By 
ZCCM-Investment Holding (ZCCM-IH) says its performance at Group level was impacted by the low activity at Mopani Copper Mines Plc (MCM) resulting in a loss of K 3.82 billion in 2022 compared K11.08 billion loss recorded in 2021.
The holding said according to the 2022 abridged unaudited financial results released on Thursday that the Group level was on account of declined average copper price from US$9,315 per tonne in 2021 to US$8,815 per tonne in 2022 respectively.
“Lower copper production level experienced at Mopani due to the smelter shutdown; and no significant impairment of goodwill was recognised during the year (2021: ZMW 13.3 billion (US$ 678.73 million)) ,” the company said.
Read more : mine needs US$1billion recapitalisation as chase for investors progresses, says Vibetti
However, the Group recorded an increase in total assets from K48.3 billion recorded in 2021 to K 50.4 billion in 2022.
This was largely on account of exchange differences from foreign currency denominated assets as well as improvement in the performance of some investee companies.
ZCCM-IH also said its total liabilities increased from K34 billion in 2021 to K41 billion in 2022 on account of the Glencore long-term loan facility advanced to Mopani of US$1.5 billion.
“The Group’s retained earnings as of Decembe31, 2022 were negative at K10.50 billion (2021: ZMW6.84 billion). The movement in retained earnings is attributable to the recorded Group loss of ZMW3.82 billion recorded in 2022 (2021: ZMW11.08 billion loss),” reads part of the financial statement.
Looking ahead, it stated that ZCCM-IH continues to position itself to pursue more opportunities in the mining sector as it would seek mutually beneficial investments.
ZCCM-IH is pursuing specific projects in gold, manganese, copper, cobalt as way of maximising value extraction and improving shareholder value.
ZCCM-IH’s focus going forward continues to be raising both short-term as well long-term capital to support mining and mining related investments within the group.
“Critical to this is the raising of adequate capital for Mopani to enable the growth and sustainability of the mine ; Implementation of more predictable alternative income streams such as royalty model as well as continued research and development to support investments in viable mining and mineral value Addition projects,” stated ZCCM-IH .
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments