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Corporate Announcements

Market Announcement – Update on ongoing ZCCM-IH transactions

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) and market participants are advised by way of update of the key strategic and operational activities currently on-going in the Company as outlined below.

1. ZCCM-IH’s strategic positioning to derive value from its investments

  • ZCCM-IH has recently developed a new Strategic Plan to run from 2018 to 2023 (the “Plan”). Through this Plan, ZCCM-IH will undertake the following:
  • Increase dividend revenue to sustainable levels while maintaining consistency;
  • Diversify revenue sources to include royalties, streaming, copper splits and participation in the mining supply chain; and
  • Recover due receivables from investee companies.

Through the implementation of the Plan, ZCCM-IH intends to unlock further value from its subsidiaries and investee companies, which will ultimately reflect through the growth of its Net Asset Value (“NAV”) year-on-year.

The Plan has been posted on the ZCCM-IH website and can be accessed on the ZCCM-IH website www.zccmnew.wpenginepowered.com. or directly here

2. Dividend policy

The ZCCM-IH Board revised the Company’s Dividend Policy as follows: “the Company may pay a minimum of 35% of the unconsolidated Net Profit after Tax (“NPAT”) for any financial year in which a positive unconsolidated NPAT was recorded”. This is a revision from 20% to 35% of Net Profit After Tax. The revised rate of 35% has been applied on the dividend payable from 30 July 2018 as previously announced.

3. Status of Ndola Lime Company Limited

Ndola Lime Company Limited (“NLC”) continues to be in distress. The ZCCM-IH Board is considering options to determine the way forward for NLC. The decision will be communicated in due course.

4. Processing of title deeds for properties sold by the Company during privatisation

ZCCM-IH re-established an office in Kitwe in late 2017 to expedite the processing of documents required to transfer title to purchasers of real property that previously belonged to the Company. All those with queries relating to the transfer of title for ex-ZCCM Ltd (the former name for ZCCM-IH) properties are encouraged to visit the ZCCM-IH offices at the following address: Investments House – Rem. of Sub A of Farm No. 1591, Kantanta Street, Kitwe, Zambia.

5. Maamba Collieries Limited (“MCL”) Coal Production and Thermal Power Plant

The coal and power production at MCL has progressed well. MCL is producing sufficient low-grade coal for the thermal power plant and high-grade coal to meet customers’ needs. The thermal power plant is producing 300MW of power and selling 265 MW to ZESCO. The extension of the planned additional 300MW is pending a feasibility study.

6. ZCCM-IH’s 2000 Hectares (Ha) of land in Lufwanyama

ZCCM-IH owns 2,000Ha of virgin land in Lufwanyama district on the Copperbelt Province of Zambia. No farming activities have been undertaken on this land thus far. During the 2018-2023 Strategic Plan period, ZCCM-IH will be looking to partner with an investor in the Agricultural sector to develop the farm.

7. Partnership with Horizon Mining Limited to reprocess tailing dams

  • ZCCM-IH and Horizon Mining Limited (“Horizon Mining”) set up a Joint Venture Company (“JVC”) in November 2013, following a Consent Order signed by the parties, as a resolution to a legal suit that arose in relation to Tailings Dams (“TDs”) No. 25, 26 and 27 located in Kitwe, Zambia. The JVC, Copper Tree Minerals Limited (“Copper Tree”), will undertake to reprocess TDs 25, 26 and 27.
  • In March 2015, ZCCM-IH transferred its mining licences for TDs 25, 26 and 27 to Copper Tree and became entitled to a 15% Free Carry shareholding in Copper Tree.
  • In 2017, ZCCM-IH sold land in Kitwe to Copper Tree in exchange for additional shareholding. The extra shareholding as a result of the sale resulted in an increase in ZCCM-IH’s shareholding to 15.58% in Copper Tree. The said land is to be used as a dump site for waste materials arising from reprocessing the TDs.
  • In June 2018, ZCCM-IH and Horizon Mining signed a Shareholders’ Agreement relating to Copper Tree.
  • Copper Tree is in its early developmental stage and is yet to set up a plant and start reprocessing the TDs.

8. Recapitalisation of Investrust Bank Plc

ZCCM-IH is in advanced discussions with Investrust Bank Plc relating to the recapitalisation of the Bank. These discussions are expected to be finalized imminently and full announcement will be made once discussions have been completed.

9. Shareholders Agreement signed on the Cement Manufacturing Project

In July 2018, ZCCM-IH signed a Shareholders’ Agreement with China Machinery Construction Group Limited (“SinoConst”) for the development of a cement plant under the incorporated JVC, Central African Cement Limited (“CAC”).

Under the Shareholders’ Agreement entered into by ZCCM-IH and SinoConst, ZCCM-IH shall hold 35% of the shares in CAC while SinoConst shall hold the remaining 65%.

Dr P C Kasolo
Chief Executive Officer
Issued in Lusaka, Zambia on Friday, 3rd August 2018

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First Issued on Friday, 3rd August 2018

 

 
ZCCM-IH News

ZCCM-IH, Chinese firm sign agreement

ZCCM-Investment Holdings (IH) has signed a shareholders’ agreement with China Machinery Construction Group (SinoConst) for the development of a US$480 million cement plant in Masaiti.

The plant will be under the incorporated JVC, Central Africa Cement (CAC) Limited.

Company chief executive officer Pius Kasolo said under the shareholders’ agreement signed last month, ZCCM-IH will hold 35 percent of the shares in CAC while SinoConst will hold the remaining 65 percent.

This is contained in a statement issued on Friday by Stockbroker Zambia Limited, as a sponsoring broker on the Lusaka Securities Exchange.

And ZCCM-IH says the construction of the cement plant, will also include a thermal power plant, expected to start this year.

In an interview at the ongoing Agricultural and Commercial Show, ZCCM-IH public relations manager Loisa Kakoma said the project will create about 1,000 jobs with a production capacity of about 2.1 million tonnes of cement annually.

Source: Zambia Daily Mail
Investee Company News

Mopani to produce 8 million tonnes copper

MOPANI Copper Mines (MCM) projects to start producing about eight million tonnes of copper ore per annum in the next three years. And MCM has handed over community projects it undertook in Mufulira district to Government.

The projects include an extended wire fence at Mufulira Correctional Facility, a wall fence around the district administration offices, the subordinate court and Mufulira Central Police Station.

Source: Daily Mail

Investee Company News

CEC Market Announcement: Supply of up to 78MW of electricity to Metalkol SA

Copperbelt Energy Corporation Plc
[Incorporated in the Republic of Zambia]
Company registration number: 39070
Share Code: CEC
ISIN: ZM0000000136
[“CEC” or “the Company”]

 

Copperbelt Energy Corporation Plc (“CEC” or “the Company”) is pleased to inform its Shareholders and the general public that the Company has signed a long-term contract to supply up to 78MW of electricity to Metalkol SA (“Metalkol”), a major cobalt and copper tailings reprocessing operation in the Democratic Republic of Congo (“DRC”). Metalkol, which is owned by Eurasian Resources Group (“ERG”), a leading diversified natural resources group, is also a low-cost hydro-metallurgical facility.

The contract, agreed with Metalkol and DRC’s national electricity company Societe National d’Electricite (“SNEL”), secures electricity supply to Meltakol for up to ten years in two phases.

The first phase, to deliver a total of 62MW, will run until the second quarter of 2019; following which power supply will ramp up to 78MW per year during the second phase and for the remainder of the contract.

The Company’s Managing Director, Owen Silavwe, has described the agreement as a demonstration of CEC’s commitment, agility and promise to meet the specific and unique requirements of customers in Zambia and the DRC market, and a reaffirmation of the Company’s growing partnership with SNEL and the mining community in the DRC.

Benedikt Sobotka, CEO of Eurasian Resources Group, commented that “This is an important milestone in the progress of the Metalkol project, a unique development for the global battery industry. It is an example of sustainable and environmentally conscious treatment of the local environment, and of our wider strategic ambitions in Africa. Together with our partners, who are vital companies in their respective countries, we have found an effective solution to guarantee a reliable electricity supply, which has previously been an issue in the region.”

SNEL’S Director General, Jean-Bosco Kayombo Kayan, said the trilaterak agreement signed with CEC and Metalkol demonstrates SNEL’s willingness to serve its customers by offering expertise in the Southern African energy market.

Issued in Lusaka, Zambia on Thursday, 2nd August 2018

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First Issued on Friday, 27th July 2018
ZCCM-IH News

ZCCM-IH pays USD$5million dividend to NAPSA and Ministry of Finance

Minister of Finance, Honorable Margaret Mwanakatwe has since called on state owned enterprises (SOEs) to improve their operations and to pay dividends to the government. She was speaking when she received a cheque of K3.6million from Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) to its major shareholder National NAPSA and the Ministry of Finance. Mrs. Mwanakatwe said that the dividends will help government meet some of its financial obligations.

Earlier ZCCMIH Chief Executive Officer Dr Pius Kasolo said K20.3million has been paid to NAPSA representing 15% shareholding while K23.3million has been availed to the Ministry of Finance. Dr. Kasolo said ZCCMIH will continue to pay dividends to the government as a way of contributing to the growth of the economy. NAPSA Board chairperson Marian Munyima said dividends will help the authority to grow its investment portfolio which now stands at K25billion.

“We have had some tough challenges with our partners but things have been sorted and we appreciate the support that the Minister has given ZCCM -IH and in terms of the way forward, my team and I are hoping that things will only get better through the copper prices going up and the economy price going up. We hope that most of the mining companies will be involved in these situations, so that they can also declare dividends accordingly,” Dr. Pius Kasolo said.

“It’s pleasing that a company grows it’s profit after tax by 125% coming from a loss of K2.2billion to a profit of K728million, that is not a small achievement and I want to encourage you to count on my support in ensuring that you can continue to bring about these dividends because you are working in a sector that is the largest part of this economy. And when we do not see dividends, we wonder why you are still a shareholder in these mining companies,” Mwanakatwe said.

“We are working in close co-operation with the executive management to oversee all investments, ensuring that they are in accordance with investment protocols and requirements. We have even gained support from the government to which we are grateful that they provided an environment to which we can execute our mandate and ensure that we continue to report positive gains on the fund as can be evidenced by the growth of the investment portfolio which now stands at K25billion and we expect it to end the year 2018 at K27billion,” NAPSA Board Chairperson Marian Munyinda said.

Zambia’s Head of State earlier issued a directive to the Industrial Development Corporation to work towards having all stated owned parastatals listed on the local bourse.

Lusaka Securities Exchange – LuSE listed ZCCM-IH is a state owned mining investment vehicle that manages the states stake in mining companies in Africa’s second largest copper producer, Zambia. As at 2pm ZCCM-IH shares were trading for K38 per share.

Source: Zambia Business Times

Corporate Announcements

ZCCM-IH | Cautionary Announcement

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) are advised that the Company is in discussions with the appointed Receiver for Kapairi Glass Manufacturing Limited (“KGM”) which discussions if successfully concluded, may have a material effect on the price of the Company’s securities. ZCCM-IH has expressed interest in the possibility of purchasing the assets belonging to KGM which has been in receivership since 26 July 2017. KGM was established with the aim of manufacturing container glass products.

ZCCM-IH will provide details of these discussions in due course.

In the meantime, Shareholders are advised to exercise caution when dealing in securities of the Company until a full announcement is made.

Issued in Lusaka, Zambia on Wednesday, 25th July 2018

Lusaka Securities Exchange Sponsoring Broker
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Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Wednesday, 25th July 2018

– Download original SENS announcement
ZCCM-IH News

ZCCM-IH | New partnership in two onshore Zambian oil blocks

ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) is delighted to announce that the Company has been granted two onshore Oil and Gas exploration licenses by the Ministry of Mines and Minerals Development of Zambia (“MoMMD”). The two licensed oil blocks are situated in the Western and Muchinga provinces of Zambia. The granting of this license by the MoMMD is in line with ZCCM-IH’s strategy to undertake mining related diversification particularly in the energy sector.

In order to undertake exploration works on the license area, ZCCM-IH has partnered with Oranto Petroleum (“Oranto”) a Nigerian based and the largest privately-owned oil exploration and production company in Africa. Oranto will own a 90% stake in this project while ZCCM-IH will retain 10%. Oranto will provide funding and technical support for the project. The technical support will include the provision of training to ZCCM-IH Technical Staff in oil and gas exploration and production.

Dr P C Kasolo
Chief Executive Officer
Issued in Lusaka, Zambia on Tuesday, 10th July 2018

Lusaka Securities Exchange Sponsoring Broker
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Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Tuesday, 10th July 2018

Corporate Announcements

ZCCM-IH | Notice of payment of final dividend

At the Annual General Meeting held on 29 June 2018 at Southern Sun Hotel, Lusaka, the Shareholders approved a Final Dividend of K 0.84 per share for the period ended 31 March 2017.

In accordance with the requirements of the Securities Act No. 41 of 2016 and the Listings Rules of the Lusaka Securities Exchange (“LuSE”), Notice is hereby given that the dividend shall be payable to shareholders in the Company’s books as at close of business on Friday, 27 July 2018 (“Record Date”).

Dividend payments will be effected from Monday, 30 July 2018. Shareholders are advised to take note of the following dates applicable to the Stock Exchange on which their shares are listed and traded.

Shareholders on the LuSE and London Stock Exchange
The transfer books and register will be closed from Wednesday, 25 July to Friday, 27 July 2018 both days inclusive.
The last day to trade to be eligible to receive the dividend is Tuesday 24 July.

Shareholders on the Paris Marché Libre
The transfer books and register will be closed from Thursday, 26 July to Friday, 27 July 2018 both days inclusive.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Friday 29 June 2018

Lusaka Securities Exchange Sponsoring Broker
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Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 29 June 2018
ZCCM-IH News

ZCCM – IH | Advance of a loan to the IDC

1. INTRODUCTION
Industrial Development Corporation Limited (“IDC”) is the majority shareholder in ZCCM Investments Holdings Plc (“ZCCM-IH”), holding 60.28% of the total issued share capital of ZCCM-IH.

IDC requested bridge financing from ZCCM-IH. The Board of ZCCM-IH considered and approved IDC’s request on 29 March 2018. Therefore, ZCCM-IH has advanced a loan to IDC at commercial terms (“the Transaction”).

2. TRANSACTION DETAILS
In line with the Listings Requirements of the Lusaka Securities Exchange (“LuSE”), this announcement sets out the major salient details of the Transaction, amongst others, as follows:

Lender: ZCCM Investments Holdings Plc (“ZCCM-IH”)
Borrower: Industrial Development Corporation Limited (“IDC”)
Principle Amount: USD 19,000,000.00.
Interest: Interest accrued is payable at maturity of the facility agreement.
Maturity Date: 12 months from the date of issuance
Use of Proceeds: The purpose of the loan is to secure financing for investments purposes.
Security: 360,937,534 ordinary shares in Zambia National Commercial Bank Plc (“ZANACO”).
Fair and Reasonable
Opinion on the Transaction:		 The Independent Expert (“Expert”) conducted an analysis on the terms of the Transaction to ascertain the extent to which the terms of the Transaction are fair and reasonable as far as the minority shareholders of ZCCM-IH are concerned. The Expert has declared that the Transaction is Fair and Reasonable, and the fairness opinion will be available for inspection by shareholders at the ZCCM-IH offices for a period of 28 days from Friday, 15th June 2018.

3. CATEGORISATION OF THE TRANSACTION
The nature of the Transaction is classified as a Small-Related-Party Category 2 Transaction and is not subject to regulatory and Shareholder approval according to Section 10.7 of the Lusaka Securities Exchange Listings Rules.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Friday, 15th June 2018

Lusaka Securities Exchange Sponsoring Broker
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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 Friday, 15th June 2018
ZCCM-IH News

ZCCM-IH increases dividends to 35%

ZCCM-IH has increased its dividend policy to 35 per cent of net profit after tax from 20 per cent as part of the company’s strategic plan for the next five years following a substantial increase in copper prices.

According to ZCCM-IH’s 2017 Annual Report Presentation issued last week, ZCCM-IH has increased its dividends policy to 35 per cent of net profit after tax, from 20 per cent, as part of the strategic plan for the next five years.

ZCCM-IH chief executive officer, Dr Pius Kasolo, said the increment had been effected following a substantial increase in copper prices on the international market, which have averaged over US $6,000 per metric tonne since last year.

“As you can see from the financial highlights, the performance of the company has been positive, both at Group and at Company levels, compared to the previous year 2016. The latter part highlighted the economic fundamentals, both at country and global level, and my assignment for now is to state how, as a company we are positioning for the future by taking advantage of these fundamentals. We have put in place a Strategic Plan for the next five years from 2018 to 2023, which is an embodiment of the vision and strategic goals that will provide the thrust for ZCCM-IH Plc to achieve its full potential in returning value to its shareholders as well as becoming a useful corporate citizen to the other stakeholders. Increase shareholder value; increasing revenue and profits is our goal and diversifying into growth priority sectors is our winning strategy. Earlier on in the presentation, you saw that we have also increased our dividend policy from 20 per cent to 35 per cent of net profit after tax,” Dr Kasolo announced during a media briefing in Lusaka.

“In its 2018-2023 Strategy, ZCCM-IH has prioritized the generation of consistent and predictable income. New measures will be put in place to extract value from legacy and post-legacy portfolio companies. Further, as mentioned earlier on, growth priority sectors have been identified that will drive diversification and de-risking of the portfolio, providing additional revenue income streams. These include the energy, manufacturing and value addition sectors. A number of Greenfield and brownfield projects have been identified and lined up. ZCCM-IH will seek strategic partnerships to develop and exploit these opportunities to achieve above market returns. For the 2018-2023 planning period, we will embark on strategic internal income-generating ventures that will continue to drive business to profitability and returns across the portfolio of assets. ZCCM-IH intends to invest in available opportunities in mineral beneficiation and value-addition, while realizing optimal and tangible returns for its shareholders. Moving forward, we will continue focusing development activities in several key sectors that are intended to give ZCCM-IH diversification benefits whilst continuing to participate in the mining sector.”

And data in the Report reveals that the share of ZCCM-IH’s losses reduced by 91 per cent during its financial year under review despite low production that year.

“Despite low production in 2017, there was an improvement in the performance of the investee companies due to improved copper prices. The share of loss reduced by 91 per cent. Reversal of impairment of price participation receivable (that was considered irrecoverable previously) of K719 million contributed to the profit recorded during the financial year. The impairment of the Ndola Lime Plant (as a result of continued poor performance over the years) of K861 million negatively affected both the group profit and total assets. With a good future outlook, the fair value of the investee companies increased and positively contributed to the profit of both the group and company,” stated the Report.

Source: News Diggers