SENS ANNOUNCEMENT
(the
"Notice" or "Announcement")
ZCCM INVESTMENTS HOLDINGS PLC
("ZCCM-IH")
[Incorporated in the Republic of Zambia]
Company registration number:
119540000771
Share Code:
ZCCM-IH
ISIN:
ZM0000000037
Authorized by:
Charles Mjumphi - Company
Secretary
Stockbrokers Zambia
Limited
[Founder
Member of the Lusaka Securities Exchange]
[Regulated and licensed by the Securities and Exchange
Commission of Zambia]
Contact
Number:
+260-211-232456
Website:
www.sbz.com.zm
The captioned Notice or Announcement
has been approved by:
i. the
Lusaka Securities Exchange ("LuSE")
ii. the Securities
and Exchange Commission ("SEC")
iii. ZCCM Investment
Holdings Plc ("ZCCM-IH")
The Notice or Announcement contained
herein contains information that may be of a price sensitive
nature.
Investors are advised to seek the
advice of their investment advisor, stockbroker, or any
professional duly licensed by the Securities and Exchange
Commission of Zambia to provide securities advice.
ISSUED:
7 June
2024
ZCCM INVESTMENTS HOLDINGS
PLC
[Incorporated in the Republic of Zambia]
Company
registration number: 771
Share
Code: ZCCM-IH
ISIN:
ZM0000000037
["ZCCM-IH" or "the Company"]
ABRIDGED AUDITED FINANCIAL
STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
INTRODUCTION
In compliance with the requirements
of the Securities Act No. 41 of 2016, ZCCM Investments Holdings PLC
("ZCCM-IH PLC" or "the Company") announces the financial statements
results of the Company and its subsidiaries (Collectively referred
to as the ''the Group'') for the year ended 31 December
2023.
STRUCTURE OF THE ZCCM-IH GROUP
|
The ZCCM-IH
Group consists of the following Nine (9) companies:
Name
|
Shareholding
|
|
Mopani Copper Mine PLC
|
100.00%
|
|
Ndola Lime Company Limited (In
liquidation)
|
100.00%
|
|
Kariba Minerals Limited
|
100.00%
|
|
Misenge Environmental and Technical
Services Limited
|
100.00%
|
|
Mushe Milling Limited (In
liquidation)
|
100.00%
|
|
Kabundi Resources Limited
|
100.00%
|
|
Limestone Resources
Limited
|
100.00%
|
|
Investrust Bank PLC (In possession
by the Bank of Zambia))
|
71.40%
|
|
Zambia Gold Company
Limited
|
51.00%
|
The Company also has other interests
in the undernoted companies:
|
Name
|
Shareholding
|
|
Rembrandt Properties
|
49.00%
|
|
Central African Cement
Limited
|
49.00%
|
|
Maamba Collieries Limited
|
35.00%
|
|
Copperbelt Energy Corporation
PLC
|
31.07%
|
|
Konkola Copper Mines PLC
|
20.60%
|
|
Kansanshi Mining PLC
|
20.00%
|
|
CNMC Luanshya Copper Mines
PLC
|
20.00%
|
|
Lubambe Copper Mines PLC
|
20.00%
|
|
Mingomba Mining Limited
|
20.00%
|
|
NFCA Africa Mining PLC
|
15.00%
|
|
Chibuluma Mines PLC
|
15.00%
|
|
Chambishi Metals PLC
|
15.00%
|
|
Copper Tree Mineral
Limited
|
15.58%
|
|
Oranto Petroleum Limited
|
10.00%
|
|
Nkana Alloy Smelting Company
Limited
|
10.00%
|
ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec
2023
|
|
31 Dec
2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Revenue
|
|
11,747,105
|
|
11,920,429
|
|
Gross loss
|
|
(3,559,228)
|
|
(2,749,922
|
|
Operating loss
|
|
(2,104,964)
|
|
(3,314,561)
|
|
Net finance cost
|
|
(2,267,838)
|
|
(1,807,093)
|
|
Share of profit of equity accounted
investees
|
|
2,261,209
|
|
1,603,143
|
|
Loss before tax
|
|
(2,111,593)
|
|
(3,518,511)
|
|
Income tax expense
|
|
(1,206,049)
|
|
(248,019)
|
|
Loss for the year from continuous operations
|
|
(3,317,642)
|
|
(3,766,530
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
(758,181)
|
|
(19,003)
|
|
Loss for the year
|
|
(4,075,823)
|
|
(3,785,533)
|
|
Earnings per share (ZMW)
|
|
(25.35)
|
|
(23.54)
|
|
Basic and diluted earnings per share (ZMW)
|
|
(25.35)
|
|
(23.54)
|
|
ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec
2023
|
|
31 Dec
2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Investment income
|
|
2,128,699
|
|
4,916,309
|
|
Revenue from contracts with customers
|
|
23,180
|
|
778
|
|
Operating profit
|
|
3,067,198
|
|
4,054,286
|
|
Net finance income
|
|
2,979,315
|
|
440,763
|
|
Profit before tax
|
|
6,046,513
|
|
4,495,049
|
|
Income tax expense
|
|
(1,205,034)
|
|
(236,321)
|
|
Profit for the year
|
|
4,841,479
|
|
4,258,728
|
|
|
|
|
|
|
|
Earnings per share (ZMW)
|
|
30.11
|
|
26.48
|
|
Basic and diluted earnings per share (ZMW)
|
|
30.11
|
|
26.48
|
|
|
ABRIDGED GROUP STATEMENT OF FINANCIAL
POSITION
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
Assets
|
|
|
|
|
|
Property, plant, and
equipment
|
|
248,857
|
|
12,484,907
|
|
Exploration and evaluation
asset
|
|
51,437
|
|
51,437
|
|
Intangible assets
|
|
14,393,945
|
|
3,148,325
|
|
Investment property
|
|
208,598
|
|
200,751
|
|
Investments in associates
|
|
10,090,940
|
|
15,174,862
|
|
Financial assets at fair value
through profit or loss
|
|
3,019,500
|
|
1,252,400
|
|
Trade and other
receivables
|
|
1,628,837
|
|
2,931,539
|
|
Environmental Protection
Fund
|
|
7,060
|
|
94,433
|
|
Deferred tax assets
|
|
-
|
|
122,852
|
|
Inventories
|
|
38,299
|
|
4,921,366
|
|
Trade and other
receivables
|
|
339,169
|
|
762,831
|
|
Assets classified as held for
sale
|
|
23,626,388
|
|
2,103,761
|
|
Term deposits
|
|
4,450,451
|
|
5,340,202
|
|
Cash and cash equivalents
|
|
360,356
|
|
329,173
|
|
Total assets
|
|
58,463,837
|
|
48,918,839
|
|
Equity and liabilities
|
|
|
|
|
|
Capital and reserves
|
|
(5,690,634)
|
|
7,908,807
|
|
Borrowings
|
|
-
|
|
27,476,859
|
|
Deferred tax liability
|
|
751,833
|
|
-
|
|
Retirement benefits
|
|
17,381
|
|
182,940
|
|
Provisions for environmental
rehabilitation
|
|
112,751
|
|
1,221,068
|
|
Borrowings
|
|
-
|
|
864,411
|
|
Overdraft
|
|
-
|
|
688,120
|
|
Trade and other payables
|
|
312,756
|
|
7,451,177
|
|
Provisions
|
|
44,243
|
|
487,689
|
|
Current income tax
liabilities
|
|
238,553
|
|
190,143
|
|
Retirement benefits
|
|
-
|
|
139,131
|
|
Liabilities associated with assets
classified as held for sale
|
|
62,676,954
|
|
2,308,494
|
|
Total equity and liabilities
|
|
58,463,837
|
|
48,918,839
|
|
|
|
|
|
|
|
ABRIDGED COMPANY STATEMENT OF FINANCIAL
POSITION
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
Assets
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Property, plant, and
equipment
|
|
110,624
|
|
90,471
|
|
Intangible assets
|
|
14,260,690
|
|
3,377
|
|
Investment property
|
|
208,598
|
|
200,751
|
|
Investment in
subsidiaries
|
|
282,384
|
|
405,051
|
|
Investments in associates
|
|
11,240,080
|
|
16,256,411
|
|
Financial assets at fair value
through profit or loss
|
|
3,019,500
|
|
1,252,400
|
|
Trade and other
receivables
|
|
4,586,471
|
|
958,162
|
|
Deferred tax assets
|
|
-
|
|
258,966
|
|
Inventories
|
|
-
|
|
16,427
|
|
Trade and other
receivables
|
|
288,268
|
|
173,829
|
|
Term deposits
|
|
4,411,330
|
|
5,340,202
|
|
Cash and cash equivalents
|
|
61,137
|
|
45,586
|
|
Assets classified as held for
sale
|
|
-
|
|
145,700
|
|
Total assets
|
|
38,469,082
|
|
25,147,333
|
|
Equity and liabilities
|
|
|
|
|
|
Capital and reserves
|
|
37,422,019
|
|
24,679,852
|
|
Deferred tax liability
|
|
618,059
|
|
-
|
|
Retirement Benefit
Obligations
|
|
17,381
|
|
9,275
|
|
Provisions for environmental
rehabilitation
|
|
54,498
|
|
39,357
|
|
Borrowings
|
|
-
|
|
-
|
|
Trade and other payables
|
|
78,288
|
|
121,005
|
|
Provisions
|
|
41,461
|
|
108,686
|
|
Current income tax
liabilities
|
|
237,376
|
|
189,158
|
|
Total equity and liabilities
|
|
38,469,082
|
|
25,147,333
|
|
|
|
|
|
|
|
ABRIDGED GROUP STATEMENT OF CASH FLOWS
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Net cash flow generated from
operating activities
|
|
(83,727)
|
|
1,463,062
|
|
Net cash flow used from investing
activities
|
|
533,274
|
|
(1,113,001)
|
|
Net cash outflow from financing
activities
|
|
(207,812)
|
|
(698,833)
|
|
Decrease in cash and cash equivalents
|
|
241,735
|
|
(348,772)
|
|
Effects of translation and exchange
rate changes on cash and cash equivalents
|
|
(277,193)
|
|
(68,389)
|
|
Cash and cash equivalents at the
beginning of the year
|
|
(81,060)
|
|
336,101
|
|
|
|
(116,518)
|
|
(81,060)
|
|
Included in the statement of
financial position
|
|
360,356
|
|
(358,947)
|
|
Included in assets held for
sale
|
|
(476,874)
|
|
277,887
|
|
|
|
(116,518)
|
|
(81,060)
|
|
|
|
ABRIDGED COMPANY STATEMENT OF CASH FLOWS
|
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Net cash flows from operating
activities
|
|
(368,710)
|
|
4,766,330
|
|
Net cash flows used in investing
activities
|
|
379,990
|
|
(4,761,256)
|
|
Net cash flows used in financing
activities
|
|
-
|
|
(1,135)
|
|
Decreased in cash and cash equivalents
|
|
11,280
|
|
3,939
|
|
Effect of movement in exchange rates
on cash held
|
|
4,271
|
|
(39,851)
|
|
Cash and cash equivalents at the
beginning of the year
|
|
45,586
|
|
81,498
|
|
Cash and cash equivalents at the end of the
period
|
|
61,137
|
|
45,586
|
ABRIDGED GROUP STATEMENT OF CHANGES IN
EQUITY
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
Balance at 1 Jan
|
|
7,908,807
|
|
12,808,905
|
|
Loss for the year
|
|
(4,075,823)
|
|
(3,785,533)
|
|
Other comprehensive income
|
|
(8,700,010)
|
|
(1,029,340)
|
|
Dividend paid
|
|
(723,608)
|
|
(85,225)
|
|
Balance at 31 Dec
|
|
(5,590,634)
|
|
7,908,807
|
|
|
ABRIDGED COMPANY STATEMENT OF
CHANGES IN EQUITY
|
|
|
Audited
|
|
Audited
|
|
|
|
31 Dec
2023
|
|
31 Dec
2022
|
|
|
|
ZMW'000
|
|
ZMW'000
|
|
|
|
|
|
|
|
Balance at 1 Jan
|
|
24,679,852
|
|
24,732,194
|
|
Profit for the year
|
|
4,841,479
|
|
4,258,728
|
|
Other comprehensive income
|
|
8,624,296
|
|
(3,225,845)
|
|
Dividend paid
|
|
(723,608)
|
|
(85,225)
|
|
Balance at 31 Dec
|
|
37,422,019
|
|
24,679,852
|
|
|
|
|
|
|
1. FINANCIAL
PERFORMANCE
In 2023, the
Group faced financial challenges, with post-tax losses increasing
from ZMW3,786 million (US$222.03 million) in 2022 to ZMW4,076
million (US$198.59 million). This was primarily due to the
underperformance of Mopani Copper Mine Plc, which reported a
significant loss of ZMW8.97 billion (US$436.94 million). Mopani's
lower copper production and operational issues were key
contributors to this decline.
Despite these difficulties, the
Group's total assets grew from ZMW48.92 billion (US$2.81 billion)
in 2022 to ZMW58.46 billion (US$2.30 billion) in 2023, though the
value in US Dollars decreased due to currency depreciation.
Liabilities also increased significantly, primarily due to the
interest accrued on Mopani's loan from Glencore and the resulting
foreign exchange losses.
Retained earnings were in a deficit
of ZMW16.462 billion (US$639.40 million) by the end of 2023,
worsening from the previous year's deficit of ZMW11.44 billion
(US$561.56 million).
However, the Company itself reported
an increase in profits, rising to ZMW4.84 billion (US$235.90
million) in 2023 from ZMW4.25 billion (US$249.78 million) in 2022,
demonstrating resilience amidst broader financial challenges within
the ZCCM-IH Group.
2. KEY OPERATIONS AND STRATEGIC
DEVELOPMENTS
(i)
Mopani Copper Mines PLC
("MCM")
Below is a summary of Mopani's
financial performance which has been incorporated in the Groups
Financial Statements:
|
|
Statement of Profit and Loss and Other Comprehensive - Mopani
Copper Mine Plc
|
|
ZMW'000
|
2023
|
|
2022
|
|
Revenue
|
11,552,419
|
|
11,854,038
|
|
Gross loss
|
(3,532,408)
|
|
(2,711,461)
|
|
Operating loss
|
(4,351,218)
|
|
(2,814,464)
|
|
Net finance cost
|
(4,616,657)
|
|
(2,238,476)
|
|
Loss before tax
|
(8,967,875)
|
|
(5,052,940)
|
|
Loss for the year
|
(8,967,875)
|
|
(5,052,940)
|
|
|
|
|
|
|
Statement of Financial Position - Mopani Copper Mine
Plc
|
2023
|
|
2022
|
|
|
ZMW'000
|
|
ZMW'000
|
|
Property, plant, and equipment,
including intangible assets
|
15,646,610
|
|
15,384,497
|
|
Inventories
|
3,489,128
|
|
4,836,680
|
|
Trade and other
receivables
|
2,691,333
|
|
2,616,620
|
|
Environmental protection
fund
|
147,553
|
|
94,433
|
|
Cash and cash equivalents
|
58,367
|
|
159,584
|
|
Total assets
|
22,032,991
|
|
23,091,814
|
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
Capital and reserves
|
(40,916,634)
|
|
(14,981,992)
|
|
Borrowings
|
43,518,156
|
|
28,341,270
|
|
Trade and other payables
|
15,072,870
|
|
7,934,977
|
|
Bank overdraft
|
1,095,462
|
|
678,900
|
|
Provisions for environmental
rehabilitation
|
3,263,137
|
|
1,118,659
|
|
Total equity and liabilities
|
22,032,991
|
|
23,091,814
|
Mopani Copper Mines plc (MCM)
recorded a significant loss of ZMW 8.9 billion (US$436.94 million)
in 2023, up from ZMW 5.05 billion (US$296.36 million) the previous
year. This was due to decreased copper production, low equipment
availability, delayed development, and multiple plant outages. In
response, US$35 million was invested in sustaining and expanding
projects, with full commissioning of expansion projects expected by
2027. In March 2024, a strategic investment of US$1.2 billion by
International Resources Holding Limited (IRH), through its
wholly-owned subsidiary Delta Mining Limited, was approved to
enhance Mopani's financial and operational resilience.
(ii) Kansanshi Royalty Right
ZCCM-IH converted its 20% dividend
rights in Kansanshi Mining Plc into a 3.1% life-of-mine royalty
right, resulting in royalty income and VAT refunds totalling ZMW1.2
billion (US$58.48 million) and ZMW170.74 million (US$8.32 million),
respectively.
(iii) Copperbelt Energy Corporation Plc
(CEC)
ZCCM-IH increased its shareholding
in Copperbelt Energy Corporation Plc (CEC) from 24.1% to 31.07%,
driven by confidence in CEC's growth prospects, particularly in
renewable energy.
(iv) Konkola Copper Mines Plc (KCM)
ZCCM-IH and Vedanta Resources Group
have resolved their disputes by entering into a settlement
agreement aimed at resetting their relationship. The necessary
steps to withdraw the proceedings related to these disputes are
currently being undertaken.
(v) Mingomba Mining Limited (MML)
Mingomba Mining Limited, a new
partnership formed in 2023, is conducting a drilling program using
Artificial Intelligence (AI) techniques in Chililabombwe. This will
expedite orebody definition and subsequent mine
development.
(vi) Investrust Bank Plc
ZCCM-IH holds a 71.4% stake in
Investrust Bank Plc. The Bank of Zambia announced a takeover of
Investrust on 2 April 2024, and trading of its shares was
suspended. ZCCM-IH is monitoring the situation.
3. Outlook
ZCCM-IH remains focused on mining
and mining-related investments, seeking partnerships that benefit
the Zambian people and positioning itself to capitalize on
opportunities in the mining sector.
By
Order of the Board
Charles Mjumphi
Company Secretary
Issued in Lusaka,
Zambia on 7 June 2024
|
|
|
|
T
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+260-211-232456
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advisory@sbz.com.zm
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www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka
Securities
Exchange and is regulated by the Securities and Exchange
Commission of Zambia
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First Issued on 7 June
2024
APPENDICES
US
DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
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31 Dec
2023
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31 Dec
2022
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US$'000
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US$'000
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Revenue
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572,356
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699,145
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Gross loss
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(173,416)
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(161,286)
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Operating loss
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(102,559)
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(194,403)
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Net finance income
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(110,497)
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(105,988)
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Share of profit of equity accounted
investees
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110,173
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94,026
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Loss before tax
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(102,883)
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(206,365)
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Income tax expenses
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(58,762)
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(14,547)
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Loss from continuing operations
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(161,645)
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(220,912)
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Loss from discontinued operations
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(36,941)
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(1,115)
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Loss for the year
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(198,586)
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(222,027)
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Earnings per share (US$)
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(1.23)
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(1.38)
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Basic and diluted earnings per share (US$)
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(1.23)
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(1.38)
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US
DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
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31 Dec
2023
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31 Dec
2022
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US$'000
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US$'000
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Investment income
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103,717
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288,347
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Revenue from contracts with customers
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1,129
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46
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Operating profit
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149,444
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237,788
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Net finance income
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145,162
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25,851
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Profit before tax
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294,606
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263,639
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Income tax expenses
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(58,713)
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(13,860)
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Profit for the year
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235,893
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249,779
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Earnings per share (US$)
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1.47
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1.55
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Basic and diluted earnings per share (US$)
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1.47
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1.55
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