Buy shares in ZCCM Holdings, citizens urged

ZCCM Investments Holding has implored Zambians to take advantage and buy shares floated by the company on the market.

During a ZCCM-IH share sale-down interactive meeting at Mulungushi International Conference Centre on Friday, ZCCM-IH chief financial officer Mabvuto Chipata said his company, through the share sale-down, intends to increase participation of Zambians in economic development.

We want to ensure a broad distribution of shares in order to increase the liquidity and trading of ZCCM-IH shares on the LuSE [Lusaka Stock Exchange]. We want to comply with LuSE listings requirements regarding the minimum percentage of shareholding available to the public, implement GRZ’s initial intention of the second phase of privatisation and also raise revenue for the treasury,

he said.

Mr Chipata said ZCCM-IH has put up 27,961,237 shares for sale at an offer of K38 and K40 as market price.

The preferred applicants, who are Zambian companies or the local people, will not pay any transaction fees but foreign nationals or companies will pay a transaction fee of 1.37 percent,

he said.

Mr Chipata said the share sale-down which has a percentage offer of 17.4 percent, closes on November 30, 2015, adding that the results of offer will be announced on December 14.

“We extended the period of offer for another two months in order to provide more opportunity to every Zambian within the country to know about the offer.We do not want to have at the end of the day people saying they did not hear about the offer,” he said.

ZCCM-IH share sale deferred

THE sale of ZCCM-IH shares to the public has been extended to November 30, 2015, due to lack of adequate information on the preferential market offer.

This is in compliance with the listing rules of the Lusaka Stock Exchange (LuSE), and an announcement made by ZCCM-IH on Friday August 7, 2015, detailing the salient terms of the preferential secondary market offer.

The investing public has been advised that the period for the preferential offer has been extended to Monday, November 30, 2015.

According to information posted on the Industrial Development Corporation (IDC) website, the preferential offer was targeted to close on Friday, October 2, 2015, but ZCCM-IH has noted that most members of the public have not been able to access adequate information on the preferential offer due to the delayed availability of the information supplement.

“The company has decided to extend the offer period to Monday, November 30, 2015. The revised time line for the offer is shown under the revised salient dates,” the announcement reads.

First Quantum Minerals reports stable power supply to its Zambian operations

Zambia – First Quantum Minerals said on Monday that the Zambian power situation is stabalising enough that it anticipates its Sentinel copper mine, in Zambia’s North Western province to begin commercial-level production by the end of the year.

Sentinel, which has been in construction by First Quantum Minerals since June 2012, will produce between 280 000 and 300 000 tpa of copper at full production from a large low-grade ore body containing 0.51% copper.

Sentinel’s ramp-up to date has been affected by the limited power supply. Despite this, good progress has been made. One power line, supplying 55 MW is currently connected and supplying power to the Sentinel mine while construction of the second power line connecting Sentinel to Lusaka West is complete and scheduled to be energized shortly.

Once the second power line is connected and energized, Sentinel will be entitled to its full power requirement of 160MW. This will allow for the mine to ramp-up towards commercial-level production expected by the end of 2015.

Further, full power of 153 MW is currently being provided to First Quantum Minerals’ other Zambian operation – the Kansanshi mine and smelter.

ZESCO, the state-run power company, has requested the mining industry to use supplementary power for 30% of their requirements. Discussions are currently underway regarding the related tariffs for this supplementary power. First Quantum Minerals expects full production at both Kansanshi and Sentinel through the purchase and sharing of this power.

It is also expected that the country’s generating capacity will improve following the rainy season starting in November. In addition, approximately 400 MW of new power generation capacity is expected online in Zambia in 2016 from projects nearing completion – which includes 300 MW thermal and 100MW hydro power.

Meanwhile, in response to low commodity prices, market volatility and power shortages to its Zambian operations, First Quantum Minerals has taken steps to protect itself in the current market conditions, says First Quantum Minerals Chairman and CEO Philip Pascall.

“Our focus has been clear. It is first to ensure that profitability and cash flow from our mining operations are maximized and protected in these volatile market conditions and sustained lower commodity prices and second, that cash outflows are limited to essential and economically attractive projects so that our balance sheet integrity is maintained.

“Additional initiatives to further strengthen the balance sheet are being prioritized and are under active review.