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Investee Companies, Investee Company News, ZCCM-IH News

Why ZCCM-IH’s Courting of Copperbelt Energy Corporation Plc is Strategic

After leaving everyone in the dust at the recently ended mining Indaba in Cape town, Zambian mining players are shifting levers to ready for greater expansions and exploration investments. However to achieve that, power supply stability remains critical and this necessitated ZCCM-IH’s visit to power transmissions giant the Copperbelt Energy Corporation (CEC) Plc in the week.

The strategic nature of the visit is that it happened in the wake of a hat – trick of positives for Africa’s red metal producer namely record high base metal prices on the London Metal Exchange (LME), a newly signed Bulk Supply Agreement (BSA) after a 2 year bitter divorce between CEC and ZESCO Ltd and increased mining investment prospects to support the 3 million metric ton forecast for copper in the next 5-10 years time. Democratic Republic of Congos expansion prospects also pose a good fortunes for CEC as it supplies power to the Copperbelt of Africa. These factors further spell increased shareholders value for which ZCCM-IH is 24.1% in CEC Plc a company whose outlook is positive and whose shares are a must buy as energy demand is set to scale higher.

The decline in political risk post August has been a winner for the energy supplier following policy changes that supported a reversal in draconian statutory instrument 57 targeted at making the state utility a common carrier and this cost CEC massive impairments on its 2020 number. ZCCM – IH has a new board that have demonstrated strong business will to tap into Zambias mining boom with recently appointed board chair Dolika Banda leading the team on the mining road show as they court investee companies.

The mining investment vehicle has been strategic enough to create partnerships that will also ensure that financing is catered for to support smaller businesses such as SMEs that are tagged as downstream entities in the value addition chain in the faculty. ZCCM-IH inked a memorandum with Zambias largest bank Zanaco Plc to provide support to small to medium sized enterprises in their contribution to socio economic development.

Key areas of clarity that the mining fraternity will require is the recapitalization of Mopani copper mine with $300 million injection sought and a clearer path of the Konkola Copper Mine quagmire as these two areas continue to dampen investment posture. ZCCM-IH was spotted at Kagem mining where it holds 25% stake another lucrative investee company that is responsible for the worlds best emeralds.

Zambia will seek to drive strong economic recovery through mining which is currently bolstered by global decarbonization in the wake of the need to drive climate risk mitigation and adaptation stronger.

 

Source: https://thebusinesstelegraph.com/2022/06/04/why-zccm-ihs-courting-of-copperbelt-energy-corporation-plc-is-strategic/
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).  
Investee Companies, Investee Company News

Mopani plans to resume cobalt production as prices rise

Zambia’s Mopani Copper Mines (MCM) plans to resume cobalt production that was halted more than a decade ago after international prices collapsed, an executive at state-owned ZCCM-IH said on Tuesday.

Accelerating sales of electric vehicles have fuelled a scramble for nickel, cobalt and lithium, propelling prices of the battery materials to multi-year highs.

Brian Musonda, chief investment officer at ZCCM-IH, Zambia’s mining investment arm, said the rising prices were a strong economic reason to restart cobalt processing.

“Going into next year, Mopani will start to process concentrates for cobalt and our plan is to produce something between 4,000 and 5,000 tonnes per year,” Musonda told Reuters.

Mopani would later ramp up production of cobalt, which the company historically mined as a by-product of copper, Musonda added.

“We have some material sitting on the surface. It was mined already as part of the copper ores but it could not be processed because the cobalt price was too low.”

Copper production in Zambia dropped to 800,696 tonnes last year from 837,996 tonnes the year before, data obtained from the nation’s statistics agency showed in March.

Cobalt production also dropped to 247 tonnes last year from 316 tonnes a year earlier, according to the Zambia Statistics Agency.

ZCCM-IH last year agreed to buy Glencore’s majority stake in Mopani Copper Mines in a $1.5 billion deal funded by debt and said it would seek a new investor.

The sale followed Glencore’s attempt to suspend operations at Mopani due to low copper prices and Covid-19 disruptions, prompting a government threat to revoke the company’s licences.

 

Source: https://www.mining.com/web/mopani-plans-to-resume-cobalt-production-as-prices-rise/
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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Investee Companies, Investee Company News

‘New Dawn’ Mining Policy Excites Mopani

MOPANI Copper Mines (MCM) Plc is excited with the Government’s current policy direction in the mining sector which seeks to stir growth.
MCM chief executive officer Charles Sakanya says the mining company is confident with the current mining policies being put in place by the Government that will ensure that the three million tonnes of copper per annum is achieved through sustainable growth.

Read more: http://www.times.co.zm/?p=116863