Consolidated Gold Company of Zambia Limited is a joint venture partnership between ZCCM-IH (45%) and Karma Mining Services and Rural Development (55%). Incorporated in the year 2020, this Special Purpose Vehicle is focused on developing a gold processing and trading hub in Zambia. Phase 1 will be undertaken in Rufunsa District and will require ZCCM-IH to invest US$1.4 million towards the total set-up cost of US$3.5 million.
During the financial year to 31 December 2020, Mopani Copper Mines (MCM) recorded net revenue of ZMW4.93 billion (US$ 714.44 million) [December 2019: ZMW4.93 billion (US$369.84 million)]. The net loss for the period under review was ZMW9.31 billion (US$ 474.56 million) [December 2019: ZMW9.31 billion (US$ 698.92 million net loss)].
During the year ended 31 December 2020, MCM produced a total of 90,050 tonnes of copper (2019: 21,554 tonnes). On 31st March 2021, ZCCM-IH and Glencore signed an agreement in which ZCCM-IH would purchase the 90% interest in Mopani held by Carlisa Investments Corp. (“Carlisa”), in which Glencore holds 81.2% of the shares for a US$1 consideration and US$1.50 billion in Transaction Debt.
There were no dividends paid during the financial year ended 31st December 2020 (2019: Nil).
Kabundi Resources Limited (KRL) appointed a Board and Project Manager to operationalise their manganese mining activity. Manganese mining commenced, and as at 31st December 2020 12,000 tonnes of manganese ore had been stockpiled. A 40 tonne per hour wash plant and 75 tonne per hour crusher were installed on site. The installation of office containers, construction of a community clinic, Project Affected Persons (PAP) houses and school blocks were completed. KRL reported total revenues for the financial year ended 31st December 2020 of ZMW 912 thousand and a loss after tax of ZMW958 thousand.
There were no dividends declared during the year under review.
Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW 24.49 million in revenue for the year ended 31st December 2020 (December 2019: ZMW16.27 million). METS reported a net profit of ZMW3.12 million (2019: ZMW2.6 million).
During the period under review, METS began forming its Strategic Turnaround and Marketing Plan. The Turnaround Plan is intended to address, among other issues, market expansion through the acquisition of new customers, business development and additional services, improvements in the provision of environmental services, and the formation of strategic alliances and partnerships in the provision of environmental services. No dividends were paid during the year under review (2019: Nil).
For the financial year ended 31st December 2020, NFCA reported revenue of ZMW1.84 billion (US$229.38 million), [December 2019: ZMW1.84 billion (US$138.36 million)] and profit after tax of ZMW171.48 million (US$19.30 million), [December 2019: ZMW171.48 million (US$12.87 million)].
There were no dividends paid during the year ended 31st December 2020 (2019: Nil).
Kansanshi Mining reported annual production of 221,488 tonnes of copper (2019: 232,000 tonnes). There was a reduction in total production volumes but also a decline in the copper ore grades from 0.89% in the previous reporting period to 0.99% currently. A total of 128,408 ounces of gold was produced.
However, despite the reduction in production volumes, total revenue for the year increased to ZMW28,758.45 million (US$1,543.64 million) from ZMW15, 438.19 million (US$1,159 million) reported for the period ended 31 December 2019 due to increased price of copper during the year. The net profit also increased to ZMW4,274.67 million (US$229.45 million) from ZMW1,082.29 million (US$81.2 million) recorded as at 31 December 2019.
The decline in total production from the previous period was offset by relatively higher realised metal prices which ensured that total revenue over the two periods remained largely flat. The notable increase in net profit was largely driven by an adjustment (write-back) for VAT receivable from ZRA.
Dividends declared and paid during the year amounted to ZMW48.65 million (US$2.3 million) [(31 December 2019: ZMW131.15 million) (US$9.4 million)].
Misenge Environmental and Technical Services Limited (METS) earned a total of ZMW8.8 million (audited) as revenue for the year ended 31 March 2019 (2018: ZMW5.48 million). Of
the revenue, ZMW6.4 million was realised from recurring services to ZCCM-IH (2018: ZMW4.6 million) and ZMW2.4 million was from non ZCCM-IH sources (2018: ZMW0.88 million). METS recorded a net loss of ZMW2.5 million (2018: ZMW1.9 million loss).
METS continued its drive towards increasing third party business by taking part in several bids throughout the year.
There were no dividends declared during the year under review (2018: Nil).
MCL reported total revenue of ZMW2,486.60 million (US$ 222.10 million) for the financial year ended 31 March 2019 [(2018: ZMW1,172.00 (US$122.73 million)] and had profit after tax of
ZMW554.21 million (US$49.50 million) [(2018: ZMW148.87 million (US$15.59 million). The increase in revenue was due to increased demand for high grade coal from customers and steady production from the thermal power plant, while profit was driven by increased revenue and a deferred tax liability.
During the period under review, Maamba experienced liquidity challenges as a result of late receipt of payments from off takers. Efforts were made to restructure the payments of
outstanding receivables indicating commitment from both parties to rectify the situation. Management of Maamba were committed to cost efficiency measures and remains positive as the company looks forward to the restructuring of tariffs that would remedy systemic mismatches in the sector.
There were no dividends declared during the year under review (2018: Nil).
During the year, two former employees of NLC made an application to initiate Business Rescue Plan proceedings against the Company. An Interim Business Rescue Administrator
was appointed to run the affairs of NLC.
ZCCM-IH made an application in court challenging whether NLC qualifies to be put under Business Rescue Operations. The matter is still undergoing a court process.
Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2019 of ZMW74.3 million (2018: ZMW60.1 million) and a loss after tax of ZMW234 million (2018: ZMW 187 million loss).
There were no dividends declared during the year under review (2018: Nil)
During the financial year ending 31st December 2017, revenue of K 3,724 million (US$390 million) (2016:
K3,503 million (US$355 million) was recorded driven mostly by the increase to the end-user mining tariff. Adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) was K964 million (US$101 million) [(2016: K923.54 million (US$90 million)].
As at 31 March 2018, the Company had cash and cash equivalents of K645 million (US$68 million) compared to total borrowings of K835 million (US$88 million) out of which K133 million (US$14 million) is payable in 2018. The Company’s net current assets as at that date was K664 million (US$70 million). Based on the financial forecast, it is expected that the working capital of the business over the next 12 months will be positive and that the Company will be profit-making during the same period.
The telecoms subsidiaries (CEC Liquid Telecom and Hai Telecoms) has been expanding its market share in the wholesale and retail segments and have been profitable two years consecutively; exhibiting potential for further growth prospects. The CEC board further recognises that the Company is primarily a power business and that there is need to continuously review its strategy around its continued investment in the telecoms operations going forward.
On 23 January 2018, the Company received a firm intention by Zambian Transmission LLP to buy all the shares in the capital of CEC. The board considered the offer and appointed an Independent Committee of the Board to consider the offer. The offer was sent, through an offer document to all shareholders, with an offer period commencing 20 February 2018.
Total Dividend paid for 2017 was K209 million (US$21 million) [(2016: K161.8 (US$16.4 million)].