Simunye Mines Ltd$.($Simunye$)$ is a global precious metals mining group listed on the Johannesburg Stock Exchange. The group mines a mix of metals that includes platinum group metals $($PGMs$)$ and gold, as well as related products. The company is listed on the Johannesburg Stock Exchange and has been making fruitful profits in the $2023$ financial year. The head office is situated in South Africa. Simunye owns and operates assets across South Africa through various subsidiaries. It also has PGM operations in the United States of America $($USA$).$ The Chief Executive Officer, Mr Harry Zweli is of the opinion that Simunye should use the surplus profits to repurchase shares $($Share buyback$)$; however, the board of directors thinks Simunye should amend its dividend policy to pay out an extra dividend to its shareholders with the surplus profits. Mr$.$ Zweli didnt seem happy about the board's decisions, as he wanted Simunye to return capital to shareholders with the share buyback.

Required:

$1.$ How is the announcement of Nezcafe's dividend policy likely to affect the share price? $(15$ marks$)$

$2.$ Explain why Mr$.$ Zweli wants to use the share buyback to return capital to shareholders. $(15$ marks$)$