ZCCM-IH

Corporate Announcements

ZCCM-IH | Refund of Withholding Tax

UPDATE TO SHAREHOLDERS BASED IN FRANCE
REGARDING THE
REFUND OF WITHHOLDING TAX OF 15% LEVIED ON THE
ZCCM­IH DIVIDEND

Introduction

At the Annual General Meeting held on 7 October 2014, the shareholders of the Company approved a Final Dividend of K1.56 per share for the period ended 31 March 2014.

Subsequently, Dividend payments were made from Monday, 10 November 2014. Following Dividend payments to shareholders based in France, an issue regarding withholding tax on dividends paid to shareholders in France arose. The matter was pursued with the relevant authorities, specifically, the Zambia Revenue Authority (ZRA) regarding the provisions of the Double Tax Agreement (DTA) of 1950 signed between Zambia and France. The DTA provides for exemption of withholding tax at source. This means that dividends payable to shareholders domiciled in France by a Zambian company are legally not subject to withholding tax. This means that the shareholders on whom a withholding tax of 15% was levied on the ZCCM­IH dividend will be refunded the withheld tax once the process underlined below is fulfilled.

The ZRA will honor the provisions of the Double Tax Agreement subject to each individual shareholder providing the French tax residence certificate and completing the WHT3 form.

Required Action

If you are a shareholder who received a dividend payment, you are required to do the following:

  1. Provide proof that you have received a dividend payment by sending a copy of the dividend warrant
  2. Provide a copy of the French Residence Certificate
  3. Provide Bank details including: Bank Name , Account Holder’s Name, Swift Code and

Kindly note that the process will take some time and it is entirely upto each shareholder to provide the correct details and submit all the requirements on time. You have upto 30 September 2015 to submit the required documentation after which you will have to deal directly with ZRA.

Once you have all the required documentation, kindly send these to the following address:

Corpserve Transfer Agents
House No. 6
Mwaleshi Road, Olympia Park,
P.O. Box 37522
Lusaka, Zambia
Email: info@corpservezambia.com.zm

Issued on behalf of ZCCM Investments Holdings:

C Chabala
Company Secretary

Lusaka
Date: 4 June 2015
Investee Company News, ZCCM-IH News

KCM still owes ZCCM-IH over US$59m – report

KONKOLA Copper Mines still owes ZCCM-IH over US$59 million under a Settlement Agreement that was signed in February 2013, according to the latest Auditor General’s report. The Auditor General’s Report on Accounts of Parastatal Bodies and other Statutory Institutions for the 2013 financial year stated that the mining company did not honour a Settlement Agreement signed between the two entities and has an outstanding balance due to ZCCM-IH amounting to US$59,684,655. According to the report, a Settlement Agreement had been signed on February 11, 2013, as a full and final settlement of all claims due under or pursuant to the Price Participation Agreement, which KCM had failed to honour previously.

“KCM Plc agreed to pay ZCCM-IH amounts totalling US $119,744,655 over a period of four years in line with the payment schedule as follows: US$46,324,655 to be paid on or before August 31, 2013; US$73,420,000 to be paid on or before September 30, 2016 in accordance with the payment schedule,” read part of the report. “However, as of September 2014, KCM Plc had not honoured the Settlement Agreement and had only paid a total amount of US$16,500,000 out of US$76,184,655, which was due as of September 30, 2014, leaving a balance of US $59,684,655.” The report stated that although KCM failed to honour the Settlement Agreement, ZCCM-IH, on the other hand, also failed to trigger an enforcement clause stipulated in the Agreement. “The agreement stipulated that in case KCM failed to pay a deferred amount at the next instalment date, ZCCM-IH was permitted to take legal action for monies owed through the English courts or by arbitration in respect of the deferred amount and any interest that would have accrued pursuant to clause 5. Contrary to clause 5 of the Agreement, as of November 2014, there was no evidence to show that ZCCM-IH had taken any legal action for monies owed,” it stated.

The report also revealed that ZCCM-IH has had “poor performing loans” with Ndola Lime Company Ltd, with the latter having failed to pay the former over US$7 million in an instalment due last June. “On 29 July, 2011, ZCCM-IH signed a loan agreement with Ndola Lime Limited an amount of US $26,000,000. A review of the agreement repayment schedule and accounting records revealed that Ndola Lime Limited should have repaid a total of US$7,356,990 as at June 30, 2014. However, Ndola Lime Limited had not made any payments to ZCCM-IH as of August 2014 and ZCCM-IH had not enforced the default clause of the contract,” stated the report.
Corporate Announcements

ZCCM-IH | Trading Statement – Dec 2014

In accordance with the Lusaka Stock Exchange Limited (“LuSE”) Listings Requirements, the Board of Directors advises the Shareholders of ZCCM Investment Holdings PLC (“the Company”) that for the interim period ended 30 September 2014, the basic earnings per share is expected to be 119% lower, and the headline earnings per share is expected to be 119% lower, than those for the interim period ended 30 September 2013.

The decrease in profitability was largely due to lower turnover on account of lower performance of the Company’s investments in the mining sector amidst continued reduction in copper prices on the International markets. The price of copper has reduced by 7.6% from US$7300 per tonne in September 2013 to US$6748 per tonne at 30 September 2014.

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 interim period ended 30 September 2014 to be released via the LuSE SENS and published in the local press on or about 23 December 2014. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

Lusaka, Zambia ‑ 22 December 2014

LUSAKA STOCK EXCHANGE SPONSORING BROKER

STOCKBROKERS ZAMBIA LIMITED
MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OF ZAMBIA

T: +260‑211‑232456
W: www.sbz.com.zm
ZCCM-IH News

ZCCM IH appoints Kasolo as new CEO ahead of the AGM in Lusaka

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
Corporate Announcements

ZCCM-IH | Notice of declaration of dividend

At the Annual General Meeting held on 07 October 2014, the shareholders approved a Final Dividend of K1.56 per share for the period ended 31 March 2014.

In accordance with the requirements of the Securities Act (Act No. 38 of 1993) and the Listing Rules of the Lusaka Stock 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, 07 November 2014 (“Record Date”).

Dividend payments will be effected from Monday, 10 November 2014. 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, 05 November to Friday, 07 November 2014 both days inclusive.

Shareholders on the Paris Marché Libre
The transfer books and register will be closed from Thursday, 06 November to Friday, 07 November 2014 both days inclusive.

By Order of the Board

Chabby Chabala
Company Secretary

08 October 2014
ZCCM-IH News

ZCCM IH group pays US$40 mln in dividends to shareholders

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
Corporate Announcements

ZCCM-IH Annual Report 2014

The latest ZCCM-IH Annual Report is embedded below. ZCCM-IH is the investments holding company majority owned by the GRZ and holds minority equity interests in the successor mining companies created after the unbundling and privatization of Zambia Consolidated Copper Mines (ZCCM) in 2000. It is public listed on the LuSE. Its shares also trade on the Euronext stock exchange in Paris.

Under the current shareholding structure, GRZ holds 87.53 % whilst 12.47% is held by minority shareholders. Following privatization of ZCCM in 2000, ZCCM-IH inherited debt of approximately USD 363 million on its balance sheet. And for the next ten years the company was technically insolvent – and therefore unable to pay any dividends to its shareholders on account of this legacy debt.

In 2013, ZCCM-IH undertook a major internal restructuring exercise to expunge the legacy debt from its balance sheet. This was done via a share rights offer. Prior to the balance sheet clean up, the share price of ZCCM- IH on the LuSE was K12.50 on 2nd January, 2013. After the successful rights offer of May 2014 and elimination of the legacy debt from the balance sheet, the price of ZCCM –IH shares on the LuSE has risen significantly and was K40 as at the beginning of October, 2014. This represents a capital gain of 220% over a period of 21 months.

With a clean balance sheet, ZCCM-IH is now in a position to declare and pay dividends to its shareholders based on the dividend revenues it receives from its investee companies and operating subsidiaries. ZCCM-IH recently did just that. It declared dividend – and at the AGM held on 7th October, 2014, shareholders approved a total dividend of K250 million which is approximately US$40 million .With a market capitalization of US$ 1 billion, ZCCM-IH is now the company with the largest market capitalization on the LuSE.

In the 2015 Zambia national budget, Government announced that it ntends to scale down its shareholding in ZCCM-IH from 87.53% to 60%. This sell down of 27.53 % shareholding represents approximately US$ 270 million in current value terms. The plan is to sell the shares to “Zambian citizens”. The net effect is that the free float of ZCCM-IH will increase significantly from the current 12.47% to 40%. This will improve the liquidity in the stock and on the LuSE as a whole.

We shall return to the question of ZCCM-IH in due course.

AUTHOR
Chola Mukanga
Economist | Researcher

Related download
Corporate Announcements

ZCCM-IH | Appointment of Chief Executive Officer

The Board of Directors of ZCCM Investments Holdings Plc (ZCCM-IH) is pleased to announce the appointment of Dr Pius Chilufya Kasolo as the new Chief Executive Officer of ZCCM­IH with effect from 1 October 2014.

Dr. Kasolo holds a PhD in Economic Geology from the University of Southampton, United Kingdom as well as an MSc in Mineral Evaluation from Nancy Ecole de mine, France. Dr. Kasolo also holds a BSc in Geology from the University of Zambia. He holds various other business and technical qualifications.

Dr. 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. He 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. Dr. Kasolo has served as Director on several companies in Africa including Firestone an Australian Listed company.

Prior to this appointment, Dr. Kasolo was 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 ZCCM­IH’s vision to become Zambia’s leading investment company.

Dr. Kasolo takes over from Mr Mukela Muyunda who was ZCCM­IH’s CEO until 7 August 2014. The Board would like to take this opportunity to thank Mr Muyunda for his valuable contribution to the Company during his tenure of office and wishes him success in his future endeavours.

Issued on behalf of the Board

Cosmas Mwananshiku
NON­EXECUTIVE DIRECTOR
Lusaka, 01 October 2014
ZCCM-IH News

ZCCM-IH Pays first dividends to shareholders since inception

Zambia Consolidated Copper Mines Investment Holdings (ZCCM IH), the country’s mine holding company has since inception over 10 years ago paid dividends to the country, the company says on its website according to Bloomberg News wire.

According to the report, the company (MLZM), the company formed to hold the Zambian state’s minority stakes in local copper mines, has for this year managed to raise capital to pay dividends to the state since 2000.

The government will receive 220 million kwacha ($35 million), helping to bolster state revenues that Finance Minister Alexander Chikwanda last month said were “severely constrained.” Bloomberg cites finance minister Alexander Chikwanda as saying recently.

The company which is scheduled to hold its Annual General Meeting on 7 October in Lusaka this year disclosed the dividend in the 2014 annual report posted to its website. It’s the first since its formation, according to ZCCM data.

Zambia, Africa’s biggest copper producer after the Democratic Republic of Congo, owns 87.5 percent of ZCCM Investments.

The company holds stakes ranging from 10 percent to 30 percent in businesses that moved into private hands in the 1990s after the government reversed former president Kenneth Kaunda’s nationalization program.

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% shareholding and private equity holders with 12.4%. 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% by the Government of the Republic of Zambia, 27.3% by Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc and 12.4% by private investors.

According to data on ZCCM IH website, the company owns 100 percent stake in Ndola Lime Company, 35 percent in Maamba Collieries Limited, 20.6 percent in Konkola Copper Mines, 20 percent in power provider to mines on the Copperbelt-Copperbelt Energy Corporation or ( CEC), 20 percent shares in Kansanshi Copper mine, a unit of First Quantum Minerals and 20 percent in Luanshya Copper Mine.

Other mines are 15 percent in Chambish Non Metals Corporation (CNMC), Luanshya Copper Mines, 15 percent, 10 percent in Non Ferrous Corporation Africa (NFCA plc), 10 percent in Chambishi Metals Limited and 10 percent in Mopani Copper Mines Limited, a unit of commodity trader, Glencore Xstratra.

Source: Zambian Mining Magazine
Corporate Announcements

ZCCM-IH | Renounceable Claw­back Rights Offer

RESULTS OF THE RENOUNCEABLE CLAW­BACK RIGHTS
OFFER

INTRODUCTION
ZCCM­IH shareholders are referred to the Declaration Announcement dated Friday, 11 April 2014, and the Finalisation Announcement dated Wednesday, 16 April 2014, as well as the Circular to Shareholders dated Monday, 12 May 2014, setting out the details of the ZCCM­IH Renounceable Claw­back Rights Offer of 8,920,957 “B” Ordinary Shares subscribed for by the National Pension Scheme Authority (“NAPSA”), on the basis of 4 (four) new Ordinary Shares for every 5 (five) Ordinary Shares already held as at the Record Date, Friday, 09 May 2014, at a subscription price of ZMW 29.23 per new Ordinary Share.
The Claw­back Rights Offer opened on Monday, 12 May 2014 and the closing date was extended from Friday, 13 June 2014 to Friday, 27 June 2014 following delays with the postal delivery of the Claw­back Rights Offer Circular document to shareholders. The extension was, therefore, necessitated by the need to ensure that all shareholders were given sufficient time and opportunity to take any one of the prescribed courses of action set out in the Circular.

RESULTS
The results of the Claw­back Rights Offer are as follows:

SUMMARY RESULTS Number of Claw‐Back
Rights Offer Shares		 Percentage of Claw‐Back
Rights Offer Shares
Claw‐back Rights Offer Shares available for subscription 8,920,957 100.0%
Total Claw‐back Rights Offer Shares subscribed for by minorities 651,545 7.3%
Claw‐back Rights Offer Shares allocated to NAPSA 8,269,412 92.7%

ISSUE OF CLAW­BACK RIGHTS OFFER SHARES
The new Claw­back Rights Offer Shares will be issued on Friday, 25 July 2014 and listed on the Lusaka Stock Exchange (“LuSE”) on Monday, 28 July 2014.

Qualifying Shareholders registered as such on the Record Date (or their renouncees), who validly subscribed for Claw­back Rights Offer Shares, will have their LuSE Central Shares Depository accounts credited with the new Ordinary Shares by Monday, 28 July 2014.

Lusaka, Zambia ­ 24 JULY 2014