The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
With a investor meet on the 19th, will we learn more. about "We have therefore developed the business to a point at which the portfolio may be rapidly commercialised" - from the finals.
And the bit I like in the finals:
"Your board is committed to finding ways to add maximum value within the shortest possible timeframe and accordingly is forever on the lookout for opportunities to develop and enhance the project pipeline of the Company."
With a investor meet on the 19th, will we learn more.
3 top notch licences valued at zero - now that's cheap lol.
1] First the current market cap is covered by their investments in FMET and PNT [that they themselves are at all time lows] resulting in PALMS mining assets having no value attributed at all.
2] Any uplift in FMET or PNT puts an even better foundation to the SP
3] Assets all in Tier 1 jurisdictions removing geo-political risk with very encouraging prospects.
4]Aug 31 CL placing at 4.1p half taken by insiders- a few sellers thinking CL is bad . But the ask has been loaded to the tune of 5m shares looking at the trades from Aug - I am expecting a large trade to balance all the buys [about 5m ] and I'm guessing its Peel Hunt selling up - they had around 5.5% - figures tally.
PR seems to be on the increase and BOD well respected.
Around 35% directors and /or sticky after Peel's exit..
So cashed up at 4.1p and assets valued at zero. I'm buying.
They need 300 holders to meet Nasdaq rules. As can be seen, there have been very few holders since IPO so they must expand the number and make sure they hold to the merger - if the price rocketed everyone would sell before the merger [not risking it and can't be bothered to hold for larger gains - its the climate we are in as you know. So they get the staff options to provide liquidity which can be replenished at a later date. Getting the deal over the line is the imperative. Therefore I don't think it will move too much before delisting if my theory is correct
WELL !!!! cleaning out of the Augean stables is going to begin ??? KCM/VEDANTA the first... ZCCM-IH filed a Claim Form with the English High Court to recover outstanding sums in excess of US$100 million due to it from KCM, pursuant to the terms of the Settlement Agreement entered into in 2013. http://www.zccm-ih.com.zm/zccm-investments-holdings-plc-zccm-ih-commences-legal-proceedings-konkola-copper-mines-plc-kcm/ https://www.lusakatimes.com/2016/06/11/zccm-ih-drags-kcm-court-demands-us100-million/
RNS Number : 1382A ZCCM Invs.Hldgs PLC 27 March 2012  ZCCM INVESTMENTS HOLDINGS Plc And its subsidiary DIRECTORS' INTERIM SUMMARY For the six month period ended 30th September 2011 In compliance with the requirements of the "Securities Act, Cap 354 of the Laws of Zambia" and the listing rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc (ZCCM-IH) announces the unaudited results for the six month period ended 30th September 2011. The Group achieved a turnover of K891, 764 million during the six month period ended 30th September 2011 which was 212% above the turnover of K285, 896 million for the six months to 30th September 2010. This was mainly as a result of a profit of K699, 137 million [proceeds of K802, 357 million (US$167, 507 million) less cost of K103, 220 million] from the sale of shares in Equinox Minerals Limited. However, the turnover for Ndola Lime Company (NLC) at K105, 254 million, declined 41% from that of the same period in 2010. This decrease was largely due to the shutdown of the rotary kiln on account of a breakdown of the Electrostatic Precipitator (ESP). With only the vertical kiln being operational, there was reduced production which in turn resulted in reduced turnover and cost of sales compared to that for the period ended 30th September 2010. During the period under review, a total of K87, 346 million (US$18, 381, 000) was received in dividends as follows: · K35, 860 million (US$7, 600, 000) from Kansanshi Mines Plc · K23, 628 million (US$5, 000, 000) from Konkola Copper Mines · K19, 858 million (US$4, 161, 000) from Chibuluma Mines as well as · K8, 000 million (US$1, 620, 000) from CEC during the period. In addition, interest earned from treasury placements during the period amounted to K3, 488 million, where as management fees of K1, 675 million were earned from the Government of the Republic of Zambia (GRZ) relating to the Copperbelt Environment Project implementation. The cost of turnover decreased to K106, 484 million for the period to 30th September 2011 from K163, 246 million for the corresponding period to 30th September 2010. This was largely due to only the vertical kiln (at NLC) being operational during the period under review. The operating profit for the period under review of K785, 280 million was K662, 630 million (540%) higher than that for the same period in 2010. This was mainly as a result of the sale of shares in Equinox Minerals Limited for the period under review. For largely the same reason, the retained profit for the period under review of K1, 060, 376 million was K655, 189 million (161%) higher than that for the same period in 2010. The Company's share of profit from Associate Companies for the period to 30th September 2011 of K371, 430 million showed a slight decrease when compared to K372, 760 million for the period to 30th September 2010. During the period under review, ZCCM-IH participated in un
March 29, 2012 By NKOLE CHITALA ZCCM-Investments Holding Plc (ZCCM-IH) has made a part payment of US$55 million towards the pre- privatisation loans owed to Government. The group has also achieved a turnover of K891,764 million during the six-month period ended September 2011 which is 212 percent above the turnover of K265,896 million for six months recorded on September 30, 2010. This is according to unaudited results for the six-month period ended September 30, 2011 released by company secretary Chabby Chabala. Mr Chabala said the money owed to Government was paid during the period under review. He also said the company turnover is 212 percent up compared to K285, 896 million for the six months to September 30, 2010. Mr Chabala attributed the increase mainly to a profit of K699, 137 million proceeds of K802, 357 million (US$167,507 million) less cost of K103, 220 million from the sale of shares in Equinox Minerals Limited. He, however, said the turnover for Ndola Lime Company (NLC) at K105, 254 million declined 41 percent from that of the same period in 2010. He said the decrease is largely due to the shutdown of the rotary kiln on account of a breakdown of the electrostatic precipitator. “With only the vertical kiln being operational, there was reduced production which in turn resulted in reduced turnover and cost of sales compared to that for the period ended September 30, 2010,” he said. Meanwhile, ZCCM-IH also says events in the Euro Zone are likely to impact adversely on global commodity demand and prices. Mr Chabala said with lesson learnt from the global financial crisis, a number of mining companies have kept a close watch on unit production costs in order to better manage base metal price fluctuations. “We are keenly observing events in the Euro Zone and the effects being made to address them,” he said. ZCCM-IH is an investment holdings company which is quoted on the Lusaka, London and Euronext Stock exchanges, and has the majority of its investments held in the copper mining sector of Zambia. The company’s shareholders are the Government of the Republic of Zambia with 87.6 per cent shareholding while private equity holders take up 12.4 per cent. Minority shareholders are spread throughout the world in various locations.
ZCCM-IH, the government’s investment holdings company, is all of a sudden becoming very transparent. Only last year, after the change of government, did ZCCM-IH publish audited accounts for 2008, 2009 and 2010 at an AGM organised at very short notice in an “uncharacteristic flourish of activity”, as one international investor put it, followed by first a summary of the six months ended 31 March 2011, and now a summary of the six months ended 30 September 2011. ZCCM-IH is the left-over from the Chiluba government’s gradual privatisation of Zambia Consolidated Copper Mines (ZCCM), starting in the 1990s. ZCCM retained considerable shareholdings in several of the large copper mines such as Kansanshi Copper and Gold Mine (20%), Konkola Copper Mines (20.6%), Mopani Copper Mines (10%) and Luanshya Copper Mines (10%), but has other interests as well such as Ndola Lime Company (100%), Copperbelt Energy Corporation (20%), Maamba Collieries (35%) and oil exploration. Yet, argued the newly elected PF government, ZCCM-IH had not posted profits or dividends since its inception – despite soaring copper prices. This has finally changed, partly because ZCCM-IH has begun to receive its own dividends. Under the MMD government, the large mines seemingly skipped these payments, with the most blatant example being Kansanshi, owned by First Quantum Minerals, owing about K3 trillion in unpaid dividends and price participation payments (which come into effect at high copper prices). In the six months ended 30 September 2011, however, ZCCM-IH received K87.3 billion in dividends, including K35.9 billion from Kansanshi. In the nine months ended 30 September 2010, ZCCM-IH received dividends of K107.6 billion, up from K29.6 billion for the nine months to September 2009. However, what really has improved ZCCM-IH’s turnover !!! in the six-month period in 2011, up by 212% to K891.8 billion compared to the same period in 2010, is the sale of its 2.28% shareholding in Equinox Minerals, the former owner of Lumwana Copper Mine, which was 100% acquired by Barrick Gold last year!!!. As a result, ZCCM-IH’s operating profit (profit before taxation, retained profit!!!) increased by 54% to K785.3 billion compared to the same period in 2010. The funds from the Equinox shares have been invested in Maamba Collieries to maintain an equity shareholding of 35%, in Konkola North Copper (Konnoco) Mine, to secure up to 20% shareholding (depending on further investments), and in Ndola Lime Company as a shareholder loan towards strengthening production. Finally, some of the money has been used to make a part-payment of about K290 billion on pre-privatisation loans owed to government. ZCCM-IH is owned by government (87.6%) and private equity holders, mostly abroad (12.4%). It is listed on the Lusaka (LuSE) and London Stock Exchanges and on the Euronext in Paris. In January, government said it was considering a full listing of ZCCM-IH on
yep...6-1 at york...
afternoon...
many news and informations on : http://forum.aboutzccmih.com/index.php
ZCCM-IH seeks strategic equity partners By KALONDE NYATI ZCCM-Investment Holdings (IH) says it is looking for equity partners in the exploration of minerals, oil and gas in four provinces as the firm embarks on mining activities. The areas are Northern, Eastern, Central and North-Western provinces. ZCCM-IH mining engineer Moses Chilambe said the firm,which was awarded seven mining licences in Northern, Eastern and Central provinces and four blocks for oil exploration in North-Western Province,wants to engage strategic partners with technical expertise and financial muscle in the mineral and oil fields. “Undertaking such projects is costly and ZCCM-IH wants to attract strategic partners, either foreign or local, with technical expertise and financial muscle,” he said. Mr Chilambe said this in an interview in Lusaka recently. He said ZCCM-IH wants to venture in active mining operations in line with its 2012 -16 strategic plan. “The 2012 -16 strategic plan will place emphasis on ZCCM-IH having to be actively involved in mining across the country and acquire reasonable shareholding in existing mines,” he said. Mr Chilambe said the organisation will also work closely with small-scale miners, especially those in the gemstone sector, a move that will enhance their growth. He said ZCCM-IH will among other things develop a revolving fund but could not disclose how much will be provided to miners as the development is currently at planning stage.
Zambia wants more for GDP from mining Friday, 20 Jan 2012 Mines minister Mr Wylbur Simuusa said that Zambia plans to double the contribution of the mining sector to its gross domestic product to 20% to enable the country to get more benefits from its main natural resource. Copper mining is Zambia's economic lifeblood and a key employer in the southern African country of 13 million people. According to government data from the central statistical office, Switzerland imports the bulk of the country's copper followed by China. At a meeting called to review the law governing mining, Mr Simuusa said the sector currently contributed between 9% and 10%to GDP. He said that "If we can double what we are getting, then we can say we have at least done something without giving a time frame.” He said the government would like State owned Zambia Consolidated Copper Mines Investment Holdings which currently represents the state in mining ventures through equity stakes, to actively participate in the industry by running and owning some mines. He said that government would also revamp small scale mining for it to contribute more to the economy, and would change mining laws to give the government a bigger supervisory role. Mr Simuusa further said that "We are also diversifying into less traditional mining areas instead of just concentrating on copper.” Foreign mining firms in Zambia include Brazil's Vale, Canada's First Quantum Minerals and Barrick Gold and London listed Vedanta Resources and commodity giant Glencore. He added that studies by the World Bank and the International Monetary Fund had shown that Zambia was not getting the due benefits from mining. He further said that "In terms of taxation, mining is contributing only 3% against exports of 60% to 70%, and we are saying that should be changed.”
Mr. Sata's new policies such as controls on copper exports and higher royalties are mainly aimed at delivering on populist campaign polices, but they have already rattled mine investors who fear they threaten to reverse the sector's impressive growth in the past few years. According to Fredrick Bantubonse, director of Zambia's Chamber of Mines, such abrupt policy changes are shaking investor confidence. "A stable fiscal regime is what every investor yearns for and we believe this is being undermined," he said. ZCCM-IH, which replaced the former mining parastatal in the late 1990s following the privatization of the country's mining sector, already holds minority stakes in copper mines including Mopani, Luanshya, Chambishi and Konkola. However the company's participation in the sector remains dismal, hence the need for higher stakes, Mr. Simuusa said. ZCCM-IH hasn't been able to pay dividends to the government since its creation because most of the mines in which it holds stakes either declare losses or continue to plow back profits in expansion projects, company officials said. However, ZCCM-IH has at least $170 million in cash from the sale last year of its stake in Lumwana Copper Mines, which it can use to kick-start a mining project. Currently, ZCCM-IH only operates the Ndola Lime Company, a major supplier of lime to copper and cobalt mines in the copperbelt. Under its revived role, ZCCM-IH could also start by reviving operations Munali Nickel Mine which was closed late last year, amid low global nickel prices, according to Sumuusa. ZCCM-IH is drawing up an alternative plan for the troubled mine, which is currently under care and maintenance as Australia-based Albidon Ltd. is experiencing cash-flow problems due to low global nickel prices. Spurred by an investment boom and higher global copper demand, Zambia's mining sector has made massive progress in the past three years, enabling the country to attain a historic record copper output 820,000 tons in 2010.
KAMPALA, Uganda—The Zambian government is seeking a greater role in the mining sector for state mining company, Zambia Consolidated Copper Mines Investments Holdings, known as ZCCM-IH, according to a senior official, in a move highlighting the new government's continued efforts to gain a bigger share of the profits generated by the sector. Since the September election of Michael Sata as president of Africa's top copper miner, the government has introduced a number of policies aimed at tightening the state's grip on the country's booming mining sector, which is tipped to hit two million metric tons of copper output in the next five years. Analysts see the changes in Zambia as part of a broader African shift toward resource nationalization as global demand for commodities continues to soar, with countries including Zimbabwe, Guinea and South Africa all considering legislation aimed at nationalizing mine projects, but some fear investor confidence will suffer. "Our target is to ensure that ZCCM-IH gets an active role in the mining sector, we want to break foreign dominance," Minister of Mines and Natural Resources Wilber Simuusa said. The government is currently in talks with stakeholders including landowners, tribal chiefs and small-scale miners as it seeks to acquire at least two green field projects to be developed by ZCCM-IH, Mr. Simuusa said. Negotiations are also continuing with mining companies operating in the southern African nation as the government seeks to increase ZCCM-IH's stake in existing copper mines from 10-15% to at least 35%. "In the next two weeks we should be able to conclude talks toward the acquisition of the first green field project," meaning new mines in areas where mining operations haven't previously been conducted, located mainly outside the country's Copperbelt province. Mr. Sata's election victory ended a 20-year dominance of the former ruling party, the Movement For Multiparty Democracy, and the 74-year-old former police officer has quickly attempted to leave a legacy as a champion of populist policies. Mr. Sata premised his campaigns on populist policies such as job creation, increasing mine taxes and increasing the state's stakes in mine projects. Zambia's mining operations are concentrated in the copperbelt, an area some 300 kilometers north of the capital Lusaka near the border with Congo, mainly due to inadequate exploration elsewhere, although some huge discoveries have been made outside the copperbelt in recent years, including Barrick Gold Corp.'s Lumwama and Kansanshi, owned by First Quantum Minerals Ltd. Mr. Simuusa said that ZCCM-IH will also acquire minority stakes in many other green field projects, mainly outside the copperbelt.
By Maimbolwa Mulikelela ZAMBIA Consolidated Copper Mines-Investment Holdings (ZCCM-IH) is discussing with stakeholders to buy 50 per cent shares in Kariba Minerals, the country’s largest amethyst producer. Kariba Minerals Limited, a 50-50 joint venture between Gemfields and the Zambian Government, operates the country’s largest single amethyst mine at Mapatizya in Southern Province. Kariba Minerals has long been a reliable source for quality amethyst for major processors of gemstones and other related products. The company’s market share is estimated at more than 90 per cent and presently, the company exports mainly to China and India including other potential markets in Europe and the US. ZCCM-IH chief executive officer Mukela Muyunda said the Company was seriously looking at investing in Kariba Minerals Limited as part of its diversification programme. Mr Muyunda said currently, the company was in discussion with Kariba Minerals in an effort to buy the 50 per cent stake which would consequently see ZCCM-IH increase its investment portfolio. In an interview in Lusaka, Mr Muyunda said ZCCM-IH was diversifying into the mining sub-sector and would be investing in Kariba Minerals Limited once the discussions are successfully concluded. “We are not only investing in copper mining alone but we are also going into other sub-sectors of mining such as coloured gemstones, so, we are seriously investing in Kariba Minerals Limited in Mapatizya dealing in amethyst,” he said. Mr Muyunda said ZCCM-IH was in the process of reviewing its strategic plan which would stipulate the areas where the firm could diversify into. “Currently, we are in the process of reviewing our strategic plan so that we can see other areas where we can diversify into including some element of manufacturing,” Mr Muyunda said. He said the strategic plan was expected to be finalised by the end of February and it would be much clearer on which other areas to diversify into. Mr Muyunda explained that ZCCM-IH holds 87.6 per cent shares on behalf of the Government, while 12.4 per cent was owned by the private investors, saying it was important to put the investment to good use. Mr Muyunda said, ZCCM-IH also owned 35 per cent shares in Maamba Collieries Limited adding, that it was an integrated project with the element of mining and thermal power. The company plans to set up a 300 MegaWatt thermal power project in Southern Province which will be connected to the national grid. Nava Bharat (Singapore) Property Limited, a subsidiary of Maamba Collieries Limited by the acquisition of 65 per cent equity stake from ZCCM-IH in April 2010 through the privatisation process.
APPOINTMENT OF MR. WILA D. MUNG'OMBA AS EXECUTIVE CHAIRMAN Friday 16 December, 2011 ZCCM Invs.Hldgs PLC Directorate Change RNS Number : 1239U ZCCM Invs.Hldgs PLC 16 December 2011  APPOINTMENT OF MR. WILA D. MUNG'OMBA AS EXECUTIVE CHAIRMAN OF ZCCM-IH In line with Article 74(A) of the Articles of Association of ZCCM Investments Holdings Plc (ZCCM-IH), the Minister of Mines and Natural Resources, Honourable Wylbur Simuusa, MP, on behalf of the Government of the Republic of Zambia, the majority shareholders of ZCCM Investments Holdings Plc (ZCCM-IH,) is pleased to announce the appointment of Mr. Wila D. Mung'omba as Executive Chairman of ZCCM-IH with effect from 1st December 2011. Mr. Mung'omba takes over from Mr. Alfred J Lungu who has served ZCCM-IH for a period of 4½ years. The Minister commends Mr. Lungu for his contributions to the company and the mining sector as a whole. Mr. Mung'omba who is not new to the affairs of the company, has in the past served as Group A Director of ZCCM Limited in 1996-98. Between 1995-1998, Mr. Mung'omba was World Bank's appointed Team Leader in the initial preparation of the ZCCM Limited privatization Report and Plan by the UK based Investment Bank NM, Rothschild & Sons and international law firm Clifford Chance. Later Mr. Mung'omba was involved in the creation of the present ZCCM-IH. Mr. Mung'omba is a distinguished lawyer of many years, a former Executive Director of the International Monetary Fund, and former President of the African Development Bank Group. For five years he served as Non-Executive Director on the initial Board of the Emerging African Infrastructure Fund (EAIF), a donor funded financial instrument to encourage public and private sector partnership in infrastructure development in Sub-Sahara Africa. He is currently Chairman of Cavmont Capital Holdings Zambia Plc and Chairman of Cavmont Bank. Recently at an African Union Ministers of Trade meeting held in Accra Ghana, Mr. Mung'omba was elected Chairman of the Pan African Private Sector Trade Policy Committee. As Chairman, he will coordinate all African private sector Trade Policy negotiations at World Trade Organization (WTO) and at Regional Organizations such as ECOWAS, COMESA and SADC. The Minister congratulates Mr. Mung'omba on this appointment, looks forward to his contributions towards achievement of the Company's strategic objectives and wishes him success in his new role. Dr V. Mutambo Permanent Secretary Ministry of Mines and Natural Resources
ZCCM Investments Holdings Plc Incorporated in the Republic of Zambia NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 8th Annual General Meeting of members of ZCCM Investments Holdings Plc will be held on Wednesday, 7th December 2011 at Southern Sun Ridgeway Hotel, corner of Church Road and Independence Avenue, Lusaka at 10:00 hours to transact the following business: 1. To consider and adopt the minutes of the Seventh Annual General Meeting held on 23 November 2010. 2. To receive and adopt the audited Financial Statements of the Company for the year ended 30 June 2008, together with Reports of the Directors and the Auditors. 3. To receive and adopt the audited Financial Statements of the Company for the year ended 30 June 2009, together with Reports of the Directors and the Auditors. 4. To receive and adopt the audited Financial Statements of the Company for the nine month period ended 31 March 2010, together with Reports of the Directors and the Auditors. 5. To ratify the Directors' appointment of KPMG as external Auditors for the financial periods ended 30 June 2009, 31 March 2010 and 31 March 2011 following a casual vacancy that arose after the retirement of the previous Auditors who held office until the conclusion of the audit for the period ended 30 June 2008 and to ratify the Auditors' remuneration paid thereof. 6. To consider for ratification, the share sale of 65% of ZCCM-IH's shares in Maamba Collieries Limited to Nava Bharat (Singapore) Pte Limited. 7. To transact any other business that may be properly transacted at an Annual General Meeting. A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend, speak and, on a poll, to vote in his/her stead. The proxy need not be a member of the Company. The instrument appointing a proxy must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting. By Order of the Board C Chabala Company Secretary Lusaka, Zambia. 3rd November 2011
PORTFOLIO VALUE: ==> The Value of the ZCCM-IH portfolio is superior to $3 billion (represent more than $33/share), without all the valorisations of all participations. ==> If we consider KCM value represent 1/3 of the ZCCM'portfolio value, so the entire ZCCM-IH portfolio would be around $3.8 billion (represent more than $40/share) * DEBTS / LOANS / BORROWINGS In the other hand, we must speak of ZCCM-IH'debts. Exchange rate 01 June 2011: US$ 1 = ZMK 4,764 (source Bank of Zambia www.boz.zm ) Borrowings (Source: Annual Report 2007 (the last Annual Report, since no significant change occurs)) 1) Non-current / Long term borrowings 1.1) GRZ and GRZ related borrowings ZESCO loan: US$19.3 million GRZ Loan: around $204 million (without interest) GRZ/World Bank Loan: US$68.5 million ERIPTA Loan: K12,321 million (without interest) (represent US$2.6 million the 01 June 2011) Total 1.1 GRZ and GRZ related borrowings: around 295 million 1.2) Subordinated loan K865,445 million (without interest) (represent US$181.7 million the 01 June 2011) Total 1 Long term borrowings: around US$477 million (more than 80% without interest) 2) Current Bank borrowings K14,175 million (represent the 01 June 2011, US$3 million) (at the end of 2007) According to the Annual Report 2007, the total borrowings (general) is around US$291.8 million + K891,941 million = (at the 1 st June 2011 exchange rate) K2.28 trillion or US$479 million (represent US$5.37/ZCCM-IH'share, and most of 80% without interests)
ZCCM-IH has the following shareholding interests, with the evaluation for the ZCCM-IH portfolio: Investment superior to $1 billion ¤ Konkola Copper Mines Plc 20.6% - Evaluation around $1.27 to $1.5 billion (for ZCCM) ¤ Kansanshi Copper Mines Plc 20.0% - Evaluation, at least as KCM ($1.5 to $2 billion) Investments between $100 and $300 million ¤ Mopani Copper Mines Plc 10.0% - Evaluation US$263 million ¤ Ndola Lime Company Limited 100.0% - Evaluation NC (may be around US$150 to 250 million in 2 or 3 years) ¤ Equinox Minerals Limited (Lumwana Copper Mines) 2.3% - Evaluation US$171 million ¤ Maamba Collieries Limited 35.0% - NC (around US$100 to 170 million in two years) Investments lower than $100 million ¤ Konnoco Zambia 20.0% - Evaluation US$63 million (and probably the double in 2 years) ¤ Copperbelt Energy Corporation Plc 20.0% - Evaluation US$29 million ¤ Albidon Limited (Munali Nickel Project) 1.0% - Evaluation $0.37 million Investments without evaluation (for the moment) ¤ LCM Luanshya Copper Mines Plc 20.0% - Evaluation NC ¤ NFC Africa Mining Plc 15.0% - Evaluation NC ¤ Chibuluma Mines Plc 15.0% - Evaluation NC ¤ Chambishi Metals Plc 10.0% - Evaluation NC
¤ Kansanshi Copper Mines Plc / Kansanshi Mining Plc (KMP) 20.0% -> First Quantum Mineral Ltd (FQM) has 80% shareholding in KMP, and ZCCM-IH 20% -> Website: KMP http://www.first-quantum.com/i/pdf/Kansanshi_Fact.pdf FQM http://www.first-quantum.com/s/Home.asp -> First Kansanshi evaluation KCM is Zambia's second-largest copper producer after Canada-based First Quantum. Note the First Quantum mine in Zambia is Kansanshi Copper Mine. Kansanshi has a cash cost of $0.90 per lb of Cu, and Konkola has a cash cost superior to $1 per lb of Cu. Kansanshi is bigger than Konkola, and the produce copper with and inferior cash cost. So, the Kansanshi value would probably be superior to the KCM value, or would have similar valuation... -> Last news: Extract from "First Quantum Minerals Reports Operational and Financial Results for the Three Months Ended March 31, 2011 (May. 9, 2011)" (on the official FQM website) Revenues: Kansanshi - copper 563.2 + gold 34.1 = US$ 597.3 million Kansanshi Gross profit (USD M) $ 400.5 (compare with $ 227.3 m in 2010) --> We may read Gross profit for one quarter US$ 400.5 million (in 2011) for Kansanshi only, and ZCCM has 20% of Kansanshi... A big amount of money for ZCCM, only for an investment (Kansanshi) and only for a quarter (three month)! -> Into the FQM 2010 Annual Report, p.4/86, we may read:"Kansanshi, Copper-Gold Mine, Zambia. Our operations are cost-efficient, generate significant cash flows and provide the financial flexibility to support our growth and diversification strategy. The Kansanshi mine, the world’s 8th largest copper mine is located approximately 10 kilometres north of the town of Solwezi. Mining is by conventional open pit methods.(...) Cash cost of $0.90per lb of Cu" ($0.9/lb Cu is a low cash cost compare to other mines!). p.13/86, we may read: "the mine is now capable of producing 250,000 tonnes of copper and over 100,000 ounces of gold per year. (...) aims to increase the copper output capacity to 400,000 tonnes by 2015". p.20/86, we may read:"Our operations contributed over 4% of Zambia’s total economy". For Year 2010 (january to december): Net sales: FQM=$2,378.2M and Kansanshi=copper 1,542.5+gold 115.5=$1,658M (Kansanshi represent 69.7% of FQM total) Gross Operating profit FQM=$1,211.9M and Kansanshi=$997.8M (Kansanshi represent 82.3% of FQM total) FQM: "At the date of this report the Company has 86,179,019 shares outstanding." (15/04/2011) -> The 1st June 2011, the FQM share price = 126.94, so the stock exchange capitalisation of this company is 86,179,019 x 126.94 = $10.9 billion -> And, as Kansanshi is the principal producing asset of FQM (82.3% of FQM'gross profit), and FQM has only 80% of Kansanshi, the Kansanshi value would be around = ($10.9 billion x 0.823)/0.80 = $11.2 billion... (and ZCCM-IH has 20% of Kansanshi)
¤ Konkola Copper Mines Plc (KCM) 20.6% -> Vedanta Resources Plc has 79.4% shareholding in KCM, and ZCCM-IH has 20.6% -> Website: KCM http://www.kcm.co.zm and future KR http://www.konkolaresources.com/ Vedanta http://www.vedantaresources.com/ -> -> First recent KCM evaluation http://www.foxbusiness.com/industries/2 ... ne-source/ Vedanta Weighs Zambia Copper Unit Listing As Early As June-Source By Alex MacDonald Published May 23, 2011 Dow Jones Newswires (...) Liberum Capital said Monday in a note that it valued Vedanta's stake in KCM at $4.9 billion, based on a 20% discount valuation to First Quantum Ltd.'s (FQM.T) price-to-earnings ratio of 11.9 times 2011 consensus earnings. KCM is Zambia's second-largest copper producer after Canada-based First Quantum. (...) ==> The 23 May 2011, Liberum Capital said in a note that it valued Vedanta's stake in KCM (79,4%) at $4.9 billion => so, the total valorization would be around $6.17 billion => so, ZCCM's stake in KCM (20.6%) would be valued at $1.27billion (and The ZCCM-IH company has a capital of 89,296,428 shares...) (and we read: KCM is Zambia's second-largest copper producer after Canada-based First Quantum. Note the First Quantum mine in Zambia is Kansanshi mine, and ZCCM-IH has 20% of Kansanshi). -> Second recent KCM evaluation Vedanta poised to float off Zambian copper arm in $7.3 bn IPO Indian controlled, but London listed diversified miner, Vedanta is reported to be poised to float off Konkola Copper Mines, its major Zambian copper producer for around US$ 7.3bn. Author: Lawrence Williams Posted: Monday , 23 May 2011 LONDON - A report in the UK's Sunday Times suggests that multinational London listed diversified miner, Vedanta, is to float off its Zambian copper arm valuing it at £4.5 billion (US$7.3 billion) in a London IPO in as soon as one month's time.(…) ==> The 22 May 2011, the UK’s Sunday Times said that Vedanta wish float KR/KCM for US$7.3 billion => so, ZCCM's stake in KCM (20.6%) would be valued at $1.50billion (and The ZCCM-IH company has a capital of 89,296,428 shares...)
The project would have 70:30 debt-equity. A large international bank based out of Africa would be the lead merchant banker,” a senior official of the company said. The equity component would borne by Nava Bharat and the Zambian government with Nava Bharat contributing about 65% of the equity. The company is expecting the financial closure for the project by the end of the third quarter of this fiscal. Maamba Collieries are being revived by the company for commencing coal production and the sale of coal sale from the mines is expected to commence by the third quarter. A mining contractor has been engaged by the company and the extraction would begin by August. The initial production in the coal mine is expected to be at about 30,000 tonne per month, which would be ramped up to 50,000 tonne with the eventual target being about one lakh tonne a month. Meanwhile, on the power project front, the company is in the process of engaging an EPC contractor and the arrangement would be finalised in August. Power purchase agreements with local utility and the Zambian government are expected to be signed by mid-July. “We are negotiating for over 10 cents per unit for signing the power purchase agreements. The cost of generation is estimated to be at about 8-8.5 cents per unit. The targeted return on equity is about 20%,” the official said. Even on coal sales, Nava Bharat expects margins to remain attractive. The mines would produce high-grade washed coal and the net margins are estimated to be about $10-15 per tonne. “The realisation would be about $60-65 per tonne and the cost of mining including allied costs would be about $45-50,” he said. ==> Comments: Investment=700+50=US$750 million, financed with bank debt (US$500 million) and equities (750-500=US$250 million). Nava Bharat contribute 65% to the equity component, so ZCCM-IH will contribute 35%, representing (US$250 million x 35%=) US$87.5 million. The Nava Bharat fiscal year is 31 st March, so the end of the third quarter is the 31 st December 2011. So, ZCCM-IH will invest US$87.5 million in Maamba by the end of December 2011. And, Capacity of the 300 mw thermal power plants = 300,000x24x365 = 2628 million Kwh/year. 0.10 (cost of sell) – 0.08 to 0.085 (cost of production) = US$0.015 to 0.02 /unit (unit=Kwh?) So, maximal production margin = 2628 million x (0.015 to 0.02) = US$39.4 to 52.6 million/year Equity = US$250 million, and the official said the targeted return on equity is about 20%, so the return would be around US$50 million. The coal production will generate each month 30,000t to 50,000t x $10-15/t, represent $6 million/year. The largest part of the revenues seems to be those from the coal fired thermal power plants, and we may estimate these revenues around US$40 million/year, with 35% for ZCCM-IH (represent US$13 million/year). If this numbers corrects, in 2015, the valuation of the 35% of ZCCM-IH into Maamba may worth probably
--> The modernization of Ndola begins, it is called The Recapitalisation Project, and the cost for replacing all equipments will be around $74 million (according to the Mine Ministry). The future Ndola Lime valuation would be around $150 to $250 million. The Recapitalisation Project is probably financed with bank loans; for example, in the ZCI website, we may learn that ZCI loan $10 million to Ndola. ¤ Maamba Collieries Limited (MCL) 35.0% -> Nava Bharat (Singapore) Pte Ltd. (NBS) has 65% of MCL, and ZCCM-IH 35% ->Website : Maamba / Nava Bharat Maamba Collieries Limited (MCL) is the largest coal mining company in Zambia. Nava Bharat (Singapore) Pte Ltd. (NBS) joined as a strategic equity and technical partner by acquiring 65% equity stake in MCL from ZCCM-IH in April 2010. Under a new management, MCL is introducing improved mining and processing methods with state-of-the-art, eco-friendly equipment and adding value by establishing a mine-mouth, coal fired power plant at Maamba in the Southern province. MCL has estimated reserves of 65 million tonnes of coal marketable to mining, cement, chemical, brewery industries, etc. and an equal quantity of lower grade coal. The lower grade coal, hitherto dumped along with overburden as waste material, is an excellent fuel for thermal power generation. Establishing a mine-mouth, coal fired power plant within MCL premises will therefore convert this waste material into the much needed, valuable electric power. This will add substantial value to the mining activity year after year and ensure long term sustainability of profitable operations of MCL. Singapore firm takes 65 percent of Zambia coal mine (Fri Dec 18, 2009 - Reuters News By Chris Mfula (…) Nava Bharat (…) would pay $26 million for a 65 percent stake in Maamba Collieries while 35 percent of the shares would be retained by the state-run ZCCM-IH. * To build 300 megawatts power plant within three years * Plans to float 25 pct shares on local bourse * Maamba output seen at 2 million tonnes in the long term Zambia: Maamba Collieries Production Starts Next Year - 25 April 2011 MAAMBA Collieries will start production in the first-quarter of 2012 following commencement of the recapitalisation programme.(…) -> Press article: http://www.anhourago.in/show.aspx?l=8626222&d=502 Nava Bharat raising $500 million for Zambia power plant Published: Friday, Jun 3, 2011, By KV Ramana | Place: Hyderabad | Agency: DNA Nava Bharat Ventures Ltd, a Hyderabad-based company with interests in power, coal, ferroalloys and sugar, is planning to raise $500 million to fund its power project in Zambia. The company is developing a 300 mw project in Zambia with a total outlay of $700 million. Additionally, the company would spend another $50 million on developing Maamba Collieries in that country. “The debt syndication is going on. We would raise about $500 million to fund the project. The project wou
conomy in general is expanding. (…) Currently, Ndola Lime’s profitability is hindered by the 30 per cent excise duty on heavy fuel oils which pushes up the company’s costs and prices, reducing its competitiveness. But with the ongoing US $74 million recapitalisation of the company that would be concluded in 2011, it is projected that the new kiln and plant machinery would be fired on coal and heavy fuel oils (HFO) hence the company would cut down on cost of fuel. The plant under construction will produce 600,000 tonnes of lime per day from the current 450,000 tonnes per day and it will have new energy efficient and environmental friendly features. (…) --> We may read: (lime production) as a business is supposed to be very, very profitable business Currently, NL’s profitability is hindered by the 30 per cent excise duty on heavy fuel oils the ongoing US $74 million recapitalisation of the company that would be concluded in 2011 will produce 600,000 tonnes of lime per day from the current 450,000 tonnes per day So, the recapitalisation project cost is $74million, NL’s profitability will increase by 30%, and the production will increase by 33%. The Ministry speak about a very very profitable business. Compare to other mines, with a very profitable business, we may expect 20% profitability on investment (20% x $74m = $15 million by year), so with a very very profitable business NL would generate 30% on investment, from $20 to $25 million by year! The future NL value would be between $150 and $250 million! -> The mine becomes to replace olds equipments. Ndola Lime pays $6m for hydrate plant replacement By Business Reporter NDOLA Lime Company has spent US$6 million to replace the Hydrate Plant on the Copperbelt where the new equipment will be fully operational by August this year. (…) The equipment to be installed includes the 500 tonnes a day Vertical Kiln that would be either fired by coal or Heavy Fuel Oils, 15 tonnes an hour Hydrating Plant, the Coal Handling Plant and the Lime Packing and Bagging plant. (…) He however said the construction of the vertical Steel plant and the rest of the equipment awaited more payment. (…) He said the major reason that led to the plant being shut was the high cost of production which stood at $0.57 per pound as compared to $ 0.15 per pound being used at the other KCM smelter in Chingola. (…) --> We learn some interesting things: - Ndola Lime pays $6m for hydrate plant replacement => the modernization of Ndola plant begun - the rest of the equipment awaited more payment => for modernization of other parts of the plant - the new equipment is fired by coal or Heavy Fuel Oils - He said the major reason (…) was the high cost of production which stood at $0.57 per pound as compared to $ 0.15 per pound being used at the other KCM smelter in Chingola. => Ndola need to be modernized for become generates cash