How troubled Boseto mine collapsed
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After barely three years of operation, Boseto mine has been closed after being declared insolvent by its Board of Directors. The Discovery Metals Limited’s 100% owned copper mine has had a series of operational difficulties and battled debts since production commenced in the first half of 2012.
The financially troubled mine in its last quarterly report (Q2 FY15) experienced a mass decline by 13% of its copper production compared to Q1 FY15. The Copper Mine which lies in the north-west part of Botswana, about 90KM from Maun had an initial evaluated mine life of 15 years with an expansion plan that was to increase the life of the mine to 25 years.
On the fateful morning of Friday 27 the company was forced to shut down its operations, leaving about 422 miners unemployed. Reports are that this came after the company’s Managing Director and also Chief Executive Officer, Bob Fulker announced to the employees that its Group lenders in Australia submitted a letter of demand for an immediate payment of 103 million US dollars from the company and that they would not be accepting any further proposal from alternative potential investors.
With the help of Botswana Police Service and the Directorate of Intelligence Services and Security workers, the employees were forced to evacuate the mining premises and raided into buses which transported them to Maun.
DML recently published a market release titled “Appointment of Administrators” dated 27 February 2015 which explains how the company came to be declared insolvent. In the statement the company announces that its Board of Directors has appointed Michael Ryan and Stefan Dopking of FTI Consulting as voluntary administrators of the company effective 27 February 2015, pursuant to section 436A of the Corporations Act of 2001.
According to the report, the administrators are working with the company’s management to fully understand the options available to the group, which may potentially include seeking expressions of interest to purchase the business and assets, a restructure or recapitalization of the group.
DML explained that the receipt of the Friday 27 2015 correspondence from its Lender Group who demanded from the company full and immediate repayment of all monies comprising principal repayments, interest and costs was only the beginning.
On the 9th February 2015, DML entered into a Memorandum of Understanding (MOU) with Castlepines Global Equities Limited (Castlepines). Under the terms of the MOU Castlepines proposed to invest US$110,000,000 into the DML’s wholly owned subsidiary Discovery Copper (Botswana) (Proprietary) Limited (DCB), which would provide Castlepines with a 34% interest in DCB with the company holding the remaining 66% interest in DCB.
According to the report part of the investment was intended to be utilized by the Company and DCB to pay-out the loan from Cupric Canyon Capital LP (Cupric) of US$5,000,000 pursuant to the Facility Agreement dated on 28 November 2014. Also to negotiate the settlement of the existing loan finance facility with the Company’s secured lending syndicate (based on the MOU) and sufficient capital to undertake the required underground development.
However, following provision of the MOU to the Company’s Lender Group DML received a Notice of Event of Default dated 10 February 2015 from the Lender Group advising that the execution of the MOU by the Company was a likely breach of the Amended and Restated Facility Agreement dated 13 July 2014. The Company then disputed the position taken by the Lender Group in this Notice of Event of Default.
The statement further indicated that as a result of the Notice of Event of Default dated 10 February 2015, Cupric also issued a “Notice of Default and Reservation of Rights.” The notice was claiming breach of the Facility Agreement between the DML and Cupric dated 13 February 2015. According to the report Cupric is provided with a right to issue a notice of default via the Priority Deed pursuant to the Cross Default provisions.
It is underscored that members of the DML Board and Executive Team then traveled to London to engage in discussions with the Company’s lending syndicate. The purposes of these discussions were to resolve any issue provided for under the disputed Notice of Event of Default dated 10 February 2015.
It was also meant to discuss the MOU with Castlepines and the actions required by the parties to proceed progressing with the transaction contemplated under the MOU and any other matter relevant to the Amended and Restated Facility Agreement dated 13 July 2014 which either party considered necessary to resolve.
Following these discussions and at the express request and encouragement of the Lenders, DML reports to have then formally wrote to the Lenders requesting written agreement of retracting the Notice of Event of Default dated 10 February 2015. It also demanded implementation of a Standstill Period of no less than six months pertaining to all obligations and requirements pursuant to the Amended and Restated Facility Agreement and whereby no enforcement action would be taken by the lending syndicate.
In addition it also requested for the lending syndicate to accept the proposal of Castlepines to settle all amounts owing by DML in accordance with the terms provided for in the MOU with Castlepines. Also to complete a Share Purchase Plan or Rights Issue allowing for interim funding to be raised to provide the Company with some working capital and to pay part or all of the Loan payable to Cupric pursuant to the Facility Agreement dated 28 November 2014.
In response DML is reported to have received a notice that the Lender Group will not provide the written agreement requested by the company. The statement reveals that DML remains in default of the Restated and Amended Facility Agreement with the lending syndicate dated 13 July 2014 and the Facility Agreement with Cupric dated 28 November 2014. It adds that the Company is unable to remedy these defaults.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.