ZCCM Investments Holdings (ZCCM-IH) shareholders have approved the Kansanshi royalty conversion where the company will now receive 3.1% of Kansanshi Mining’s total revenue.
It said the royalty revenue will be paid on a quarterly basis over the entire life of the mine of Kansanshi that currently extends to the year 2045.
“The royalty income stream replaces the former model of unpredictable and unguaranteed dividend pay-outs,” the company said.
“These were made at the discretion of the Board and were dependent on company profitability.
“Instead, a royalty is predictable and guaranteed as it will be charged at 3.1% of the company’s total revenue (from sales of copper, gold, and all other metal products) as per the royalty agreement.”
ZCCM-IH board chairperson Dolika Banda said the move will result in a far healthier cash flow for the company which will in turn make it far easier for it to raise financing pursue its ambitious investment strategy.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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