UPDATE ON ONGOING ZCCM-IH TRANSACTIONS

RNS Number : 9019W

ZCCM Invs.Hldgs PLC

06 August 2018

 

SENS ANNOUNCEMENT

(the "Notice" or "Announcement")

ISSUER

ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")

[Incorporated in the Republic of Zambia]

Company registration number:        119540000771

Share Code:                                           ZCCM-IH

ISIN:                                                       ZM0000000037

Authorised by:                                     Chabby Chabala - Company Secretary

SPONSOR

Stockbrokers Zambia Limited

[Founder Member of the Lusaka Securities Exchange]

[Regulated and licensed by the Securities and Exchange Commission of Zambia]

Contact Number:                 [phone]

Website:                                                www.sbz.com.zm

APPROVAL

The captioned Notice or Announcement has been approved by:

i.      the Lusaka Securities Exchange ("LuSE")

ii.    the Securities and Exchange Commission ("SEC")

iii.   Stockbrokers Zambia Limited ("SBZ")

RISK WARNING

The Notice or Announcement contained herein contains information that may be of a price sensitive nature.

Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.

ISSUED: 3 August 2018

ZCCM INVESTMENTS HOLDINGS PLC

 [Incorporated in the Republic of Zambia]

Company registration number: 771

Share Code: ZCCM-IH

ISIN: ZM0000000037

["ZCCM-IH" or "the Company"]

MARKET ANNOUNCEMET - 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.zccm-ih.com.zm.

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, 3^rd August 2018

	T     |     [phone] E     |      [e-mail] W   an> 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 Friday, 3rd August 2018

 

END

 

 

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