ZCCM Invs.Hldgs PLC Further Cautionary Announcement: SEP for Mopani (4804V)
December 04 2023 - 2:00AM
UK Regulatory
TIDMZCC
RNS Number : 4804V
ZCCM Invs.Hldgs PLC
03 December 2023
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: Charles Mjumphi- 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: +260-211-232456
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. ZCCM-IH Investments Holdings Plc
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: 03 December 2023
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"]
FURTHER CAUTIONARY ANNOUNCEMENT
The Board of Directors of ZCCM Investments Holdings Plc
("ZCCM-IH" or the "Company") (the "Board") refers the shareholders
of ZCCM-IH ("Shareholders") to the cautionary announcement released
on SENS on 10 November 2023 and the announcement made on SENS on 15
June 2022 in relation to the appointment of Rothschild & Co.,
South Africa (Pty) Ltd ("Rothschild & Co.") to assist ZCCM-IH
with a strategic review of Mopani Copper Mines Plc ("MCM") to
ensure its sustainability and continued development ("Strategic
Review") and the various media reports that have subsequently
referenced the Strategic Review.
The Strategic Review was focused on assessing MCM's balance
sheet given its high level of indebtedness and the liquidity
requirements necessary to run and further develop the mine. The
outcome of the Strategic Review identified two key initiatives to
ensure the sustainability and continued development of MCM, one
focused on MCM's immediate liquidity requirements and the other on
a long-term sustainable funding solution and the securing of a new
strategic equity partner ("SEP") to invest in MCM as part of a
restructuring of MCM's balance sheet and implementation of a
turnaround plan.
The Board is pleased to inform Shareholders and the market that
after an extensive and thorough process, International Resources
Holding RSC Limited ("IRH"), an affiliated company of Abu Dhabi
conglomerate International Holding Company PJSC ("IHC "), UAE's
most valuable listed company, and the GCC region's second-most
valuable has been selected as the preferred SEP. IRH has a strategy
to invest in critical minerals and develop a new entity that
encompasses the entire metals and mining supply chain. The proposed
investment in MCM is the largest single investment to date by IRH
and represents a key step in the development of its strategy to
become a major player in the African minerals sector.
This proposed partnership between ZCCM-IH, IRH and MCM
represents an important strategic step for the revitalisation of
the Zambian mining industry and the Zambian economy and the
continued development of the Copperbelt. The significant interest
from leading global strategic investors during the SEP process,
indicates the high-quality nature and strategic value of MCM,
despite the short-term challenges it has been facing.
As the preferred SEP, and subject to the definitive transaction
documents being entered into, IRH will, inter alia, inject funds
into MCM which will be used to stabilise short-term working
capital, fund the completion of the mine development projects and
unlock the long-term potential of MCM as well as restructure its
balance sheet and reset its existing relationship with Glencore.
Further details on the planned restructuring will be provided once
all the documentation has been finalised.
The capital investment combined with the industry experience of
the IRH and MCM management teams should enable MCM to achieve its
long-term potential and enable it to increase copper production to
at least 200,000 tonnes per annum whilst promoting increased
industrialisation on the Copperbelt and stabilising employment and
local supply chains.
ZCCM-IH and IRH are committed to ensuring that MCM delivers its
optimal production levels and becomes a leading Zambian producer of
copper. The conclusion of the transaction is subject to entry into
definitive transaction documents and will be subject to various
conditions precedent commensurate to a transaction of this nature.
ZCCM-IH will provide further details once all definitive
transaction documents have been agreed.
Shareholders are advised to exercise caution and to seek
professional advice from a licensed investment advisor when dealing
in the Company's shares until a further announcement is made.
By Order of the Board
Charles Mjumphi
Company Secretary
Issued in Lusaka, Zambia on 03 December 2023
T | +260-211-232456
E | advisory@sbz.com.zm
W | www. sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated
by the Securities and Exchange Commission of Zambia.
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First Issued on 03 December 2023
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