… Vibetti attributes the increase to profit and asset growth in 2023 and receives high praise from IDC CEO Cornwell Muleya.
By Francis Maingaila ♥️
Lusaka, Zambia24 – 29- 07- 2024) —ZCCM-Investments Holdings (ZCCM-IH) has delivered a notable dividend cheque of ZMW146 million to the Industrial Development Corporation (IDC) as part of a total dividend of approximately ZMW243 million approved for the financial year ending December 2023.
Dr. Ndoba J. Vibetti, Chief Executive Officer of ZCCM-IH, highlighted that this payment marks the ninth consecutive year of dividend payments to IDC, which holds a 60.3% stake in the company. Last year, ZCCM-IH made a historic dividend payment of ZMW436 million for the 2021 and 2022 financial years. Since 2015, the total dividend paid to IDC has reached approximately ZMW990 million.
Dr. Vibetti reported robust financial performance for 2023, with a profit of ZMW4.84 billion, a 14% increase from the ZMW4.26 billion profit in 2022. The company’s total assets grew by 20%, from ZMW48 billion to ZMW58.46 billion, due to increased investment value.
He expressed optimism about the company’s future, noting the resolution of legacy issues at Konkola Copper Mines and Mopani Copper Mines. Both entities have begun receiving capital investments from equity partners, which is expected to enhance production in the coming years.
ZCCM-IH has also benefited from Kansanshi royalty receipts, totaling US$56 million by the end of 2023, despite Kansanshi not declaring dividends to its parent group. The company is exploring ways to implement royalty structures in other assets to maximize shareholder value.
The company’s shareholding in Copperbelt Energy Corporation Plc (CEC) increased from 24% to 31.07% over the past year, with a recent dividend from CEC amounting to US$14.59 million for ZCCM-IH.
Additionally, Zambia Gold Company has started remedial works at Kasenseli gold mine, with operations expected to commence in the third quarter of this year.
Maamba Energy Limited (formerly Maamba Collieries Ltd) plans to build an additional 300 MW power plant within two years and has acquired lithium prospecting licenses.
Dr. Vibetti concluded by noting a 52.4% increase in ZCCM-IH’s share price on the Lusaka Securities Exchange, raising its market capitalization from ZMW6.3 billion to ZMW9.6 billion in just seven months.
The ZCCM-IH management remains committed to creating sustainable wealth for the Zambian people and its stakeholders, acknowledging IDC’s crucial support in this mission.
Cornwell Muleya, Chief Executive Officer of the Industrial Development Corporation (IDC), not only expressed heartfelt gratitude to the board and management of ZCCM-IH (Zambia Consolidated Copper Mines Investments Holdings) for their exceptional performance over the past nine years but also commended ZCCM-IH for delivering consistent returns and noted the resilience of its team in overcoming various challenges.
“Today, we celebrate not only the remarkable returns but also the dedication of ZCCM-IH’s board and management, who have ensured our investments yield significant benefits for Zambia,” Muleya said.
He emphasized that despite public scrutiny and difficulties, the behind-the-scenes efforts have been crucial in maintaining performance.
Muleya advised ZCCM-IH to continue focusing on strategic investments and effective management practices.
“To sustain its current success and adapt to the evolving industry landscape, ZCCM-IH must innovate and embrace new technologies. Enhancing operational efficiencies will be essential for maintaining leadership in the mining sector,” he advised.
Muleya also highlighted the IDC’s commitment to supporting future growth through new funding mechanisms and legislative changes.
“Our goal is to create a sustainable future by investing wisely and fostering new champions in various sectors. ZCCM-IH plays a pivotal role in this strategy, and I encourage you to leverage these opportunities to drive further success,” he added.
Muleya reiterated his appreciation for the ZCCM-IH team’s efforts and expressed optimism for continued collaboration.
“The generous dividend declared today is a testament to your hard work and will significantly contribute to advancing our national development goals. Let’s continue working together to build a prosperous future for Zambia,” Muleya concluded.