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Industry News, ZCCM-IH News

Angola’s new diamond trading policy yields positive results

Angola’s new diamond trading policy generated an average annual growth of gross revenue of about 8.5% in the past two years.

According to a media statement issued by Sodiam – the National Diamond Trading Company of Angola-, while in the 2016-2017 period gross revenue grew by 2.3%, in 2017-2018 it grew 10.8%, totalling $1.22 billion, and in 2018-2019 it grew by 6.2%, totalling $1.29 billion.

WHILE THE TRADING POLICY IS YIELDING POSITIVE RESULTS, ENDIAMA EP, A STATE-OWNED COMPANY THAT CONTROLS DIAMOND MINING CONCESSIONS IN ANGOLA, IS PREPARING FOR ITS IPO IN 2022

The positive results follow a 2018 decree that eliminated the figure of ‘preferred customer’ and implemented new ways of selling diamonds.

Before, preferential customers who were chosen by the head of state were the only ones who could buy diamonds from Sodiam at discounted prices and within specific quotas. This led to monopoly practices and corruption.

“In this period from 2012 to 2017, eight companies operated exclusively in Angola, under the status of preferential customer, and from 2013 to 2017, the companies Iaxon, Relactant and Odyssey, together, acquired more than 50% of the diamond production,” the media brief states.

To put a halt on such practices, the 2018 decree proposed a new sale modality that involves contracts or sights, auctions/tenders and spot. To take part in this, Sodiam clients register online on the state company’s website and undergo financial and security checks.

The base sales reference price is defined through an agreement between the producer, Sodiam and an independent evaluator. The purchase is only effective if its offer is equal to or higher than the base sales reference price.

According to the National Diamond Trading Company of Angola, besides the rise in revenues, the new set of measures has sparked interest with more than 120 companies registered in Sodiam’s customer portfolio and three new polishing factories opened in the country.

Source: Mining.Com
Industry News, ZCCM-IH News

Weekly Capital Market Review (2nd to 6th March 2020)

In the first week of March 2020 trading on the LuSE, we see hope for the equities market as it was not completely dominated by the Bond market. Opening the market with a score of 98% to 2% as compared to week one of February with the bond market which scored 100% of sales.

 Equity Market Update

In the week ended 06th March 2020, a total of 5,087,040 shares were transacted in 67 trades, yielding a market turnover of K4,360,121. Trading activity was recorded in AIRTEL, COPPERBELT ENERGY CORPORATION, LAFARGE, STANDARD CHARTERED BANK LIMITED, ZAMBEEF, ZANACO and ZAMBIA SUGAR.

During the week, the company with the highest Market Capitalisation on the LuSE was AIRTEL which also had a high Price to Earnings ratio signaling continued overvaluation of the telecoms company

However, of the traded companies during the week, ZAMBEEF had the highest earnings per share despite having one of the lowest share prices.

The LASI closed the first week at 4260.56, which was a point higher than the previous week (last Friday of February) which was at 4250.48.

The LuSE All Share Index (LASI) closed at 4,260.56 points. The market closed on a capitalization of K57,363,640,096 including Shoprite Holdings and K23,124,434,116 excluding Shoprite Holdings.

The equities market opened on a low as compared to the first week of February, which recorded a total of 51,550,940 shares transacted in 109 trades, yielding a market turnover of K32,059,252.

Bond Market Update 6th March 2020

During the week, bonds of a total face value of K487,260,000 were transacted in 13 trades, yielding a market value sales of K242,792,000. Sales in the opening week of March were almost 10 times stronger than the previous week which positions the current month well should sales continue to be strong in comparison to the dipped performance of February 2020.

Important announcements                           

PUMA ENERGY ZAMBIA PLC

Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Puma Energy Zambia Plc (“the Board”) wishes to announce the resignation of Mr Sidy Bane as Director of the Board effective 28 February 2020. Furthermore, the Board would like to announce the appointment of Mr Mike Baker and Mr Patricio Chababo as Directors of the Board effective 2 March 2020.

ZAMBIAN BREWERIES PLC

The Board of Directors of Zambian Breweries Plc (“the Board”) wishes to advise Shareholders that for the period ended 31st December 2019, the earnings per share is expected to be 81% lower than that of the corresponding period last year for the Company. Earnings for the same period based on profit from continuing operations and adjusted for once-off are expected to be 27% higher.

ZAMBIAN BREWERIES PLC

NOTICE IS HEREBY GIVEN that the 26th Annual General Meeting (AGM) of the members of Zambian Breweries. Plc will be held at the Southern Sun Ridgeway Hotel, Lusaka, Zambia, on Thursday, 26th March 2020, commencing at 09:00 hours, for purposes of transacting the following business:

STANDARD CHARTERED BANK ZAMBIA PLC

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Standard Chartered Bank Zambia PLC (“the Bank”) hereby advises the Shareholders of the Company that the Earnings per Share for the financial year ended 31 December 2019 is approximately 95% lower than for the financial year ended 31 December 2018.

 

Source: 
Industry News, ZCCM-IH News

“Spread the word!” Zambia buys artisanal gold to formalise unregulated mining

LUSAKA, March 6 (Reuters) – Zambia’s mining investment arm ZCCM-IH has started buying gold from artisanal and small-scale miners in a bid to formalise the unregulated sector whose ranks have swelled worldwide as gold prices soar, it said on Friday.

Governments across Africa are scrambling to tackle informal mining of gold, which has significant health and environmental risks and contributes to illicit flows of money, depriving states of revenue when the metal is smuggled across borders.

Ethiopia, for example, runs artisanal gold buying centres which offer a higher price than the going market rate to attract miners away from the black market.

“ZCCM-IH is providing an open market and competitive prices for gold,” an advertisement by the company read, adding that gold sellers could bring the gold to its Lusaka offices.

“Looking forward to doing business with you!” the advertisement, circulated on WhatsApp, read. “It is cash on delivery, spread the word!”

ZCCM-IH did not immediately reply to Reuters’ query about the price the buying centres would be offering miners.

The firm announced in December it would set up centres for buying gold in strategic areas with deposits as a first step towards bringing artisanal and small-scale miners into the formal market.

The buying centres also fit into Zambia’s strategy of boosting revenue from its mineral resources.

 

A Reuters analysis found last year that billions of dollars’ worth of gold is smuggled out of Africa every year through the Middle East. Previous reports have highlighted a black-market trade in gold, mined with little official oversight.

Artisanal miners in Zambia are meant to secure mining rights from the government by submitting relevant paperwork, paying fees and completing an environmental commitment plan.

The state investment company is also proposing to provide technical expertise to artisanal miners on mine planning and safety, and to give them access to earth-moving machinery and processing plants.

Zambia aims to produce 40,000 kg of gold in 2020 from primary and secondary sources, including artisanal and small-scale miners, according to Mines Permanent Secretary Barnaby Mulenga.

 

As the state seeks to benefit more from large-scale mining too, Mulenga in December said the government plans to make copper mining companies account for the gold they produce as a by-product of the mining process.

First Quantum Minerals’ FM.TO Kansanshi Mine, the only mine that has been declaring its gold production, produced 4,200 kg of gold in 2018.

(Reporting by Chris Mfula in Lusaka; Editing by Helen Reid in Johannesburg and Jan Harvey)

((Helen.Reid@thomsonreuters.com; +27 11 595 2852;))

Source: Nasdaq
Investee Companies, Investee Company News

CECZ – Copperbelt Energy Corporation Factsheet

CECZ • 1.23 ▪ 0.00
3 days ago
ZoomFromMar 14, 2019ToMar 13, 2020May ’19Jul ’19Sep ’19Nov ’19Jan ’20Mar ‘2010.751.251.51.751m3m6mYTD1yAllWednesday, May 29, 2019● CECZ: 1.37
Last Trading Results Growth & Valuation
Opening Price: — Earnings Per Share: —
Day’s Low Price: — Price/Earning Ratio: —
Day’s High Price: — Dividend Per Share: —
Traded Volume: 0 Dividend Yield: —
Number of Deals: 0 Shares Outstanding: 1.63b
Value/Turnover: 0.00 Market Capitalization: 2.00b
Monetary values are quoted in Zambian Kwacha (ZMW) unless otherwise stated

CECZ Stock Market Performance

1WK 4WK 3MO 6MO 1YR YTD
+0.00% -0.81% -2.38% -7.52% -15.17% -1.60%

The stock of Copperbelt Energy Corporation (CECZ) is currently trading at 1.23 ZMW per share on the Lusaka Stock Exchange. CECZ began the year with a share price of 1.25 ZMW but has since lost 1.6% off that price valuation, ranking it 25th on the LuSE in terms of year-to-date performance. The table below details the last 10 trading days of activity of Copperbelt Energy Corporation on the Lusaka Stock Exchange.

Date Volume Close Change Change%
2020-03-11 3,725 1.23 +0.01 0.82%
2020-03-06 9,900 1.22 -0.01 0.81%
2020-03-02 6,321 1.23 — —
2020-02-28 736 1.23 +0.01 0.82%
2020-02-24 1,000 1.22 -0.01 0.81%
2020-02-20 1,790 1.23 — —
2020-02-18 22,352 1.23 — —
2020-02-17 3,182 1.23 -0.01 0.81%
2020-02-12 400 1.24 — —
2020-02-10 1,000 1.24 — —

Profile of Copperbelt Energy Corporation Plc

Copperbelt Energy Corporation Plc operates in the Utilities sector. Unfortunately, we do not have information on the company’s board of directors and/or key executives at this time.

Factsheet of Copperbelt Energy Corporation Plc
Sector:
Utilities		 Industry:
—
Address:
—
Telephone:
—
Email:
—		 Website:
—

Source: Africa Stock Exachange
Industry News, ZCCM-IH News

‘Spread the word!’ Zambia buys artisanal gold to formalise unregulated mining

LUSAKA (Reuters) – Zambia’s mining investment arm ZCCM-IH has started buying gold from artisanal and small-scale miners in a bid to formalise the unregulated sector whose ranks have swelled worldwide as gold prices soar, it said on Friday.

Governments across Africa are scrambling to tackle informal mining of gold, which has significant health and environmental risks and contributes to illicit flows of money, depriving states of revenue when the metal is smuggled across borders.

Ethiopia, for example, runs artisanal gold buying centres which offer a higher price than the going market rate to attract miners away from the black market.

“ZCCM-IH is providing an open market and competitive prices for gold,” an advertisement by the company read, adding that gold sellers could bring the gold to its Lusaka offices.

“Looking forward to doing business with you!” the advertisement, circulated on WhatsApp, read. “It is cash on delivery, spread the word!”

ZCCM-IH did not immediately reply to Reuters’ query about the price the buying centres would be offering miners.

The firm announced in December it would set up centres for buying gold in strategic areas with deposits as a first step towards bringing artisanal and small-scale miners into the formal market.

The buying centres also fit into Zambia’s strategy of boosting revenue from its mineral resources.

A Reuters analysis found last year that billions of dollars’ worth of gold is smuggled out of Africa every year through the Middle East. Previous reports have highlighted a black-market trade in gold, mined with little official oversight.

Artisanal miners in Zambia are meant to secure mining rights from the government by submitting relevant paperwork, paying fees and completing an environmental commitment plan.

The state investment company is also proposing to provide technical expertise to artisanal miners on mine planning and safety, and to give them access to earth-moving machinery and processing plants.

Zambia aims to produce 40,000 kg of gold in 2020 from primary and secondary sources, including artisanal and small-scale miners, according to Mines Permanent Secretary Barnaby Mulenga.

As the state seeks to benefit more from large-scale mining too, Mulenga in December said the government plans to make copper mining companies account for the gold they produce as a by-product of the mining process.

First Quantum Minerals’ <FM.TO> Kansanshi Mine, the only mine that has been declaring its gold production, produced 4,200 kg of gold in 2018.

Source: Reuters
Industry News, ZCCM-IH News

Zambia: heavy equipment engineering’s no longer a male-dominated field

“Everyone has the ability to accomplish great things in life, if they are given the chance. If I, as a woman and a mother, can do it, then everyone can do it. Nothing can stop us from reaching greater heights,” says Daisy Chisulo, a trainee at the Zambia Industrial Training Academy (ZAMITA) in Ndola, the third largest city in Zambia.

In a series of interviews, young female trainees taking part in ZAMITA’s Heavy Equipment Repair training programme smash gender stereotypes by showing their motivation and encouraging female participation in training programmes previously seen as men-only domains.

Zambia is one of the youngest countries in Africa, with a youth population (15 to 35 years old) of 4.8 million, representing 36.7% of the total population. Unemployment is one of the most pressing challenges facing Zambian youth. 

In its National Development Plan for 2017-2021, the Zambian government has set a goal of creating one million jobs over the next five years in key sectors. Next to agriculture, the extractive and transport industries are the biggest existing employers. In order to support the government initiatives to bolster youth employment in key sectors, the UN Industrial Development Organization (UNIDO) is implementing a project to foster systemic change in the development of a skilled workforce.

In 2015, UNIDO, with support from the Swedish International Development Cooperation Agency (SIDA) and in partnership with the Volvo Group, established ZAMITA as a modern training academy able to provide industry-relevant training programmes. In the first phase, over the course of three years, some 450 students received training in skills relevant for the transport and heavy equipment sector. An estimated 75% will find gainful employment after graduation.

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Ruth Mutanga, a final-year student in Heavy Equipment Repair training programme, spoke on behalf of all beneficiaries of the ZAMITA programme. She expressed her gratitude to the donors and administrators of the programme for imparting the knowledge that the students require to become “some of the best engineers the country has ever produced”.

“The programme has changed the minds of female students, which is evident from the fact that now 13% of the students are women. This is a true reflection that heavy equipment engineering is no longer a male-dominated field, as was the case in the past,” she concluded.  

Experience has shown that there are critical factors that help increase female participation in technical training. These include the existence of female role models and male relatives and friends playing a significant role by supporting and encouraging girls to choose a technical career path. In this context, the ZAMITA project puts special focus on making men challenge traditional stereotypes and on promoting respect for women in industrial jobs.

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Chilufya Mukupa is qraduate of ZAMITA’s Heavy Equipment Engineering programme who now works for Kalumbila Minerals, a Zambian subsidiary of Canadian mining company, First Quantum Minerals. Asked what he thought about the statement, “engineering is only for men”, Mukupa replied, “That’s a lie, because in the company that I’m coming from there are female engineers in senior positions. They haven’t got those positions easily. It’s through hard work.”

Mukupa continued, “Engineering isn’t for males only. Females can be engineers. And you will find that most of the women doing engineering are doing fine! You can be anything you want to be regardless of your gender in this world. Nowadays, we even have pilots who are female…We have male doctors, we have female doctors… In the past, it used to be a problem, because men said that certain things were just for men. Nowadays, there’s diversity – things are changing. The world is transforming every day.”

In late 2019, UNIDO, the Embassy of Sweden in Zambia, the Volvo Group and the Government of Zambia pledged to continue their support for ZAMITA until 2022 in order to address the skills shortage in the commercial transport sector. At an event to launch the second phase of the ZAMITA project, Marcus Horberg, Vice President of the Volvo Group Southern Africa, said, “It’s great to see the teachers and their students here – very inspiring – and extra inspiring to see so many women taking part and wanting to be engineers and mechanics in the future.”

At the same event, the United Nations Resident Coordinator in Zambia, Coumba Mar Gadio, said, “We are committed to this task. As we all know, education is a fundamental human right and it is indispensable for the achievement of sustainable development.”

Gadio said that while education needs globally were immense, companies could leverage their resources and core competencies to support governments in delivering on their promise of education for all. “The training of engineers, who are able to innovate, design, create and maintain products, systems and equipment for the benefit and well-being of all peoples, is cardinal,” she added.

Daisy Chisulo

Daisy Chisulo

The ZAMITA trainee, Daisy Chisulo, summed up the attitude of many of the women at the training academy, saying, “I was often told that I was wasting my time by studying heavy equipment repair. I was rather encouraged to study something much simpler, so that I could easily start working on my own…but I took up the challenge, and started studying heavy equipment repair to show people that women have greater capabilities than they think.”

Ruth Mutanga, another trainee, voiced her ambitions, stating, “After completing the course, I would like to have the opportunity to apply all the skills I acquired. I will then use the experience I have gained to help the single mothers out there who didn’t have the chance to attend this kind of courses, by starting up other programmes and opening companies related to engineering activities.”

Editor’s note: In a Political Declaration adopted on 9 March 2020 by UN Member States commemorating the 25th anniversary of the Fourth World Conference on Women, held in Beijing in 1995, leaders noted the importance of, among other actions, “strengthening efforts to realize the right to education for all women and girls, eliminating barriers in this regard, ensuring inclusive and equitable quality education, training and skills development, promoting lifelong learning opportunities, and supporting women’s and girls’ participation in all sectors, especially those in which they are not equally represented, in particular science, technology, engineering and mathematics, and strengthening international cooperation on these issues.” (emphasis added)

For more information, see:

ZAMITA: UNIDO’s Learning and Knowledge Development Facility (LKDF)

and/or contact:

Kafula Chanda, Team Leader Media Production, Zambian Industrial Training Academy (ZAMITA)
Annual Report Summaries

Investrust Plc Extract from 2019 Annual Report

Investrust Bank Plc (“Investrust”) recorded a 40.4% decrease in interest income to ZMW88.33 million during the year ended 31st December 2018 (2017: ZMW148.1 million). Total operating
expenses increased by 5.2% on a year-on-year basis to ZMW157.40 million (2017: ZMW149.65 million). During the year under review, the bank recorded a loss of ZMW109.19 million (2017: ZMW38.00 million net loss).

For the period under review, ZCCM-IH successfully increased its shareholding from 45.4% to 71.4%. As a strategic investor, ZCCM-IH is currently driving a strategy to restructure and recapitalize the Bank.

The Bank’s share price on the LuSE closed the period under review at ZMW12.0 (2017: ZMW13.50).

There were no dividends declared during the financial year ended 31st December 2018 (2017: Nil).

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Annual Report Summaries

METS Extract from 2019 Annual Report

Misenge Environmental and Technical Services Limited (METS) earned a total of ZMW8.8 million (audited) as revenue for the year ended 31 March 2019 (2018: ZMW5.48 million). Of
the revenue, ZMW6.4 million was realised from recurring services to ZCCM-IH (2018: ZMW4.6 million) and ZMW2.4 million was from non ZCCM-IH sources (2018: ZMW0.88 million). METS recorded a net loss of ZMW2.5 million (2018: ZMW1.9 million loss).

METS continued its drive towards increasing third party business by taking part in several bids throughout the year.

There were no dividends declared during the year under review (2018: Nil).

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Maamba Colliers LTD Extract from 2019 Annual Report

MCL reported total revenue of ZMW2,486.60 million (US$ 222.10 million) for the financial year ended 31 March 2019 [(2018: ZMW1,172.00 (US$122.73 million)] and had profit after tax of
ZMW554.21 million (US$49.50 million) [(2018: ZMW148.87 million (US$15.59 million). The increase in revenue was due to increased demand for high grade coal from customers and steady production from the thermal power plant, while profit was driven by increased revenue and a deferred tax liability.

During the period under review, Maamba experienced liquidity challenges as a result of late receipt of payments from off takers. Efforts were made to restructure the payments of
outstanding receivables indicating commitment from both parties to rectify the situation. Management of Maamba were committed to cost efficiency measures and remains positive as the company looks forward to the restructuring of tariffs that would remedy systemic mismatches in the sector.

There were no dividends declared during the year under review (2018: Nil).

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Annual Report Summaries

Ndola Lime Company Ltd Extract from 2019 Annual Report

During the year, two former employees of NLC made an application to initiate Business Rescue Plan proceedings against the Company. An Interim Business Rescue Administrator
was appointed to run the affairs of NLC.

ZCCM-IH made an application in court challenging whether NLC qualifies to be put under Business Rescue Operations. The matter is still undergoing a court process.

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2019 of ZMW74.3 million (2018: ZMW60.1 million) and a loss after tax of ZMW234 million (2018: ZMW 187 million loss).

There were no dividends declared during the year under review (2018: Nil)

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