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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Zccm Investments Holdings Plc | LSE:ZCC | London | Ordinary Share | ZM0000000037 | 'B' ORD ZMK10 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.6344 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Copper Ores | 11.96B | -3.76B | - | N/A | 0 |
TIDMZCC
RNS Number : 4510E
ZCCM Invs.Hldgs PLC
29 June 2023
SENS ANNOUCEMENT
(the "Announcement")
ISSUER
ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH") Incorporated in the Republic of Zambia Company registration number: 119540000771 Share Code: ZCCM-IH ISIN: ZM0000000037
BROKER
Pangaea Securities Limited
[a member of the Lusaka Securities Exchange]
Regulated and Licensed by the Securities and Exchange Commission Zambia
Telephone Number: +260 211 220707 | Website: www.pangaea.co.zm
AUTHORISATION
Approval for this Announcement has been granted by:
-- The Lusaka Securities Exchange ("LuSE") -- The Securities and Exchange Commission Zambia ("SEC") -- ZCCM-IH
DISCLAIMER AND RISK WARNING
The 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 ON: 29 June 2023
ZCCM INVESTMENTS HOLDINGS PLC
(Incorporated in the Republic of Zambia)
PROVISIONAL ABRIDGED UNAUDITED FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2022
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 provisional financial statements results of the Company and its subsidiaries (Collectively referred to as the "the Group") for the year ended 31 December 2022.
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 100.00% ------------- Kabundi Resources Limited 100.00% ------------- Limestone Resources Limited 100.00% ------------- Investrust Bank PLC 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% ------------- Konkola Copper Mines PLC 20.60% ------------- Kansanshi Mining PLC 20.00% ------------- Copperbelt Energy Corporation PLC 24.10% ------------- CNMC Luanshya Copper Mines PLC 20.00% ------------- Lubambe Copper Mines PLC 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 Oil Block 10.00% ------------- Nkana Alloy Smelting Company Limited 10.00% ------------- PROVISIONAL ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ---------------------------------------------------------------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 31 Dec 2022 2021 ZMW'000 ZMW'000 Revenue 11,959,354 14,395,493 Gross (loss)/profit (2,749,760) 164,460 Operating loss (3,354,959) (13,313,773) Net finance cost (1,813,846) (866,045) Share of profit of equity accounted investees 1,603,143 3,004,542 Loss before tax (3,565,662) (11,175,276) Income tax (expense)/credit (249,504) 66,476 Loss for the year (3,815,166) (11,108,800) Earnings per share (ZMW) (23.73) (69.08) Basic and diluted earnings per share (ZMW) (23.73) (69.08) PROVISIONAL ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ------------------------------------------------------------------------------ Unaudited Unaudited 31 Dec 31 Dec 2022 2021 ZMW'000 ZMW'000 Investment income 4,916,309 968,137 Revenue from contracts with customers 778 79,837 Operating profit 4,054,286 1,841,747 Net finance income/(cost) 440,763 (251,987) Profit before tax 4,495,049 1,589,760 Income tax (expense)/credit (236,321) 86,158 Profit for the year 4,258,728 1,675,918 Earnings per share (ZMW) 26.48 10.42 Basic and diluted earnings per share (ZMW) 26.48 10.42 PROVISIONAL ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION -------------------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 31 Dec 2022 2021 ----------------------------------------------- --------------------- ------------------- ZMW'000 ZMW'000 Assets Non-current Assets Property, plant, and equipment 12,484,907 12,857,452 Exploration and evaluation asset 51,437 38,989 Intangible assets 4,582,654 4,676,296 Investment property 200,751 192,227 Investments in associates 15,174,862 17,067,159 Financial assets at fair value through profit or loss 1,252,400 1,458,000 Trade and other receivables 2,931,539 1,330,438 Environmental Protection Fund 94,433 87,130 Deferred tax assets 122,852 340,848 Current Assets Inventories 4,921,366 4,651,886 Trade and other receivables 762,831 3,264,975
Assets held for sale 2,103,761 1,478,611 Term deposits 5,340,202 653,742 Cash and cash equivalents 329,173 184,625 Total assets 50,353,168 48,282,378 Equity and liabilities Capital and reserves 9,343,136 14,272,867 Non-current Liabilities Borrowings 27,476,859 24,546,001 Retirement benefits 182,940 96,287 Provisions for environmental rehabilitation 1,221,068 1,198,814 Borrowings 864,411 797,566 Current Liabilities Overdraft 688,120 70,449 Trade and other payables 7,451,177 4,796,508 Provisions 487,689 378,746 Current income tax liabilities 190,143 202,563 Retirement benefits 139,131 244,001 Liabilities associated with assets classified as held for sale 2,308,494 1,678,576 Total equity and liabilities 50,353,168 48,282,378 PROVISIONAL ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION ------------------------------------------------------------------------------------ Unaudited Unaudited 31 Dec 31 Dec 2022 2021 --------------------------------------------- ----------------- ----------------- ZMW'000 ZMW'000 Assets Non-current Assets Property, plant, and equipment 90,471 78,439 Intangible assets 3,377 2,537 Investment property 200,751 192,227 Investment in subsidiaries 405,051 327,939 Investments in associates 16,256,411 20,603,089 Financial assets at fair value through profit or loss 1,252,400 1,458,000 Trade and other receivables 958,162 676,478 Deferred tax assets 258,966 468,109 Current Assets Inventories 16,427 22,034 Trade and other receivables 173,829 197,844 Term deposits 5,340,202 632,992 Cash and cash equivalents 45,586 81,498 Assets held for sale 145,700 430,977 Total assets 25,147,333 25,172,163 Equity Capital and reserves 24,679,852 24,732,194 Non-Current Liabilities Retirement Benefit Obligations 9,275 10,256 Provisions for environmental rehabilitation 39,357 79,931 Borrowings - 1,135 Current Liabilities Trade and other payables 121,005 116,883 Provisions 108,686 29,528 Current income tax liabilities 189,158 202,236 Total equity and liabilities 25,147,333 25,172,163 PROVISIONAL ABRIDGED GROUP STATEMENT OF CASH FLOWS --------------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 31 Dec 2022 2021 --------------------------------------------------- --------------- ---------------- ZMW'000 ZMW'000 Net cash flow generated from operating activities 1,188,449 416,970 Net cash flow used from investing activities (906,777) (103,180) Net cash outflow from financing activities (698,833) (402,694) Decrease in cash and cash equivalents (417,161) (88,904) Cash and cash equivalents at the beginning of the year 336,101 425,005 --------------- ---------------- Cash and cash equivalents at the end of the period (81,060) 336,101 --------------- ---------------- Included in the statement of financial position (358,947) 114,176 Included in assets held for sale 277,887 221,925 --------------- ---------------- (81,060) 336,101 --------------------------------------------------- --------------- ---------------- PROVISIONAL ABRIDGED COMPANY STATEMENT OF CASH FLOWS --------------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 31 Dec 2022 2021 --------------------------------------------------- --------------- ---------------- ZMW'000 ZMW'000 Net cash flows from operating activities 4,726,479 524,906 Net cash flows used in investing activities (4,761,256) (439,590) Net cash flows used in financing activities (1,135) (124,457) Decreased in cash and cash equivalents (35,912) (39,141) Cash and cash equivalents at the beginning of the year 81,498 120,639 Cash and cash equivalents at the end of the period 45,586 81,498 ---------------------------------------------------- --------------- ----------------
PROVISIONAL ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited 31 Dec 31 Dec 2022 2021 ---------------------------- ------------ ------------- ZMW'000 ZMW'000 Balance at 1 Jan 14,272,867 21,004,417 Loss for the year (3,815,166) (11,108,800) Other comprehensive income (1,029,340) 4,430,326 Dividend paid (85,225) (53,076) ------------ ------------- Balance at 31 Dec 9,343,136 14,272,867 ============ =============
PROVISIONAL ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited 31 Dec 31 Dec 2022 2021 ---------------------------- ---- ------------ ----------- ZMW'000 ZMW'000 Balance at 1 Jan 23,732,194 23,164,958 Profit for the year 4,258,728 1,675,918 Other comprehensive income (3,225,845) (55,606) Dividend paid (85,225) (53,076) ------------ ----------- Balance at 31 Dec 24,679,852 24,732,194 ------------ ----------- 1. FINANCIAL PERFORMANCE (I) Group Performance
Performance at Group level was impacted by the performance of Mopani Copper Mines Plc ("Mopani") resulting in a loss of ZMW 3.82 billion (US$ 223.76 million) recorded in 2022 compared to a loss of ZMW11.08 billion (US$ 564.57 million) recorded in 2021. The loss at Group level was on account of :
-- Declined average copper price from US$9,315 per ton in 2021 to US$8,815 per ton in 2022;
-- Lower copper production level experienced at Mopani due to the smelter shutdown; and
-- No significant impairment of goodwill was recognised during the year (2021: ZMW 13.3 billion( US$ 678.73 million)).
The Group recorded an increase in total assets from ZMW48.3 billion recorded in 2021 to ZMW 50.4 billion in 2022 largely on account of exchange differences from foreign currency denominated assets as well as improvement in the performance of some investee companies.
The Group's total liabilities increased from ZMW34 billion in 2021 to ZMW41 billion in 2022 on account of the Glencore long-term loan facility advanced to Mopani of US$1.5 billion.
The Group's retained earnings as of 31 December 2022 were negative at ZMW10.50 billion (2021: ZMW6.84 billion). The movement in retained earnings is attributable to the recorded Group loss of ZMW3.82 billion recorded in 2022 (2021: ZMW11.08 billion loss).
(II) Company Performance
Company performance improved with a profit for the year of ZMW 4.26 billion in 2022 from ZMW1.68 billion recorded in 2021. The improved performance was due to a special dividend received from Kansanshi Copper Mining PLC of ZMW3.3 billion (US$ 195 million).
2. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS (I) Mopani Copper Mines PLC ("Mopani")
Below is a summary of Mopani's financial performance which has been incorporated in the Group's Financial Statements:
Statement of Profit and Loss and Other Comprehensive - Mopani Copper Mine PLC 2022 Audited 2021 ZMW'000 ZMW'000 1 1 , 854 14, 116 Revenue , 038 , 2 1 7 (14,565 146 , 36 Gross (loss)/profit , 499) 5 ( 2,844 ( 1, 1 92 Operating loss , 097 ) , 992 ) ( 2,238 Net finance cost , 4 7 6 ) (604,157) ( 5 , 082 (1, 459 Loss before tax , 573 ) ,9 35 ) ( 5 , 082 (1, 459 Loss for the year , 573 ) ,9 35 ) Statement of Financial Position - Mopani Copper Mine PLC 2022 Audited 2021 Assets ZMW'000 ZMW'000 Property, plant, and equipment 16,818,826 17,327,597 Inventories 4,836,680 4,564,852 Trade and other receivables 2,616,620 3,595,239 Environmental Protection Fund 94,433 87,130 Cash and cash equivalents 159,584 78,469 Total assets 24,526,143 25,653,287 Equity and liabilities Capital and reserves (13,547,663) (6,054,075) Borrowings 28,341,270 25,342,432 Trade and other payables 7,245,750 4,606,104 Bank overdraft 678,900 65,743 Retirement benefits 312,796 330,032 Provisions 376,431 347,321 Provisions for environmental rehabilitation 1,118,659 1,015,730 Total equity and liabilities 24,526,143 23,653,287
In 2022, Mopani recorded a loss of ZMW5.08 billion (US$ 298.1 million)compared to ZMW 1.46 billion (US$ 74.2 million). The recorded results were due to reduced copper production levels from 72,694 tonnes in 2022 from 87,618 tonnes in 2021. The lower production levels recorded in 2022 was on account of the smelter shutdown for 45-days from August to September 2022. This shutdown was necessitated by maintenance, refurbishment of critical components, and replacement of refractory bricks.
Mopani's future growth prospects hinges on its planned completion and commissioning of expansion capital projects. The Company has planned for a ramped-up production profile as these projects are expected to be commissioned to full capacity by 2027. In addition to spending on its expansion projects, the Company has continued to ensure that sustaining capital is secured and utilised in the best possible way given the current funding limitations. During the year, Mopani has spent US$77.4 million mostly on mining development and the smelter maintenance and refurbishment (2021: US$39 million). The Group remains optimistic with the enormous task ahead to secure funds for Mopani of more than US$300 million to complete the expansion projects over the next three years, as well as an additional US$150 million for sustaining capital over the same period.
Considering the above , and as per the Market Announcement dated 15 June 2022, ZCCM-IH engaged a globally renowned investment bank, Rothschild & Co., South Africa (Pty) Ltd ("Rothschild & Co") to assist ZCCM-IH with the strategic review of Mopani to ensure its sustainability and continued development. Mopani's future will be realised as the expansion projects are progressively completed to be able to produce over 200,000 tonnes of finished copper cathode from 2027 onwards. Therefore, the review is being undertaken to provide strategic options that will ensure Mopani is operating optimally and is expected to be complement by December 2023.
(II) Kansanshi Royalty Transaction with FQM
After the year end on 31 March 2023, the shareholders of ZCCM-IH approved an agreement for a royalty transaction between ZCCM-IH and First Quantum Minerals Limited. The transaction involved ZCCM-IH conversion of its 20% equity interest in Kansanshi Mining PLC into a 3.1% life of mine royalty.
This transaction is in line with the key objective of the ZCCM-IH strategic plan of maximising value extraction from investments.
The implemented Kansanshi Royalty transaction will ensure the following benefits to ZCCM-IH;
-- Guaranteed revenue: ZCCM-IH expected to record consistent and predictable revenue over the entire mine life and will therefore benefit throughout the existence of the KMP mine if it is in operation.
-- Greater revenue: Royalty produces greater total revenue over time compared to the dividend model.
-- Access to financing: Greater capital accumulation will lead to improved access to financing; and
-- Drive portfolio growth: Improved cashflow will allow increased investment into greenfield and brownfield projects.
(III) Delayed Publication of 2021 and 2022 Financial Statements
In 2021, ZCCM Investments Holdings PLC ("ZCCM-IH" or "the Company") acquired 90% shareholding in Mopani Copper Mines PLC bringing its shareholding to 100%. As a result of this acquisition, an independent valuation of Mopani's assets and liabilities at acquisition was required as per the provisions of the International Financial Reporting Standard 3 (IFRS 3). This process took longer than expected and resulted in delays in finalising the 2021 and subsequently the 2022 Financial Statements. This valuation exercise has now been completed and undergoing further audit reviews.
Considering the above, the 2022 comparative amounts in the statement of profit or loss and other comprehensive , statements of financial position, statement of changes in equity have been updated to reflect the draft valuation results of the fair valuation of assets and liabilities related to the acquisition of 90% shares of Mopani as of 31 March 2021. The key changes made to the 2022 comparative amounts include:
-- Accounting for goodwill totalling ZMW 13.3 billion which was recognised at acquisition and impaired in 2021. The accounting treatment of goodwill is in accordance with the International Financial Reporting Standards; and
-- Certain comparative (2021) amounts in the statement of profit or loss and other comprehensive income have been re-presented such as revenue, cost of sales, other administration expenses , to ensure consistency.
The Company expects to publish its audited Financial Statements by 31July 2023. I n the interim, ZCCM-IH is issuing to the shareholders and the market the unaudited Financial Results for the year ended 31 December 2022. The unaudited financial results for the year ended 2021 were issued in 2022.
3. OUTLOOK
ZCCM-IH continues to position itself to pursue more opportunities in the mining sector. As per ZCCM-IH strategy, which is focused on mining and mining related investments, the Company will seek mutually beneficial investments. ZCCM-IH is pursuing specific projects in gold, manganese, copper, cobalt as way of maximising value extraction and improving shareholder value.
ZCCM-IH's focus going forward continues to be:
-- Raising both short-term as well long-term capital to support mining and mining related investments within the group. Critical to this is the raising of adequate capital for Mopani to enable the growth and sustainability of the mine ;
-- Implementation of more predictable alternative income streams such as royalty model;
-- Continued research and development to support investments in viable mining and mineral value Addition projects;
-- Continued implementation of the turnaround plans for loss making investee companies; and -- Divestment from non-viable and non-mining related investments.
By Order of the Board
Charles Mjumphi
Company Secretary
Issued on 29 June 2023
APPICES
US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited Unaudited 31 Dec 31 Dec 2022 2021 US$'000 US$'000 Gross (loss)/profit (161,277) 8,358 Operating (loss)/profit (196,773) (676,634) Net finance income (106,384) (44,014) Share of profit of equity accounted investees 94,026 152,697 (Loss) before tax (209,131) (567,951) Income tax (expense) /credit (14,634) 3,378 (Loss)/profit for the year (223,765) (564,573) Earnings per share (US$) (1.39) (3.51) Basic and diluted earnings per share (US$) (1.39) (3.51) ------------------------------------------------ --------------- -------------- US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Unaudited Unaudited 31 Dec 31 Dec 2021 2020 US$'000 US$'000 Investment income 288,347 49,203 Revenue from contracts with customers 46 4,057 Operating profit 237,788 93,601 Net finance income 25,851 (12,807) Profit before tax 263,639 80,794 Income tax credit/(expense) (13,860) 4,379 Profit for the year 249,779 85,173 Earnings per share (US$) 1.55 0.53 Basic and diluted earnings per share (US$) 1.55 0.53 --------------------------------------------- -------------- ------------ US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION ---------------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 31 Dec 2022 2021 --------------------------------------------- ------------------- ------------------- US$'000 US$'000 Assets Property, plant, and equipment 756,962 777,599 Exploration and evaluation asset 2,767 2,077 Intangible assets 275,657 280,844 Investment property 11,120 11,541 Investments in associates 840,596 1,024,655 Financial assets at fair value through profit or loss 69,375 87,533 Trade and other receivables 162,390 79,875 Environmental Protection Fund 5,231 5,231 Deferred tax assets 6,805 20,463 Inventories 295,855 280,927 Trade and other receivables 42,256 196,018 Term deposits 295,815 39,248 Cash and cash equivalents 18,234 11,084 Assets held for sale 116,536 88,771 Total assets 2,899,599 2,905,866 Equity and liabilities Capital and reserves 627,889 864,049 Borrowings 1,522,053 1,473,659 Retirement benefits 10,134 5,781 Provisions for environmental rehabilitation 67,640 71,973 Bank overdraft 38,118 4,230 Borrowings 47,883 47,883 Trade and other payables 412,750 287,966 Provisions 27,015 22,739 Current tax liabilities 10,533 12,161 Retirement benefits 7,707 14,649 Liabilities directly associated with assets classified as held for sale 127,877 100,776 Total equity and liabilities 2,899,599 2,905,866 ---------------------------------------------- ------------------- ------------------- US DOLLAR ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION -------------------------------------------------------------------------------- Unaudited Unaudited 31 Dec 2022 31 Dec 2021 --------------------------------------------- --------------- --------------- US$'000 US$'000 Assets Property, plant, and equipment 7,408 6,702 Intangible assets 198 149 Investment property 11,120 11,541 Investments in subsidiaries 22,437 19,688 Investments in associates 900,507 1,236,940 Financial assets at fair value through profit or loss 69,375 87,533 Trade and other receivables 53,076 40,613 Deferred tax assets 14,345 28,104 Inventory 830 1,159 Trade and other receivables 9,629 11,878 Term deposits 295,815 38,003 Cash and cash equivalents 2,525 4,893 Assets held for sale 8,071 25,874 Total assets 1,395,336 1,513,077 Equity and liabilities Capital and reserves 1,369,440 1,486,662 Borrowings - - Retirement benefits 514 616 Provisions for environmental rehabilitation 2,180 4,799 Borrowings - 68 Trade and other payables 6,703 7,017 Provisions 6,021 1,773 Current tax liabilities 10,478 12,142 Total equity and liabilities 1,395,336 1,513,077 ---------------------------------------------- --------------- ---------------
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END
FR SEWFMUEDSEEM
(END) Dow Jones Newswires
June 29, 2023 12:31 ET (16:31 GMT)
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