9th Jul 2015 14:47
LONDON (Alliance News) - Mwana Africa PLC Thursday said it has eliminated 12 roles at the company in response to a shareholder vote demanded cost cuts and a reorganised corporate structure.
The mining company said that following its EGM in June it has made 12 members of staff redundant, including a senior manager, expatriates and corporate office staff, while the number of advisers and consultants has also been reduced. It said the restructuring will reduce corporate overheads without affecting the company's operating subsidiaries, which are mainly in Zimbabwe and South Africa.
The board's remuneration and nomination sub committee will initiate an executive search to find suitably qualified leaders for the new organisational structure to develop, support and deliver the company's strategic growth plan, Mwana said.
"Shareholders voted for change at the EGM and with the help of our new directors this process is now well underway," Chairman Yat Hoi Ning said in a statement.
"We expect that our restructuring will take a couple of months as we address a number of legacy issues," Ning added. "Our management team is focusing on reducing costs to mitigate the impact of the current weak pricing environment for gold and nickel, but I am confident that we can deliver a stable platform upon which to build a new, and stronger corporate culture."
Early last month, Mwana said Chief Executive Kalaa Mpinga had left the company with immediate effect, with Ning becoming executive chairman just days after he settled a dispute with the company.
Mwana reported pretax profit of USD11.9 million on revenue of USD84.9 million in the six months to September 30, 2014. It hasn't yet published its full-year results.
Shares in Mwana Africa were trading up 4.8% at 1.10 pence Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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