Mwana halves directors’ fees, slashes CEO salary to improve profitability

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By the Source on January 23, 2014.

Mwana Africa has cut salaries for its chief executive and senior managers by up to 25 percent and halved the fees paid to directors to help the company move back into profitability, an official has said.

The chief executive, Kalaa Mpinga told an investors’ event in London last week that the company expects to achieve an annualised production of 8,000 tonnes of nickel in concentrate in the first half of 2014. Mwana’s Bindura Nickel Corporation (BNC) achieved its highest nickel production levels ever last August with 714 tonnes before bettering that mark in September with 993 tonnes.

Mpinga said at Freda Rebecca the company plans to increase the production base to 100,000 ounces of gold in the full year. Over the last two quarters, output was at 17,536oz and 13,072oz respectively while in the 12 months to March 2013, it produced 65,350oz.

Revenue in the first half of 2014 is seen seven percent higher at $65 million, while profit after-tax is expected to grow 88 percent to $7.5m.

The company expects a 40 percent reduction in exploration spend, although capital investment would be nine percent higher due to costs related to the restart of operations at Trojan Mine.

Mpinga said the company had slashed non-executive director fees by 50 percent and reduced the CEO’s salary by 25 percent.

It also cut executive management salaries by between 15-25 percent and reduced the number of personnel at its London offices.

According to Mwana Africa’s 2013 annual report, Mpinga the CEO and the financial director, Donald McAlister, earned $1,269,686 and $943,088 in salaries and bonuses, respectively. Directors earned varying amounts between $72 000 and $158 000.