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JOB ADVERT – Risk Officer – Investments

 JOB ADVERTISEMENT
The Company invites applications from suitably qualified and experienced persons who are innovative, energetic, and performance-driven to fill the position of;
RISK OFFICER – INVESTMENTS (ZH4) ONE POSITION
Please refer to the job description below for detailed information about the job.
Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Tuesday 20th October 2020

Human Resources Manager
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Alick Nkhata Road
P O Box 30040
LUSAKA

IDENTIFICATION SECTION
JOB TITLE: Risk Officer- Investments
JOB GRADE: ZH4
DEPARTMENT : Risk & Internal Audit

JOB PURPOSE:
To facilitate the review of risks in potential investments.

KEY RESULT AREAS PRINCIPAL ACCOUNTABILITIES (MAIN DUTIES)

 KEY RESULT AREAS PRINCIPAL ACCOUNTABILITIES (MAIN DUTIES)
Strategic Partnerships Facilitates the identification of risks to the strategic partner and partnership.
Facilitates the assessment of impact of the risks to the partner and partnership.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the proposed partner and partnership.
Project Finance Facilitates the identification of risks to the project.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the project.
Facilitates the assessment of impact of the risks to the project.
ZCCM-IH initiated investments/projects/support Facilitates the identification of risks to the ZCCM-IH initiated investments/projects/support.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the ZCCM-IH initiated investments/projects/support.
Facilitates the assessment of impact of the risks to the ZCCM-IH initiated investments/projects/support.
Performance of Investee Companies Reviews the quarterly Board packs and highlight pertinent issues for the attention of the representative directors.
Conducts reviews on the performance of the associate companies and other investments as approved.      

REPORTING RELATIONSHIPS
a) Reports to:
Chief Risk & Internal Audit Officer

ESSENTIAL/DESIRABLE EXPERIENCE/QUALIFICATIONS
a) Professional Qualification:

Grade 12 Certificate
Bachelor’s degree or professional qualification
Professional membership

b) Minimum Relevant Pre-Job Experience:

2 years’ experience in a similar position

c) Skill Specifications:

– Analytical, creativity, and problem-solving skills
– Computer skills
– Report Writing skills

d) Other Attributes (Personality Traits)

– Strong personality& highly confidential
• Attention to detail
• Investigative

Download full document here: 

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JOB ADVERT - Risk Officer - Investments - October 2020

Industry News, ZCCM-IH, ZCCM-IH News

$500, 000 smelter investment coming to Chingola

A US$500, 000 copper smelting investment is coming to Chingola’s Kasompe Township if the Zambia Environmental Agency will finally approve the project.

Cupola Furnace Copper Smelter will be set up alone Kasompe road by Aman Processing Zambia Limited with the capacity of producing 1.5 tons of copper blisters per day.

This came to light on Friday during the Environmental and Social Impact Assessment conducted by Envirofuture.

The smelter which will employ about 10 people on permanent basis sits on 150×150 metres piece of land.

Envirofuture Consultant Matamyo Simwanda said the smelter will be environmental friendly and all the waste will be properly dumped in some already existing dump sites in Kasompe.

Kasompe residents Angel Musonda and Patrick Mwansa implored the new smelter owners to employ good corporate policy.

Their many focus on the environmental management, recruitment of the locals and social responsibility.

And Chingola Mayor Titus Tembo who was at hand advised Aman to deal with legal copper owners and not illegal miners.

Mr Tembo said Chingola has seen the increase of young boys’ dropping out of school to venture into illegal mining just because there is a ready market at a backyard smelter.

He said that if the council will hear issues of abrogating the Laws, the local authority will not hesitate to shut it down.

The Mayor also took time to reminder the locals that had demands for a hospital, football pitch and other things that Aman was a small firm with less than US$1 million investment.

He said the community should not over demand but should instead work closely with the smelter owners in order to create a win-win situation.
Industry News, ZCCM-IH News

ZCCM IH 2020 Half Year Performance

Finance, ZCCM-Investment Holdings Plc
Written by 

Financial Performance

The Group reported a profit for the period of ZMW438.9 million (September 2019: ZMW128 million), mainly due to the following:
• Increase in net finance income from ZMW138.7 million recorded in September 2019 to ZMW327.3 million recorded in June 2020. The increase in finance income is due to exchange gains recorded on foreign denominated assets arising from the depreciation of the Zambian Kwacha from an average of ZMW13.9 per US Dollar as at 30 September 2019 to ZMW17.2 per US Dollar as at 30 June 2020.

• Increase in the Group’s share of profit in associate companies from ZMW154.8 million recorded in September 2019 to ZMW 354.7 million in June 2020. This is mainly due to the increase in the profitability of some investee companies in the mining sector such as Maamba Collieries Limited and Kansanshi Mining Plc.

Group total assets increased by 40% to ZMW 20,262 million in June 2020 from ZMW14, 519 million in September 2019. This is mainly attributed to increase in values of investments inassociates as a result of improved performance of Kansanshi Mining Plc, Maamba Collieries Limited and exchange gains arising from translation of US Dollar denominated investments.

KEY OPERATIONS AND STRATEGIC DEVELOPMENTS

Zambia Gold Company

During the period, Zambia Gold Company Limited (“ZGCL”), 51% owned by ZCCM-IH and 49% owned by Ministry of Finance, was granted Small-Scale Mining in the Mwinilunga District. Exploration and mining works are underway. This is in line with its countrywide mandate to manage the programmes and the activities of the gold sector throughout the entire value chain. ZGCL also continued gold trading during the period with gold purchases extended to the Rufunsa District. Further, ZGCL has been working with artisanal miners in the forming and operationalization of gold artisanal mining cooperatives in various districts.

Ndola Lime Company Ltd Restructuring

The restructuring of Ndola Lime Company Limited (“NLC”) commenced. The restructuring was done through a hybrid of Out of Court Settlement and formal insolvency procedures. In this regard, it was decided that a Scheme of Arrangement (“the Scheme”) and reconstruction of creditors be undertaken.

The objective of the Scheme was to create a new company that was free from liabilities and able to operate more efficiently. Therefore, the new company was incorporated and is known as Limestone Resources Limited (“LRL”). Furthermore, the restructuring involved the transfer of the business and assets of NLC to LRL and the consequent issue of equity shares by LRL to the shareholders of NLC.

Maamba Collieries Limited

On 25 March 2019, ZCCM Investments Holdings Plc provided short-term liquidity support amounting to $10 million to Maamba Collieries Limited (MCL) on condition that the amount was payable within 60 days from disbursement, following the receipt of power sale proceeds from ZESCO.

However, despite the agreed conditions, MCL has still not repaid the advanced sum and as a result of this, ZCCM Investments Holdings Plc instituted legal proceedings against MCL (during the period under review) in the Lusaka High Court seeking the payment of the US$10 million plus damages and interest.

Industrial Development Corporation Ltd Group (IDC) Reorganization Transaction

During the period, the Board of ZCCM-IH considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby:

i) IDC transfers its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM-IH;
ii) ZCCM-IH transfers its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and
iii) ZCCM-IH transfers its 100% stake in Mushe Milling Limited to IDC at fair market value. These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization (or the “Group Reorganization “).

The Group reorganization objective is to achieve optimisation of operations and unlock opportunities for synergy within the IDC /ZCCM-IH Group. The Proposed Group Reorganization will enhance and improve operational efficiency and performance of ZCCM-IH, by realigning and streamlining management oversight on its investments portfolio to support and sustain Company growth and unlock value for its shareholders going forward.

The proposed Group Reorganization is subject to approval by shareholders of ZCCM-IH via a general meeting and the statutory regulatory authorities. The Group Reorganisation is expected to be finalized by 31 December 2020.

CEC Africa Investments Limited

Subsequent to the period under review, ZCCM-IH disposed of its 20% shareholding in CEC Africa Investments Limited. Proceeds from the disposal shall be applied on other opportunities in the mining and other mining related sectors of the domestic economy.

OUTLOOK

Copper prices are expected to increase steadily on the back of solid recovery in demand from China, the largest Copper consumer. In addition, low copper inventories in exchange warehouses, disrupted ore supplies from the top producing region in South America due to the COVID-19 pandemic and US Dollar strengthening are contributing to the bullish outlook for Copper.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Thursday 1st October 2020
Industry News, ZCCM-IH, ZCCM-IH News

ZCCM IH shares gain the most during COVID-19

Zambia’s mining investment group, ZCCM IH, has recorded a share price increase in its security which is listed on the Lusaka Securities exchange. This is the first increase during the COVID 19 period and created K483.99 million worth of wealth for investors.

“A share price gain of K3.01 was recorded in ZCCM increasing the security to K31.50 per share”, read a SENS announcement published on 8th October 2020 after the closing bell on the stock exchange rang.

The LuSE All Share Index (LASI) which closed at 3,811.75 points, has experienced a downward trend during the year has equities continue to fall due to reduced trading. COVID 19 has impacted many of the listed companies, many of whom have been reporting reduced earnings.

However, the investment group has made significant announcements during the same period. Recently, news broke that their Kanseseli gold mine project had harvested over 50Kg of gold since inception.

Furthermore, signals of the investment group now aligning its strategy around higher value mining activities through actions taken by its shareholder, IDC, in transferring mining assets has continued to show confidence in the group.

With the Minister of Mines in Zambia showing confidence in the group following a visit to one of its gold projects, investors are looking closer at the security and placing their bets on the group by increasing their appetite for gold miner’s security.

ZCCM IH is now valued at K5.065 Billion in market capitalization and makes it the second-highest valued company on the LuSE.

Source: Financial Insight
All Posts, Archived Jobs

JOB ADVERT – Business Research Analyst

The Company invites applications from suitably qualified and experienced persons who are innovative, energetic, and performance-driven to fill the position of;

BUSINESS RESEARCH ANALYST (ZH4) ONE POSITION

Please refer to the job description below for detailed information about the job.

Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Friday 16th October 2020

Human Resources Manager
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Alick Nkhata Road
P O Box 30040
LUSAKA

IDENTIFICATION SECTION

JOB TITLE : Business Research Analyst
GRADE : ZH4
DEPARTMENT : Investments

 

JOB PURPOSE:

To conduct in-depth research, analysis, and data collection in order to propose new investments in the company.

KEY RESULT AREAS AND PRINCIPAL ACCOUNTABILITIES

           

 

KEY RESULT AREAS

  

PRINCIPAL ACCOUNTABILITIES (MAIN DUTIES)
Research Uses various quantitative and qualitative research tools and market research methods to obtain data at national, regional, and international levels;

Proposes and identifies newer methods of market research to collect and record data in a more organized manner;

Records and maintains information compiled through research;

Uses advanced tools and software that capture as much data as possible in order for the organization to obtain necessary information.
Analysis Analyses the background of products or services being offered in relation to current market trends;

Collects and analyses competitive strategies, prices and sales methods;

Measures the effectiveness of current marketing strategies with a view to improving the same.
Report Writing Writes reports and prepares thorough presentations of such data.
Recommendation Proposes recommendations that would cater for current needs and demands.
Conceptualization Conceptualises innovative ideas that will help re-invent marketing strategies and provides greater opportunities for growing the business.

 

5.12.4  REPORTING RELATIONSHIPS

    1. a) Reports to:
      Business Development Manager
    1. b) Other Jobs Reporting to (4a) above:
      Business Development Analyst
    1. c) Number and level of immediate subordinates:
      Nil

5.12.5  ESSENTIAL/DESIRABLE EXPERIENCE/QUALIFICATIONS

    1. a) Professional Qualification:
      Grade 12 Certificate
      Bachelor’s degree or professional qualification
      Professional membership
    1. b) Minimum Relevant Pre-Job Experience:

2 years’ experience in a similar position

    1. c) Skill Specifications:
      Negotiation skills
      Communication 
      skills Research Skills
      Computer skills
    1. d) Other Attributes (Personality Traits)
      Persuasive  Pleasant

Download full document here

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JOB ADVERT - Business Research Analyst

Investee Companies, Investee Company News

ZCCM-IH: Legal update on KCM

MINING Minister Richard Musukwa says the activities of KCM’s interim liquidator, Milingo Lungu, within the mining company are in accordance with and comply with the provisions of the law.

And Musukwa reiterated that a number of investors are aligned and interested in partnering with ZCCM-IH to exploit KCM once the ongoing arbitration processes have been exhausted.

Musukwa told parliament on Tuesday when he responded to a written question from Nchanga PF MP Chilombo Chali, who wanted to know the status of KCM’s interim liquidation process from July 2020; whether there has been an arbitration process between Vedanta Resources and ZCCM-IH in South Africa, and what effect the outcome of the arbitration process would have on the liquidation process in Zambian courts.

“The government will present a full statement on the liquidation of KCM at an appropriate time [and] at the instance of the President (Dr Patrick Matibini). So far, in August 2019, Vedanta appealed the High Court’s decision to dismiss the request to stay the liquidation proceedings and to refer the case to arbitration. As a result, the proceedings were stayed, pending the decision of the appeal. ZCCM-IH Investment Holdings also appealed the court’s decision to stay the proceedings. In August 2020, the said appeal was heard and we are awaiting the decisions of the court of appeal. The arbitration process between Vedanta Resources and ZCCM-IH began in July 2019 and is still ongoing in South African courts. The parties have agreed on the sole arbitrator to hear and determine the procedure. The outcome of this case is up to the court and therefore we are unable to indicate the effects, if any, until the courts make a decision. Since the liquidation process is a court case, only the court can determine the dates on which it will be concluded, ”Musukwa replied.

Asked by Monze Central UPND MP Jack Mwiimbu about what Milingo was doing at KCM if he did not sell the assets to pay off the debt, Musukwa argued that he was acting within the law.

“What the current liquidator at KCM is doing is in accordance with the law. As you know, the liquidation follows the example of the minority shareholder, who expressed doubts about how the large shareholder treated and ran the company. So, at present, what is happening is that while waiting for these legal proceedings to be accelerated and completed, KCM’s operations are continuing and the liquidator is managing by repaying his debts, both to suppliers and to suppliers. current entrepreneurs, and the operation is supported, ”Musukwa replied.

And Serenje MP MMD Maxwell Kabanda asked Musukwa what exit strategy he had in place to compensate KCM workers who may be affected in the event the court rules against the government.

But in his response, Musukwa said the government remains confident it has a strong case against Vedanta.

“Mr. President, we started the liquidation process because we were very confident that we had a solid case against Vedanta. And we were very confident that, in accordance with the rules of natural justice, the Zambian people and the workers of Nchanga, Konkola, Nampundwe and Kitwe have a better case in this regard. And in the event that this matter is not in their favor, the Government of the Republic of Zambia reserves the rights in terms of the appeal process using the judicial process because, as you know, we are a government of laws and we will make sure that we fight this process anchored in the force of law. And we are convinced that we have a better case to be successful in court, ”he replied.

Meanwhile, Musukwa reiterated that a number of investors were lining up and interested in partnering with ZCCM-IH to exploit KCM.

“We are optimistic, as a government, that we will win this case. And once this matter is settled quickly, we will make sure to address the issues relating to the welfare of the workers. His Excellency the President of the Republic of Zambia has guided that one of our priorities is to ensure that we ensure the well-being of workers and that we serve in this process. We have a number of investors who are aligned and interested in partnering with ZCCM-IH and managing and operating this mine. The government is not in the business of managing the mine. We would like to focus on the po orientation
Industry News, ZCCM-IH, ZCCM-IH News

ZCCM-IH reports group profit of over 240% in 9 months

Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) posted impressive nine-month results from September 2019 to June 2020, recording profits of over 240% from K128 million (September 2019) to K 438.9 million (June 2020).

According to highlights of unaudited half year financial results of directors for ZCCM-IH and its subsidiaries for the period ended June 30, 2020, Group profits are the result of an increase in net financial result of ZMW 138.7 million registered in September 2019 at 327.3 million ZMW registered in June 2020.

The increase in financial income is due to foreign exchange gains recorded on foreign-denominated assets resulting from the depreciation of the Zambian Kwacha, which fell from an average of ZMW 13.9,000 per US dollar as at September 30, 2019 to ZMW 17.2,000 to the US dollar as of June 30, 2020.

“Increase in the Group’s profit share in associated companies, from ZMW 154.8 million in September 2019 to ZMW 354.7 million in June 2020. This is mainly due to the increase in profitability of some companies invested in the mining sector such as Maamba Collieries Limited and Kansanshi Mining Plc. Total Group assets increased by 40% to reach ZMW 20,262 million in June 2020, compared to ZMW 519 million in September 2019. This is mainly attributable to the increase in the value of investments in associates due to the improved performance of Kansanshi Mining Plc, Maamba Collieries Limited and currency gains from translating investments denominated into US dollars, ”ZCCM-IH said.

The group added that exploration work is underway with the aim of going gold.

“During the period, Zambia Gold Company Limited (‘ZGCL’), 51% owned by ZCCM-IH and 49% owned by the Ministry of Finance, obtained the small-scale mining grant in the district of Mwinilunga. Exploration and mining work is underway. This is in line with its national mandate to manage gold sector programs and activities along the value chain. ZGCL also continued gold trading during the period, with gold purchases being extended to Rufunsa district. In addition, ZGCL has worked with artisanal miners to form and operationalize artisanal gold mining cooperatives in various districts, ”he said.

On the restructuring of Ndola Lime Company Ltd, ZCCM-IH said that it was recommended that the creditors reconstruction be done and that a new company has since been formed, named Limestone Resources Limited.

“The restructuring has taken place through a hybrid of out-of-court settlements and formal insolvency proceedings.

In this regard, it was decided to undertake an arrangement regime (“e ment”) and creditors reconstruction. The aim of the regime was to create a new society that was free from responsibilities and able to function more efficiently. As a result, the new company was incorporated and is known as Limestone Resources Limited (“LRL”).

In addition, the restructuring involved the transfer of the business and assets from NLC to LRL and the consequent issuance of shares by LRL to shareholders of NLC, ”ZCCM-IH said.

In the Maamba Collieries Limited case, it disclosed that cash of $ 10 million was provided to Maamba Collieries Limited (MCL) on the condition that the amount be payable within 60 days of disbursement, following receipt of the proceeds from the sale of electricity by ZESCO.

However, despite the agreed terms, MCL still has not repaid the advanced sum and, therefore, ZCCM Investments Holdings Plc filed a lawsuit against MCL (during the reporting period) in the Lusaka High Court to claim payment of the US $ 10 million plus damages.

Regarding the Industrial Development Corporation (IDC), ZCCM-IH said that its Board of Directors has reviewed and approved the reorganization exercise proposed by IDC / ZCCM-IH Group under which IDC will transfer its stake of 25 % in Kagem Mining Limited, at fair market value, to ZCCM IH;

ZCCM-IH will transfer its 71.4% interest in Innestrust Bank PLC at fair market value to IDC; and that ZCCM-IH will transfer its 100% interest in Mushe Milling Limited to IDC at fair market value.

“These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and will constitute the project for rationalization and reorganization of the group’s portfolio,” he said. -he declares.

On CEC Africa Investments Limited, ZCCM-IH says it was successful in divesting its 20% stake in the energy company.

The proceeds of the elimination are applied to other opportunities in the mining and other mining sectors of the national economy, ZCCM-IH said.
Industry News, ZCCM-IH, ZCCM-IH News

ZCCM-IH Records Over 240% Group Profit In 9 Months

The Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has posted impressive results for a period of nine months beginning September 2019 to June 2020, recording profits of over 240% from K128 million (September 2019) to K438.9 million (June 2020).

According to highlights of the directors’ unaudited half year financial results for ZCCM-IH and its subsidiaries for the period ended June 30, 2020, the Group’s profits were a result of an increase in net finance income from ZMW138.7 million recorded in September 2019 to ZMW327.3 million recorded in June 2020.

The increase in finance income is due to exchange gains recorded on foreign denominated assets arising from the depreciation of the Zambian Kwacha from an average of ZMW13.9 per US Dollar as at 30 September 2019 to ZMW17.2 per US Dollar as at 30 June 2020.

“Increase in the Group’s share of profit in associate companies from ZMW154.8 million recorded in September 2019 to ZMW 354.7 million in June 2020. This is mainly due to the increase in the profitability of some investee companies in the mining sector such as Maamba Collieries Limited and Kansanshi Mining Plc. Group total assets increased by 40% to ZMW 20,262 million in June 2020 from ZMW14, 519 million in September 2019. This is mainly attributed to increase in values of investments in associates as a result of improved performance of Kansanshi Mining Plc, Maamba Collieries Limited and exchange gains arising from translation of US Dollar denominated investments,” ZCCM-IH stated.

The group further stated that exploration works are currently underway at its gold venture.

“During the period, Zambia Gold Company Limited (“ZGCL”), 51% owned by ZCCM-IH and 49% owned by Ministry of Finance, was granted Small-Scale Mining in the Mwinilunga District. Exploration and mining works are underway. This is in line with its countrywide mandate to manage the programmes and the activities of the gold sector throughout the entire value chain. ZGCL also continued gold trading during the period with gold purchases extended to the Rufunsa District. Further, ZGCL has been working with artisanal miners in the forming and operationalization of gold artisanal mining cooperatives in various districts,” it stated.

On Ndola Lime Company Ltd restructuring, ZCCM-IH says it was recommended that reconstruction of creditors be done and that a new company has since been formed, named Limestone Resources Limited.

“The restructuring was done through a hybrid of Out of Court Settlement and formal insolvency procedures.

In this regard, it was decided that a Scheme of Arrangement (“the Scheme”) and reconstruction of creditors be undertaken. The objective of the Scheme was to create a new company that was free from liabilities and able to operate more efficiently. Therefore, the new company was incorporated and is known as Limestone Resources Limited (“LRL”).

Furthermore, the restructuring involved the transfer of the business and assets of NLC to LRL and the consequent issue of equity shares by LRL to the shareholders of NLC,” ZCCM-IH stated.

On Maamba Collieries Limited, it revealed that $10 million liquidity was provided to Maamba Collieries Limited (MCL) on condition that the amount was payable within 60 days from disbursement, following the receipt of power sale proceeds from ZESCO.

However, despite the agreed conditions, MCL has still not repaid the advanced sum and as a result of this, ZCCM Investments Holdings Plc instituted legal proceedings against MCL (during the period under review) in the Lusaka High Court seeking the payment of the US$10 million plus damages and interest.

On Industrial Development Corporation (IDC), ZCCM-IH stated that its board considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby IDC will transfer its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM IH;

ZCCM-IH will transfer its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and that ZCCM-IH will transfer its 100% stake in Mushe Milling Limited to IDC at fair market value.

“These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization,” it stated.

On CEC Africa Investments Limited, ZCCM-IH reports that it successfully disposed of its 20% shareholding in the energy company.

Proceeds from the disposal shall be applied on other opportunities in the mining and other mining related sectors of the domestic economy, ZCCM-IH stated.

Source: Zambia Reports
Annual Report Summaries, Investee Companies

Mushe Milling Company Limited Extract from 2020 Annual Report

In September 2019, ZCCM-IH Plc and Multi Invectec Solutions (“Multi Invectec”) executed a Share Purchase Agreement (“SPA”) which saw ZCCM-IH acquire 100% shareholding in Mushe Milling Limited. Mushe Milling Limited (MML) earned a total of ZMW 107.46 million in revenue for the year ended 31st December 2020 (31 December 2019: ZMW36.69 million). MMCL recorded a net loss of ZMW36.58 million (31 December 2019: ZMW12.63 million loss).  
Industry News, ZCCM-IH, ZCCM-IH News

Forum Zambia Cons. Cat. B

ZCCM-IH Profits Soar To K438.9 Million

ZCCM-IH recorded huge after-tax profits of K438.9million in its fiscal six-month period ending June 30, 2020, triggered by increased income from foreign exchange gains from foreign currency denominated assets. group.

And ZCCM-IH says copper prices are expected to rise steadily on the back of a solid recovery in Chinese demand for the red metal.

According to an unaudited statement for the financial half-year ending June 30, 2020, ZCCM-IH Group reported an increase in profit of almost K 439 million, compared to K 128.4 million as of September 30, 2019, mainly driven by higher income from foreign exchange gains.

“The Group reported a profit for the period of ZMW 438.9 million (September 2019: ZMW 128 million), mainly due to the increase in net financial result of ZMW 138.7 million recorded in September 2019 to ZMW 327.3 million recorded in June 2020. The increase in financial income is due to foreign exchange gains recorded on foreign currency denominated assets resulting from the depreciation of the Zambian kwacha, which fell from an average of ZMW13, 9 for one US dollar as of September 30, 2019 to ZMW17.2 for one US dollar as of June 30, 2020; increase in the Group’s profit share in associated companies, which rose from ZMW 154.8 million in September 2019 to ZMW 354.7 million in June 2020. This is mainly due to the increased profitability of certain companies invested in the mining sector, such as Maamba Collieries Limited and Kansanshi Mining Plc, ”ZCCM-IH said in the results released on Monday.

Currency gains also boosted the group’s total asset portfolio, which rose significantly to over K20.2 billion, from £ 14.5 billion last September.

“The group’s total assets increased by 40% to reach ZMW 20,262 million in June 2020, compared to ZMW 519 million in September 2019. This is mainly due to the increase in the value of investments in associates due to the ‘improved performance of Kansanshi Mining Plc, Maamba Collieries Limited and foreign exchange gains from translating investments denominated into US dollars, ”he said.

And ZCCM-IH said copper prices are expected to rise steadily due to the solid recovery in Chinese demand for copper.

Red metal prices peaked at around US $ 6,837 per metric tonne in the third quarter of this year, but fell to around US $ 6,409 per tonne in the last quarter.

“Copper prices are expected to rise steadily in response to a strong recovery in demand from China, the largest consumer of copper. In addition, low copper stocks in foreign exchange warehouses, disrupted ore reserves in the main producing region of South America due to the COVID-19 pandemic and the strengthening of the US dollar are contributing to the bullish outlook for the country. copper, ”ZCCM-IH said.

Source: ABC Bourse