Top Investor Questions

Please refer to the Lusaka Securities Exchange website

Please refer to the following link

Corpserve Transfer Agents Limited
6 Mwaleshi Road, Olympia Park
P O Box 37522
Lusaka 10101
Zambia

Phone: +260 211 256969/70
Fax: +260 211 256975
Email: info@corpservezambia.com.zm

There are strict guidelines to follow when buying and selling in between the stock exchanges on which ZCCM-IH is listed and we recommend that investors consult their stockbrokers for more information

To buy ZCCM-IH shares on the Lusaka Securities Exchange (LuSE), one should first open a shares brokerage account with a LuSE registered Stockbroker. Details of all the brokers can be found on the LuSE website.

Once the account is opened, the potential shareholder can issue a Buy instruction and deposit the funds to be used to buy the shares with the broker. The broker will process the order and if the shares are available on the LuSE will execute the order. Upon settlement of the trade, one becomes a shareholder of ZCCM-IH shares.

The main benefits are twofold. First, if the shares appreciate in value, the shareholder can sell his or her shares at a profit.

Second, as ZCCM-IH has a dividend policy which pays out at least 35% of its net profits as dividends, all shareholders can look forward to a dividend as long as ZCCM-IH makes a profit.

A dividend is a taxable sum of money declared by a company’s board of directors and given to its shareholders out of the company’s current or retained earnings. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (scrip dividend) or other property. There is no guarantee that a company will make dividend payments in any given year or years.

The share price will be influenced by a number of factors, some of which are outside the company’s control. The factors may include:

• the performance and prospects of the company or the industry in which the company operates
• political, general economic, financial and stock market conditions;
• perceptions of investors about the above factors.

As with all listed shares, the share price of ZCCM Investments Holdings Plc on the Lusaka Stock Exchange and the Euronext Exchange can go up or down. If you sell your shares, you may receive more or less than you originally paid for them.

Your expected payment is determined by the dividend per share (DPS) amount for the financial year, multiplied by the number of shares you own at the time the dividend is declared. The DPS is announced by the company when the dividend is declared, and refers to the total amount of dividend attributed to each individual share outstanding from the company.

Please note that 20% withholding tax (WHT) as well as brokerage fees may apply. Consult your stock broker for details.

Dividend yield refers to a stock’s annual dividend payments to shareholders, expressed as a percentage of the stock’s current price. Dividend yield gives a measure of the amount of income received in proportion to the share price. Dividend yield is calculated by dividing the dividend per share (DPS) amount by the market price per share at the time, and multiplying the result by 100 to get a percentage.