When ZCCM IH management team led by Mabvuto Chipata and the Board of Directors of Zambia’s biggest mining investment company meet with shareholders at the end of June 2021, they will be announcing a USD 2.390 million dividend for its shareholders.

Maintaining the dividend policy has been a strategic intent for the Management Team. This is why they have made significant developments in ensuring their mining value chain focus strategy is implemented.According to the latest SENS announcement from the investment group issued by Company Secretary Chabby Chabala and published on 14 June 2021 in Lusaka, “the Directors will recommend a final dividend payout of USD2,391,590.11”. This translates to ZMW53,064, 601.26 at  K0.33 per share.

According to the published statement, “ZCCM-IH’s investments are steered towards the mining sector” with the three core strategies being employed targeted at driving portfolio growth which include:

• Pursuit of the royalty model in order to introduce new revenue stream;
• Realignment of the portfolio to achieve more focus in mining and mining related activities; and
• Development of turnaround strategies for loss making subsidiaries.

This strategy has seen the company increase it state in a number of its investee companies with the most significant one being the Mopani takeover.

Despite the COVID 19 pandemic, the ZCCM IH management team remain bullish. The reason for this may include a glossier outlook for commodities on the international market. In May 2021, copper prices for example had reached $10, 628 per tonne.

Conversely, with China driving the demand for commodities, “looking into the future, the investment company believes the mining sector is generally expected to face challenges during early to mid-2020 due to depressed commodity prices and disruption in international trade caused by the Novel Coronavirus (COVID-19) pandemic”. According to Bloomberg, “China is expanding its oversight of domestic firms’ commodities trading to include positions taken on overseas markets, the latest step in the government’s campaign to exercise control over soaring raw materials prices“.

However, “despite these challenges, ZCCM-IH is committed to enhance value creation for its shareholders”. This is the motivation of making investments and having more influence in the mining value chain. “Thus, ZCCMIH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time”.

Source: http://fizambia.com/zccm-on-course-to-keep-its-dividend-promise/

ZCCM-IH has posted a profit after tax of over K307 million in its first nine-month financial year, mainly boosted by returns from its investee companies in the mining sector.

According to an audited statement of profit or loss and other comprehensive income for its nine-month financial year ending December 31, 2019, ZCCM-IH has announced that it earned a profit of over K307 million, triggered by strong income generated from its investee companies in its group portfolio.

The ZCCM-IH Group consisted of eight subsidiary companies as at December 31, 2019, including Investrust Bank Plc and Ndola Lime Company Limited, among others.

“The Group reported a profit for the nine-month period of K307 million (March 2019: K448 million. The 31 per cent decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc,” the statement read.

At company-level, ZCCM-IH reported a profit for the year of K153 million compared to incurring a K108 million loss in the 12-month period ending March 31, 2019, mainly due to exchange gains on foreign denominated assets and reduced administrative costs, among others.

The Group’s total assets increased by 14 per cent to K15.2 billion as at December 31, 2019, from K13.4 billion as at March 31, 2019, mainly attributed to an increase in values of investments in associates from K10.3 billion as at March 31, 2019, to K11.9 billion.

Three core strategies employed in the mining sector were cited as having contributed to ZCCM-IH’s impressive profitability during its nine-month financial year.

“ZCCM-IH’s investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were: Pursuit of the royalty model in order to introduce new revenue stream; realignment of the portfolio to achieve more focus in mining and mining-related activities and development of turnaround strategies for loss-making subsidiaries,” explained ZCCM-IH company Secretary Chabby Chabala.

“ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.”

Directors will recommend a final dividend pay-out of K53.1 million in total, translating to around K0.33 per share.

Source: https://zambiandigest.com/2021/06/zccm-ih-post-k307m-profit-in-9-months/

ZCCM IH has released the following SENS announcement regarding its financial results for 2019. 

“In accordance with Section 3.4(b) Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-Investments Holdings Plc (the “Company” or “ZCCM-IH”) hereby advises the Shareholders of the Company that the Earnings Per Share (“EPS”) for the Group and Company for the nine-month financial period ended 31 December 2019 is expected to be approximately 32% lower and 242% higher respectively, than the financial year ended 31 March 2019.

The movement in EPS for the Group is primarily attributed to the reduction of ZMW553 million in share of profit from investee companies coupled with loss recognised from investments held for sale of ZMW74 million. On the other hand, the movement in ESP for the company is attributed to a reduction in administration expenses and impairment of financial assets recognised at fair value through profit or loss.

Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company. The Company expects to release its abridged audited Financial Results for the nine-month period ended 31 December 2019 on Securities Exchange News Services (“SENS”) and published in the local  press on or about 14 June 2021. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results”.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 11 June 2021

Source: http://fizambia.com/zccm-ih-forecasts-32-and-242-low-and-high-for-group-and-company-earnings-for-2019/

This week, Bank of Zambia Governor Mr Christopher Mvunga told the media that the institution would continue to purchase gold monthly to cushion the country against the shocks caused by COVID-19.

The gold purchases are being done through the state-owned ZCCM IH and Kasenseli Gold Mining Limited as part of efforts to stabilise the kwacha.

”We are receiving various inquiries as to whether we are selling the gold or not but we have made it clear that we are not and we are principally buying the commodity as an international instrument and not trading,” Mr Mvunga said.

“We are foreseeing that at some point the exchange rate would stabilise and show some signs of recovery as there is a strong investor confidence in the economy making inquiries and others are already coming on the market.”

He said at the appropriate time, the Bank of Zambia would start selling gold.

Zambia is now one of at least 10 countries that have been net buyers of gold since 2020, among them Russia and China who collectively added 483 tonnes of bullion to their reserves.

The Bank of Canada has liquidated most of its reserves in recent times while Venezuela is in the process of doing the same to pay off its debts.

Source: https://southerntimesafrica.com/zambia-shores-up-gold-reserves/