Speaking during the declaration occasion in Lusaka today, Finance Minister Alexander Chikwanda explained that government holds 25 percent shares in Kagem Mine thus the dividend paid amounting to two million US Dollars is proportionate to the 25 percent shares government owns in the mine.
Mr. Chikwanda added that this is the first dividend paid to government by Kagem in its twenty nine years history and the first of such payments to the government from any Gemstone operation in Zambia.
He stated that this is the result of not only hard work and dedication but also measures that Kagem undertook in the last five years in conjunction with government (under Rupiah Banda) to restructure, re-develop and expand Kagem Mine.
The Finance Minister has since encouraged other mining companies in the country to emulate Kagem by working hard and become profitable and be able to declare dividends to shareholders.
Speaking at the same occasion, Kagem Chairperson, William Nyirenda says the cash pay-out arises from distributable net profits generated by Kagem during recent years.
Mr. Nyirenda says the dividend has been facilitated by the turnaround strategy initiated at Kagem in conjunction with government a little more than five years ago, when London listed Germfields plc acquired a 75 percent beneficial interest in the company.
Mr. Nyirenda added that in the year ending 30th June 2012, Kagem’s revenues had grown to approximately K405 million.