https://www.investegate.co.uk/zccm-invs-hldgs-plc--z cc-/rns/update-on-ongoing -zccm-ih-transactions/201 808060820109019W/
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, 3rd August 2018
