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ZCF Boss Advises State on Subsidies

Editor — Sat, 18 May 2013 18:00:15 +0000

Zambia Cooperative Federation Director General James Chirwa had advised Government to sensitize the general public on how the subsidies work in an economy.

Mr. Chirwa says though most commodity prices may go up, Government may use the subsidy savings on other capital projects to grow the economy.

And Millers Association of Zambia president Allan Sakala says the removal of maize subsidy will enable millers purchase maize from farmers at a negotiated price.

AOG’s upstream division Oryx Petroleum completes IPO

Editor — Thu, 16 May 2013 07:59:39 +0000

The sister company of Copperbelt-based oil and gas supplier Oryx Energies Zambia, has successfully floated on the Toronto Stock Exchange, raising C$250 million Canadian dollars (equivalent to around ZMW1.3 billion)

Oryx Energies Zambia has a diesel fuel storage depot and a lubricants warehouse in Ndola, as well as a Liquefied Petroleum Gas (LPG) storage and filling plant.

Oryx Energies has been in Zambia since 2007, where it has earned a competitive position thanks to sound local knowledge and market expertise, a solid reputation for product and service quality, and a fully-integrated value chain (from supply to storage and distribution).

Oryx Energies has a diesel fuel storage depot and a lubricants warehouse in Ndola, the distribution hub of the Copperbelt Province, servicing the mining and industrial north of the country and a full service depot in Lusaka, which reaches the southern and eastern provinces.

Oryx Energies supplies fuels and lubricants to construction, manufacturing and mining enterprises as well as to the expanding agricultural and hospitality sectors. Thanks to its strategically located gasoil and lubricants storage facilities Oryx Energies is well positioned to supply world class, certified lubricants, from its associated ISO 9001-2008 lubricants blending facility in Tanzania, as well as from third party sources.

Oryx Energies opened a Liquefied Petroleum Gas (LPG) storage and filling plant in Ndola in 2012. The operation currently has four service stations in Zambia, located in the capital, Lusaka, Ndola, Petauke. An additional five retail outlets have been identified for rapid branding and will increase the network of outlets, to provide fuel, LPG and quality lubricants to customers across the country, particularly in response to the needs for these services in rural communities, which have lacked access up until now.

Wheelbarrow Transport Business Promotes Smes

Editor — Wed, 15 May 2013 19:16:12 +0000

Wheelbarrow transport is competing with other modes of transport in terms of providing transportation of goods, around Lusaka city for commuters and entrepreneurs.

The people engaged in the business popularly known as the Kabovas say this business opportunity has allowed them to stay away from bad vices.

Indo Zambia Bank Empowers Women Entrepreneurs

Editor — Wed, 15 May 2013 19:12:38 +0000

Indo Zambia Bank has disbursed two million Kwacha Rebased in loans to benefit eighty five small scale women groups to assist over one thousand women.

Speaking at the cheque-handover ceremony that gathered about a thousand women, Bank of Zambia Governor Michael Gondwe thanked Indo Zambia Bank for supporting economic growth.

Indo Zambia bank managing director Shankardas Gupta said last year alone the bank released one million and four hundred thousand Kwacha Rebased to finance forty seven women groups, translating to nine hundred and forty families being supported.

Gemfields Operational Update for Quarter to March 31, 2013

Editor — Tue, 14 May 2013 15:47:36 +0000

Gemfields plc (AIM: GEM) presents an operational update for the three month period ending 31 March 2013. All figures are approximate, unaudited and, unless otherwise stated, the phrase “carats” includes both emerald and beryl.

Highlights

· Production summary for the Kagem emerald mine:

§ Gemstone production increased by 33% to 6.5 million carats in the quarter ending 31 March 2013 (from 4.9 million carats in the quarter ending 31 March 2012);

§ Grade for the quarter increased to 265 carats per tonne (from 236 carats per tonne in the quarter to 31 March 2012);

§ Unit production costs for the quarter reduced by 34% to USD 0.56 per carat (from USD 0.85 per carat in the quarter to 31 March 2012); and

§ Cash rock handling unit costs reduced by 18% to USD 3.06 per tonne (from USD 3.73 per tonne in the quarter to 31 March 2012).

· Revenues of USD 15.2 million from the recent auction in Lusaka, Zambia – a record for lower quality auctions;
· Next auction (of higher quality emerald and beryl) is scheduled for 10-14 June 2013 in Singapore;
· Gemfields is hosting the ‘2013 Zambian Emerald Summit’ in Lusaka, Zambia on 30 and 31 May 2013;
· Bulk sampling activities continue at the Montepuez ruby deposit in Mozambique, with the first auction of rough rubies likely to take place in the first calendar quarter of 2014;
· Acquisition of 100% of the globally recognised Fabergé jewellery brand completed in January 2013; and
· At 31 March 2013, Gemfields had cash of USD 22.1 million and total debt outstanding of USD 11.0 million.

Ian Harebottle, CEO of Gemfields, commented:

“Gemfields is pleased to report the results of another positive quarter for the Company. Gemstone carats produced at Kagem increased 33% when compared to the same quarter in the last financial year. We also achieved record revenues from our most recent auction of lower quality rough emerald and beryl, despite a small drop in the average per carat price achieved. We continue to seek to address the possible ban on foreign auctions by the Ministry of Mines in Zambia and – in that light – we are delighted to be hosting the first-of-its-kind ‘2013 Zambian Emerald Summit’ in Lusaka at the end of this month to facilitate discussion among all of the key emerald sector stakeholders.”

A graphical production update is available at www.gemfields.co.uk.

Production Update

The 75%-owned Kagem emerald mine is presently Gemfields’ only operating emerald mine and is the single largest emerald mine in the world. The key production parameters by quarter are summarised below:

KAGEM Quarterly Summary to Dec-12	Units	Jun-11	Sep-11	Dec-11	Mar-12	Jun-12	Sep-12	Dec-12	Mar-13	TOTAL
PRODUCTION
Gemstone Production (Emerald+Beryl)	million carats	10.8	4.9	3.9	4.9	7.3	7.9	6.6	6.5	52.9
Ore Production (Reaction Zone)	’000 tonnes	21.7	24.0	17.5	20.8	40.7	30.5	23.1	24.5	202.7
Grade (Emerald+Beryl/Reaction Zone)	carats/tonne	500	205	222	236	181	259	288	265	261
Waste Mined (including TMS)	million tonnes	1.4	2.2	2.2	1.6	2.7	2.6	2.2	2.2	17.1
Total Rock Handling	million tonnes	1.4	2.2	2.2	1.6	2.8	2.6	2.2	2.3	17.3
Stripping Ratio		66	91	124	77	67	84	96	91	84
CASH COSTS
Kagem Total (Cash) Operating Cost	USD million	3.5	7.2	7.0	6.0	9.8	8.5	7.7	6.9	56.7
Gemstone Unit Cost (E+B)	USD/carat	0.3	1.5	1.8	1.2	1.3	1.1	1.2	1.1	1.1
RZ Unit Cost	USD/RZ tonne	160	301	400	291	242	280	333	282	280
Rock Handling Unit Cost	USD/tonne	2.4	3.3	3.2	3.7	3.5	3.3	3.4	3.1	3.3
ACCOUNTING COSTS
Kagem Operating Cost *	USD million		3.9	3.4	4.2	4.2	4.0	4.4	3.6	27.6
Gemstone Unit Cost (E+B) *	USD/carat		0.8	0.9	0.8	0.6	0.5	0.7	0.6	0.5
RZ Unit Cost *	USD/RZ tonne		162	193	200	104	130	189	147	136
Rock Handling Unit Cost *	USD/tonne		1.8	1.5	2.6	1.5	1.5	2.0	1.6	1.6

* Note: With effect from July 2011, Gemfields adopted a new accounting policy whereby all waste moving costs are capitalised and are then subsequently amortised when the ore corresponding to that waste is mined. As of 31 March 2013, approximately USD 25.7 million of waste moving costs have been capitalised and will be amortised later when the associated ore is mined.

The quarter to 31 March 2013 produced 6.5 million carats at a grade of 265 carats per tonne of ore and a unit production cost of USD 0.56 per carat (excluding capitalised waste moving costs).

The previously announced large-scale waste movement programme to open up new areas for future ore production continues with over 2.2 million tonnes of rock having been moved in the quarter. Cash rock handling unit costs were USD 3.06 per tonne in the current quarter (compared to USD 3.73 in the quarter to 31 March 2012).

Gemfields’ trial underground mining project achieved 66 metres of horizontal advance during the quarter ending 31 March 2013 (versus 37.7 metres in the quarter ending December 2012). The total linear development to date is 664.6 metres (versus 598.6 meters at 31 December 2012). This quarter’s work has focussed on cross-cut and layout mining to develop additional areas for stoping. A total of 998 tonnes of ore was produced during the quarter (versus 1,352 tonnes in the prior quarter) with 60 tonnes of waste rock removed. Approximately 17,835 carats were produced by the underground operation in the quarter (versus 266,345 carats in the prior quarter, mainly due to the completion of the stope).

Illegal mining activity within the boundaries of the Kagem mining licence is not yet fully resolved and Gemfields continues to work with key ministries to alleviate this challenge.

Emerald Auction Update

The auction of predominantly lower quality emerald and beryl, held in Lusaka, Zambia from 15 April to 19 April 2013, saw 17.3 million carats placed on offer, with 6.3 million carats sold, generating auction revenues of USD 15.2 million. This auction, the second of the current financial year (which ends 30 June 2013) was held in Lusaka, Zambia at the request of the Zambian Ministry of Mines, Energy and Water Development. The Lusaka auction yielded an overall average of USD 2.42 per carat for the lots sold, 7% lower than that achieved at the previous lower quality emerald auction held in June 2012 in Jaipur. A factor in this reduction may have been the number of declined auction invitations, which was higher than in prior auctions, most notably due to the travel demands placed on customers in getting to Lusaka. The results also marked the first reversal of the historic growth trajectory of lower quality per-carat auction prices.

On 5 April 2013, the Zambian Minister of Mines, Energy and Water Development issued a press statement seemingly restraining Kagem Mining Limited (“Kagem”) (and other Zambian producers) from selling emeralds outside of Zambia. Gemfields and Kagem continue to seek clarification of the nature and implementation of the possible ban on foreign auctions. Neither Gemfields nor Kagem has as yet participated in or been invited to any industry or stakeholder consultation process regarding these measures.

In order to facilitate dialogue between key stakeholders within the emerald industry, Gemfields is hosting the ‘2013 Zambian Emerald Summit’ in Lusaka, Zambia on 30 and 31 May 2013. The summit, comprising presentations, panel discussions and Q&A sessions will consider, inter alia, how the Zambian emerald sector might best be developed into a world leader whilst ensuring that the relevant revenues and profits accrue within Zambia. Each of the key industry stakeholders in the region has been invited to participate in the summit.

Gemfields’ next auction, of predominantly higher grade emerald and beryl, is scheduled to take place in Singapore from 10-14 June 2013.

Mozambique Ruby Update

Bulk-sampling operations at the Mozambican ruby project owned by Montepuez Ruby Mining Lda (in which Gemfields has a 75% interest) are progressing well. Core infrastructure required for operations is largely established. A significant security presence has reduced the incidence of illegal mining. Primary stage mining and processing equipment is on site and operational.

A pilot and semi-mobile ore processing plant has been designed, fabricated and commissioned and continues to test the characteristics of the ore. Adjustments to the processing plant arising from the optimisation of the ore washing and cleaning process mean that Gemfields expects the first auction of rough rubies to take place in the first calendar quarter of 2014. A bespoke ruby grading and sorting framework has been developed and is being tested.

Fabergé

Fabergé is one of the world’s most recognised luxury brand names, underscored by a well-documented and globally recognised heritage. The acquisition of 100% of Fabergé Limited by Gemfields was formally completed on 28 January 2013. The integration of Fabergé into the Gemfields family is well underway. The acquisition enables Gemfields to take its vision for coloured gemstones to the next level, harnessing the Fabergé name to boost the international presence and perception of coloured gemstones and advance the “mine and market” vision. The first steps in this approach were taken in April at BaselWorld 2013, the world’s largest watch and jewellery show, and which included the release of the new Fabergé video ‘Craftsmanship in Colour’, now available for viewing at www.faberge.com.

Cash Balances

At 31 March 2013, Gemfields had cash of USD 22.1 million (and total debt outstanding of USD 11.0 million).

Enquiries:

Gemfields dev.shetty@gemfields.co.uk

Dev Shetty, COO +44 (0)20 7518 3402

Canaccord Genuity Limited

Nominated Adviser and Joint Broker to Gemfields

Tarica Mpinga/Andrew Chubb +44 (0)20 7523 8000

JP Morgan Cazenove

Jamie Riddell +44 (0)20 7742 4000

Tavistock Communications

Jos Simson/Emily Fenton +44 (0)20 7920 3150

Up Go Commodity Prices in Ndola

Editor — Fri, 10 May 2013 18:47:21 +0000

Commodity prices in Ndola on the Copperbelt have begun to shoot up following the fuel price increment.

And bus fares on local routes have been hiked by a K1rebased and charges on business luggage have been revised with an increment.

A check in town has revealed that bread has increased from K5 to K6 rebased and a 2.5 litre of cooking oil has been increased from K30 to K33 rebased while sugar has also increased by K2 rebased.

Decormore Investment Limited Resumes Production

Editor — Fri, 10 May 2013 18:41:37 +0000

Decormore Investment Limited has invested close to two million United States Dollars into machinery and raw material for the new furniture production factory.

According to Decormore Investment Managing director Osama Younes, the investment comes after the factory was gutted in November last year, losing machinery and furniture materials worth over three hundred thousand dollars.

A visit by MUVI TV Business News at Decormore factory, found workers busy with production.

Court Aquits Woman Dressed In Dollar

admin — Thu, 09 May 2013 19:56:55 +0000

A Lusaka woman who concealed over three million kwacha worthy of dollars on her body, has been acquitted.

Edah Mkandawire and Ashfaq Muhammed who were jointly facing a charge of possession of property suspected to be proceeds of crime have walked to freedom after the court believed that the money was realized from business dealings.

Lusaka Principal Resident Magistrate David Simusamaba says he has reasonably believed the two accused persons story that the money was a product of genuine business.

Zambia Yet to Award Digital Terrestrial Television Supply Contract-Malupenga

admin — Thu, 09 May 2013 19:54:05 +0000

Government says it is yet to award a contract for the Supply, Delivery Installation and Commissioning of a National Digital Terrestrial Television Broadcasting System in Zambia.

Ministry of Information and Broadcasting Services Amos Malupenga says claims by Star-Times that they have been awarded the contract worth billions of kwacha is misleading as government has only indicated intentions to engage Star-Times Limited among the five bidders.

Addressing the press this morning Mr. Malupenga said the contract will only be awarded to a successful bidder upon completion of all the required process.

He says Zambia, like other countries worldwide is expected to oblige by the year 2015 as the deadline for digital migration.

Cellphone Dealers Accuse Police of being Selective

admin — Thu, 09 May 2013 19:48:56 +0000

Cellphone dealers whose merchandise were confiscated on Wednesday have accused the Zambia police of being selective in their operation. The accusation comes a day after the Zambia Police Intellectual Property Unit confiscated cell phones on the streets of Lusaka. The traders have told MUVI TV NEWS that it is surprising that such operations only target the vendors when the suppliers who are mainly shop owners, are allowed to sell the same products.