On Monday, July 29, 2024, ZCCM-IH presented a K146 million dividend cheque to its majority shareholder, the Industrial Development Corporation (IDC), for the December 31, 2023 financial year. The IDC owns 60.3% of the mining company, while the Government of the Republic of Zambia (GRZ) holds 17.3%. The National Pension Scheme Authority (NAPSA) owns 15%, and private investors hold the remaining 7.4%. During the handover ceremony, ZCCM CEO Dr. Ndoba J. Vibetti presented the cheque to IDC CEO Mr. Cornwell Muleya and delivered insightful remarks.
This dividend payment signifies the 9th consecutive year that ZCCM has rewarded its majority shareholder with a dividend. In the previous year, a substantial dividend payout of K436 million was made, covering the financial years 2021 and 2022. Over the past nine years, ZCCM has distributed approximately K990 million in dividends to the IDC. This consistent financial return underscores ZCCM’s commitment to delivering value to its shareholders and highlights the company’s strong performance and sustainable growth.
On another positive note, Zambia Gold Company Limited (ZGCL), a key member of the ZCCM Group of Companies, has initiated corrective measures at the Kasenseli Gold Mine in Mwinilunga. Operations are expected to resume in the third quarter of 2024, marking a significant step forward for the project. Maamba Energy Limited, Zambia’s largest coal mining and Independent Power Producer (IPP), has achieved a major milestone by securing financing for the construction of an additional 300 MW power plant. This expansion, planned to be completed within the next two years, will significantly boost the country’s power generation capacity. Additionally, Maamba Energy has acquired lithium prospecting licenses, positioning itself for future growth and diversification in the energy and minerals sector.
In 2023, ZCCM demonstrated impressive financial performance with a notable 14% increase in profit, reaching K4.84 billion. The company’s total assets also saw substantial growth, rising by 20% to K58.46 billion. This strong performance is reflected in the company’s share price, which has surged by 52.4% year-to-date on the Lusaka Securities Exchange (LuSE), climbing from K42 to K64 per share. The significant rise in share price has driven the company’s market capitalization to K10.3 billion, representing approximately 8.69% of the total equity market capitalization on the LuSE. This growth highlights the company’s strong financial health and increasing investor confidence, positioning ZCCM as a major player in the stock market.
The recommencement of operations at the Kasenseli Gold Mine is likely to boost gold production and, consequently, revenue. For investors, this could mean an increase in the company’s profitability and potentially higher dividends or share value appreciation. The construction of an additional 300 MW power plant will significantly enhance Maamba Energy’s power generation capacity. This expansion can lead to increased revenue from energy sales, improving the company’s financial performance and offering better returns to investors. Maamba Energy’s acquisition of lithium prospecting licenses introduces diversification into the growing lithium market. Lithium is crucial for battery production, and as demand for electric vehicles and renewable energy storage rises, this diversification could open new revenue streams and growth opportunities for investors.
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