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Mopani Copper Mines to review spending in the midst of the coronavirus threat

Mopani Copper Mines, a Zambia subsidiary of Glencore is set to do a comprehensive review which aims to minimise cash outflow to guard against uncertainty caused by the threat of coronavirus

“The rapid decline in the price of copper due to the impact of COVID-19 has now placed significant additional pressure on Mopani’s operations,” the company said in a statement.

Copper prices are set for their worst week since 2011 after sliding 10% so far.

The metal, often referred to as “Dr Copper” because it acts as a bellwether for the global economy, has been hit hard by the global slowdown caused by coronavirus.

Mopani said the review would give it the necessary financial flexibility to navigate the downturn.

The miner also said it had plans in place to reduce the risk of disruption to its operations from coronavirus. Several mines in Peru and one in Canada have shut due to the pandemic.

Mopani Copper Mines, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals and 10% by Zambia’s mining investment arm ZCCM-IH.

Source: Zambia Mining Magazine
Investee Companies, Investee Company News

CEC | Post-BSA Market Announcement

In accordance with Section 81(1) of the Securities Act No. 41 of 2016, the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) advises the Company’s shareholders, and the market, that further to the Market Announcement issued by the Company on 2nd January 2020, the power purchase agreement or Bulk Supply Agreement (“BSA”) between CEC and ZESCO Limited (“ZESCO”), entered into on 21 November 1997 came to an end on Tuesday, 31st March 2020.

In the last circa seven weeks, CEC and a Government of the Republic of Zambia (“GRZ”) team which included ZESCO have been engaged in negotiations for a new power supply agreement. While the initial understanding was that the parties would work to put in place an interim agreement, it became clear during the negotiations that the intention was to agree a wholesomely new agreement with totally different terms. CEC believes that throughout the negotiation, it held its end of approaching the negotiations in good faith. At end of day on 31st March 2020, the parties had not reached agreement on account of certain terms seen as key requirements from either side and which so far are not acceptable to either party. On its part, CEC has faced some terms being demanded by the GRZ team which, if accepted, would be injurious to the CEC business and impact its ability to continue operating as a going concern.

In CEC’s view, achieving a mutually acceptable power supply agreement between the parties remains of strategic importance to the electricity sector and the country. Therefore, CEC remains confident that the parties will use the next several weeks to narrow the negotiation gap so as to achieve the much required new power supply agreement between them.

CEC wishes to assure its shareholders and all stakeholders that it will do its best to ensure that any agreement it enters into will be negotiated in good faith and reflect a fair outcome so as to ensure the business continues to operate as a going concern thereafter.

It is CEC’s understanding that in the meantime, both CEC and ZESCO remain committed to continue meeting their full obligations to their customers without service being affected in any way. On its part, CEC reiterates its total commitment to continue providing seamless power supply services to all its customers (mining and non-mining consumers) on the Copperbelt while the parties continue to seek resolution of the outstanding matters and follow through with conclusion of the negotiation for a new power supply agreement.

By Order of the Board

Julia C Z Chaila
Company Secretary

Issued in Lusaka, Zambia on Wednesday, 1st April 2020
Investee Companies, Investee Company News

KCM Joins Covid 19 Fight

ZANIS—Konkola Copper Mines (KCM) has set aside K1.2 million for stocking all consumables and supplies that will be used in the fight against coronavirus at Nchanga South Clinic which the mining company has surrendered to government as a quarantine centre for suspected case of the deadly virus.

KCM acting General Manager Corporate Affairs Shapi Shachinda said the mining firm has decided to offer the facility to government during this period until the COVID 19 cases are over.

Mr. Shachinda told ZANIS that the funds released will be used to ensure that the facility has all the supplies needed.

He said the facility, which was an outpatient department for the mining firm, will be used as a quarantine centre for COVID 19 suspected cases in a bid to fight the pandemic.

He explained that additionally, KCM has also put up activities to sensitise workers on precautionary measures to combat the further spread of the coronavirus.

And Chingola District Commissioner Agnes Tonga, who toured the facility, has thanked KCM for supplementing government’s efforts in fighting COVID 19.

Ms. Tonga added that if all stakeholders could emulate KCM by partnering with government, the deadly disease can be contained.

Source: ZNBC
Annual Report Summaries, Investee Companies

Misenge Environmental and Technical Services Limited (METS) Extract from 2020 Annual Report

Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW 24.49 million in revenue for the year ended 31st December 2020 (December 2019: ZMW16.27 million). METS reported a net profit of ZMW3.12 million (2019: ZMW2.6 million).  

During the period under review, METS began forming its Strategic Turnaround and Marketing Plan. The Turnaround Plan is intended to address, among other issues, market expansion through the acquisition of new customers, business development and additional services, improvements in the provision of environmental services, and the formation of strategic alliances and partnerships in the provision of environmental services. No dividends were paid during the year under review (2019: Nil).  
Annual Report Summaries, Investee Companies

Investrust Bank PLC  Extract from 2020 Annual Report

Over the twelve-month financial reporting period ended 31st December 2020, results of the Bank’s performance indicate an improvement as compared to the prior period, with operational losses reducing to ZMW57.58 million (31 December 2019: ZMW74.0 million).  

The Bank’s net interest income increased by 99% to ZMW 94 million (2019: ZMW 47 million) owing to an increase in total interest income by 64 to ZMW192 million (2019: K117 million). The increase in interest income was mainly as a result of the increased investment in Government securities. In April 2019, the ZCCM-IH Board resolved to dispose off the Company’s investments in Investrust Bank Plc through the ZCCM-IH and IDC Group Rationalisation and Restructuring initiative. The Group Restructuring involves ZCCM-IH swapping its stake in Investrust Bank and Mushe Milling for IDC’s stake in Kagem to leverage on the portfolio management competencies of IDC and ZCCM-IH. The group restructuring has been granted approvals from relevant regulatory bodies. The completion of transaction is pending ZCCM-IH shareholder approval which is expected to be sought in 2022.  

No dividends were declared during the financial period ended 31st December 2020 (2019: Nil). 
Investee Companies, Investee Company News

Glencore’s Mopani Copper Mines reviews operations due to coronavirus

LUSAKA, March 20 (Reuters) – Glencore’s GLEN.L Mopani Copper Mines subsidiary in Zambia is reviewing its business in a bid to slash spending as lower copper prices and uncertainty caused by the coronavirus pandemic take their toll, it said on Friday.

The comprehensive review aims to minimise cash outflow and any non-essential projects would be suspended, the copper miner said.

“The rapid decline in the price of copper due to the impact of COVID-19 has now placed significant additional pressure on Mopani’s operations,” the company said in a statement.

Copper prices are set for their worst week since 2011 after sliding 10% so far.

The metal, often referred to as “Dr. Copper” because it acts as a bellwether for the global economy, has been hit hard by the global slowdown caused by coronavirus.

Mopani said the review would give it the necessary financial flexibility to navigate the downturn.

The miner also said it had plans in place to reduce the risk of disruption to its operations from coronavirus. Several mines in Peru and one in Canada have shut due to the pandemic.

Mopani Copper Mines, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals FM.TO and 10% by Zambia’s mining investment arm ZCCM-IH.

Source: nasdaq
Investee Companies, Investee Company News

First Quantum Minerals Limited (TSE:FM) Receives C$14.48 Consensus Price Target from Analysts

Shares of First Quantum Minerals Limited (TSE:FM) have been given an average rating of “Hold” by the seventeen ratings firms that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is C$14.48.

Several brokerages have recently issued reports on FM. CIBC upped their target price on shares of First Quantum Minerals from C$14.00 to C$18.00 in a research note on Thursday, January 23rd. Credit Suisse Group reduced their price target on shares of First Quantum Minerals from C$13.00 to C$12.00 in a research report on Tuesday, January 14th. Raymond James set a C$15.00 price target on shares of First Quantum Minerals and gave the stock an “outperform” rating in a research report on Tuesday, February 18th. BMO Capital Markets reduced their price target on shares of First Quantum Minerals from C$16.00 to C$15.50 in a research report on Tuesday, December 17th. Finally, National Bank Financial raised shares of First Quantum Minerals from a “sector perform spec overwgt” rating to an “outperform spec overweight” rating in a research report on Thursday, February 6th.

FM traded down C$1.99 on Friday, hitting C$6.97. The company’s stock had a trading volume of 3,850,591 shares, compared to its average volume of 2,727,114. The company’s 50 day simple moving average is C$11.33 and its 200-day simple moving average is C$11.34. The firm has a market cap of $4.67 billion and a P/E ratio of -83.98. First Quantum Minerals has a 12 month low of C$6.60 and a 12 month high of C$16.63. The company has a quick ratio of 0.65, a current ratio of 1.25 and a debt-to-equity ratio of 94.61.

The firm also recently declared a Semi-Annual dividend, which will be paid on Thursday, May 7th. Shareholders of record on Thursday, April 16th will be given a dividend of $0.005 per share. The ex-dividend date is Wednesday, April 15th. First Quantum Minerals’s dividend payout ratio is presently -8.98%.

First Quantum Minerals Company Profile

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The company operates seven mines, including the Ravensthorpe nickel mine in Australia; the Kansanshi copper-gold mine and copper smelter in Zambia; the Sentinel copper operation in North Western Province of Zambia; the Guelb Moghrein copper-gold mine in Mauritania; the Çayeli copper-zinc mine in Turkey; the Las Cruces copper mine in Spain; and the Pyhäsalmi copper-zinc mine in Finland.

Featured Story: Penny Stocks

Source: Redmond Register
Annual Report Summaries, Investee Companies

NFC Africa Mining Plc (NFCA) Extract from 2020 Annual Report

For the financial year ended 31st December 2020, NFCA reported revenue of ZMW1.84 billion (US$229.38 million), [December 2019: ZMW1.84 billion (US$138.36 million)] and profit after tax of ZMW171.48 million (US$19.30 million), [December 2019: ZMW171.48 million (US$12.87 million)].  

There were no dividends paid during the year ended 31st December 2020 (2019: Nil).
Annual Report Summaries, Investee Companies

Kansanshi Mining Plc Extract from 2020 Annual Report

Kansanshi Mining reported annual production of 221,488 tonnes of copper (2019: 232,000 tonnes). There was a reduction in total production volumes but also a decline in the copper ore grades from 0.89% in the previous reporting period to 0.99% currently. A total of 128,408 ounces of gold was produced.  

However, despite the reduction in production volumes, total revenue for the year increased to ZMW28,758.45 million (US$1,543.64 million) from ZMW15, 438.19 million (US$1,159 million) reported for the period ended 31 December 2019 due to increased price of copper during the year. The net profit also increased to ZMW4,274.67 million (US$229.45 million) from ZMW1,082.29 million (US$81.2 million) recorded as at 31 December 2019.  

The decline in total production from the previous period was offset by relatively higher realised metal prices which ensured that total revenue over the two periods remained largely flat. The notable increase in net profit was largely driven by an adjustment (write-back) for VAT receivable from ZRA.  

Dividends declared and paid during the year amounted to ZMW48.65 million (US$2.3 million) [(31 December 2019: ZMW131.15 million) (US$9.4 million)]. 
Investee Companies, Investee Company News

CECZ – Copperbelt Energy Corporation Factsheet

CECZ • 1.23 ▪ 0.00
3 days ago
ZoomFromMar 14, 2019ToMar 13, 2020May ’19Jul ’19Sep ’19Nov ’19Jan ’20Mar ‘2010.751.251.51.751m3m6mYTD1yAllWednesday, May 29, 2019● CECZ: 1.37
Last Trading Results Growth & Valuation
Opening Price: — Earnings Per Share: —
Day’s Low Price: — Price/Earning Ratio: —
Day’s High Price: — Dividend Per Share: —
Traded Volume: 0 Dividend Yield: —
Number of Deals: 0 Shares Outstanding: 1.63b
Value/Turnover: 0.00 Market Capitalization: 2.00b
Monetary values are quoted in Zambian Kwacha (ZMW) unless otherwise stated

CECZ Stock Market Performance

1WK 4WK 3MO 6MO 1YR YTD
+0.00% -0.81% -2.38% -7.52% -15.17% -1.60%

The stock of Copperbelt Energy Corporation (CECZ) is currently trading at 1.23 ZMW per share on the Lusaka Stock Exchange. CECZ began the year with a share price of 1.25 ZMW but has since lost 1.6% off that price valuation, ranking it 25th on the LuSE in terms of year-to-date performance. The table below details the last 10 trading days of activity of Copperbelt Energy Corporation on the Lusaka Stock Exchange.

Date Volume Close Change Change%
2020-03-11 3,725 1.23 +0.01 0.82%
2020-03-06 9,900 1.22 -0.01 0.81%
2020-03-02 6,321 1.23 — —
2020-02-28 736 1.23 +0.01 0.82%
2020-02-24 1,000 1.22 -0.01 0.81%
2020-02-20 1,790 1.23 — —
2020-02-18 22,352 1.23 — —
2020-02-17 3,182 1.23 -0.01 0.81%
2020-02-12 400 1.24 — —
2020-02-10 1,000 1.24 — —

Profile of Copperbelt Energy Corporation Plc

Copperbelt Energy Corporation Plc operates in the Utilities sector. Unfortunately, we do not have information on the company’s board of directors and/or key executives at this time.

Factsheet of Copperbelt Energy Corporation Plc
Sector:
Utilities		 Industry:
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Address:
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Source: Africa Stock Exachange