For the year ended 31 December 2022, NFCA reported revenue of ZMW9.90 billion (US$548.46 million), (December 2021: ZMW 10.26 billion (US$616.23 million)) and profit after tax of ZMW 1.01 billion (US$56.01 million)(December 2021: ZMW 2.0 billion (US$119.69 million)).
There were no dividends paid during the year ended 31 December 2022 (2021: Nil).
Investrust generated revenue of ZMW 150.8 million(2021: ZMW170.7 million) and net loss for the year was ZMW2.6 million (2021: ZMW15.1 million in profit). For the twelve-month period ended 31st December 2022, the Bank’s financial performance exhibited signs of improvement despite the inadequate capital. The Bank recorded a decline in bottom line income compared to the prior period. The decline in bank performance was largely attributed to the Bank’s inadequate capital which had a negative ripple effect on its ability to make advances and loans, attract deposits and invest in new IT infrastructure.
ZCCM-IH, alongside other key stakeholders in Investrust, continued to strategize on the best possible option to recapitalise the Bank in order to make it competitive and enable it to play its rightful role in the Zambian financial sector.
The Bank’s share price on the Lusaka Securities Exchange closed the period under review at ZMW25 (2021: ZMW15).
There were no dividends declared during the period under review (December 2021: Nil).
During the period under review, Chambishi continued to be under care and maintenance due to lack of feedstock for the plant and other Strategic reasons.
There were no dividends paid during the year under review (2021: Nil).
Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW 4.93 million in revenue for the year ended 31st December 2022 (2021: ZMW17.11 million). METS reported a net loss of ZMW4.39 million (2021: ZMW2.51 million profit)
During the period under review, METS continued the implementation of its Strategic Turnaround and Marketing Plan. ZCCM-IH capitalised the company with ZMW45.323 million during the year. Management also made steady efforts to raise capital for equipment and develop non-ZCCM-IH business relationships for the formation of strategic alliances and partnerships in the provision of environmental services.
There were no dividends declared during the period under review (December 2021: Nil)
During the year ended 31 December 2022, CEC reported total revenue of ZMW6.34 billion (US$374.44 million), (2021: ZMW6.74 billion (US$342.52 million)) and profit after tax of ZMW1.68 billion (US$98.71 million), (2021: ZMW1.01 billion (US$51.25 million)).
The Bulk Supply Agreement between CEC and ZESCO that expired on 31 March 2020 was renewed after the year end on 7 April 2022. This delay negatively impacted the business’ margins and performance. Nonetheless, CEC proved to be a resilient business and continued to thrive and diversify its operations in spite of the challenges faced.
Further, CEC successfully contested Statutory Instrument (SI) No.57 of 2020 that declared its transmission and distribution lines as common carrier. The declaration was quashed by the high court and replaced by SI No. 24 of 2021. The court did not pronounce itself on the said SI, as the new government took the decision to repeal the SI No. 24 of 2021. This action has fully restored CEC’s commercial rights over it’s own infrastructure. For the year under review, the CEC share price opened at ZMW 1.10 per share and closed at ZMW 1.95. Based on the period-to- 30 September 2021 performance, CEC management did not budget for any dividend payment. However due to unexpected improvements in financial performance.
The Company declared and paid a dividend of US$ 50.37 million with ZCCM-IH receiving US$ 10.3 million (2021: US$9 million).
For the year ended 31 December 2022, Kabundi Resources Limited (KRL) reported total revenues of ZMW13.64 million (2021: ZMW 5.58 million) with a net profit of ZMW5.5 million (2021: ZMW 1.95 million net loss).
Kabundi Resources Limited (KRL) began its own mining operations to try and boost revenues in addition to the existing royalty arrangement that had been in place since inception. A total of 26,133 tonnes of manganese was produced during the year ended 31st December 2022.
In the period under review, Kabundi made progress with phase 2 which included starting own mining and conducting additional exploration activities. This was made possible through additional funding that was provided by the shareholders.
During the period under review KRL continued its mining activities on Three (3) sites namely “Kabundi A & B” and also in Ntenge where KRL had acquired another mining license. Going forward, the Company’s focus will be to acquire mining equipment and further Kabundi paid management fees totalling ZMW 0.9 million to ZCCM-IH in the period under review.
There were no dividends declared during the period under review (December 2021: Nil).
Lubambe Copper Mine Limited (Lubambe) reported total revenue of ZMW 2.38 billion (US$ 139.72 million) (2021: 2.9 billion (US$148.60 million)). Over the same period, the Company recorded a loss of ZMW1.83 billion (US$ 107.12 million), (2021: loss of ZMW1.81 billion (US$ 92.0 million)). Lubambe’ s road to recovery was a challenging one for the period under review as problems of poor ground conditions, dewatering challenges, effectts of Covid-19 and high ore dilution persisted. Management changed its mining methods and mine plan following completion of the SRK technical report. Production performances improved in the second half of 2022. Lubambe produced 17,310 tonnes in payable copper against a budget of 20,955 tonnes.
Subsequent to the year end, Lubambe announced the US$ 150 million investment by Kobold which shall be used for exploration activities for the Extension project, debt restructuring and operations of the business. The Extension project area shall be transferred into a new licence under a new company, MIingomba Mining Limited. ZCCM-IH still retaining 20% in both existing mine license and new license for the Extension Project area. The transaction was completed subsequent to year end.
Lubambe existing license has remaining life of the mine of circa 7 years and there is need to explore business opportunities.
There were no dividends paid during the year under review (2021: Nil).
Maamba Collieries Limited (MCL) reported total revenue of ZMW4.75 billion (US$278.68 million) for the year ended 31 December 2022 ((2021: ZMW3.96 billion (US$201.71 million)) and had a profit after tax of ZMW1.53 billion (US$89.95 million) ((2021: -ZMW222.03million net loss (2021: US$11.28 million net loss)).
During the period under review, MCL continued to experience liquidity challenges because of delayed payments from ZESCO which stood at ZMW10.97 billion (US$606.79 million) as 31st December 2022. The Company undertook semi-annual maintenance shut down and forced shut down of unit 1 of the 150 MW thermal power units between 25 May 2022 and 7 June 2022. Nevertheless, plant availability was more than 85% for each of the first nine months of FY2022- 2023.The Company has a positive outlook in the medium to long term after the Arbitral Tribunal issued the Consent Award to MCL on 13 December 2022, which will see ZESCO pay US$447 million to MCL by 31 August 2023.
There were no dividends declared during the year under review (2021: Nil).
Arbitration Proceedings against ZESCO
The Arbitral Tribunal issued the Consent Award on 13th December 2022. Through the settlement, MCL and ZESCO have agreed to irrevocably withdraw all their respective claims brought in the arbitration. The settlement has been recorded in the form of an enforceable final consent award signed and issued by the Arbitral Tribunal on 14th December 2022. The issuance of the final consent award ended the arbitration. The Consent Arbitral Award has since been registered in the High Court of Zambia for any further course of action that the claimants could pursue
The Consent Award provides that from the total unpaid arrears under the PPA and TA as at 31st October 2022 of US$ 578.06 million, ZESCO will pay to MCL the Agreed Settlement Amount of US$447.56 million after MCL agreed to give ZESCO a discount of US$60 million on the interest portion of the arrears and ZESCO agreed to take on the responsibility of the VAT due on the total arrears amounting to US$70.5 million.
Details of the Settlement as per Arbitration
As part of the Settlement ZESCO will pay 50 percent of the Agreed Settlement Amount being US$ 223.78 million as follows:
a. US$ 10 million to be paid no later than 29th December, 2022;
b. US$ 20 million to be paid by 31st March, 2023; and
c. the remainder by 30th April, 2023.
ZESCO shall pay the remaining balance of the Agreed Settlement Amount no later than 31st August 2023.
In addition, ZESCO shall continue to pay an additional US$ 750,000 every month towards liquidating the Agreed Settlement Amount.
Should ZESCO default on any of these payment terms, the entire amount outstanding at the time of default will become payable to MCL immediately.
ZESCO will indemnify MCL on demand for any liability on the VAT and any penalties and interest that may be paid by MCL in respect of the VAT.
ZESCO has, in the meantime, discharged a few payments as per the terms of the Award, leaving a balance amount of US$ 414.56 million to be paid under the Award, as of 31 March 2023.
There were no dividends declared during the year under review (2021: Nil).
For the year ended 31st December 2022, Kariba Minerals Limited (KML) reported total revenues of ZMW23.04 million (2021: ZMW26.12 million) with a net loss of ZMW5.19 million (2021: ZMW7.4 million net profit).
During the period under review, KML produced a total of 1,503.58 tonnes of amethyst which comprised of 327 tonnes medium and high grade, and 1,175.76 tonnes commercial grade (2021: 1,044.70 tonnes – 306 tonnes medium and high grade, and 837.88 tonnes commercial grade.)
The retail store at the Kenneth Kaunda International Airport was completed during the year. The Company has prepared a turnaround plan that is envisaged to tackle some of the bottlenecks in mining, production, process and marketing thereby transforming the company from loss making to profit making.
There were no dividends declared during the financial year under review (2021: Nil).
Mushe Milling Limited (MML) earned a total of ZMW 38.93 million in revenue for the year ended 31 December 2022 (2021: ZMW38.15 million). MML recorded a net loss of ZMW16.4 million (2021: ZMW48.14 million loss).
The Company remained undercapitalised with a negative equity position and current liabilities in excess of ZMW6.5 million. Due to its consistent weak financial position, only minimal debt amounts could be settled by the Company during the period and operations were halted due to MML’s inability to purchase its own maize stock.
There were no dividends declared during the period under review (2021: Nil).
Subsequent to year end, was placed under liquidation.