TIDMZCC
RNS Number : 8642W
ZCCM Invs.Hldgs PLC
26 November 2010
ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 771
Share Code: ZCCM -IH
ISIN: ZM0000000037
["ZCCM - IH" ]
ANNOUNCEMENT IN RELATION TO THE PROPOSED INITIAL PUBLIC OFFERING
ON THE LONDON STOCK EXCHANGE BY KONKOLA RESOURCES PLC (THE HOLDING
COMPANY OF Konkola Copper Mines plc)
ZCCM Investments Holdings Plc ("ZCCM-IH") currently owns 20.6%
of the total share capital in Konkola Copper Mines plc (KCM) while
Vedanta Resources plc ("Vedanta") indirectly holds the other 79.4%.
A new company Konkola Resources Plc ("KR") has been incorporated in
England and Wales which will issue new shares to ZCCM-IH and
Vedanta in exchange for their shares in KCM. Following the share
exchange, KR plans to proceed with an initial public offering of
its ordinary shares on the London Stock Exchange to be followed by
an offering on the Lusaka Stock Exchange. KR recently made an
announcement in this respect and the same is repeated below.
ZCCM-IH is an investments holdings company which is listed on
the Lusaka Stock Exchange and quoted on London Stock Exchange and
Euronext, 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 ("GRZ") with a 87.6%
shareholding and the minority shareholders residing in different
parts of the world holding the remaining 12.4%.
Stakeholders seeking clarifications or having queries on the
matters contained herein are hereby advised to contact the Company
Secretary at the ZCCM-IH Plc offices at Mukuba Pension House ,
Lusaka , Zambia or via the email address corporate@zccm-ih.com.zm.
A further announcement will be made in due course as the matters
set out herein develop.
Announcement issued by Konkola Resources Plc on 17 November
2010, Lusaka Zambia
" KONKOLA RESOURCES PLC
ANNOUNCEMENT OF PROPOSED INITIAL PUBLIC OFFERING ON THE LONDON
STOCK EXCHANGE
This announcement is an advertisement and not a prospectus.
Investors should not subscribe for or purchase any transferable
securities referred to in this announcement except on the basis of
information in the prospectus (the "Prospectus") to be published by
Konkola Resources plc ("KR" or the "Company") in due course in
connection with the admission of its ordinary shares (the "Ordinary
Shares") to the Official List and trading on the London Stock
Exchange plc's (the "London Stock Exchange") main market for listed
securities. Copies of the Prospectus will, following publication,
be available from the offices of Latham & Watkins (London) LLP
at 99 Bishopsgate, London EC2M 3XF.
Konkola Resources plc (holding company of Konkola Copper Mines
plc ("KCM"), a leading Zambian integrated copper miner), today
announces its intention to proceed with an initial public offering
of its ordinary shares ("Ordinary Shares"). The Ordinary Shares
will be offered to institutional investors in the United Kingdom
and elsewhere (the "Global Offer"). Application will be made for
the Ordinary Shares to be admitted to the premium listing segment
of the Official List and to trading on the main market for listed
securities of the London Stock Exchange (together, "Admission").
The Company expects that it will be eligible to be considered for
inclusion in the FTSE UK Index Series following completion of the
Global Offer. KR wishes to provide an opportunity for Zambian
investors to invest in the Company and intends to pursue a listing
on the Lusaka Stock Exchange and offering of Ordinary Shares in
Zambia shortly following Admission, as well as making an allocation
of shares to employees.
KCM is currently a subsidiary of Vedanta Resources plc
("Vedanta"), which has an indirect 79.4% holding in KCM. The
remaining 20.6% interest in KCM is owned by ZCCM Investments
Holdings plc ("ZCCM-IH"), a Lusaka listed and Euronext quoted
company majority owned by the Zambian Government.
KCM Highlights
-- KCM is a leading Zambian integrated copper miner, with
approximately 404.8 Mt of proved and probable mineral reserves with
contained copper of 6.52 Mt. It also has measured, indicated and
inferred mineral resources additional to reserves of approximately
301.5 Mt with contained copper of 7.25 Mt.
-- The average grade of the reserves and resources are 1.61% and
2.40% respectively.
-- KCM is targeting a production increase to over 400,000 tpa
and a reduction in C1 integrated cash costs to
below US$1.00 per pound by the fiscal year ending 31 March
2014.
-- KCM operates the largest single-site copper smelter in Africa
in terms of capacity (311,000 tpa), with the capability of
recovering cobalt as a by-product. It was commissioned in October
2008. The Company is expected to be the second largest integrated
copper producer in Africa in calendar year 2010.
-- KCM's principal assets include the Konkola and Nchanga mines
and tailings leach operations. This includes the Konkola
underground mine which contains proved and probable reserves with
an average grade of 3.59%. The principal processing assets include
the state of the art Nchanga Smelter and the Nkana Refinery with
total capacities of 311ktpa and 300ktpa respectively.
-- KCM produced approximately 173,000 tonnes of copper in the
fiscal year ended 31 March 2010 and approximately 113,000 tonnes of
copper in the six months ended 30 September 2010.
-- In fiscal year 2010, KCM generated EBITDA of US$167.9m and
US$174.1m in the six months ended 30 September 2010. Its integrated
cash costs of copper production were US$1.80 per pound in fiscal
year 2010. As at 30 September 2010 KCM had net debt of US$782.2m
and total assets of US$2 288.6m.
-- The Company's management team has significant industry
experience, having held senior positions at KCM, Vedanta and its
subsidiaries, and several other leading mining companies.
-- KCM's headquarters are in Chingola, Zambia. With a total of
9,696 employees and 11,081 contracted personnel as of 30 June 2010,
the Company believes that KR together with its subsidiaries (the
"KR Group") is the largest private employer in Zambia in terms of
number of employees and third-party contractors.
Summary of the Global Offer and Use of Proceeds
-- The Company expects the Global Offer to comprise an issue of
new Ordinary Shares and the sale of existing Ordinary Shares to
institutional investors in the United Kingdom and elsewhere.
Additional Ordinary Shares, of up to 15% of the Global Offer, are
expected to be made available pursuant to an over-allotment option.
All Offer Shares will be subscribed for, or purchased, at the offer
price.
-- The Company intends to pursue a listing on the Lusaka Stock
Exchange and to offer new Ordinary Shares to Zambian investors by
public offering shortly following Admission.
-- The Company intends to use the expected net proceeds of the
Global Offer of at least US$1.1 billion towards the funding of its
capital expenditure programme, as well as to repay certain loans
from, and liabilities to, the KR Group's existing shareholders and
for general corporate purposes.
-- Following the Global Offer, both Vedanta and ZCCM-IH are
expected to remain significant shareholders of KR, with Vedanta
retaining a majority holding.
Comments
Anil Agarwal, Executive Chairman of Vedanta:
"Since we became involved with KCM in 2004, we have seen it
deliver a number of landmark projects and substantially increase
the Company's copper reserves. This is a testament to the technical
skills, dedication and partnership approach of the management team,
employees and local communities. With our partners at ZCCM-IH, our
existing stakeholders and our new investors we look forward to
seeing tremendous growth in the Company in the coming years, in
what is undoubtedly one of the most attractive commodities and one
of the premium destinations for copper production."
Kishore Kumar, Chief Executive of KR:
"KCM has some of the world's largest, high grade copper
resources, substantial existing production and an industry leading,
near term organic growth profile. The investment of nearly US$2bn
over the last few years has created an asset base to deliver
significant production growth and further cost reduction with, for
example, the successful commissioning of a state of the art smelter
in FY2009. Volume growth will come through both the accessing of
the high grade ore at the Konkola Deep mine and the increased
processing capability. Zambia provides an ideal destination for
copper mining and has been the largest African copper producer for
many decades. The IPO will provide investors with an opportunity to
participate in the growth of this integrated and pureplay copper
company with the liquidity of a London listing."
Alfred Lungu, the Chairman of ZCCM-IH who will also serve on the
Board of KR, said:
"We welcome the IPO and the enhanced status this will bring to
KCM, which represents one of our major investments and to the
Zambian copper industry in general. We look forward to
participating in the future development of Konkola Resources and to
Zambian investors making direct investments in the Company through
the Zambian offering. This first listing of a Zambian mining
company is an important milestone in the history of Zambia, a
development based on the substantial investment already made in
KCM's operations. The listing will help unlock value in our
portfolio and encourage further investment in Zambia."
Honourable Minister of Finance and National Planning: Dr.
Situmbeko Musokotwane:
"We are delighted to support this landmark transaction for KCM
which highlights the role of Zambia as the leading African copper
producer and one of the world's premier mining destinations. As a
stakeholder of KCM we have seen the success of its investment
programme over recent years and the commitment of KCM to its
partnership with the communities in which it operates and the wider
Zambian population."
Key Investment Attractions
The Company believes its investment case benefits from a number
of key strengths including:
-- Position as a leading Zambian copper company with substantial
high grade reserves and resources
-- Integrated, well invested asset base
-- Clear path to delivering cost reduction
-- Near term production growth with track record of delivery
-- Strong management team with relevant industry expertise
-- Supportive shareholders
-- Focus on being a valued local partner, recognised for its
stewardship
Strategy
KR's strategy is to produce high quality copper at globally
competitive costs, and will focus on the following objectives:
-- Delivering growth through development projects and further
exploration to achieve over 400 ktpa of total copper
production;
-- Maintaining its focus on asset optimisation and reducing the
C1 integrated cash costs to below US$1.00 per pound;
-- Continuing to pursue the highest standards of corporate
responsibility in relation to people, the environment and local
communities; and
-- Seeking additional growth opportunities to enhance overall
value for the Company's shareholders.
Corporate Social Responsibility
The KR Group has a very strong commitment to corporate social
responsibility and aims to become a role model for safety, welfare
and environment stewardship.
The Company believes that the KR Group is the largest private
sector employer in Zambia in terms of number of employees and
third-party contractors and works to increase the specialisation
and knowledge of its staff through staff development programmes.
The KR Group has received internationally recognised occupational
health and safety certification.
The KR Group is committed to environmental stewardship and
dedicated to delivering recognised international best practice on
environmental management.
The KR Group regularly engages with its stakeholders and seeks
partnerships with both its host communities and Zambia as a whole
through a number of social responsibility initiatives that cover
community health, education, sustainable livelihoods and sports and
recreation. The promotion of community health is key, through the
operation of 2 hospitals, 7 community health centres and a number
of clinics, offering free medical services to its employees and
their registered dependants and, on a cost recovery, non-profit
basis to the wider community. Initiatives include a Rollback
Malaria programme, which the Company believes has greatly reduced
the prevalence of malaria in the KR Group's operating areas, and an
HIV/AIDS prevention programme. An eyecare programme is underway,
through which the Company expects to issue around 23,000 pairs of
eyeglasses free of charge to children and the elderly. The KR Group
is active in the provision of education running trust schools for
the families of employees and the local communities in which it
operates, as well as supporting higher education. The KR Group has
pledged US$17.5 million for the upgrade of Mulungushi University.
The social responsibility programme extends into promoting
sustainable livelihood initiatives, including improvement of water
and sanitation facilities, formation of cooperatives and the
support of small scale agricultural activities. The Company
encourages the growth of sport in Zambia by supporting various
sports and sponsoring the national soccer league in Zambia, as well
as 3 of its own football clubs.
Goldman Sachs International and J.P. Morgan Cazenove are acting
as Joint Sponsors in connection with the Admission of the Ordinary
Shares to the Official List and as Joint Global Co-ordinators and
Joint Bookrunners to the Global Offer.
Contacts
Goldman Sachs International Tel: +44 20 7774 1000
Matthew Westerman
Richard Cormack
Philip Lindop
J.P. Morgan Cazenove Tel: +44 20 7588 2828
Joe Seifert
Chris Nicholls
Laurence Hollingworth
Finsbury Tel: +44 20 7251 3801
James Murgatroyd
Gordon Simpson
The contents of this announcement, which have been prepared by
and are the sole responsibility of KR, have been approved solely
for the purposes of section 21(2)(b) of the Financial Services and
Markets Act 2000 ("FSMA") by J.P. Morgan Securities Ltd. of 125
London Wall, London EC2Y 5AJ, United Kingdom and Goldman Sachs
International of Peterborough Court, 133 Fleet Street, London EC4A
2BB, United Kingdom.
The information contained in this announcement is for background
purposes only and does not purport to be full or complete. No
reliance may be placed for any purpose on the information contained
in this announcement or its accuracy or completeness.
The information contained in this announcement is restricted and
is not for release, publication or distribution in or into the
United States, Australia, Canada or Japan. This announcement does
not contain or constitute an offer to sell or the solicitation of
an offer to buy or subscribe for securities in the United States,
Australia, Canada or Japan or in any other jurisdiction.
The offer and sale of the shares referred to herein have not
been and will not be registered under the US Securities Act of
1933, as amended (the "Securities Act"), and may not be offered or
sold within the United States absent registration under the
Securities Act or an exemption from registration. Any public
offering of securities to be made in the United States will be made
by means of a prospectus that will contain detailed information
about the company and management, as well as the financial
statements. There will be no public offer of the securities
referred to herein in the United States.
This announcement is an advertisement and not a prospectus and
investors should not subscribe for any transferable securities
referred to in this announcement except on the basis of information
in the prospectus to be published by KR in due course in connection
with the Admission of the Ordinary Shares to the Official List of
the FSA. Copies of the prospectus will, following publication, be
available from the offices of Latham & Watkins (London) LLP at
99 Bishopsgate, London EC2M 3XF.
KR accepts responsibility for the verification and accuracy of
the information contained in this announcement.
The date of Admission may be influenced by factors such as
market conditions. There is no guarantee that Admission will occur
and you should not base your financial decisions on KR's intentions
in relation to Admission at this stage. Acquiring investments to
which this announcement relates may expose an investor to a
significant risk of losing all of the amount invested. Persons
considering investment in such investments should consult an
authorised person specialising in advising on such investments.
This announcement does not constitute a recommendation concerning
the Global Offer. The value of shares can decrease as well as
increase. Potential investors should consult a professional advisor
as to the suitability of the Global Offer for the person
concerned.
J.P. Morgan Cazenove is a marketing name used by J.P. Morgan
Securities Ltd.. J.P. Morgan Securities Ltd. and Goldman Sachs
International are each authorised and regulated in the United
Kingdom by the FSA, are acting exclusively for KR and no-one else
in connection with the Global Offer and will not regard any other
person (whether or not a recipient of this announcement) as a
client in relation to the Global Offer and will not be responsible
to anyone other than KR for providing the protections afforded to
their respective clients nor for giving advice in relation to the
Global Offer or any transaction or arrangements referred to in this
announcement.
Apart from the responsibilities and liabilities, if any, which
may be imposed on J.P. Morgan Securities Ltd. and Goldman Sachs
International by FSMA or the regulatory regime established
thereunder, each of J.P. Morgan Securities Ltd. and Goldman Sachs
International and their respective affiliates accepts no
responsibility whatsoever for the contents of this announcement,
including its accuracy, completeness or verification in connection
with KR, the Ordinary Shares or the Global Offer. J.P. Morgan
Securities Ltd. and Goldman Sachs International and their
respective affiliates accordingly disclaim all and any liability
whether arising in tort, contract or otherwise (save as referred to
above) which they might otherwise have in respect of this
announcement or its contents otherwise arising in connection
herewith.
Information contained in this announcement may include
'forward-looking statements'. All statements other than statements
of historical facts included herein, including, without limitation,
those regarding KR's or the KR Group's intentions, beliefs or
current expectations concerning, amongst other things, KR's or the
KR Group's results of operations, financial position, liquidity,
prospects, growth and strategies are forward-looking statements.
Such forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the actual results of KR's or the KR Group's operations,
financial position and liquidity, and the development of the
markets and the industry in which the KR Group operates, may differ
materially from those described in, or suggested by, the
forward-looking statements contained in this announcement. In
addition, even if the results of operations, financial position and
liquidity, and the development of the markets and the industry in
which the KR Group operates are consistent with the forward-looking
statements contained in this announcement, those results or
developments may not be indicative of results or developments in
subsequent periods. A number of factors could cause results and
developments to differ materially from those expressed or implied
by the forward-looking statements including, without limitation,
general economic and business conditions, industry trends,
competition, commodity prices, changes in regulation, currency
fluctuations (including the US dollar : Zambian kwacha exchange
rates), the KR Group's
ability to recover its reserves or develop new reserves,
including its ability to convert its resources into reserves and
its ability to complete its expansion projects, changes in its
business strategy and political and economic uncertainty.
Forward-looking statements may, and often do, differ materially
from actual results. Any forward-looking statements in this
announcement speak only as of the date of this announcement,
reflect the KR Group's current view with respect to future events
and are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the KR Group's
operations, results of operations, growth strategy and liquidity.
Investors should specifically consider the factors identified in
this announcement which could cause actual results to differ before
making an investment decision. Subject to the requirements of the
Prospectus Rules, the Disclosure and Transparency Rules and the
Listing Rules or applicable law, KR explicitly disclaims any
obligation or undertaking publicly to release the result of any
revisions to any forward-looking statements in this announcement
that may occur due to any change in KR's expectations or to reflect
events or circumstances after the date of this announcement.
Each of J.P. Morgan Securities Ltd. and Goldman Sachs
International and their respective affiliates expressly disclaims
any obligation or undertaking to update, review or revise any
forward looking statement contained in this announcement whether as
a result of new information, future developments or otherwise.
In connection with the Global Offer, Goldman Sachs
International, as stabilising manager (the "Stabilising Manager"),
or any of its agents, may (but will be under no obligation to), to
the extent permitted by applicable law, over-allot Ordinary Shares
or effect other transactions with a view to supporting the market
price of the Ordinary Shares at a higher level than that which
might otherwise prevail in the open market. The Stabilising Manager
is not required to enter into such transactions and such
transactions may be effected on any securities market,
over-the-counter market, stock exchange or otherwise and may be
undertaken at any time during the period commencing on the date of
the commencement of conditional dealings of the Ordinary Shares on
the London Stock Exchange and ending no later than 30 calendar days
thereafter. However, there will be no obligation on the Stabilising
Manager or any of its agents to effect stabilising transactions and
there is no assurance that stabilising transactions will be
undertaken. Such stabilisation, if commenced, may be discontinued
at any time without prior notice. In no event will measures be
taken to stabilise the market price of the Ordinary Shares above
the offer price. Except as required by law or regulation, neither
the Stabilising Manager nor any of its agents intends to disclose
the extent of any over-allotments made and/or stabilisation
transactions conducted in relation to the Global Offer.
In connection with the Global Offer, the Stabilising Manager
may, for stabilisation purposes, over-allot Ordinary Shares up to a
maximum of 15% of the total number of Ordinary Shares comprised in
the Global Offer. For the purposes of allowing the Stabilising
Manager to cover short positions resulting from any such
over-allotments and/or from sales of Ordinary Shares effected by it
during the stabilising period, it is expected that Vedanta
Resources Holdings Limited will grant to it an over-allotment
option (the "Over-allotment Option"), pursuant to which the
Stabilising Manager may purchase or procure purchasers for
additional Ordinary Shares up to a maximum of 15% of the total
number of Ordinary Shares comprised in the Global Offer (the
"Over-allotment Shares") at the offer price. The Over-allotment
Option will be exercisable in whole or in part, upon notice by the
Stabilising Manager, at any time on or before the 30th calendar day
after the commencement of conditional dealings of the Ordinary
Shares on the London Stock Exchange. Any Over-allotment Shares made
available pursuant to the Over-allotment Option will rank in full
for all dividends hereafter declared, made or paid and otherwise
pari passu in all respects with the Ordinary Shares and otherwise
will be purchased on the same terms and conditions as the Ordinary
Shares being issued or sold in the Global Offer and will form a
single class for all purposes with the other Ordinary Shares.
Overview of the KR Group
The KR Group expects to be the second largest copper miner in
Africa in calendar year 2010 with approximately 404.8 Mt of proved
and probable reserves and measured, indicated and inferred mineral
resources additional to reserves of approximately 301.5 Mt. It
operates mines in Zambia, which has been one of the world's largest
copper mining destinations. KR Group owns some of the highest grade
copper deposits in the world including total proved and probable
mineral reserves at the Konkola underground mine with an average
grade of 3.59%. The KR Group has an extensive exploration programme
which, since Vedanta took ownership, has resulted in a net increase
of 112 Mt in proved and probable reserves and a net increase of 43
Mt in total reserves and resources.
The main operations of the KR Group, which are located in
Zambia, consist of the following:
Konkola (in Chililabombwe):
-- an underground copper mine with three production shafts;
and
-- a newly commissioned, operating concentrator.
Nchanga (in Chingola):
-- a recently commissioned state of the art 300ktpa+ capacity
smelter with a cobalt recovery furnace and a sulphuric acid
plant;
-- four currently operational open-pit copper mines;
-- an underground copper mine served by 2 shafts;
-- copper concentrators comprising two main processing
units;
-- a tailings leach plant ("TLP") with associated solvent
extraction electrowinning ("SX-EW") facilities; and
-- refractory ore stockpiles containing approximately 147.2
million tonnes of probable copper reserves and accumulated tailings
containing approximately 76.6 million tonnes of proved and probable
copper reserves in each case as of 31 March 2010.
Nkana (in Kitwe):
-- The KR Group operates a copper refinery at Nkana.
The KR Group's headquarters are in Chingola, Zambia. With a
total of 9 696 employees and 11,081 contracted personnel as of 30
June 2010, the Company believes that the KR Group is the largest
private employer in Zambia in terms of number of employees and
third-party contractors.
KR believes it has well invested production facilities.
Following recent investment in its assets of US$1.8bn the KR Group
believes it is well positioned for near term production growth,
with a three fold increase in integrated production forecasts from
173 kt production in FY2010 to a targeted exit capacity of 400+
ktpa in FY 2012.
KCM is targeting a reduction in C1 integrated cash costs to
below US$1.00 per pound by the fiscal year ending 31 March
2014.
In FY 2010 KCM reported revenue of US$1.08bn (increase of
39.9%); EBITDA of US$167.9m; Operating profit of US$49m and profit
before tax of US$16m.
Relationships with the Vedanta Group and ZCCM-IH
Prior to completion of the Global Offer, Vedanta Resources
Holdings Limited, a wholly owned indirect subsidiary of Vedanta,
will hold 79.4% of the issued and outstanding Ordinary Shares of
the Company. Immediately following the Global Offer, it is expected
that Vedanta, through one or more subsidiaries, will remain a
significant shareholder of KR. Vedanta is expected to be the
controlling shareholder of the KR Group. The KR Group will also
have access to the Vedanta Group for the provision of a number of
services. The relationship between Vedanta and KR will be governed
by a relationship agreement, which will ensure that KR is capable
of carrying on its business independently of the Vedanta Group and
that transactions and relationships with the Vedanta Group are at
arm's length and on normal commercial terms.
Prior to completion of the Global Offer, ZCCM-IH will hold 20.6%
of the issued and outstanding Ordinary Shares of the Company.
Immediately following the Global Offer, it is expected that ZCCM-IH
will remain a significant shareholder of KR. The relationship
between ZCCM-IH, Vedanta and KR will be governed by a separate
relationship agreement, which will ensure that transactions and
relationships with ZCCM-IH and members of the ZCCM-IH group are at
arm's length and on normal commercial terms.
------------------------------------------------------------------------
26 November 2010
Lusaka , Zambia
Sponsoring Broker
STOCKBROKERS ZAMBIA LIMITED
Tel : + 260 211 232455 : info@stockbrokerszambia.com.zm
[MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE
COMMISSION OF ZAMBIA]
FIRST ISSUED ON 26 November 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
ARIPGGRPGUPUUBQ
Zccm Investments (LSE:ZCC)
過去 株価チャート
から 6 2024 まで 7 2024
Zccm Investments (LSE:ZCC)
過去 株価チャート
から 7 2023 まで 7 2024