mining, secures funds.

The company’s executive director, Mark Wood, told the Meikles agm this week that the company is a joint venture in which Meikles owns 51 percent, making it an indigenous entity.

Meikles Centar Mining is exploring opportunities in about seven minerals. This may give the company the opportunity to resuscitate some struggling gold miners.

Analysts anticipate the Meikles group to post a better performance in the 2014 financial year.

They say the group has strong defensive characteristics, solid market positioning and excellent growth potential.

Analysts also say the unbundling of retail operations and the agriculture concern, Tanganda can unlock value to shareholders.

Meikles say its waiting to access $40 m locked in Reserve Bank of Zimbabwe.

The chairman John Moxon told the agm that if Meikles access these funds, it will allow the group to return to dividend payments.

Analysts say if the company manages to access the funds from the RBZ, this can significantly change the fortunes of the company. The company has earned $26 m from the funds in RBZ since the adoption of the multicurrency system.

The central bank is working on the modalities for Meikles to access the funds.

The RBZ owes the funds because it has debts but Meikles is confident it will access its money because the government of Zimbabwe is a guarantor of RBZ debts.

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