Member Info for MikeTe

¤ 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

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 ------------------------------ Some comments / valuations about them: ¤ Ndola Lime Company Limited 100.0% -> ZCCM-IH has 100% shareholding in Ndola Lime Company Ltd (NLC) -> Website: [http://www.ndolalime.co.zm] For 4 months (from January to April 2011), lime production is 144.8 Kt (Limestone 64,438t, Quicklime 50,899t, Hydrated lime 7,395t and Agricultural lime 22,035t). From Ndola Website: Our Vision Ndola Lime Company's vision is to produce world-class quality Limestone products through team work at low cost. Lime News - February 2011 Recapitalisation Project takes shape The recapitazation project has made strides following the arrival of the hydrating installation. (...) Lime News – April 2011 Ndola Lime Company Limited recorded a quicklime production of 173, 669 tonnes for the financial year ended March 2011. This was the highest production achieved since the financial year 1996/97 when production was 198,535 tonnes. The 2010/11 production output represents an increase of 25% on the previous financial year 2009/10. The increase in production was a result of Management’s commitment to improve operations which saw refurbishment of the Rotary Kiln Electrostatic Precipitator (ESP) at a cost $3.75m. Ndola Lime engaged J and C, a South African firm for the dust abatement restoration project. The ESP was commissioned on 20th August. With the dust abatement unit (ESP) fully restored, the Rotary Kiln can be operated for longer campaigns without environmental concerns as the emissions have been reduced from about 7000mg/Nm3 to within the statutory limit of 50mg/Nm3. (…) -> Cost of the Recapitalisation Project: $74 million http://www.postzambia.com/post-read_art ... cleId=9128 Govt evaluating Ndola Lime shares sale options By Kabanda Chulu in Kitwe Wed 12 May 2010, 18:20 CAT MINES minister Maxwell Mwale has said (…) (…) “Because that operation (lime production) as a business is supposed to be very, very profitable business compared to copper mining since in terms of price fluctuation is not there but you just supply lime to the mining industry and even agriculture lime and even road construction and for the whole industrial sector, so Ndola Lime is not able to meet the demand which is there.” However, production estimates from Ndola Lime indicates that the demand for lime is set to grow since the mining sector and the e

http://forum.aboutzccmih.com/viewtopic.php?f=78&t=4747 ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company listed on the Lusaka Stock Exchange and listed on the London and Paris Euronext Stock Exchanges. The company has a capital of 89,296,428 shares. The shareholders of the Company are the Government of the Republic of Zambia (GRZ) who hold 78,155,636 shares (87.6%), and private equity holders who hold 11,140,792 shares (12.4%). The private equity holders are domiciled throughout the world. Listing on the LuSE (Lusaka Stock Exchange) - Currency zambian kwacha (zmk) Isin ZCCM - No. shares available to trade: 104,633 (0.12%) (only!) Source: http://www.stockbrokerszambia.com.zm/in ... &Itemid=53 (-> choose to download one of the "monthly flash" file, on page 3 of the "monthly flash", on the left on "Market Sectoral Analysis", into "Security" you found "ZCCM-IH" and corresponding to ZCCM-IH you found "No. Shares in CSD" is 104,663 and you found "% of share in CSD" is 0,12%). Listing on the Paris EURONEXT - Currency € ISIN ZM0000000037 - No. shares available to trade: 14,954,382 (16,7%) (http://www.euronext.com/trader/summariz ... ectedMep=1 choose "Caractéristiques" => Nombre total d'actions 14,954,382) So, regulars ZCCM trades'share take place only at the Paris Market place (mnemonic code is mlzam, and there are a quotation once time by day at 15h00 Paris time). At present, the Company’s portfolio is largely in the copper mining sector where most shareholdings range between 10% to 20% held in various established and significant copper mining operations. You may found a recent presentation of ZCCM with correct participation into different subsidiaries (because they are not correct on ZCCM website) on this webpage http://www.afrikaverein.de/_uploads/med ... rofile.pdf (It's a presentation make the 13th and 14th April 2011, a very recent one). INVESTMENTS PORTFOLIO ZCCM-IH has the following shareholding interests (1): ¤ Ndola Lime Company Limited 100.0% ¤ Maamba Collieries Limited 35.0% ¤ Konkola Copper Mines Plc 20.6% ¤ Kansanshi Copper Mines Plc 20.0% ¤ Copperbelt Energy Corporation Plc 20.0% ¤ Konnoco Zambia 20.0% ¤ LCM Luanshya Copper Mines Plc 20.0% ¤ NFC Africa Mining Plc 15.0% ¤ Chibuluma Mines Plc 15.0% ¤ Chambishi Metals Plc 10.0% ¤ Mopani Copper Mines Plc 10.0% ¤ Equinox Minerals Limited (Lumwana Copper Mines) 2.3% ¤ Albidon Limited (Munali Nickel Project) 1.0% (1) as at end February 2011 -- RESUME: INVESTMENTS PORTFOLIO (see below for details) 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 P