A digital copy of the BH24 (06 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
1. ByTawandaMusarurwa
HARARE - Gwanda-based gold pro-
ducer Blanket mine has bumped gold
production by 2,5 percent year-on-year,
as it delivered 42 806 ounces in the year
ended December 31, 2015.
The mine exceeded an initial full-year
guidance of 42 000 ounces.
According to Caledonia Mining Corpora-
tion, which owns 49 percent of the Zim-
babwean subsidiary, output also jumped
10,6 percent on a year-on-year basis in
the final three months of last year as it
delivered 11 518 ounces in the fourth
quarter.
Toronto Stock Exchange and Lon-
don-listed Caledonia says it has main-
tained its targeted gold production of 50
000 ounces per year for the current year
(2016) but expected to increase its rate
of production over the course of the year
as the No 6 Winze shaft was scheduled
to start production from the middle of
the first quarter, providing access to ore
below 750 metres.
Caledonia CEO Mr Steve Curtis said the
improved performance in the fourth
quarter and broadly through the whole
of last year was a consequence of the
implementation of the 'Revised Invest-
ment Plan'.
"Production in the fourth quarter of 2015
was higher than in both the preceding
quarter and the comparative quar-
ter of 2014. Production in 2015 was
also higher than the previous year and
slightly exceeded our guidance.
"The increased production reflects the
continued progress in implementing the
Revised Investment Plan, announced
on November 3, 2014. The completion
of the Tramming Loop on 22-Level (750
meters below surface) slightly ahead of
schedule in mid-2015 was an impor-
tant factor which contributed to the
increased production by alleviating the
underground logistical problems which
constrained production in 2014," said Mr
Curtis.
The CEO however said owing to the high
fixed cost component at Blanket and the
generally stable environment for input
costs, this projected increase in produc-
tion was expected to result in a lower
average production cost per ounce.
"Due to the high fixed cost component
at Blanket and the generally stable envi-
ronment for input costs, the projected
increase in production to approximately
50 000 ounces of gold is expected to
result in a lower average production cost
per ounce," he said.
Meanwhile, as recently as yesterday, the
dual-listed gold firm declared its ninth
quarterly dividend of $0,1125 a share.
As a result of its recent move to report
its financial statements in United States
dollars, the company revised its quar-
terlydividendpolicytopay$0,1125each
quarter, amounting to $0,45 a year.●
News Update as @ 1530 hours, Wednesday 06 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Blanket Mine annual output up 2,5pc
3. By Funny Hudzerema
HARARE - Milk production has
continued to meet national
requirement despite the increase
in production from 37 million litres
in 2009 to 55 million litres in 2014,
the Dairy Services Unit in the Min-
istry of Agriculture, Mechanisation
and Irrigation Development has
revealed.
In an interview, regional dairy
officer in the Ministry of Agricul-
ture, Mechanisation and Irrigation
Development Mr Addmore Waniwa
said the country requires 120 mil-
lion litres of milk per year.
He said the sector had been expe-
riencing several challenges that
have been affecting production.
“The combined effort by all stake-
holders in the dairy value chain
has seen gradual increase in milk
production as evidenced by the
production figures of 37 million in
2009 to 55 million litres in 2014.
“More still needs to be done as
we are still far short of our annual
national milk requirement of 120
million litres and comparative
costs of $0, 40 per litre per farm
gate,” he said.
Mr Waniwa said there was need
to promote the intake of milk to
increase among the public.
“In 2016, there is need for
increased awareness campaigns to
the public on the nutritional ben-
efits of consuming safe milk and
milk products to ensure out out-
put remains relevant in this ever
changing global environment,” he
said.
Finance and Economic Develop-
ment Patrick Chinamasa said in
the 2016 National Budget that
Government will this year sup-
port initiatives to improve on the
breeds and herd size of heifers
with an objective of increasing the
dairy herd from the current levels
of 28 000.
“Government will continue to work
with stakeholders in the dairy
industry to provide incentives for
companies participating in dairy
out-grower schemes,” said Minis-
ter Chinamasa.
Government also introduced
the Dairy Resuscitation Fund to
increase the dairy cattle herd and
milk production.
The monies will be used to import
heifers and sexed semen to
improve breeds and reproduc-
tion.●
3 news
Zim fails to meet yearly milk requirement
5. ByTawandaMusarurwa
HARARE - The majority of local
companies (61,3 percent) are
performing well, while 31,21 per-
cent are struggling to remain via-
ble, a new research by Industrial
Psychology Consultants (Pvt) Ltd
shows.
On the other hand, 7,42 percent
that are 'performing extremely
well'.
Statistical analysis from the study
shows that the industrial sector
in which an organisation operates
influences how the organisation
performs.
For instance, it was noted that
Zimbabwe's product distribution
sector has the highest proportion
of companies that were identified
to be performing extremely well.
Conversely, the agro- process-
ing, the public service and local
government sector have shown
to have the highest proportion of
organisations that are struggling
to remain viable.
IPC noted that the main causes
of poor performance in compa-
nies are as follows: poor internal
communication was the major
cause at 47,2 percent, followed by
poor cooperate governance (40,9
percent), liquidity problems (37,5
percent), unclear performance
goals for employees (36,9 per-
cent), wrong strategic decisions
(36,7 percent).
Explained IPC managing consult-
ant Mr Memory Nguwi:"The main
causes of poor performance in
organisations are linked to how
an organisation’s management
performs. Poor internal commu-
nication, poor governance, pursu-
ing wrong strategies and unclear
employee performance goals were
cited as some of the major causes
of poor performance.
"This implies that if an organisa-
tion wishes to perform well, its
management should facilitate effi-
cient internal communication as
well as practice good governance.
Employee performance goals
should be clearly and objectively
set such that each employee’s
contribution to the overall per-
formance of the organisation is
measurable."
He also said leadership within
organisations was a key compo-
nent of the overall performance
matrix.
"The quality of leadership in each
organisation has a bearing on the
success of failure of a business. An
organisation’s performance also
relies on the performance of the
economy in general.
"Several symptoms of an ailing
economy were cited as major
causes of poor performance.
However, it is interesting to note
that the majority of participants
in the survey view issues related
to organisations' management as
the more important causes of poor
performance.
"This means that organisations
can achieve a lot if they address
their internal issues first."●
5 news
61pc of Zimbabwean companies "performing well"
7. BH24 Reporter
HARARE - Consilium Corporate
Recovery Master Fund Ltd, which
withdrew its statutory demand for
the sum of $4 819 106,18 against
Zimbabwe focused investment
company Cambria last month, has
been ordered by the High Court of
Justice of the Isle of Man to pay
the Company's costs of and inci-
dentals to the Statutory Demand
claim on a standard basis.
The company withdrew the stat-
utory demand in response to
the company's application for an
injunction.
According to Cambria his Honour
the Deemster Doyle stated in his
judgement that, "In my judgment
the Defendant should have pro-
vided, on a timely basis and in
any event before the time limit
specified in the statutory demand
expired, an undertaking not to
present a winding up claim on the
basis of the disputed debt. It failed
to do so. The undertaking provided
by the Defendant in the Gough
Law* letter dated 5 November
2015 came too late.
“If an undertaking had been pro-
vided on a more timely basis the
claim to prevent the filing of a
winding up claim would have been
unnecessary and the costs of and
incidental to the claim would not
have been incurred.”
Consilium has now chosen to issue
proceedings in the Commercial
Court against Cambria seeking the
Court's determination on whether
Consilium is entitled to create a
fixed charge on Lonrho settlement
monies.
Cambria indicated that it will be fil-
ing and serving its Defence in due
course and denies that Consilium
is entitled to a fixed charge on the
receivables of the settlement with
Lonrho. The Company is also con-
sidering counterclaims it may have
against Consilium.
The claim had arisen over loans
provided to the Cambria by Con-
silium and the validity of latter’s
attempt to accelerate the repay-
ment of the loans as a result of an
alleged change of control on April
13, 2015.
On April 13, Cambria sharehold-
ers approved the subscription
by Ventures Africa Limited of
107,000,000 ordinary shares in
the Company which resulted in
VAL owning 50,55 percent of Cam-
bria. CCRMF and related parties
hold 14,9 percent of Cambria Afri-
ca's shares.●
7 news
Consilium ordered to pay Cambria's legal costs
9. HARARE -The local bourse
remained bullish following today's
trades as the industrial index went
down by 0.21 to close at 114.10
on the back of a dip in selected
heavyweights.
Giant insurer Old Mutual dropped
$0,0411 to trade at $1,9800, while
beverages giant Delta slipped
$0,0050 to $0,6950.
SeedCo eased $0,0035 to settle at
$0,8340.
On a positive note, Dairibord was
up $0,0039 to trade at $0,0689
while Proplastics and Simbisa
both gained $0,0030 to close at
$0,0240and$0,1600respectively.
Banker CBZ and telecoms giant
Econet added $0,0001 each to
$0,1100 and $0,2102, respec-
tively.
The mining index was flat again at
24.27 as Bindura, Falgold, Hwange
and RioZim maintained previous
price levels at $0,0160, $0,0050,
$0,0300 and $0,1040 respectively
. - BH24 Reporter ●
ZSE9
Equities market in third consecutive loss
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12. 12 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
06 January 2016
Energy
(Megawatts)
Hwange 558 MW
Kariba 7019 MW
Harare 0 MW
Munyati 12 MW
Bulawayo 16 MW
Imports 0-100 MW
Total 1316 MW
THE BH24 DIARY
13. JOHANNESBURG - South Afri-
ca's rand fell as much as 0,8 per-
cent against the dollar early on
Wednesday, reaching its weakest
level in more than three weeks as
a gloomy domestic economic out-
look weighs.
The local bourse also got off to a
weak start, with the Top-40 index
shedding 0,88 percent while the
broader all-share index was down
0,78 percent.
The rand slid to a session low of
15,7600 per dollar, its softest since
tumbling to a record-breaking
16,0485 on Dec. 11 after President
Jacob Zuma unexpectedly fired
Finance Minister Nhlanhla Nene.
By 0706 GMT the local unit was at
15,7450, down 0,72 percent from
Tuesday's close.
Zuma's move last month rattled
investors already worried about
sluggish growth in Africa's second
largest and most industrialised
economy.
"Amid relatively thin trading
conditions, rand looks set to
test resistance around the psy-
chological 16,0000/dollar level
soon," NKC African Economics
said in a research note, predict-
ing a 15,6500-15,8500 range for
Wednesday.
Government bonds were flat in
early trade, and the yield on South
Africa's benchmark 2026 issue was
unchanged from Tuesday's 9,645
percent close- Reuters●
regioNAL News13
Rand at 3-1/2 week lows, stocks open
weaker
Ghana to issue 500m cedi ($131m) 3-yr
domestic bond on Thursday
ACCRA - Ghana will issue a
3-year bond to raise 500 mil-
lion cedis ($131 million) on
Thursday to restructure debt
and fund government pro-
jects, the central bank said on
Tuesday.
The leading West African com-
modities exporter is under a
three-year aid programme
with the International Mone-
tary Fund to fix its economy,
dogged by budget deficits,
inflation and a widening pub-
lic debt.
Proceeds from the bond, which
is open to offshore investors,
will be used to settle matur-
ing papers, the bank said in a
statement.
A 3-year paper issued in Octo-
ber had a 24,5 percent yield,
up from 23,47 percent paid on
a similar paper previously.
Interest rates in Ghana are
among the highest in the
region, reflecting the fiscal
challenges facing the econ-
omy.
Its total public debt is around
70 percent of GDP, while con-
sumer inflation stood at 17,6
percent in November, up
from 17,4 percent the month
before.
The yield on Ghana's weekly
benchmark 91-day treasury
bill stood at 22,7939 percent
last Thursday.- Reuters●
14. SINGAPORE - Brent crude oil
prices gave back earlier gains
on Wednesday, retreating close
to 11-year lows as concerns
over growing supply and rising
stock levels outweighed tensions
between key Middle East produc-
ers.
A rift between Saudi Arabia and
Iran over the Saudi execution of a
Shi'ite cleric failed to boost prices
this week, as it appeared to put
an end to speculation that OPEC
members could agree on produc-
tion cuts to lift prices.
Global Brent crude benchmarks
were at at $36,45 a barrel at 0613
GMT (1.13 a.m. ET), close to their
last settlements and within half a
dollar of an 11-year low of $35,98
a barrel they fell to in December.
Support for crude futures came
from the physical market, where
Saudi Aramco on Tuesday raised
its February price for Arab Light
grade for Asian customers by
$0,60 versus January.
US crude futures were up a notch
at $36,08 per barrel after slipping
79 cents in the previous session.
With prices near multi-year lows,
analysts said that oversupply
remained the main concern in the
market.
"Lingering concerns about growing
supply continued to outweigh the
implications of rising tensions in
the Middle East," ANZ bank said,
referring to global production out-
pacing demand by hundreds of
thousands of barrels every day.
Adding to this oversupply, Iranian
oil exports are widely expected to
increase in 2016 as Western sanc-
tions against the country for its
alleged nuclear weapons program
are likely to be lifted.
Still, a senior Iranian oil official
said the country could moderate
oil export increases once the sanc-
tions are lifted to avoid putting
prices under further pressure.
"We don't want to start a sort of
a price war," Mohsen Qamsari,
director general for international
affairs of the National Iranian Oil
Company (NIOC), told Reuters in
an interview. "I have to say that
there is no room to push prices
down any further, given the level
where they are."
In the United States, concerns over
mounting stock levels were ongo-
ing, with crude inventories likely to
have risen by 439 000 barrels last
week, according to a Reuters poll
of eight analysts.
"The market is worried about
inventory data that will be released
over the next two days. We are
expecting a rise in crude oil inven-
tories, which should put further
downward pressure on prices,"
ANZ said.
The US Energy Information Admin-
istration (EIA) will publish its
closely watched weekly data at
1530 GMT (10.30 a.m. ET).
The oil market also faced pressure
from a strengthening dollar which
hovered near a one-month high
reached on Tuesday as traders
sought safer havens.- Reuters●
internatioNAL News14
Brent crude oil gives up earlier gains, loiters near 11-year lows
15. ByGarikaiDzoma
In the course of using my internet con-
nection I discovered that my home
internet connection was very insecure
because my ISP had not bothered to
secureit.Whatfollowsisaverytechnical
article. If you are a layman or not inter-
ested in the technical aspects just read
thelaymansectionbelowandskiptothe
last section.
Background
Recently I was using my home WiMax
internet connection and made a very
disturbing discovery. While on previ-
ous occasions my ISP had always put
me behind its firewall and given me a
non-routable IP address and connected
me to the internet using its own servers
which I shared with others, it seemed
thatforsomereasontheteamtherehad
changed tact and decided to give me
public IP addresses and a direct connec-
tion to the internet instead.
That was pleasing news for the most
part. It meant I could now comfortably
enjoymakingsecureshellconnectionsto
my servers without worrying about the
connection constantly dropping among
other things.
It also meant I could easily reach my
home computers whilst on the go and
to that end I created a nifty little script
that automatically updated my Cloud-
flare DNS records so I could access my
computers at home using an easy URL
in the format such as decoder.garikai.
net instead of the hard-to-remember IP
addresses such as 187.0.0.1 which are
always changing anyway.
Theincident(technicalmumbo
jumboahead)
I was floating in a cloud and thought
nothing could bring me down. That’s
when it happened.
You see my home connection is always
hopping from the best Base Station(-
Booster) to a less ideal one once every
six days or so. It’s not a big deal either
because all I need to do is login into the
router, disconnect and reconnect the
connection and I am all set.
During the process of trying to reset my
connection I made the mistake of enter-
ingmyURLinsteadofthelocalIPaddress
of the router. I was presented with a
somewhat unfamiliar logon screen but
sinceitsaid"GreenPacket"(thenameof
the company that made my modem)on
the corner I assumed this was only due
totherouterhavingupdateditsfirmware
since my ISP has it set on auto update.
ItwasonlyafterIwasabletologonand
discovered an unfamiliar base station ID
in addition to the really unfamiliar admin
area. This device also seemed to be
WiFi capable when mine is not. Shocked
I quickly logged off and tried to log on
using the local RFC 1918 IP address
instead and sure enough it turned out
thatIhadaccidentallyloggedintosome-
one else’s internet connection.
Laymanexplanation
What this all means is that I inadvert-
ently “hacked” into someone’s modem
because it was set up in an insecure
way and had a password similar to mine
because both mine and this modem had
the same default passwords and were
exposed to the internet.
Whathad justhappened(The
Geekyterms).
I had accidentally set a very high TTL
value for my home DNS record. This
meant that every-time my home ISP
changed and was updated using the
update DNS which I had put in both the
ifup and ifdown folders in my Ubuntu
machine it would take a while to propa-
gate across the internet.
15 analysis15 analysis
Essential tips to secure your home internet connection
16. 16 analysis16 analysis
So when I used my domain to try and
access the CPE interface I was actually
login on using an expired IP address
which had already been allocated to
someone in that short space of time.
I decided to investigate this deliberately
and made an even more shocking dis-
covery. It seems I could pretty much
view any of my fellow ISP’s customers’
CPE interfaces.
Given how most people tend to errone-
ously believe that their ISPs have done
all that is required to protect them I
had no doubt that all these customers
had never even bothered to change the
default username and passwords which
I had just discovered were the same for
every device due to my previous error.
With the Facebook row still fresh in my
mind I resisted the urge to logon into
these CPEs as this might be considered
unethical.
Laymanterms
My ISP has not adequately secured the
modems (CPEs) that they give to peo-
ple which means they are vulnerable
and can easily be hacked into even by
someone as hopeless at using comput-
ersasmyself.Mostdevicesusethesame
defaultpasswordthatisalmostuniversal
to most routers and modems.
TheISPepisode
Enraged, I decided to call my ISP’s cus-
tomer support only to spend a whole full
hour without making much progress.
How can an estimated wait time of 6
minutesturnintoanestimatedwaittime
of 17 minutes while one is on hold the
whole time is beyond me.
Iwasn’tabouttowastepreciousminutes
of my time trying to do what was clearly
impossible so I have settled for the next
best thing: Warning you, the customer
andtellyouthatyoumightnotbeassafe
as you think.
Two essential things you should do but
your ISP might not tell you.
You need to install a firewall on all your
computers so that you can control and
monitor the traffic that comes in and out
of your machine. Most people’s comput-
ers and internet connections are being
used as part of botnets without them
being the wiser.
On Windows: Windows comes with a
built in firewall but I prefer Avast’s fire-
wall myself. You should always remem-
ber that in the Windows world the best
things are usually the ones you paid for,
something AVG free people learnt the
hard way.
On Ubuntu et al you can always use ufw
(uncomplicated firewall). If you are one
of those people who is irrationally afraid
of the command line you should make
use of the many available GUIs for this
utility.
On Android you can use Mobiwol's fire-
wall. It does not require you to root your
device and works by craftily creating a
VPN connection through which you can
filter your traffic. It is also a good way to
save on your data costs and solves the
mystery of disappearing airtime.
IfeellikeIneedtosayitagain:Youneed
afirewalltoprotectyourselffromthebad
world out there.
The second thing that you need to do is
to change the default passwords on all
your devices. Only an imbecile would
use a joe for a password in this day and
world.
This is when the username and pass-
wordisthesameandyetitwouldappear
thatisexactlywhatmyISPdoes.Utterly
shocking I know, but still true.
While most devices come with safe-
guardsthatpreventthisfromhappening
it seems Green Packet and my ISP are
yet to get the memo. Change the pass-
word to something you can remember
but is sufficiently complex enough to
thwart and fend off all non-nonchalant
attempts to break in.
Upgrade your device’s firmware on a
regular basis. This applies to your WiFi
router and CPE. Make sure to speak
to your ISP about the latter but there
should be no reason why anyone would
defer from updating to the latest firm-
ware but sometimes firmware updates
might bring compatibility issues.
If, for some reason, your ISP does not
want you to update your firmware or as
in my case they set up an auto update
that clearly does not work, make sure
to scream at them and call them names
until they repent and mend their ways.
Conclusion
Weliveinaperilousworldasfarasinter-
netsecurityisconcerned.Withmoreand
more people using online services secu-
rity can only become more important.
Coupled with the fact that broadband is
becoming commonplace the basic steps
outlined above cover the bare essential
stepsthatyouneedtotaketomakeyour
connection acceptably safe.
Trusting your ISP to do this on your
behalfisclearlymoronicasmostofthem
cannot be bothered. - TechZim●