Investee Companies

Annual Report Summaries, Investee Companies

Misenge Environmental and Technical Services Limited (METS) Extract from 2020 Annual Report

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).  
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Glencore’s Mopani Copper Mines reviews operations due to coronavirus

LUSAKA, March 20 (Reuters) – Glencore’s GLEN.L Mopani Copper Mines subsidiary in Zambia is reviewing its business in a bid to slash spending as lower copper prices and uncertainty caused by the coronavirus pandemic take their toll, it said on Friday.

The comprehensive review aims to minimise cash outflow and any non-essential projects would be suspended, the copper miner said.

“The rapid decline in the price of copper due to the impact of COVID-19 has now placed significant additional pressure on Mopani’s operations,” the company said in a statement.

Copper prices are set for their worst week since 2011 after sliding 10% so far.

The metal, often referred to as “Dr. Copper” because it acts as a bellwether for the global economy, has been hit hard by the global slowdown caused by coronavirus.

Mopani said the review would give it the necessary financial flexibility to navigate the downturn.

The miner also said it had plans in place to reduce the risk of disruption to its operations from coronavirus. Several mines in Peru and one in Canada have shut due to the pandemic.

Mopani Copper Mines, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals FM.TO and 10% by Zambia’s mining investment arm ZCCM-IH.

Source: nasdaq
Investee Companies, Investee Company News

First Quantum Minerals Limited (TSE:FM) Receives C$14.48 Consensus Price Target from Analysts

Shares of First Quantum Minerals Limited (TSE:FM) have been given an average rating of “Hold” by the seventeen ratings firms that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is C$14.48.

Several brokerages have recently issued reports on FM. CIBC upped their target price on shares of First Quantum Minerals from C$14.00 to C$18.00 in a research note on Thursday, January 23rd. Credit Suisse Group reduced their price target on shares of First Quantum Minerals from C$13.00 to C$12.00 in a research report on Tuesday, January 14th. Raymond James set a C$15.00 price target on shares of First Quantum Minerals and gave the stock an “outperform” rating in a research report on Tuesday, February 18th. BMO Capital Markets reduced their price target on shares of First Quantum Minerals from C$16.00 to C$15.50 in a research report on Tuesday, December 17th. Finally, National Bank Financial raised shares of First Quantum Minerals from a “sector perform spec overwgt” rating to an “outperform spec overweight” rating in a research report on Thursday, February 6th.

FM traded down C$1.99 on Friday, hitting C$6.97. The company’s stock had a trading volume of 3,850,591 shares, compared to its average volume of 2,727,114. The company’s 50 day simple moving average is C$11.33 and its 200-day simple moving average is C$11.34. The firm has a market cap of $4.67 billion and a P/E ratio of -83.98. First Quantum Minerals has a 12 month low of C$6.60 and a 12 month high of C$16.63. The company has a quick ratio of 0.65, a current ratio of 1.25 and a debt-to-equity ratio of 94.61.

The firm also recently declared a Semi-Annual dividend, which will be paid on Thursday, May 7th. Shareholders of record on Thursday, April 16th will be given a dividend of $0.005 per share. The ex-dividend date is Wednesday, April 15th. First Quantum Minerals’s dividend payout ratio is presently -8.98%.

First Quantum Minerals Company Profile

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The company operates seven mines, including the Ravensthorpe nickel mine in Australia; the Kansanshi copper-gold mine and copper smelter in Zambia; the Sentinel copper operation in North Western Province of Zambia; the Guelb Moghrein copper-gold mine in Mauritania; the Çayeli copper-zinc mine in Turkey; the Las Cruces copper mine in Spain; and the Pyhäsalmi copper-zinc mine in Finland.

Featured Story: Penny Stocks

Source: Redmond Register
Annual Report Summaries, Investee Companies

NFC Africa Mining Plc (NFCA) Extract from 2020 Annual Report

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).
Annual Report Summaries, Investee Companies

Kansanshi Mining Plc Extract from 2020 Annual Report

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)]. 
Investee Companies, Investee Company News

CECZ – Copperbelt Energy Corporation Factsheet

CECZ • 1.23 ▪ 0.00
3 days ago
ZoomFromMar 14, 2019ToMar 13, 2020May ’19Jul ’19Sep ’19Nov ’19Jan ’20Mar ‘2010.751.251.51.751m3m6mYTD1yAllWednesday, May 29, 2019● CECZ: 1.37
Last Trading Results Growth & Valuation
Opening Price: — Earnings Per Share: —
Day’s Low Price: — Price/Earning Ratio: —
Day’s High Price: — Dividend Per Share: —
Traded Volume: 0 Dividend Yield: —
Number of Deals: 0 Shares Outstanding: 1.63b
Value/Turnover: 0.00 Market Capitalization: 2.00b
Monetary values are quoted in Zambian Kwacha (ZMW) unless otherwise stated

CECZ Stock Market Performance

1WK 4WK 3MO 6MO 1YR YTD
+0.00% -0.81% -2.38% -7.52% -15.17% -1.60%

The stock of Copperbelt Energy Corporation (CECZ) is currently trading at 1.23 ZMW per share on the Lusaka Stock Exchange. CECZ began the year with a share price of 1.25 ZMW but has since lost 1.6% off that price valuation, ranking it 25th on the LuSE in terms of year-to-date performance. The table below details the last 10 trading days of activity of Copperbelt Energy Corporation on the Lusaka Stock Exchange.

Date Volume Close Change Change%
2020-03-11 3,725 1.23 +0.01 0.82%
2020-03-06 9,900 1.22 -0.01 0.81%
2020-03-02 6,321 1.23 — —
2020-02-28 736 1.23 +0.01 0.82%
2020-02-24 1,000 1.22 -0.01 0.81%
2020-02-20 1,790 1.23 — —
2020-02-18 22,352 1.23 — —
2020-02-17 3,182 1.23 -0.01 0.81%
2020-02-12 400 1.24 — —
2020-02-10 1,000 1.24 — —

Profile of Copperbelt Energy Corporation Plc

Copperbelt Energy Corporation Plc operates in the Utilities sector. Unfortunately, we do not have information on the company’s board of directors and/or key executives at this time.

Factsheet of Copperbelt Energy Corporation Plc
Sector:
Utilities		 Industry:
—
Address:
—
Telephone:
—
Email:
—		 Website:
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Source: Africa Stock Exachange
Annual Report Summaries

METS Extract from 2019 Annual Report

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).

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Annual Report Summaries

Maamba Colliers LTD Extract from 2019 Annual Report

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).

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Annual Report Summaries

Ndola Lime Company Ltd Extract from 2019 Annual Report

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)

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Annual Report Summaries

CEC Extract from 2019 Annual Report

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)].

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