ZCCM-IH

Corporate Announcements

ZCCM-IH | Directors’ Interim Summary for Period Ended 30th September 2017

Introduction

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc (ZCCM-IH) announces the unaudited results for the six months’ period ended 30th September 2017.

Financial Performance

The Group recorded a turnover of K37.7 million for the six-month period ended 30th September 2017 which was 42% below the turnover of K65.5 million reported during the six months to 30th September 2016. The lower Group turnover was mainly as a result of a decrease in turnover for Ndola Lime Company Limited by 41% from K62.5 million to K36.7 million for the period under review. The Group recorded an operating loss of K123 million (Sept 2016: loss K65.1 million) No Dividends were earned for the period ended 30th September 2017 (September 2016: Nil)…

Operations and Strategic developments

(I) Proposed Joint Venture for setting up of a Cement Manufacturing Company
As part of ZCCM-IH’s strategy to diversify its portfolio, the Company is progressing towards finalizing a Joint Venture partnership which will culminate into setting up of a Cement Manufacturing Company.

ZCCM-IH intends to hold 35% of the shares while its Chinese Partner will have 65%. The planned production capacity of the Plant will be 5000 tonnes per day of Clinker with a 50 MW Thermal Power Plant. Furthermore, the proposed plant will be installed with a waste heat recovery system which will add another 7.5 MW of power. It is expected that the Plant will take 3 years to construct and employ over 1000 people during construction. Once completed, the plant is expected to employ about 400 people.

Commencement of construction is conditional upon financial closure.

(II) Disposal of ARM & Vale’s indirect interest in Lubambe Copper Mine Ltd (Lubambe)
African Rainbow Minerals (ARM) and Vale International SA (Vale) concluded an agreement to dispose ARM and Vale’s combined 80% beneficial interest in Lubambe to EMR Capital
Limited (EMR). The 80% beneficial interest in Lubambe, which is held in equal shares by ARM and Vale included the equity holding in Lubambe as well as loans to Lubambe. Lubambe is owned 40% by ARM and 40% by VALE, both as beneficial owners and 20% by ZCCM-IH…

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 10 January 2018

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 10 January 2018

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ZCCM-IH Interims to 30 September 2017.pdf
Investee Company News, ZCCM-IH News

KCM pays ZCCM-IH $70 million

KALONDE NYATI, Lusaka
KONKOLA Copper Mines (KCM) has paid out about US$70 million to ZCCM-Investment Holdings (IH) in claims as at December last year.

ZCCM-IH chief executive officer Pius Kasolo said in an interview on Monday that KCM has been making monthly payments to the company.

In 2016, the English High Court granted default judgment in favour of ZCCM-IH in its claim against KCM, brought pursuant to a settlement agreement entered by the parties in 2013, for a sum of US$103 million.

The claim relates to outstanding payments under a 2013 copper price participation settlement agreement between ZCCM-IH and KCM.

Source: Zambia Daily Mail Limited

Corporate Announcements

ZCCM-IH | Trading Statement

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-IH hereby advises the Shareholders of the Company that the
Earnings Per Share (EPS) for the six months period ended 30 September 2017 are approximately 165% higher than for the six months period ended 30 September 2016.

The movement in earnings is mostly due to the continued improvement in performance for most major mining companies in ZCCM-IH’s portfolio. This improved performance is
attributable to stability in energy supply and the increase in copper prices on the international market (London Metal Exchange) by 33% over the 12 months from 30 September 2016 to 30 September 2017.

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 its results for the six months period ended 30 September 2017 to be released via the LuSE SENS and published in the local press on or about 11 January
2018. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

By Order of the Board

C Chabala
Company Secretary

Issued in Lusaka, Zambia on 9 January 2018

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 9 January 2018

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Corporate Announcements

ZCCM-IH | Unaudited provisional financial statements for the year ended 31 March 2017

In compliance with the requirements of the Listing Rules of the Lusaka Securities Exchange, ZCCM-IH Plc announces its unaudited Provisional Annual Financial Statements for the year ended 31 March 2017. Below are extracts from the results.

COMMENTARY

  • The Group’s performance improved during the year owing to increase in copper production for most major mining companies. This was due to stability in energy supply and an improvement in copper prices on the world market. The copper price increased by 23% from US$4,848/ton in March 2016 to US$5,956/ton in March 2017.

  • The Group recorded an operating profit of K1, 703 million (2016 Loss: K858 million), mainly attributable to the recovery of K1, 923 million impairment from investee companies whose performance improved during the year.

  • The Group’s share of losses of equity accounted investees significantly reduced by 91% from K2, 210 million in 2016 to K194 million in 2017.

  • Profit after tax was K1,764 million (2016: Loss K2,912 million).

  • Total assets marginally increased by 8% from K9, 797 million to K10, 575 million largely on account of the recovery of the copper price participation receivable that was impaired in the preceding year.

  • The Ndola Lime Company Limited recapitalization project is still undergoing a hot commissioning, though the process has been met with a lot of challenges.

  • In February 2016, ZCCM-IH undertook to subscribe for all shares not subscribed for by other Investrust Bank Plc (Investrust) shareholders in the Investrust Rights Offer. This resulted in an increase in ZCCM-IH’s shareholding in Investrust from 10.6% to 48.6%. As a result, ZCCM-IH was required to proceed with a Mandatory Offer to all the other shareholders in Investrust in accordance with Rule 56 of the Third Schedule of the Securities (Takeovers and Mergers) Rules, Statutory Instrument No 170 of 1993, issued pursuant to the Securities Act, Chapter 354 of the Laws of Zambia.

    The process is expected to be concluded by end of March 2018.

  • Subsequent to the period under review, ZCCM-IH’s subsidiary Mawe Exploration and Technical Services Limited which was scheduled for dissolution in prior year was formally in dissolved in April 2017.

OUTLOOK
Copper prices are expected to increase steadily premised on increased demand from high copper consumer countries. ZCCM-IH’s performance is expected to improve as a result of the improvement in copper prices which drive the performance of the mining portfolio. Furthermore, as a result of good rains experienced during the 2016/17 season, the generation capacity of hydroelectricity is expected to improve thereby stabilising energy supply.

The recovery in copper prices as well as stability in energy supply will contribute to the growth in copper production which in turn will lead to growth in copper exports. The expected growth is further confirmed by additional investments of over $ 2 billion over the next several years announced by major multinational investors in the mining sector of Zambia.

In response to the positive outlook, ZCCM-IH will implement a new Strategic Plan hinged on expansion of its investment footprint in various sectors of the economy including mining with a focus on industrialisation, energy, agriculture, manufacturing, real estate and financial services.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 2 January 2018

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 2 January 2018

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ZCCM-IH Provisional Abridged to 31 March 2017
Investee Company News, ZCCM-IH News

ZCCM-IH gets extra $36 million

An English Court has awarded ZCCM Investment Holdings PLC an addition 36 million U.S dollars in claims against Konkola Copper Mines -KCM.

This is was as a result of unpaid sums due to ZCCM IH pursuant to a settlement agreement entered by the parties in 2013.

This brings the total amount awarded to ZCCM IH to 139 million US dollars in claims against Konkola Copper Mines.

The court has also given directives for the inquiry to determine whether KCM had breached the settlement agreement by making payments to Vendetta group of companies whilst sums remained due and owing to ZCCM-IH.

ZCCM-IH Executive Director Pius Kasolo disclosed this at a media briefing in Lusaka on Tuesday.

Dr Kasolo said the parties have since agreed a repayment plan for the recovery of the additional sums which consists of 21 equal months instalments together with interest at three percent.

He said the final payment is expected on August 31st, 2019.

Dr Kasolo said partners should not take the move as a deliberate attack on them but a move that will make the investment holdings answerable to Zambians.

He however, said that ZCCM IH remains committed to ensuring that the KCM operations continue in Zambia.

Dr Kasolo said ZCCM IH will continue to provide the necessary support to ensure the value of the stake in the company.

Source: ZNBC

Corporate Announcements

ZCCM-IH | Trading Statement

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-IH hereby advises the Shareholders of the Company that the Earnings Per Share (EPS) for the year ended 31 March 2017 are approximately 145% higher than for the year ended 31 March 2016.

The movement in earnings is mostly due to improved performance for most major mining companies in ZCCM-IH’s portfolio. This improved performance is attributable to stability in energy supply and continuous upsurge of copper prices on the international market.

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 its provisional results for the year ended 31 March 2017 to be released via the LuSE SENS and published in the local press on or about 3 January 2018. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 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 29 December 2017

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Corporate Announcements

ZCCM-IH | Market Update

We refer to the Market Announcement (Announcement) provided in December 2016, in which the market was informed that the English High Court had granted default judgment in favour of ZCCM-IH in its claim against Konkola Copper Mines Plc (KCM), brought pursuant to a Settlement Agreement entered by the parties in 2013, for a sum in excess of US$100 million.

In the same Announcement, the market was further informed that the Court had given directions for an inquiry to determine whether KCM had breached the Settlement Agreement by making payments to Vedanta Group Companies whilst sums remained due and owing to ZCCM-IH, and whether ZCCM-IH would be entitled to recover additional sums from KCM as a result.

We now advise that ZCCM-IH has successfully brought an application for summary judgment against KCM for such additional sums. Granting the claim in full, the Court has awarded ZCCM-IH a further US$35,991,768, bringing the total amount awarded to approximately US$139 million. ZCCM-IH was also awarded its costs of bringing these proceedings.

The parties have agreed a repayment plan for the recovery of these additional sums, which consists of 21 equal monthly instalments of US$1,713,893.72, together with interest at 3 per cent. The final payment is expected on 31 August 2019.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 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 10 June 2016

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Archived Tenders

Re-Tender – Request for Expressions of Interest (EOI) for Conducting of a Detailed Technical Due Diligence of Wangwa Farms in Chibombo District – Lusaka

1.0 BACKGROUND

ZCCM Investments Holdings Plc. (ZCCM-IH) is an investments holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy. The company has a primary listing under ISIN number ZM0000000037 on the Lusaka Stock Exchange, and secondary listings on London Stock Exchange and Euronext Stock Exchange in Paris.

The Zambian Government (GRZ) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

2.0 PROJECT SUMMARY

ZCCM-IH in its strategy, has prioritized the diversification of its portfolio, which is predominantly exposed to the mining sector. ZCCM-IH has identified key focal sectors including Agriculture, which would form the key pillars of its diversification drive.

It is with this backdrop, that ZCCM-IH is assessing the prospects of investing in Wangwa Farms Limited (“Wangwa” or the “Target”), an integrated farming operation located in Chibompo District, just 70 km north of Lusaka along the Great North Road. Wangwa’s operations include row cropping, livestock rearing – beef and pork, milling and grain storage.

The Target is a privately owned agriculture business firm. It operates an integrated farming system growing soya beans, maize and wheat as well as beef and pork enterprises. The farm also has grain storage and milling facilities. It is also self-sufficient in stock feed supply as it produces its own feed using its own milling plant.

It is from this background that the Company now requires to engage the services of an independent, competent and experienced Consultancy Firm to carry out a detailed Technical Due Diligence on the Target’s entire business. Eligible firms must be specialized in Agribusiness formations, valuation, strategy and closures. As such Audit Firms, Legal firms, Agribusiness Consultancy firms and firms specialized in formation, evaluation and closure of businesses are therefore encouraged to respond for this purpose.

ZCCM-IH now invites eligible Agribusiness Consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time from Monday to Friday.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Friday, 5th January 2018.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.
Email: kabwekd@zccmnew.wpenginepowered.com
Archived Tenders

Invitation for Bids (IFB) | Retender for the Provision of Security Services to ZCCM Investments Holdings (ZCCM-IH)

ONB No.: ZCCM-IH/047/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Provision of Security Services to ZCCM-IH, Contract No.: ZCCM-IH/047/2017.

  2. ZCCM-IH now invites sealed bids from eligible bidders for the Provision of Security Services to ZCCM-IH as follows:
    Lot 1 – ZCCM-IH Office Park, Alick Nkhata Road, Lusaka & 30B Kudu Road, Kabulonga, Lusaka;
    Lot 2 – Investments House, Kantanta Street, Kitwe; Technical Library and Mawe House, Kalulushi;
    Lot 3 – Kabwe Offices and Laboratory, Kabwe; and
    Lot 4 – Cash In-Transit Services, Lusaka.
    The contract duration will be 12 months subject to renewal depending on satisfactory performance during the initial 12 months.

  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%

  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.

  5. Qualifications requirements include:i) Experience as the main service provider in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities per lot as follows:
    Lot 1 – ZMW56,100.00;
    Lot 2 – ZMW188,700.00;
    Lot 3 – ZMW30,600.00; and
    Lot 4 – ZMW10,000.00
    iii) Average Annual Turnover in any of the last ten (10) years per lot as follows:
    Lot 1 – ZMW673,200.00;
    Lot 2 – ZMW2,264,400.00;
    Lot 3 – ZMW367,200.00; and
    Lot 4 – ZMW122,496.00.

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.

  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 28th December 2017. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 28th December 2017. All bids must be accompanied by a Bid Securing Declaration.

  8. There will be official site visits as follows:
    Lot 1 & 4 – Lusaka; Friday, 15th December 2017. All Bidders to meet at ZCCM-IH Office Park, along Alick Nkhata Road, Lusaka at 09:00 hours;
    Lot 2.1 & 2.2 – Kalulushi; Tuesday, 12th December 2017. All bidders to meet at Catholic University in Kalulushi at 10:00 hours; and
    Lot 2.3 – Kitwe; Wednesday, 13th December 2017. All bidders to meet at Investments House along Kantanta Street in Kitwe at 10:00 hours; and
    Lot 3 – Kabwe; Monday, 11th December 2017. All bidders to meet at Kabwe Offices at 11:00 hours.

  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccmnew.wpenginepowered.com
Archived Tenders

Invitation for Bids | Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola

ONB No.: ZCCM-IH/056/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola, Contract No.: ZCCM-IH/056/2017.
  2. ZCCM-IH now invites sealed bids from eligible bidders for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola.
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%
    3.4 Domestically manufactured goods by citizen-influenced company, citizen-empowered or citizen-owned company – 15%.
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:
    i) Experience as the main supplier in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities of ZMW360,000.00.
  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 4th January 2018. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 4th January 2018. All bids must be accompanied by a Bid Securing Declaration.
  8. There will be a pre-bid conference on Tuesday, 19th December 2017 at ZCCM-IH Office Park, Stand No. 16806, Alick Nkhata Road, Mass Media Complex Area, Lusaka at 10:00 hours.
  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccmnew.wpenginepowered.com