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Annual Report Summaries, Investee Companies

Konkola Copper Mines Plc (KCM) Extract from 2023 Annual Report

KCM’s challenges continued during the year as the fundamental problems surrounding the underdevelopment of the Konkola Deep Mining Project (KDMP) remained unresolved, resulting in the Company reporting low production from own sources and therefore having to rely on third-party copper concentrates to feed its Smelter. As a result, finished copper production was also negatively impacted.  

The Provisional Liquidator continued to have full control over the operations at KCM and the Company continues to face financial challenges and is currently unable to produce sufficient output to support its operations. On 5th September 2023, the Government of the Republic of Zambia announced that it had reached an agreement with Vedanta Resources Limited to resolve all outstanding disputes and Vedanta committed to investing US$1.27 billion towards working capital and mine development at KCM.  

Following the announcement made by GRZ, ZCCM-IH and Vedanta have entered into various agreements which are intended to pave way for the settlement of outstanding creditors, vacation of the Provisional Liquidator and finally the reinstatement of the Board of Directors at KCM.  

There were no dividends declared during the year (2022: Nil). 
Annual Report Summaries, Investee Companies

Kabundi Resources Limited Extract from 2023 Annual Report

Kabundi Resources Ltd, established in May 2019 by ZCCM-IH, operates in the Central Province of Zambia focusing on manganese mining. Since beginning operations in May 2020, it has aimed for a production expansion, currently running two wash plants with capacities of 1,200 tonnes per day (8-hour shift) and 150 tonnes per hour. The ore grade averages about 45% manganese. A total of 2,325 tonnes of manganese was produced during the year ended 31st December 2023.  

Future plan includes establishing a manganese plant with a capacity of 60,000 tonnes per annum over three phases and developments in the Company’s manganese mining activities.  

For the year ended 31 December 2023, Kabundi Resources Limited reported total revenues of ZMW1.1 million (2022: ZMW 13.64 million) with a net profit of ZMW3.85 million (2022: net profit of ZMW 5.5 million).  

There were no dividends declared during the year (2022: Nil). 
Annual Report Summaries, Investee Companies

Mushe Milling Company Limited Extract from 2023 Annual Report  

Mushe Milling Ltd, initially acquired by ZCCM-IH in 2019, is undergoing liquidation as it is deemed not to be of strategic fit following a refocus to invest in mining and energy related investment in ZCCM-IH’s revised 2020-2026 strategic plan. The liquidation proceedings of Mushe Milling Limited (MML) began in July 2023 following the appointment of the office of the Official Receiver as liquidator.  

The liquidation of MML was still underway as at the end of the year. 
Annual Report Summaries, Investee Companies

Investrust Bank PLC Extract from 2023 Annual Report

Investrust Bank Plc is a financial institution in Zambia, and operations span across Zambia with a comprehensive network of branches.  

Investrust recorded an income of ZMW 202.8 million (2022: ZMW164.25 million). Investrust reported a net loss of ZMW758.18 million (2022: Loss of ZMW2.6 million).  

On the Lusaka Securities Exchange, the Bank’s share price closed at ZMW 25, maintaining the same level as in 2022.  

On April 2, 2024, the Bank of Zambia (“BoZ”) took possession of Investrust Bank Plc (“Investrust”). The possession of Investrust by BoZ was necessitated by its insolvency. On 24 April 2024, the Bank of Zambia cancelled the shareholding of ZCCM-IH in Investrust.  

There were no dividends declared during the period under review (December 2022: Nil).  
Annual Report Summaries, Investee Companies

Zambia Gold Company Limited (ZGC) Extract from 2023 Annual Report

The Zambia Gold Company Limited (ZGCL) has a significant role in the Zambian gold sub-sector, with a mandate that spans across the country to foster the formalisation and growth of this sector. ZGCL engages in various stages of the gold value chain, encompassing activities such as gold exploration, production, mine development, processing, and the marketing of gold both within Zambia and internationally. This comprehensive involvement is aimed at enhancing the gold sub-sector’s contribution to the Zambian economy and ensuring sustainable development and growth within this industry.  

Zambia Gold Company is in its start phase, and for the year under review, it did not produce any gold due to the continued suspension of mining activities at Kasenseli by the Mines Safety Department which is the main source of gold production. The sale of gold in the period under review was from stock held since 2021 and was used to finance operations of the company. ZGC continues to engage key stakeholders to reopen the mine in 2024. ZGC shall continue conducting exploration activities on its other licences and partnership with third party licence holders. Zambia Gold Company Limited (ZGC) reported revenue of ZMW 38.52 million (2022: ZMW 0.03 million) for the year ended 31 December 2023. During the period under review, the company sold 33.9 Kg of gold from Kasenseli production and trades conducted at ZGC headquarters compared to no sales in 2022. Net loss recorded for the year was ZMW 23.35 million (2022: ZMW 51.57 million loss).  

There were no dividends declared during the year under review (December 2022: Nil). 
Annual Report Summaries, Investee Companies

Chibuluma Mines Plc Extract from 2023 Annual Report

Chibuluma remains on lease to LC & Y with no operations of its own as the life of mine has been depleted. The company received a total of US$ 0.26 million in royalty revenue against a budget of US$ 0.23 Million. The company is currently exploring potential areas that would be deemed viable for renewed mining and has engaged Kobold Metals of the USA to apply their advanced Artificial Intelligence technology to enhance chances of discovery.  

There were no dividends paid during the year under review (2022: Nil).  
Annual Report Summaries, Investee Companies

Investrust Bank PLC Extract from 2022 Annual Report

Investrust generated revenue of ZMW 150.8 million(2021: ZMW170.7 million) and net loss for the year was ZMW2.6 million (2021: ZMW15.1 million in profit). For the twelve-month period ended 31st December 2022, the Bank’s financial performance exhibited signs of improvement despite the inadequate capital. The Bank recorded a decline in bottom line income compared to the prior period. The decline in bank performance was largely attributed to the Bank’s inadequate capital which had a negative ripple effect on its ability to make advances and loans, attract deposits and invest in new IT infrastructure.  

ZCCM-IH, alongside other key stakeholders in Investrust, continued to strategize on the best possible option to recapitalise the Bank in order to make it competitive and enable it to play its rightful role in the Zambian financial sector.  

The Bank’s share price on the Lusaka Securities Exchange closed the period under review at ZMW25 (2021: ZMW15).  

There were no dividends declared during the period under review (December 2021: Nil).
Annual Report Summaries, Investee Companies

Misenge Environmental and Technical Services Limited (METS) Extract from 2022 Annual Report  

Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW 4.93 million in revenue for the year ended 31st December 2022 (2021: ZMW17.11 million). METS reported a net loss of ZMW4.39 million (2021: ZMW2.51 million profit)  

During the period under review, METS continued the implementation of its Strategic Turnaround and Marketing Plan. ZCCM-IH capitalised the company with ZMW45.323 million during the year. Management also made steady efforts to raise capital for equipment and develop non-ZCCM-IH business relationships for the formation of strategic alliances and partnerships in the provision of environmental services.  

There were no dividends declared during the period under review (December 2021: Nil)