Home / International News / Zimbabwean Gold price to gain an incentive

Zimbabwean Gold price to gain an incentive

In order to incentivize gold production in Zimbabwe, an additional payment above the contractual purchase price will be provided by Fidelity as announced.

Caledonia’s operating subsidiary Blanket Mine sells its gold production to Fidelity in Zimbabwe and is contractually entitled to receive a price which is derived from the afternoon price fixed by the London Bullion Market Association (the LBMA price) the day after the bullion delivered has been assayed.

The announcement by Fidelity states that to incentivize gold production in Zimbabwe it will pay an incentive price over and above the contractual purchase price.

This incentive price will be $44,000 per kilogram ($1,368.55/ounce), a premium of approximately $86/ounce (6.7%) on the current prevailing LBMA Spot price.

At this stage it is unclear how long the gold support price will remain in place, how, when and by what rationale it may be adjusted in the future and whether the additional income associated with the gold support price will be subject to Zimbabwean income tax or royalty deductions.

A request for further clarifications regarding these issues has been made hence the public will be informed in due course should need arise.

Check Also

Mopani to shut down two shafts on the Copperbelt

As part of efforts to ensure Mopani has a viable future the company is planning …

Leave a Reply

Your email address will not be published. Required fields are marked *

ten − one =