Agoracom

Zimbabwe-focused miners up on Mugabe loss

Zimplats Holdings Ltd, a producer of platinum in Zimbabwe, rose the most in almost a year in Sydney trading after Robert Mugabe, the nation`s president for 28 years, lost his majority in parliament.
Support for Mugabe withered as his policies spawned a decade-long recession and the world`s highest inflation rate, 100,580%, slashed exports and caused shortages of fuel and food.

On March 7, he approved laws to compel foreign companies to sell 51% of assets to black citizens of Zimbabwe, which has the
world`s second-biggest platinum and chrome reserves.

"Getting rid of Mugabe would leave hope for people and there would obviously be a significantly improved sovereign risk factor,`` Grant Craighead, a commodities analyst at Stock Resource, said. "It`s a resource-rich country and it would open up numerous opportunities.``

Guernsey-based Zimplats rose by A$1.60, or 11%, to A$15.90 at market close on the Australian Stock Exchange. It is the company`s biggest gain since April 30 last year.

Bermuda-based Aquarius Platinum Ltd, another producer of the metal in Zimbabwe, rose A$1.30, or 8.1%, to A$17.39. That was its biggest gain
since February 4. It has gained 33% this year, compared to a 12% decline in the benchmark index.