Annual Report Summaries

Annual Report Summaries, Investee Companies

Kansanshi Mining Plc (Kansanshi) Extract from 2022 Annual Report

2022 was an operationally challenging year for Kansanshi on two main fronts, geology and hydrology. As the mine has gone deeper and the oxides are depleted, grades have deteriorated from an average of 1.0% in 2021 to 0.6% through 2022. This has significantly affected recoveries of both copper and gold. Similarly, mining at depth has increased water levels in the pit at a faster than anticipated rate, which also slowed down production. The challenges above resulted in substantial production declines. Copper produced was 146,282 tonnes, a sharp drop from 202,159 tonnes in 2021. Similarly, gold for the year was 109,617 ounces, declining from 128,199 ounces in 2021.  

For the year ended 31 December 2022, Kansanshi recorded revenue of ZMW25.98 billion (US$1.52 billion)(2021: ZMW39.57 billion (US$2.01 billion)). Net profit over the period also substantially reduced to ZMW2.62 billion (US$153.93 million) from ZMW12.09 billion (US$614.26 million) in 2021.  

The S3 expansion, which involves the setting up of an additional brand-new concentrator to address the challenge of the depleting oxides that have led to a reduction in ore grades and ultimately production volumes as the mine goes deeper and transitions into a predominantly sulphide mine from an oxide mine is scheduled to commence in 2023. The new concentrator will ensure that the mine has sufficient capacity to process additional lower grade ore to produce desired copper and gold production volumes.  

On 1st December 2022, ZCCM-IH and First Quantum Minerals reached an agreement where some of ZCCM-IH’s dividend rights would be converted to a 3.1% gross revenue life of mine royalty. The transaction is subject to the fulfilment of several conditions, including shareholder approval. It is expected to be completed in the first quarter of 2023.  

Dividends declared and paid during the year ended 31 December 2022 amounted to US$1.27 billion (2021: US$184 million).  
Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of Proceedings

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of the Auditor’s Presentation

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of Management Presentation on Operations and Finance

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of the Q and A Session

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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Annual Report Summaries, Investee Companies

CEC – Annual Report (2020)

The annual report is the principal official communication in the relevant period to our stakeholder groups who include our shareholders, customers, communities and business partners. It concisely and adequately summarises key outcomes covering our people, stakeholders, governance, operations and financial performance.

This report, for the period 1st January to 31st December 2020, reviews the many different aspects of our business from both a strategic and operational perspective; integrating all material aspects of the business and demonstrating sustainable value creation.

The report provides an interconnected performance review of the business, enabling an appreciation of the underpinning strategy, the reasons and the actions driving that strategy. The business model of CEC is explained to show how revenue is created as are the operations forming the heart of the business for an appreciation of the Company’s value proposition and longevity. CEC’s governance structures support the delivery of its strategic objectives, and implementation of its vision and mission. Hence, a substantial portion of the report is given to matters of governance and leadership.

The report is organized in parts, for ease of reference, starting with notable highlights, led by the our Chairman of the Board of Directors. The strategic and operational performance section opens with a message from the Managing Director and covers our people performance, health and environment, operations, social and stakeholder performance. The Chief Financial Officer’s report
leads the financial performance section of this report.

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Annual Report Summaries, Investee Companies

CEC – Annual Report (2021)

The annual report is the principal official communication in the relevant financial period to our stakeholder groups who include our shareholders, customers, employees, communities and business partners. It concisely and adequately summarises key outcomes covering our people, stakeholders, governance, operations and financial performance.

This report, for the period 1 January to 31 December 2021, reviews the many different aspects of our business from both a strategic and operational perspective; integrating all material aspects of the business and demonstrating sustainable value creation.

The report provides an interconnected performance review of the business, enabling an appreciation of the underpinning strategy, the reasons and the actions driving that strategy. The business model of CEC is explained to show how revenue is created as are the operations forming the heart of the business for an appreciation of the Company’s value proposition and longevity. CEC’s governance structures support the delivery of its strategic objectives, and implementation of its vision and mission. Hence, a substantial portion of the report is given to matters of governance and leadership.

The report is organized in parts, for ease of reference, starting with notable highlights, led by our Chairman of the Board of Directors. The strategic and operational performance section opens with a message from the Managing Director and covers our people performance, health and environment, operations, commercial, social and stakeholder performance. The Chief Financial Officer’s report leads the financial performance section of this report, which also details performance through the different annual financial statements.

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Annual Report Summaries, Investee Companies

Mopani Copper Mines Plc Extract from 2022 Annual Report

For the year ended 31st December 2022, Mopani Copper Mines (MCM) recorded cumulative net revenue of ZMW11.85 billion (US$695.26 million), (2021:ZMW14.16 billion (US$877.38 million)). The net loss for the year under review was ZMW5.05 billion (US$296.36 million), (2021:ZMW76.82 billion profit (US$3.90 billion)).  

During the year under review, MCM produced a total of 72,694 tonnes of finished copper (2021: 87,618 tonnes). The smelter underwent a 45-day shutdown from August 2022 to September 2022 for maintenance, refurbishment of critical components and replacement of refractory bricks. The maintenance works set up the smelter to operate for another two-year campaign.  

ZCCM-IH engaged Rothschild & Co, a globally renowned investment bank, in June 2022 to assist with the strategic review of Mopani for the purposes of sustainability, expansion and growth. Rothschild & Co undertaking the assessment in two phases. Under Phase 1, Rothschild & Co. will undertake the restructuring of Mopani in a phased approach with assistance from appropriate legal and technical advisors to maintain Mopani as a going concern and build resilience. Under Phase 2, Rothschild & Co will assist ZCCM-IH in finding a Strategic Equity Partner.  

During the year under review, ZCCM-IH continued to support MCM by providing Corporate Guarantee of up to US$45 million to various banks for the provision of Mopani’s working capital facilities from various banks.  

There were no dividends declared during the period under review (December 2021: Nil).  
Annual Report Summaries, Investee Companies

Zambia Gold Company Limited (ZGC) Extract from 2022 Annual Report

Zambia Gold Company Limited (ZGC) reported revenue of ZMW 0.03 million (2021: ZMW 68.29 million) for the year ended 31 December 2022. During the period under review, no Gold sales were made during the year (2021: 62.02 Kg) due to the suspension of mining activities at Kasenseli Gold Mine by the Mines Safety Department (MSD). Net loss recorded for the period was ZMW 51.57 million (2021: net loss of ZMW 0.59 million).  

For the year under review, ZGC did not produce any gold due to the suspension of mining activities at Kasenseli which is the main source of gold production against a budget of 339.3 kg. ZGC has formulated an action plan to address the issues raised by MSD which were conditions set for lifting the suspension. ZGC has also engaged key stakeholders to facilitate and accelerate the opening of the Mine. The action plan has since been completed and submitted to key stakeholders.  

ZGC shall continue conducting exploration activities on its other licences and partnership with third party licence holders. ZGC launched the value addition business model in line with its strategic mandate of developing the gold sub-sector.  

There were no dividends declared during the period under review (December 2021: Nil).
Annual Report Summaries, Investee Companies

Rembrandt Properties Limited Extract from 2022 Annual Report

Rembrandt Properties Limited (Rembrandt) is a Special Purpose Vehicle between ZCCM-IH (49%), Urban Brands Asset Management (25.5%) and Sims Capital Ltd (25.5%). Rembrandt was specifically formed to develop the Leopards Square Hotel, a 74-key (room) hotel. In addition to ZCCM-IH equity contribution, the Company raised about US$2.2million in equity contribution from the other Shareholders and debt finance from ZANACO.  

The project faced several setbacks to completion among them, Covid-19 pandemic, delayed disbursement of loan proceeds and property redesign after the initial anchor tenant Food Lovers left the building. The building is about 95% complete; awaiting completion of the four (4) ground floor rooms, nine (9) upper deck rooms and a sky bar and circa US$200k to take the building to 100% completion. The project, nevertheless, went on soft opening to the general public on 1 June 2022 with conferences and the restaurant all kicking off at the same time as the hotel commenced operations. Since September 2022, the Tenant (Urban Hotel Lusaka) has been grossing an average of ZMW2.5 million per month from operating the property.  

There were no dividends paid during the year under review (2021: Nil).