Annual Report Summaries

Annual Report Summaries

Chambishi Metals Extract from 2017 Annual Report

The Company made a profit before tax of K43.42 million (US$4.4 million) (2015: Net loss of K260.83 million
(US$40.1 million) and its current liabilities exceeded its current assets by K2,776.79 million (US$270.6 million) (2015: net current liability position of K1,885.63 million (US$289.9 million). The Company also had a deficit in shareholder funds of K1,232.42 million (US$120.1 million) (2015: Deficit in shareholder funds of K809.80 million (US$124.5 million).

The Eurasian Resources Group has confirmed its intention to continue to provide financial support to the Company to enable it to continue its operations and meet its obligations.

No dividends were paid in 2016 (2015: Nil).
Annual Report Summaries

KCM Extract from 2017 Annual Report

Konkola Copper Mines (KCM) reported total revenue of K8,621.47 million (US$874.3 million) for the financial
year ended 31st March 2017 (2016: K9,607.04 million (US$972.5 million). The reduction in revenue was attributed to lower metal prices through a large part of the financial year, with copper prices surging upwards in the latter quarter thereof. The net loss for the year was at K1,367.72 million (US$138.7 million) (2016: K3,685.75 million (US$373.1 million loss).

Total finished copper production during the financial year was marginally down 1.1% to 180 000 tonnes for the year ended March 2017 (2016: 182 000) compared to the previous financial year.

During the year under review, KCM production volumes were constrained due to the Nchanga Underground Mine being placed under care and maintenance on the tail end of the previous financial year and lower equipment availability across other operating units.

Moving forward, KCM’s strategy continues to be underpinned by vigorously pursuing higher operating productivity levels at the Konkola underground mine, more reliable TLP facility with potential to increase recoveries, increased usage of the smelter by processing third-party concentrates from Zambia and DRC, and improved cost cutting measures.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Kariba Minerals Ltd Extract from 2017 Annual Report

For the financial year ended 30th June 2016, Kariba Minerals Limited (Kariba) reported total revenues of K21.34 million (2015: K11.58 million – restated) with a profit after tax of K 1.14million (2015: K12.73 million loss – restated).

For the financial year ended 30th June 2016, Kariba Minerals produced a total of 964,548 Kg (2015: 983,707 Kg) of rough amethyst. During the same financial year, Kariba sold 16.7 million carats of high-grade rough amethyst through two auctions in Singapore in September 2015 and in Lusaka in April 2016 for a total of K6.51 million (US$0.66 million) in revenue from the auctions. Kariba’s ore production was at 15,927 tonnes in the year ending 30th June 2016 (2015: 30,432 tonnes).

Kariba constructed a new sort house to meet the market demand from new customer orders for specific high quality, small sizes of amethyst under natural light conditions. Additional storage silos were constructed to increase the stock holding capacity to 800 tonnes.

There were no dividends declared during the financial year ended 30th June 2016 (2015: Nil).
Annual Report Summaries

Maamba Colliers LTD Extract from 2017 Annual Report

Maamba Collieries Limited (MCL) reported total revenue of K100.38 million (US$10.18 million) for the year ended 31st March 2017 (2016: K121.9 million (US$12.34 million) and had profit after tax of K21.2 million (US$2.15 million) (2016: K52.85 million (US$5.35 million). The company’s assets exceeded its liabilities by K1,023.8 million (US$107.91 million) as at 31st March 2017 (2016: K1.180.61 million) (US$105.6 million)). Additionally, the company has accumulated losses amounting to K842.72 million (US$87.69 million) (2016: K999.49 million (US$89.4 million).

During the year under review, MCL commissioned the first 150 MW Thermal Power Plant in August 2016 and the second 150MW was commissioned in November 2016 and the Commercial Operations Date was set for 31st December 2016.Maamba Collieries Limited is currently supplying 270MW to ZESCO. The revenue and financial position of the company is expected to improve in the future after the commissioning of the Thermal
Power Plant.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Kansanshi Mining Plc Extract from 2017 Annual Report

Kansanshi Mining Plc (KMP) had sales revenue of K14.51 billion (US$1.47 billion) (2015: K9.69 billion (US$1.49
billion) for the financial year ended 31st December 2016. Although total copper production was up 20% at 272,843 tonnes (2015: 226,674 tonnes), realised prices were lower than the previous year resulting in a decline in revenue. Gold production was 9% higher at 148,220 ounces (2015: 136,257 ounces) due to higher concentrate production.

Over the next five to six years the Company plans on gradually shifting towards sulphide mining as oxide materials coming out of the mine are reducing. As a result there was need to double the Sulphide ore throughput to sustain current Copper Production levels. If the latter is not done the levels of production would gradually drop from 250,000 tonnes in 2017 to 245,000 tonnes in 2018, then to 240,000 tonnes in 2019, 202,000 in 2020, 174,000 in 2021 and would continue to decline to levels of 50% of current production post 2021.

In this connection, a US$1.5 billion investment in the Company has been envisaged to sustain the said production and significantly improve other facets of mine operations. Additional smelter capacity would in turn be required as the current Smelter capacity would not be able to cater for increased Sulphide concentrate production. High level electricity would have to be supplied to the mine so as to also capacitate the two Smelters. The Company already has grave concerns over the security of power supply from ZESCO. Since the reduction of power supply from 200 megawatts to 165 megawatts, parts of the business had to be shut down such as the High Pressure Leach system which was still not operating.

The profit for the year 2016 was K1, 248.3 million (US$126.5 million) (2015: loss of K9.11million (US$1.4 million) and had been added to the retained earnings to contribute towards raising the US$1.5 billion required for capital projects.

No dividends were paid during the year ended 31 December 2016 (2015: K52.04 million (US$ 8 million).
Annual Report Summaries

CEC Africa Extract from 2017 Annual Report

The Company incurred a net loss for the year ended 31 December 2016 of K2, 656.58 million (US$269.21 million)(2015: K6.15 million (US$0.945 million)) and, at that date the Company’s total liabilities exceeded total assets byK1, 630.08 million (US$158.85 million (2015: total assets exceeded total liabilities by K805.73 million (US$106.36million)) and the current liabilities exceeded its current assets by K1, 808.36 million (US$176.22 million) (2015:K284.41 million (US$37.54 million)).

The Company’s net loss was mainly due to the recognition of impairments on the trade and other receivables& inter company loans with its subsidiary, KANN, of K2,548.53 million (US$258.26 million) and an impairment of its investment in associate, North South Power Limited of K140.61 million (US$14.25 million). The devaluation of the Naira against the US Dollar has also resulted in significant exchange losses recognised in the financial statements of KANN. Also CEC Africa has guaranteed the loan between KANN and the UBA. A notice of default has been issued by UBA which has resulted in the recognition of a liability in the Company’s financial statements.

CEC Africa is refocusing efforts on consolidating and stabilizing the Nigerian operating assets in the immediate to medium term, and position for growth in the longer term. These efforts include:

  • Immediate sale of CECA’s stake in Sierra Leone to a reputable institutional investor/developer.
  • Divestment of some early stage developments given the bank ability challenges and limited resources available.

No dividends were declared and paid by the Company during the year (2015: Nil).
Annual Report Summaries

CNMC Luanshya Copper Mines Extract from 2017 Annual Report

CNMC Luanshya Copper Mines plc (CNMC) recorded a turnover of K1, 700.75 million (US$172.35 million)
(unaudited) for the year ended 31st December 2016 (2015: K1, 311.94 million (US$201.7 million). The loss after tax was K306.40 million (US$31.05 million) (2015: K831.07 million (US$127.77 million) loss).

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

CEC Extract from 2016 Annual Report

The group’s revenue increased from K4, 339.9 million (US$667.2 million) for the year ended 31 March 2015 to K6, 392.5 million (US$647.1 million) for the year ended 31 March 2016. The increase in revenue was driven by the improvement in the average billing efficiency at Abuja Electricity Distribution Plc (AED). The group posted a net loss of K2, 236.3 million (US$226.4 million) (2015: K1, 283.1 million (US$197.3 million). The net losses were driven by provisions for bad debt totalling US$94.5 million and impairment charges on property, plant and equipment of US$86.1 million at AED.

Copperbelt Energy Corporation Plc’s (CEC) revenue decreased insignificantly to K2, 875.7 million (US$291.1 million) (2014: K1, 898.6 million (US$291.9 million). Total energy sales to the mines was 2.8% lower at 4,092GWh (2014: 4,208GWh) due to the national energy deficit and the falling prices of copper on the world market, which negatively impacted operations at
the mines.

The net profit for the year was K390.2 million (US$39.5 million) (2014: K218.5 million (US$33.6 million) due to increase in power trading at K236.1 million (US$23.9 million) (2014: K68.3 million (US$10.5 million) through the Southern African Power Pool (SAPP) Day Ahead Market. SAPP is the regional organisation of power utilities within the Southern African Development Community (SADC) formed in 1995 and whose aim is to create a competitive regional electricity market for all SADC Member States. Power trading revenue was recorded as part of other income and was not yet classified as a core business activity in the normal course of business.

The CEC share price on the LuSE moved from K 0.63 as at end of March 2015 to K 0.72 at end of March 2016, representing capital gains of 14.29% year-on-year.

For the period under review, CEC paid out a total of K184.5 million (US$16.4 million) (2015: K90 million (US$14 million) in dividend payments. ZCCM-IH’s share was K36.9 million (US$3.28 million) (2015:K18 million).

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Annual Report Summaries

Investrust Plc Extract from 2016 Annual Report

Investrust Bank Plc (Investrust) recorded a 19% decrease in net interest income to K39.77 million during the year ended 31st December 2015 (2014: K49.30 million). This was driven by the increase in interest rates in fixed term deposits and inter-bank lending. During the year under review, the bank did not expand the physical branch network. Rather, the bank focused on consolidating operations in its branch networks.

In 2015, Investrust embarked on a capital raising exercise through a Claw back Rights Offer to meet the minimum capital requirement set by Bank of Zambia. ZCCM-IH fully underwrote the offer and the results, subsequent to year end, indicated that ZCCM-IH ended up with 48% of the shareholding in the bank

ZCCM-IH made an application for waiver of a mandatory offer to the SEC and the SEC approved the application on condition that ZCCM-IH sold down its shareholding to below 35% which is the trigger for a mandatory offer. ZCCM-IH has since sold 3.2% of its shares in the bank and is currently at 45.4% shareholding.

The bank’s share price on the LuSE closed the period under review at K13.50 (2014: K13.50).

There were no dividends declared during the financial year ended 31st March 2016 (2015: Nil).

 
Annual Report Summaries

METS Extract from 2016 Annual Report

Misenge Environmental and Technical Services Limited (METS) earned a total of K6.22 million as revenue for the year ended 31st March 2016 (2015: K6.23 million). METS recorded a loss after tax of K2.9 million (2015: K0.6 million).

METS was awarded a contract as a project management consultant firm during the nine month preparatory stage of the Zambian Mining Environmental Remediation and Improvement Project (ZMERIP). ZMERIP is a World Bank led project whose “objective is to reduce environmental health risks to the local population associated with the mining sector in critically polluted areas in Kabwe and Copperbelt provinces through improved capacity of the key institutions”. This is expected to improve METS’s income base going forward.

There were no dividends declared during the year under review (2015: nil).