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Annual Report Summaries, Investee Companies

Chibuluma Mines Plc Extract from 2021 Annual Report

Following the sale of Chibuluma South Crown Pillar Mine, Chibuluma Mines could not sustain 

operations with ore from Chifupu Underground Mine alone. Therefore, the Chibuluma Mines Plc 

Board, resolved to place the operations of Chibuluma Mine Plc under care and maintenance 

with effect from 1 July 2020. This resulted in the Company getting into a lease agreement with 

Lian Chao and Yue Ventures Limited (LC&Y) to operate key mining operations for the 2021 

financial year. 

The lease between Chibuluma and LC&Y was recognised for the period up to 30 June 2021. 

The investment of the lease was US$ 6.79 million, and the assets disposed of by Chibuluma was 

US$ 5.00 million. This resulted in a net gain on the lease investment of US$ 1.79 million as charged 

to the income statement. Following the resumption of production under LC&Y a total of 1,069 

tonnes of payable Copper was sold to Chambishi Copper Smelter by LC&Y. Chibuluma earned 

income royalty of US$ 0.88 million. For the period under review, the Company recorded a net 

profit of US$ 1.69 million against a budget loss of US$ 1.13 million due to favourable prices and 

increased production under the lease agreement. 

There were no dividends paid during the year ended 31 December 2021 (2020: Nil). 

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