Investee Companies

Annual Report Summaries, Investee Companies

Zambia Gold Company Limited (ZGC) Extract from 2021 Annual Report

Zambia Gold Company Limited (ZGC) reported revenue of ZMW68.29 million (2020: ZMW59.7 million) for the year ended 31 Dec 2021. During the period under review, 62.02 Kg of gold was sold to the Bank of Zambia. Net profit recorded for the period was ZMW5.76 million (2020: ZMW32.02 million). 

For the period under review, ZGC produced a total of 49.99 kg of gold against a budget of 183.56 kg. This variance was largely due to lower production at the Kasenseli mining project due to equipment unavailability in the first 2 quarters of the year and optimization of the processing lines installed in the financial year.

Further, following a review by the Ministry of Mines and Minerals Development (MoMMD), mining operations at the Kasenseli mine were suspended due to safety concerns among other things. Management at ZGC shall continue to engage MoMMD to resolve this matter in order to resume operations. 

ZGC shall continue conducting exploration activities with an estimated resource statement to be completed in 2022. 

There were no dividends declared during the period under review (December 2020: Nil)
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Increasing production & not finding equity partner for Mopani is our focus – ZCCM IH

ZCCM Investments Holdings (ZCCM-IH) has dispelled assertions that they are more focused on finding an equity partner than driving production and keeping Mopani Copper Mines in local Zambian hands.

ZCCM IH acquired Mopani Copper Mines from Glencore and FQM. The move received wide ranging support from the mining unions, suppliers and communities on the Copperbelt and accross the country as it was seen as a move to have a wholly owned Zambian Coppper mine. But comcerns have been raised after indications from the mines ministry that that foreign equity partners have expressed interest in taking over the mines.

However, ZCCM IH which is the holding company has told the Zambian Business Times – ZBT that they are currently focusing on ensuring the development and growth of Mopani Copper Mine Plc’s production to generate more revenue for the company. ZCCM-IH Public Relations Manager Loisa Mbatha-Kakoma said the focus for Mopani Coper Mine was on mining and producing copper to ensure more revenue was generated for both current and future operations.

When asked on how far plans have gone to get onboard an equity partner and if the move confirmed fears that a local Zambian management cannot run the large copper mine, Mbatha-Kakoma said, “As you can understand, this is a high quality asset of which there are not many out there in the world. “Therefore it is not surprising that we were approached by several interested parties.

“Our focus for now is to ensure the development and growth of the mine in terms of production by the current Mopani management team who have so far had a provided a good track record,” she said. Mbatha-Kakoma said post deal closure, Mopani has continued operating normally and able to meet its operational needs.

She said all jobs have been retained with a new collective agreement concluded in record time. Mbatha-Kakoma said the Company is currently using its sales revenue to sustain its operations.

“Both Mining and Processing have continued without disruptions and the focus now is on mining and producing Copper so that more revenue is generated for both current and future operations,” he said. Government through ZCCM-IH acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore recently.

Source: https://zambianbusinesstimes.com/increasing-production-not-finding-equity-partner-for-mopani-is-our-focus-zccm-ih/
Investee Companies, Investee Company News

1kg of gold now fetching K1.2m – ZCCM IH

Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH) says it is currently offering a very competitive price for buying gold in the country at K1,150 per gram (about K1.2m for 1kg of gold), which is in line with global gold prices.

ZCCM-IH public relations manager Loisa Mbatha-Kakoma told the Zambian Business Times – ZBT that ZCCM-IH’s pricing has been competitive considering its presence in the market since it started and has raised the prices from the previous prices of about K250 per gram to have more market reflective pricing.

“Our pricing has actually been competitive considering our presence in the market since we started; we raised the prices from the previous unofficial exploitative ones of K250 per gram to have more market reflective pricing. We reached as high as K1,150 per gram from December 2020 to early this year,” she said.

Meanwhile, the price of gold being offered on the black market or by private buyers is currently K1,100 per gram.

Mbatha-Kakoma said in addition, ZCCM-IH does not charge any tax when buying the gold as it pays the tax on behalf of the artisanal small-scale miners.

“We do not charge any tax when buying the gold, as a matter of fact; we actually pay the tax on their behalf. Therefore, our pricing still remains competitive on the market and reflective of the global prices,” she reiterated.

Mbatha-Kakoma said the buying programme of gold is ongoing, and that ZCCM-IH has continued undertaking stakeholder awareness and engagement on the program. She said further, the company has so far set up gold-buying centres in strategic panning areas such as Lumezi, Vubwi and Rufunsa districts.

She also disclosed that from June 2020 to March 2021, the Zambia Gold Company, which is part of ZCCM-IH, has produced cumulative of 91 kilograms (KGs) of gold. Mbatha-Kakoma said that monthly production of gold varies depending on the availability of ore material.

She said in terms of formalizing artisanal small scale miners, ZCCM-IH’s role is working with licensed artisanal miners. Mbatha-Kakoma said so far, it was working with registered and licensed cooperatives in Rufunsa, Vubwi and Lumezi.

In March 2020, ZCCM-IH started buying gold from artisanal and small-scale miners in the country. However, some artisanal gold miners had complained to ZBT stating that the black market prices were more attractive, leading to most Gold not being mopped up by the formal market.

Source: https://zambianbusinesstimes.com/local-gold-prices-now-very-attractive-zccm-ih/
Annual Report Summaries, Investee Companies

Mushe Milling Company Limited Extract from 2021 Annual Report

Mushe Milling Limited (MML) earned a total of ZMW38.15 million in revenue for the year ended 31 

December 2021 (2020: ZMW106.46 million). MML recorded a net loss of ZMW48.14 million (2020: 

ZMW19.65 million loss). 

The Company remained undercapitalised with a negative equity position and current liabilities in 

excess of ZMW45 million. Due to its consistent weak financial position, only minimal debt amounts 

could be settled by the Company during the period and operations were temporarily halted 

due to MML’s inability to purchase its own maize stock. ZCCM-IH intervened by entering into a 

maize supply agency agreement with MML in order to revive operations in Q1 of 2021. 

There were no dividends declared during the period under review (2020: Nil). 
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Misenge Environmental and Technical Services – Procurement Plan (2021)

Please find the attached Misenge Environmental and Technical Services Procurement Plan for the year 2021.

You can download the full document here:

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Misenge Environmental and Technical Services - Procurement Plan (2021)

Investee Companies, Investee Company News

STATE PRIORITISES GOLD PROCESSING

GOVERNMENT has engaged ZCCM-IH Gold Mining Company to start processing and grading gold from all mining sites in the country, Ministry of Mines and Mineral Development director of mines, Fred Banda has said.

Mr Banda said that gold processing was a very important part of the gold value chain and hence the government’s resolve to prioritise the venture.

He said ZCCM-IH Gold would work with the gold mining cooperatives and ensure that the gold was processed and graded for sale to the Bank of Zambia

Mr Banda said that the gold mining company would not fix the price, but this would be done in liaison with the cooperatives who were a key stakeholder in the gold mining value chain.

He urged all gold mining cooperatives to work with the gold mining company incorporated by ZCCM-IH to be responsible for processing of the gold.

Mr Banda assured the cooperatives that the government would ensure that they get value for their input.

“We will ensure that they get a good price for their gold,” he said.

Mr. Banda also urged the miners not to trade with illegal buyers, but only do business with ZCCM-IH who were the government buyer for the commodity.

And Rufunsa’s Chimwetu Gold Mining Cooperative chairman, Emmanuel Tembo thanked the government for the support to the small-scale miners.

Meanwhile, Pokela Gold Mining Cooperative vice chairman, Josias Malunga assured the government that the cooperatives would process and sell their gold to the Zambia Consolidated Gold Mining Company so as to ensure that they got the best out of their mining activities.

Source: https://dailynationzambia.com/2021/05/12/state-prioritises-gold-processing/
Investee Companies, Investee Company News

Government Implored to Institute Initiative to Plug Gold Leakages

The small scale miners association of Zambia is calling for the setting up of inspection mechanisms under the ministry of mines and minerals aimed at identifying sites countrywide that produce gold which is not being accounted for.

Association president, Kunda Chani notes that Zambia has a lot of gold sites where gold is being produced but is not being accounted for.

Chani explained that so far, the country is on the right trajectory in terms of gold production.

He added that putting in place an inspection mechanism will enable the zambia consolidated copper mine investment holding –ZCCM-IH- to account for every gold being produced in the country for the benefit of Zambians. -PHOENIX NEWS

 

Source: https://zambianeye.com/government-implored-to-institute-initiative-to-plug-gold-leakages/

 
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2021 Annual Report

For the year ended 31 December 2021, CLM recorded revenue of ZMW 10.17 billion (US$516.69 million), [2020: ZMW6.4 billion (US$345.45 million)] compared to the budget of US$329.40 million for the financial year of 2021. This was due to favourable copper prices for the year. CLM produced a total of 32,369 tonnes of copper cathodes for the year under review compared to copper output of 55,976 tonnes produced in the 2020 financial year. 

For the year ended 31 December 2021, the Company recorded a profit of ZMW2.83 billion (US$143.71 million), [(2020: ZMW7.97 million (US$42.13 million)]. Due to this improved performance and positive equity position, the Company declared an interim dividend of US$40 million with US$8 million payable to ZCCM-IH which went to clear most of the amount due under the Dividend Advance Agreement signed in October 2020. 
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ZCCM-IH advised to take good care of miners

National Union for Miners and Allied Workers ( NMAWU ) has appealed to Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), new owners of Mopani Copper Mine, to ensure that it takes a good care of the mine employees when operations of the company resumes.

ZANIS reports that NMAWU president James Chansa in an interview in Ndola today said that ZCCM-IH as the new mine owners need to realize that workers are key in operations of the mine hence the need for them to look into the plight of the employees.

“The mining sector can only improve if the workers are taken care of by giving them incentives such as increased salaries and allowances,” he said.

Mr. Chansa also echoed on the need for MCM to quickly give miners their terminal benefits.

He added that miners are eager to get their benefits as MCM resumes its operations as soon as ZCCM-IH finds partners to work with.

He observed that although MCM is fully owned by Zambia, miners need to be paid their dues urgently.

Mr. Chansa has since called on all mining companies in the country to start doing more corporate social responsibilities (CSR ) following the rise in Copper prices on the international market.

Communities where mines operate from can only benefit from the country`s minerals if companies give back to the community through working on some developmental projects such roads, he said.

Government, recently completed the 100% acquisition of Mopani Copper Mines (MCM) following its negotiations with Glencore Corporation.

In April 2020, Glencore Corporation had announced its intention to place the mine under care and maintenance sighting the impact of the COVID-19 pandemic and low copper prices.

However, this was rebutted by Government because it would have resulted in the loss of employment for 15,000 employees.

 

Source: https://www.lusakatimes.com/2021/04/22/zccm-ih-advised-to-take-good-care-of-miners/
Annual Report Summaries, Investee Companies

Kabundi Resources Limited Extract from 2021 Annual Report

For the year ended 31 December 2021, Kabundi Resources Limited (KRL) reported total revenues (royalty charges) of ZMW5.58 million (2020: ZMW0.91 million) with a net loss of ZMW1.95 million (2020: ZMW0.958 million). 

Kabundi Resources Limited (KRL) began washing manganese in September 2020 with a 100tpd wash plant. A total of 8,896 tonnes of manganese was produced during the four months of operations in 2020.

In first quarter of 2021, a second and larger wash plant was constructed with processing capacity of 10,000tpd. Kabundi resources produced and sold 52,443t of manganese yielding ZMW9.45 million of which ZMW3.92 million was paid to ZRA as mineral royalty tax. 

In the period under review, Kabundi made progress with phase 2 and phase 3 of its development which include starting own mining and setting up a ferro-alloy plant respectively. 

During the period under review KRL continued its mining activities on one site namely “Kabundi B” where the first open pit had been established. Total manganese sold for the current year was recorded at 61,339 tonnes (2020: 12,000 tonnes).

During the year under review KRL acquired another mining license in the Ntenge area where mining activities are yet to commence. Going forward in 2022 the Company’s focus will be to undertake its own mining activities on this mining license.

In its 2022 budget the Company plans to acquire additional mining equipment to be able to commence its mining operations at Ntenge. Kabundi paid management fees totalling ZMW31,750 to ZCCM-IH in the period under review. 

There were no dividends declared during the period under review (December 2020: Nil).