6th May 2025 14:46
SENS ANNOUNCEMENT
(the "Notice" or "Announcement")
ISSUER
ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")
[Incorporated in the Republic of Zambia]
Company registration number: 119540000771
Share Code: ZCCM-IH
ISIN: ZM0000000037
Authorized by: Charles Mjumphi - Company Secretary
SPONSOR
Stockbrokers Zambia Limited
[Founder Member of the Lusaka Securities Exchange]
[Regulated and licensed by the Securities and Exchange Commission of Zambia]
Contact Person: Amon Chizola
Website: www.sbz.com.zm
APPROVAL
The captioned Notice or Announcement has been approved by:
i. the Lusaka Securities Exchange ("LuSE")
ii. the Securities and Exchange Commission ("SEC")
iii. ZCCM Investment Holdings Plc ("ZCCM-IH")
RISK WARNING
The Notice or Announcement contained herein contains information that may be of a price sensitive nature.
Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.
ISSUED: 6 May 2025
ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 771
Share Code: ZCCM-IH
ISIN: ZM0000000037
["ZCCM-IH" or "the Company"]
PROVISIONAL ABRIDGED UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
INTRODUCTION
In compliance with the requirements of the Securities Act No. 41 of 2016, ZCCM Investments Holdings PLC ("ZCCM-IH PLC" or "the Company") announces the provisional unaudited financial statements results of the Company and its subsidiaries (Collectively referred to as the ''the Group'') for the year ended 31 December 2024.
STRUCTURE OF THE ZCCM INVESTMENTS HOLDINGS PLC GROUP
The ZCCM-IH Group consists of the following Six (6) companies:
The Company also has other interests in the under noted companies:
PROVISIONAL ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited |
| Audited | ||||||||||||||||||||||||||||||||||||||||||||||
31 Dec 2024 |
| 31 Dec 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
ZMW'000 |
| ZMW'000 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue |
3,208,963 |
11,747,105 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross loss | (486,126) | (3,559,228) | ||||||||||||||||||||||||||||||||||||||||||||||
Gain on subsidiary loan modification | 35,916,739 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Operating profit/(loss) | 33,135,266 | (2,104,964) | ||||||||||||||||||||||||||||||||||||||||||||||
Net finance cost | (326,834) | (2,267,838) | ||||||||||||||||||||||||||||||||||||||||||||||
Share of profit of equity accounted investees | 3,117,378 | 2,261,209 | ||||||||||||||||||||||||||||||||||||||||||||||
Profit/(loss) before tax | 42,859,121 | (2,111,593) | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (549,960) | (1,206,049) | ||||||||||||||||||||||||||||||||||||||||||||||
Loss for the year from continuous operations |
| 42,309,161 |
| (3,317,642) | ||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations | (3,684) | (758,181) | ||||||||||||||||||||||||||||||||||||||||||||||
Profit/(loss) for the year |
| 42,305,477 |
| (4,075,823) | ||||||||||||||||||||||||||||||||||||||||||||
Earnings per share (ZMW) |
| 263.09 |
| (25.35) | ||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share (ZMW) |
| 263.09 |
| (25.35) | ||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROIVISIONAL ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION | ||||
Unaudited |
| Audited | ||
31 Dec 2024 |
| 31 Dec 2023 | ||
ZMW'000 |
| ZMW'000 | ||
Assets | ||||
Property, plant, and equipment | 355,526 | 248,857 | ||
Exploration and evaluation asset | 15,431 | 51,437 | ||
Intangible assets | 19,987,739 | 14,393,945 | ||
Investment property | 205,891 | 208,598 | ||
Investments in associates | 29,334,305 | 10,090,940 | ||
Financial assets at fair value through profit or loss | 2,741,000 | 3,019,500 | ||
Trade and other receivables | 2,985,812 | 1,968,006 | ||
Environmental protection fund | 369 | 7,060 | ||
Burden costs for mining | 6,599 | - | ||
Inventories | 32,536 | 38,299 | ||
Assets classified as held for sale | 92,199 | 23,626,388 | ||
Term deposits | 5,345,151 | 4,450,451 | ||
Cash and cash equivalents | 989,833 | 360,356 | ||
Total assets |
| 62,092,391 |
| 58,463,837 |
Equity and liabilities | ||||
Capital and reserves | 57,139,683 | (5,690,634) | ||
Borrowings | 3,346,867 | - | ||
Deferred tax liability | 285,275 | 751,833 | ||
Retirement benefits | 17,373 | 17,381 | ||
Provisions for environmental rehabilitation | 193,653 | 112,751 | ||
Trade and other payables | 179,602 | 312,756 | ||
Provisions | 49,670 | 44,243 | ||
Current income tax liabilities | 866,000 | 238,553 | ||
Liabilities associated with assets classified as held for sale | 14,268 | 62,676,954 | ||
Total equity and liabilities |
| 62,092,391 |
| 58,463,837 |
PROVISIONAL ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION | ||||
| Unaudited |
| Audited | |
31 Dec 2024 |
| 31 Dec 2023 | ||
Assets | ZMW'000 |
| ZMW'000 | |
|
|
|
| |
Property, plant, and equipment | 143,625 | 110,624 | ||
Intangible assets | 19,909,353 | 14,260,690 | ||
Investment property | 205,891 | 208,598 | ||
Investment in subsidiaries | 200,233 | 282,384 | ||
Investments in associates | 34,452,165 | 11,240,080 | ||
Financial assets at fair value through profit or loss | 2,741,000 | 3,019,500 | ||
Trade and other receivables | 3,083,868 | 4,874,739 | ||
Term deposits | 5,345,151 | 4,411,330 | ||
Cash and cash equivalents | 685,884 | 61,137 | ||
Assets classified as held for sale | 73,684 | - | ||
Total assets | 66,840,854 |
| 38,469,082 | |
Equity and liabilities |
|
|
| |
Capital and reserves | 62,234,767 | 37,422,019 | ||
Borrowings | 3,346,867 | - | ||
Deferred tax liability | 176,282 | 618,059 | ||
Retirement Benefit Obligations | 17,373 | 17,381 | ||
Provisions for environmental rehabilitation | 71,289 | 54,498 | ||
Trade and other payables | 103,133 | 78,288 | ||
Provisions | 25,551 | 41,461 | ||
Current income tax liabilities | 865,592 | 237,376 | ||
Total equity and liabilities |
| 66,840,854 |
| 38,469,082 |
PROVISIONAL ABRIDGED GROUP STATEMENT OF CASH FLOWS
| ||||
Unaudited |
| Audited | ||
31 Dec 2024 |
| 31 Dec 2023 | ||
ZMW'000 |
| ZMW'000 | ||
Net cash in/(out) flow from operating activities | 1,930,778 | (83,727) | ||
Net cash (out)/in flow from investing activities | (720,934) | 533,274 | ||
Net cash outflow from financing activities | (120,016) | (207,812) | ||
Increase in cash and cash equivalents | 1,089,828 | 241,735 | ||
Effects of translation and exchange rate changes on cash and cash equivalents | 16,523 | (277,193) | ||
Cash and cash equivalents at the beginning of the year | (116,518) | (81,060) | ||
989,833 | (116,518) | |||
Included in the statement of financial position |
| 970,176 |
| 360,356 |
Included in assets held for sale | 19,657 | (476,874) | ||
989,833 |
| (116,518) | ||
| ||||
PROVISIONAL ABRIDGED COMPANY STATEMENT OF CASH FLOWS
| ||||
Unaudited |
| Audited | ||
31 Dec 2024 |
| 31 Dec 2023 | ||
ZMW'000 |
| ZMW'000 | ||
|
|
| ||
Net cash in/(out) flows from operating activities | 1,767,054 | (368,710) | ||
Net cash flows used in investing activities | (1,038,814) | 379,990 | ||
Net cash flows used in financing activities | (120,016) | - | ||
Decreased in cash and cash equivalents | 608,224 | 11,280 | ||
Effect of movement in exchange rates on cash held | 16,523 | 4,271 | ||
Cash and cash equivalents at the beginning of the year | 61,137 | 45,586 | ||
Cash and cash equivalents at the end of the period |
| 685,884 |
| 61,137 |
PROVISIONAL ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited |
| Audited | ||
31 Dec 2024 |
| 31 Dec 2023 | ||
ZMW'000 |
| ZMW'000 | ||
Balance at 1 Jan | (5,690,634) | 7,908,807 | ||
Profit/(loss) for the year | 42,305,477 | (4,075,823) | ||
Other comprehensive income | 20,768,204 | (8,800,010) | ||
Dividend paid | (243,364) | (723,608) | ||
Balance at 31 Dec |
| 57,139,683 |
| (5,690,634) |
| ||||
PROVISIONAL ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY
Unaudited |
| Audited | |||
31 Dec 2024 |
| 31 Dec 2023 | |||
ZMW'000 |
| ZMW'000 | |||
Balance at 1 Jan | 37,422,019 | 24,679,852 | |||
Loss/(profit) for the year | (4,472,539) | 4,841,479 | |||
Other comprehensive income | 29,528,651 | 8,624,296 | |||
Dividend paid | (243,364) | (723,608) | |||
Balance at 31 Dec |
| 62,234,767 |
| 37,422,019 | |
1. FINANCIAL PERFORMANCE HIGHLIGHTS
(i) GROUP PERFORMANCE
ZCCM-IH recorded a profit of ZMW 42.31 billion (US$ 1.62 billion) in 2024, reversing the prior year's loss of ZMW 4.08 billion (US$ 199.59 million). This was driven by the Mopani Strategic Equity Partner (SEP) Transaction, which repositioned Mopani as financially viable, and settled US$ 1.71 billion of the Glencore/Carlisa debt under the in Glencore/Carlisa debt through the Amendment, Restatement, and Consolidation (ARCA) Agreement. The transaction triggered a one-off gain of ZMW 35.92 billion and reclassified Mopani from a subsidiary to an associate.
On 21 March 2024, ZCCM-IH partnered with IRH (via Delta Mining Limited), resulting in the dilution of its interest in Mopani to 49%. This significantly impacted the Group's financials.
Operating profit rose to ZMW 40.07 billion (US$ 1.53 billion), up from a loss of ZMW 2.10 billion (US$ 103 million), with an additional ZMW 3.11 billion (US$ 119.20 million) contributed by associates.
Total assets increased to ZMW 62.09 billion (US$ 2.22 billion) in 2024, up from ZMW 58.46 billion (US$ 2.27 billion) in 2023, driven by fair value recognition of Mopani and Mingomba and higher intangible assets.
Equity improved to ZMW 57.14 billion (US$ 2.04 billion) in 2024, from a negative ZMW 5.69 billion (US$ 221.03 million) in 2023, mainly due to profit and ZMW 20.77 billion in other comprehensive income recorded in 2024.
(ii) COMPANY FINANCIAL PERFORMANCE
At the company level, ZCCM-IH recorded a loss of ZMW 4.47 billion (US$ 171.02 million) for the year ended 31 December 2024 (2023: Profit of ZMW 4.84 billion (US$ 235.89 million). The loss was primarily driven by the recognition of a one-off ZMW 3.86 billion (US$ 150 million) investment expense representing the loan payable to Glencore, following the successful Mopani SEP transaction with IRH/ Delta.
Despite the loss, total assets at the company level increased significantly to ZMW 66.84 billion (US$ 2.39 billion) in 2024 (2023: ZMW 38.47 billion (US$1.49 billion)), due to the revaluation and recognition of fair value investments in Mopani, KCM and Mingomba as associate companies. Intangible assets also grew to ZMW 19.91 billion (US$ 712million) in 2024, compared to 2023 amount of ZMW 14.26 billion (US$553 million).
Cash and cash equivalents at the end of the year increased significantly to ZMW 685.88 million (US$ 35.41million) from ZMW 61.14 million (US$ 13.99 million) in 2023.
At company level, total equity increased to ZMW 62.23 billion (US$ 2.23 billion) in 2024 (2023: ZMW 37.42 billion (US$ 1.45 billion), supported by other comprehensive income of ZMW 29.53 billion.
2. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS
· Mopani Copper Mines Transaction: In March 2024, ZCCM-IH diluted its interest in Mopani Copper Mines Plc to 49% by Mopani issuing new shares to Delta Mining Limited (a subsidiary of International Resource Holdings), valued at US$1.1 billion. The transaction repositioned Mopani as a viable operation and settled US$1.71 billion in Glencore/Carlisa debt under the ARCA Agreement with IRH/Delta.
The ongoing capital investment in underground development and operational improvements is expected to unlock Mopani's full potential, marking a new chapter for Zambia's mining sector.
· Konkola Copper Mines (KCM) Restructuring: Vedanta Resources regained control of KCM after releasing US$250 million, leading to board reconstitution and the end of the liquidation process. A further US$1.2 billion commitment will support expansion, development of the Konkola Deep Mining Project, and financial strengthening
· Investment in Renewable Energy: ZCCM-IH increased its stake in Copperbelt Energy Corporation (CEC) from 31.07% to 32.41%, reinforcing its role in powering Zambia's industrial and mining sectors. It also invested US$10 million in the second tranche of CEC's US$200 million green bond, backing a 136MW solar project aligned with its energy diversification strategy.
· Expansion of Maamba Energy Portfolio:
Maamba Energy Limited remains a key player in Zambia's power sector, with its 300MW thermal plant operating at 99.95% efficiency. To expand capacity, ZCCM-IH committed US$50 million to Maamba's Phase II, a US$400 million project that will add 300MW and double output to 600MW, supporting Zambia's energy security and industrialisation goals.
· Strategic Realignment:ZCCM-IH continued focusing on mining, energy, and mineral beneficiation by divesting non-core assets.
3. Outlook 2025
In 2025, ZCCM-IH will focus on maximising returns from its investee companies, optimising its investment portfolio, developing green energy projects, strengthening capital efficiency, and deepening its ESG impact across Zambia.
By Order of the Board
Charles Mjumphi
Company Secretary
Issued in Lusaka, Zambia on 06 May 2025
Lusaka Securities Exchange Sponsoring Broker | |
| T | +260-211-232456
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia |
First Issued on 06 May 2025
APPENDICES
US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
|
| ||
31 Dec 2024 |
| 31 Dec 2023 | ||
|
|
| ||
US$'000 |
| US$'000 | ||
Revenue |
| 122,701 |
| 572,356 |
Gross loss |
| (18,588) |
| (173,416) |
Gain on subsidiary loan modification |
| 1,373,345 |
| - |
Operating profit/(loss) |
| 1,532,090 |
| (102,559) |
Net finance cost | (12,497) | (110,497) | ||
Share of profit of equity accounted investees | 119,199 | 110,173 | ||
Profit/(loss) before tax |
| 1,638,800 |
| (102,883) |
Income tax expenses | (21,029) | (58,762) | ||
Loss from continuing operations |
| 1,617,771 |
| (161,645) |
|
|
|
|
|
Loss from discontinued operations |
| (141) |
| (36,941) |
Profit/(loss) for the year |
| 1,617,630 |
| (198,586) |
Earnings per share (US$) |
| 10.06 |
| (1.23) |
Basic and diluted earnings per share (US$) |
| 10.06 |
| (1.23) |
US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||
|
|
| ||
31 Dec 2024 |
| 31 Dec 2023 | ||
|
|
| ||
US$'000 |
| US$'000 | ||
Investment income |
| 92,465 |
| 103,717 |
Revenue from contracts with customers |
| - |
| 1,129 |
Operating (loss)/profit |
| (162,047) |
| 149,444 |
Net finance income | 12,979 | 145,162 | ||
(Loss)/profit before tax |
| (149,068) |
| 294,606 |
Income tax expenses | (21,948) | (58,713) | ||
(Loss)/profit for the year |
| (171,016) |
| 235,893 |
|
| |||
Earnings per share (US$) |
| (1.06) |
| 1.47 |
Basic and diluted earnings per share (US$) |
| (1.06) |
| 1.47 |
US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION | ||||
|
| Unaudited |
| Audited |
|
| 31 Dec 2024 |
| 31 Dec 2023 |
|
| US$'000 |
| US$'000 |
Assets |
|
|
|
|
Property, plant, and equipment | 12,719 | 9,666 | ||
Exploration and evaluation asset | 552 | 1,998 | ||
Intangible assets | 715,061 | 559,064 | ||
Investment property | 7,366 | 8,102 | ||
Investments in associates | 1,049,434 | 391,934 | ||
Financial assets at fair value through profit or loss | 98,059 | 117,278 | ||
Trade and other receivables | 106,817 | 76,438 | ||
Environmental protection fund | 13 | 274 | ||
Burden costs for mining | 236 | 0 | ||
Inventories | 1,164 | 1,488 | ||
Assets classified as held for sale | 3,298 | 917,654 | ||
Term deposits | 191,223 | 172,857 | ||
Cash and cash equivalents | 35,412 | 13,996 | ||
Total assets |
| 2,221,354 |
| 2,270,749 |
Equity and liabilities |
| |||
Capital and reserves | 2,044,171 | (221,026) | ||
Borrowings | 119,734 | 0 | ||
Deferred tax liability | 10,206 | 29,201 | ||
Retirement benefits | 622 | 675 | ||
Provisions for environmental rehabilitation | 6,928 | 4,379 | ||
Trade and other payables | 6,425 | 12,148 | ||
Provisions | 1,777 | 1,718 | ||
Current income tax liabilities | 30,981 | 9,265 | ||
Liabilities associated with assets classified as held for sale | 510 | 2,434,389 | ||
Total equity and liabilities | 2,221,354 | 2,270,749 | ||
|
|
| ||
US DOLLAR ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION | ||||
|
| Unaudited |
| Audited |
|
| 31 Dec 2024 |
| 31 Dec 2023 |
Assets |
| US$'000 |
| US$'000 |
|
|
|
|
|
Property, plant, and equipment | 5,138 | 4,297 | ||
Intangible assets | 712,257 | 553,888 | ||
Investment property | 7,366 | 8,102 | ||
Investment in subsidiaries | 7,163 | 10,968 | ||
Investments in associates | 1,232,525 | 436,567 | ||
Financial assets at fair value through profit or loss | 98,059 | 117,278 | ||
Trade and other receivables | 110,325 | 189,336 | ||
Term deposits | 191,223 | 171,337 | ||
Cash and cash equivalents | 24,537 | 2,375 | ||
Assets classified as held for sale | 2,637 | - | ||
Total assets |
| 2,391,230 |
| 1,494,148 |
Equity and liabilities |
| |||
Capital and reserves | 2,226,447 | 1,453,480 | ||
Borrowings | 119,734 | - | ||
Deferred tax liability | 6,306 | 24,006 | ||
Retirement Benefit Obligations | 622 | 675 | ||
Provisions for environmental rehabilitation | 2,550 | 2,117 | ||
Trade and other payables | 3,690 | 3,041 | ||
Provisions | 914 | 1,610 | ||
Current income tax liabilities | 30,967 | 9,219 | ||
Total equity and liabilities | 2,391,230 | 1,494,148 | ||
|
|
| ||
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