• Sun. May 26th, 2024

Goldstar Sugars resumes operations after 6 day closure

ByEconomic Times

Feb 23, 2023

By ETimes

Goldstar Sugars (GSS) has resumed operations at its Harare Refinery after being temporarily closed for six days over a raw sugar price dispute with a supplier in the market.

GSS is a subsidiary of Zimbabwe Stock Exchange-listed firm Starafrica.

The subsidiary revealed that the increase in the price of raw sugar makes it challenging for the firm to produce and sell refined sugar at a competitive and viable price.

Earlier on, the company said it was engaging the supplier and the government over the issue.

“The Board of Directors of Starafrica Corporation Limited is pleased to inform its stakeholders that the refinery at Goldstar Sugars resumed operations on Sunday, 19 February 2023.

“This followed the successful resolution of the pricing of raw sugar and the trading terms thereon, between the Company and the raw sugar supplier,” GSS said in a withdrawal of cautionary statement.

The company reiterated that it will continue to serve the market despite a challenging trading environment.

“GSS has resumed the supply of granulated white sugar to the market and will continue to do so for the foreseeable future,” it said.

“Customers have been advised of this development and the resultant refined sugar prices.”

Starafrica closed its last trading day at $1.68 per share on the Zimbabwe Stock Exchange (ZSE), recording a 2.4% drop from its previous closing price of $1.72.

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The stock began the year with a share price of $2.11 but has since lost 20.6% off that price valuation, ranking it 46th on the ZSE in terms of year-to-date performance.

According to analysts, shareholders’ worries are compounded by the fact that the company has lost 18% of the stock’s value from January 23rd to date – Harare

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