ZCCM-IH has posted a profit after tax of over K307 million in its first nine-month financial year, mainly boosted by returns from its investee companies in the mining sector.

According to an audited statement of profit or loss and other comprehensive income for its nine-month financial year ending December 31, 2019, ZCCM-IH has announced that it earned a profit of over K307 million, triggered by strong income generated from its investee companies in its group portfolio.

The ZCCM-IH Group consisted of eight subsidiary companies as at December 31, 2019, including Investrust Bank Plc and Ndola Lime Company Limited, among others.

“The Group reported a profit for the nine-month period of K307 million (March 2019: K448 million. The 31 per cent decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc,” the statement read.

At company-level, ZCCM-IH reported a profit for the year of K153 million compared to incurring a K108 million loss in the 12-month period ending March 31, 2019, mainly due to exchange gains on foreign denominated assets and reduced administrative costs, among others.

The Group’s total assets increased by 14 per cent to K15.2 billion as at December 31, 2019, from K13.4 billion as at March 31, 2019, mainly attributed to an increase in values of investments in associates from K10.3 billion as at March 31, 2019, to K11.9 billion.

Three core strategies employed in the mining sector were cited as having contributed to ZCCM-IH’s impressive profitability during its nine-month financial year.

“ZCCM-IH’s investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were: Pursuit of the royalty model in order to introduce new revenue stream; realignment of the portfolio to achieve more focus in mining and mining-related activities and development of turnaround strategies for loss-making subsidiaries,” explained ZCCM-IH company Secretary Chabby Chabala.

“ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.”

Directors will recommend a final dividend pay-out of K53.1 million in total, translating to around K0.33 per share.

Source: https://zambiandigest.com/2021/06/zccm-ih-post-k307m-profit-in-9-months/

ZCCM IH has released the following SENS announcement regarding its financial results for 2019. 

“In accordance with Section 3.4(b) Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-Investments Holdings Plc (the “Company” or “ZCCM-IH”) hereby advises the Shareholders of the Company that the Earnings Per Share (“EPS”) for the Group and Company for the nine-month financial period ended 31 December 2019 is expected to be approximately 32% lower and 242% higher respectively, than the financial year ended 31 March 2019.

The movement in EPS for the Group is primarily attributed to the reduction of ZMW553 million in share of profit from investee companies coupled with loss recognised from investments held for sale of ZMW74 million. On the other hand, the movement in ESP for the company is attributed to a reduction in administration expenses and impairment of financial assets recognised at fair value through profit or loss.

Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company. The Company expects to release its abridged audited Financial Results for the nine-month period ended 31 December 2019 on Securities Exchange News Services (“SENS”) and published in the local  press on or about 14 June 2021. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results”.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 11 June 2021

Source: http://fizambia.com/zccm-ih-forecasts-32-and-242-low-and-high-for-group-and-company-earnings-for-2019/

This week, Bank of Zambia Governor Mr Christopher Mvunga told the media that the institution would continue to purchase gold monthly to cushion the country against the shocks caused by COVID-19.

The gold purchases are being done through the state-owned ZCCM IH and Kasenseli Gold Mining Limited as part of efforts to stabilise the kwacha.

”We are receiving various inquiries as to whether we are selling the gold or not but we have made it clear that we are not and we are principally buying the commodity as an international instrument and not trading,” Mr Mvunga said.

“We are foreseeing that at some point the exchange rate would stabilise and show some signs of recovery as there is a strong investor confidence in the economy making inquiries and others are already coming on the market.”

He said at the appropriate time, the Bank of Zambia would start selling gold.

Zambia is now one of at least 10 countries that have been net buyers of gold since 2020, among them Russia and China who collectively added 483 tonnes of bullion to their reserves.

The Bank of Canada has liquidated most of its reserves in recent times while Venezuela is in the process of doing the same to pay off its debts.

Source: https://southerntimesafrica.com/zambia-shores-up-gold-reserves/

THE Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) is set to set up a US$6 million large-scale mining project.

The mining project is to be undertaken in Kapiri Mposhi and local authorities there have approved of the establishment of the Zinc mine earmarked to create over 4,000 direct job opportunities.

This follows conclusion and dissemination of the Environmental and Social Impact Assessment (ESIA) by Misenge Environmental Technical Services (METS) to determine the potential positive and negative environmental and socio-economic impacts of the mining project.

ZCCM-IH PLC has been carrying out exploration works on its large scale license number 13871-HQ-LEL around the old Carmanor Mine area in Mpunde Ward of Kapiri Mposhi since 2009.

During a public disclosure meeting to disseminate the ESIA findings, METS Environmental Services Officer, Josphat Konnie explained that ZCCM-IH PLC will operate a sustainable mechanized Open Pit mine and will process Zinc Ore up to concentrate stage.

Mr Konnie said the mine with an estimated ten year lifespan and output of 4000 tonnes of Zinc per annum will employ the wet process metallurgy method in which the valuable contents of the mineral ore are dissolved by acid or other solvents to extract the desired mineral.

“Zinc is usually a combination of Zinc, itself, and lead, but our focus is Zinc extraction which is environmentally friendly unlike lead. This Zinc will be processed up to concentrate stage,” Mr Kabwe said

And METS Environmental and Relations Officer Joseph Kabwe explained that ZCCM-IH PLC will also take into consideration the social impact the project would have on the local community.

Kapiri Mposhi Ward Development Committee Chairman, Christopher Banda noted that the venture has potential to turn around the development and economic fortunes of the district.

“We want you to prioritize employment of the locals before you look outside the District, We have seen investors come like this with a lot of good promises but change when they get on the ground we hope you will be different,” Mr Banda said.

Source: https://www.techwatch.news/zccm-ih-eyes-6m-zinc-mining-project/