June 2017

Industry News

Tanzania says Barrick agrees to pay money owed to government

0 Comments

NAIROBI – Tanzania’s presidency said Barrick Gold Corp is willing to reimburse money that’s owed to the government, after President John Magufuli accused subsidiary Acacia Mining of failing to pay billions of dollars of taxes. Acacia surged as much as 11%.

Barrick executive chairperson John Thornton met Magufuli for talks in the commercial capital, Dar es Salaam, on Wednesday, the presidency said in an emailed statement. Barrick confirmed the meeting but not the details of what, if anything, had been agreed.

“Thornton said his company is ready to hold talks with Tanzania that will consider the interests of both sides and is ready to pay all the money it’s expected to pay Tanzania,” Magufuli’s office said. The government welcomes such talks and will establish a panel of experts to negotiate how the company will pay the money and how it will conduct future operations in the country, according to the statement.

The meeting took place two days after the Tanzanian leader accused Acacia of operating illegally and demanded it remit unpaid taxes. The accusation followed an audit of the country’s mineral exports over the past 19 years that found mining companies failed to remit taxes of as much as 108.5 trillion shillings ($48.5 billion) since 1998.

The two sides agreed to discussions to reach a “mutually acceptable solution,” Acacia said in an emailed statement, adding that the company will provide a further update during a scheduled conference call on Thursday. Acacia spokesperson Giles Blackham declined to provide further details.

Toronto-based Barrick, which owns 64% of Acacia, also agreed on Wednesday to help Tanzania build a smelter, according to the presidency’s statement, which didn’t provide further details.

Acacia shares traded 10% higher at 300.80 pence by 2:06 p.m. in London.

“The meeting was constructive and open, with the parties agreeing to enter into negotiations to seek a resolution that is in the best interests of all stakeholders, including Tanzania, Barrick, and Acacia,” Barrick said in a statement Wednesday.

Mining Weekly

Corporate Announcements

ZCCM-IH | Audited abridged results to 31 March 2016

In accordance with the requirements of the Securities Act No. 41 of 2016, ZCCM-IH Plc announces its audited annual financial statements for the year ended 31 March 2016. Below are excepts from the results.

Commentary

  • Performance of the Group continued to be impacted by low global copper prices coupled with low production. The price of copper on the LME further fell from US$6,052/ton at 31 March 2015 to US$4,848/ton at 31 March 2016. As a result, most of the investee companies recorded significant operating losses during the period. Further, the Kwacha depreciated by 48% from K7.5755/US$ as at 31 March 2015 to K11.1800/US$ as at 31 March 2016. This had a significant impact on the Group results.
  • Operating loss reduced by 61% to K858 million (2015: K 2,179million). The Group’s share of losses of equity accounted investees was K2, 210 million (2015: Share of Profit K280 million).
  • Loss after tax was K2, 912million (2015: Loss K987million).
  • Total assets increased by 15% from K8, 504 million to K9, 797 million largely on account of translation differences on equity accounted investees.
  • The Ndola Lime recapitalization project is undergoing hot commissioning. The K651 million shareholder loan that ZCCM-IH lent to Ndola Lime Company Limited (NLC) was converted into Equity in order to strengthen the company’s balance sheet.

Related download

ZCCM-IH Abridged to 31 March 2016.pdf

ZCCM-IH News

ZCCM-IH | Release of 2016 Annual report

On behalf of the Board of Directors, I am pleased to share with you the performance of ZCCM Investments Holdings Plc (ZCCM-IH) as a Company and that of its investee companies during the financial year ended 31 March 2016.

As ZCCM-IH’s investment is largely in the mining sector, the Company experienced low to static growth owing to the challenges faced by the mining sector in general. The mining sector was faced with a significant energy deficit which affected production negatively and consequently led to a reduction in revenues. The situation was further compounded by low commodity prices particularly copper due to increased supply on the market and reduced demand mainly in high copper consumer countries such as China. As a result of the foregoing, investment in the mining sector was reduced and mainly concentrated on consolidation of already existing operations…

Outlook

Beyond these current challenges, the underlying drivers of growth in Sub-Saharan Africa that have been in play domestically in the region over the past decade most importantly, the much improved business environment generally continue to be in place, and favorable demographics are poised to support these drivers over the coming decades. These will anchor medium-term growth prospects…

Appreciation

I express sincere gratitude to my fellow Board members, the immediate past Board members, the Management and Staff of ZCCM-IH for their dedication and commitment during the past year. I again extend my gratitude to the investee companies for their efforts and contributions during the year.

Related download

2016 Annual Report.pdf

Corporate Announcements

ZCCM-IH | Notice of Annual General Meeting

NOTICE IS HEREBY given that the Thirteenth Annual General Meeting of members of ZCCM Investments Holdings Plc will be held on Friday, 14th July 2017 at 10:00 hours at Southern Sun Ridgeway Hotel, corner of Church Road and Independence Avenue, Lusaka, Zambia to transact the following business:

  1. To consider and adopt the Minutes of the 12th Annual General Meeting held on 19th April 2016.
  2. To receive and adopt the audited Financial Statements for the year ended 31 March 2016,
    together with the Reports of the Directors and the Auditors.
  3. To consider and adopt the recommendation to appoint Auditors for the year ended 31
    March 2017, and to authorise the Directors to fix their remuneration.
  4. To confirm the appointment of: Mr Fredson K Yamba, Mr Paul M Chanda, Mr Mateyo C
    Kaluba, and Mr Yollard Kachinda who were appointed Non-Executive Directors since the
    previous Annual General Meeting.
  5. To transact such other business as may properly be transacted at an Annual General
    Meeting.

A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, to vote in his/her stead. The proxy need not be a member of the Company.

The proxy form is available on the Company’s website: www.zccm-ih.com.zm
for those members who wish to be represented at the meeting.

The proxy form must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on 12 June 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 12 June 2017

Related download

ZCCM-IH Proxy Form 13th AGM

Corporate Announcements

ZCCM-IH | Trading Statement

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of the Company wishes to advise the Shareholders ofthe Company that the Earnings Per Share (“EPS”) for the year ended 31 March 2016 is expected to be approximately 195% lower than that for the year ended 31 March 2015.

The decline in earnings is mainly attributed to the underperformance of the mining sector resulting from the low global copper prices coupled with low production.

Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors of the Company.

The Company expects its results for the year ended 31 March 2016 to be released on SENS and published in the local press on or about 13 June 2017. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s Securities until publication of the results.

By order of the Board of Directors

Chabby Chabala
Company Secretary and Chief Corporate Services Officer
Issued in Lusaka, Zambia on 12 June, 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 12 June 2017