The Zambia Consolidated Copper Mines Investment Holdings, the country’s forerunner to Zambia Consolidated Copper Mines (ZCCM) has Dr. Pius Chilufya Kasolo as the new Chief Executive Officer of ZCCM-IH, effective 1 October this year, taking over from Mukela Muyunda.

The appointment of Kasolo by the ZCCM IH board, a PhD holder in Economic Geology from the University of Southampton, United Kingdom as well as an MSc in Mineral Evaluation from Nancy Ecole de mine, France comes into effect from 1 October this year, the company says in a statement posted on its website.
Kasolo also holds a BSc in Geology from the University of Zambia. He holds various other business and technical qualifications. Kasolo has over 20 years experience in the mining sector as a consultant and at senior management level, during which he has worked in, and provided consultancy services to, organisations with major international mining interests.

He has undertaken various high level research studies, consultancy assignments and evaluations in the mining industry and other business sectors for the European Union, BHP, the University of Southampton and the Zambia Revenue Authority among others.

Kasolo has held various senior positions in the mining industry including that of Exploration Manager for JCI Limited of South Africa (then Part of the Anglo American Corporation) covering various countries namely Ivory Coast, Burkina Faso, Senegal, Ghana, Mali and Gabon.

Kasolo has served as Director on several companies in Africa including Firestone an Australian Listed company, according to a statement by Cosmas Mwananshiku, the ZCCM IH NON-Executive Director.

Before Kasolo’s appointment, the incumbent was the owner and Chairman of Zambezi Holdings, a diversified Investment company and Chief Executive Officer for Zambezi Mining Services (a concrete lining products firm based in South Africa).

The Board takes this opportunity to congratulate and welcome Dr. Kasolo and is confident that he will contribute greatly towards the achievement of ZCCM-IH’s vision to become Zambia’s leading investment company.

Dr. Kasolo takes over from Mukela Muyunda who was ZCCM-IH’s CEO until 7 August 2014. The Board commended Kasolo’s predecessor, Muyunda for his valuable contribution to the Company during his tenure of office and wished him success in his future endeavors.

Business Week reported that Kasolo had before his appointment by ZCCM IH served as senior exploration geologist for SAMAX Resources Ltd. He is also a geologist and consults to a professional group on project evaluation and labour planning, it adds on its website.

Kasolo has extensive experience in the evaluation and management of mining projects, the formulation of company strategy, resource optimisation and business process analysis.

He worked in London as a consultant geologist for BHP Minerals International Exploration Inc.

He served as senior exploration geological consultant to the European Union (EEC). He has worked for JCI in South Africa and West Africa, as well as for Anglo American as consultant geologist. He serves a Director of Mmakau Mining (pty) Ltd.

Kasolo served as a Non-Executive Director at Firestone Energy Ltd. since January 28, 2011. He has also published various papers on geology.

Source: Zambia Informer

Zambia Consolidated Copper Mines Investment Holdings, the London, Lusaka and Euronex listed group paid US$40 million in dividends to shareholders as share value rose.

The dividend of K1.56 per share to be paid to its shareholders since the company’s formation in 2002, the forerunner to Zambia Consolidated Copper Mines (ZCCM), entails that the owners or shareholders will pocket a total of K25,000,000 (US$40 million) next month during the share pay out, the company said in its report to shareholders during an Annual General Meeting held in Lusaka, Oct. 7.

The remittance of the dividends will be paid to shareholders on or before 7 September this year was achieved after the shareholders, Zambian Government inclusive made to convert the debt that the company owed into equity through the claw back rights offer process which was completed in March this year.

The claw back further entails that it eliminated the debt of K1.829 billion that made it difficult for the company to remit dividends to shareholders including the Government, which owns about 87 percent in the company. It further raised capital to K257 million and also repositioned the company to exploit investment opportunities to benefit the shareholders and the nation at large, the report stated.

The Capital Market further recognized the Company’s efforts to realign itself into a profit making venture as evidenced by the good performance in the share price, which this year alone, allowed the share price to jump to 134 percent, valuing the company at slightly over US$1 billion, making it one of the strongest companies trading its shares on the Lusaka Stock Exchange (LuSE) in capitalisation.

As at 2011, the share price had more than doubled to 300 percent, a remarkable return for the shareholders and with the dividend declared, the turn of events has been historical for the company that had for long grappled with escalating debts.
Earlier this year, the company considered the views and participation of the minority shareholders and decided to consider their participation in the company affairs and since appointed a non executive director, to serve their interests for the first time ever in the history of the company.

During the year 2014, the company revenue as a group rose 163 percent on the year, rising to K803,013,000 from a paltry K305,481,000 recorded a year earlier with profit after tax rising 57 percent to K892,657,000 from a low K567,925,000 earlier.
Total Assets rose 19 percent to K8752,010,000 from K7,359,067,000 reported last financial year, with the group revenue rising to K1,000,538,000 from K520,104,000 in 2013 with profit after tax recording in excess of K277,186,000 from K762,021,000 a year earlier, the report added.

“ZCCM IH is now well placed and poised for the future. With our mission to maximize shareholder value as our guiding principle, we aim to use our strong financial position to make sustainable investments that will continue to benefit our shareholders now and in future,” the report stated.

ZCCM Investments Holdings Plc (ZCCM-IH) is one of Zambia’s prime investments holdings companies with the majority of its investments in the copper mining sector of Zambia.
It is quoted on the Lusaka, London and Euronext Stock Exchanges. The Company’s shareholders are the Government of the Republic of Zambia (GRZ) with 87.6 percent shareholding and private equity holders with 12.4 percent. Minority shareholders are spread throughout the world in various locations.

ZCCM-IH is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd).Prior to privatization in 2000, ZCCM Ltd was a consolidated copper mining conglomerate which owned and operated a number of mining divisions which at privatization were sold off as independent mining companies.

ZCCM Ltd was majority owned 60.3 percent by the Government of the Republic of Zambia, 27.3 percent by Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc and 12.4 percent by private investors.

Source: Zambian Informer

Zambia Consolidated Copper Mines Investments Holdings-ZCCM IH share earnings are forecast to rise 34 percent higher than the six months ending 31 March last year as total number of shares in issue almost doubled.

Stockbrokers Zambia, the agents for multi listed holding mining company, in a cautionary notice to shareholders and issued on behalf of the ZCCM IH board of directors, envisages the earnings per share to be 34 percent higher than that the price pegged for during the six months period ended 31 March 2013.

However, the total number of shares in issue rose to 160 800 286 from 89 296 428 shares on 29 March 2014. The average number of shares in issue recorded as at 31 March 2014 is therefore 90 488 159, the stockbroker adds in a statement.

The notice to shareholders is in accordance with the listing rules, regulations or requirement for all companies trading publicly or otherwise on the Lusaka Stock Exchange expected on any bourse (capital market) to comply.

“In accordance with the Lusaka Stock Exchange Limited (“LuSE”) Listings Requirements, the Board of Directors advice the Shareholders of ZCCM Investments Holdings PLC (“the Company”) that the earnings per share is expected to be 34 percent higher than that for the six months period ended 31 March 2013.

It, however, cautioned shareholders to trade carefully as the information contained in the 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 ended 31 March 2014 to be released on SENS and published in the local press on or about Friday, 11 July 2014.

“Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.”

Last year ZCCM IH ZCCM-IH announced plans to offer shares to its existing shareholders to raise money to clear its debt and help clean its balance sheet for future investments.

ZCCM-IH, which holds stake on behalf of the government in privatised mines, is currently battling liquidity problems, which were hampering the company’s ambitious transformation programmes.

“The proposed rights offer has a number of critical and important objectives that include to de-gear the ZCCM-IH balance sheet by expunging government debt of approximately K1.998 billion about US3 million and thereby unlock the value of ZCCM-IH for the benefit of shareholders,” company secretary Chabby Chabala said.

“After the implementation of the rights offer exercise, the government debt will be eliminated or significantly reduced, leaving ZCCM-IH with a clean balance sheet and therefore in a better position to consider payment of dividends to all shareholders going forward.” He added.

Clearing the huge government debt would help ZCCM-IH acquire fresh capital, which the company would use for its strategic investments and developments.

“The GRZ indebtedness has severely constrained the balance sheet of ZCCM-IH in the recent past. In turn, this has affected valuation of the company by the market and limited the capacity of management to unlock value for the benefit of shareholders,” Chabala stated.

ZCCM IH board believed at the time that the urgent action was necessary and a new strategic direction for ZCCM-IH is required in order to improve its operational performance and unlock value for the benefit of all shareholders on the one hand and simultaneously have capacity to participate in new projects and opportunities in Zambia and beyond going forward.”

The balance sheet of ZCCM-IH for the year ended 31 March, 2012 carried total liabilities of K2, 352 million against total assets of K2, 302 million, resulting in a negative book value of K50.5 million.

The bulk of the liabilities constitute debt owed to the government carried over from ZCCM, an earlier financial report stated.

History of ZCCM-IH

It is one of Zambia’s prime investments holdings companies with the majority of its investments in the copper mining sector of Zambia. It is quoted (trades secretly) on the Lusaka, London and Euronext Stock Exchanges.

The Company’s shareholders are the Government of the Republic of Zambia (GRZ) with 87.6 percent shareholding and private equity holders with 12.4 percent. Minority shareholders are spread throughout the world in various locations. ZCCM-IH is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd). Prior to privatization in 2000, ZCCM Ltd was a consolidated copper mining conglomerate which owned and operated a number of mining divisions which at privatization were sold off as independent mining companies.

ZCCM Limited was majority owned 60.3 percent by the Government of the Republic of Zambia, 27.3 percent by Zambia Copper Investments Limited (ZCI), an associate company of Anglo American Plc and 12.4 percent by private investors.

Since the privatization of the mines in the early 2000, the mines that have been privatized have generated US$8 billion in direct foreign investments.

Various reputable multinational companies including First Quantum Minerals Limited, Vedanta Resources and commodity trader, Glencore Xstrata, have all initiated new projects in addition to the units secured during privatization.

“They in all, have injecting over US$8 billion, which is envisaged to grow to US$15 billion in the next few years,” said chamber of mines president Emmanuel Mutati.

Source: Zambian Mining Magazine