ZCCM-IH 2023 ABRIDGED AUDITED FINANCIAL RESULTS_31.12.2023

SENS ANNOUNCEMENT

(the “Notice” or “Announcement”)

ISSUER

ZCCM INVESTMENTS HOLDINGS PLC (“ZCCM-IH”)

[Incorporated in the Republic of Zambia]

Company registration number: 119540000771

Share Code: ZCCM-IH

ISIN: ZM0000000037

Authorized by: Charles Mjumphi – Company Secretary

SPONSOR

Stockbrokers Zambia Limited

[Founder Member of the Lusaka Securities Exchange]

[Regulated and licensed by the Securities and Exchange Commission of Zambia]

Contact Number: +260-211-232456

Website: www.sbz.com.zm

APPROVAL

The captioned Notice or Announcement has been approved by:

1. the Lusaka Securities Exchange (“LuSE”)
2. the Securities and Exchange Commission (“SEC”)
3. ZCCM Investment Holdings Plc (“ZCCM-IH”)

RISK WARNING

The Notice or Announcement contained herein contains information that may be of a price sensitive nature.

Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.

ISSUED: 7 June 2024

ZCCM INVESTMENTS HOLDINGS PLC

[Incorporated in the Republic of Zambia]

Company registration number: 771

Share Code: ZCCM-IH

ISIN: ZM0000000037

[“ZCCM-IH” or “the Company”]

ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION

In compliance with the requirements of the Securities Act No. 41 of 2016, ZCCM Investments Holdings PLC (“ZCCM-IH PLC” or “the Company”) announces the financial statements results of the Company and its subsidiaries (Collectively referred to as the ‘‘the Group'') for the year ended 31 December 2023.

STRUCTURE OF THE ZCCM-IH GROUP

The ZCCM-IH Group consists of the following Nine (9) companies: Name Shareholding Mopani Copper Mine PLC 100.00% Ndola Lime Company Limited (In liquidation) 100.00% Kariba Minerals Limited 100.00% Misenge Environmental and Technical Services Limited 100.00% Mushe Milling Limited (In liquidation) 100.00% Kabundi Resources Limited 100.00% Limestone Resources Limited 100.00% Investrust Bank PLC (In possession by the Bank of Zambia)) 71.40% Zambia Gold Company Limited 51.00% The Company also has other interests in the undernoted companies: Name Shareholding Rembrandt Properties 49.00% Central African Cement Limited 49.00% Maamba Collieries Limited 35.00% Copperbelt Energy Corporation PLC 31.07% Konkola Copper Mines PLC 20.60% Kansanshi Mining PLC 20.00% CNMC Luanshya Copper Mines PLC 20.00% Lubambe Copper Mines PLC 20.00% Mingomba Mining Limited 20.00% NFCA Africa Mining PLC 15.00% Chibuluma Mines PLC 15.00% Chambishi Metals PLC 15.00% Copper Tree Mineral Limited 15.58% Oranto Petroleum Limited 10.00% Nkana Alloy Smelting Company Limited 10.00% ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		Audited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Revenue		11,747,105		11,920,429
Gross loss		(3,559,228)		(2,749,922
Operating loss		(2,104,964)		(3,314,561)
Net finance cost		(2,267,838)		(1,807,093)
Share of profit of equity accounted investees		2,261,209		1,603,143
Loss before tax		(2,111,593)		(3,518,511)
Income tax expense		(1,206,049)		(248,019)
Loss for the year from continuous operations		(3,317,642)		(3,766,530
Loss from discontinued operations		(758,181)		(19,003)
Loss for the year		(4,075,823)		(3,785,533)
Earnings per share (ZMW)		(25.35)		(23.54)
Basic and diluted earnings per share (ZMW)		(25.35)		(23.54)

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ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME     Audited   Audited     31 Dec 2023   31 Dec 2022     ZMW'000   ZMW'000           Investment income   2,128,699   4,916,309 Revenue from contracts with customers   23,180   778 Operating profit   3,067,198   4,054,286 Net finance income   2,979,315   440,763 Profit before tax   6,046,513    4,495,049 Income tax expense   (1,205,034)   (236,321) Profit for the year   4,841,479   4,258,728           Earnings per share (ZMW)   30.11   26.48 Basic and diluted earnings per share (ZMW)   30.11   26.48

ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		Audited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Assets
Property, plant, and equipment		248,857		12,484,907
Exploration and evaluation asset		51,437		51,437
Intangible assets		14,393,945		3,148,325
Investment property		208,598		200,751
Investments in associates		10,090,940		15,174,862
Financial assets at fair value through profit or loss		3,019,500		1,252,400
Trade and other receivables		1,628,837		2,931,539
Environmental Protection Fund		7,060		94,433
Deferred tax assets		-		122,852
Inventories		38,299		4,921,366
Trade and other receivables		339,169		762,831
Assets classified as held for sale		23,626,388		2,103,761
Term deposits		4,450,451		5,340,202
Cash and cash equivalents		360,356		329,173
Total assets		58,463,837		48,918,839
Equity and liabilities
Capital and reserves		(5,690,634)		7,908,807
Borrowings		-		27,476,859
Deferred tax liability		751,833		-
Retirement benefits		17,381		182,940
Provisions for environmental rehabilitation		112,751		1,221,068
Borrowings		-		864,411
Overdraft		-		688,120
Trade and other payables		312,756		7,451,177
Provisions		44,243		487,689
Current income tax liabilities		238,553		190,143
Retirement benefits		-		139,131
Liabilities associated with assets classified as held for sale		62,676,954		2,308,494
Total equity and liabilities		58,463,837		48,918,839

ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
		Audited		Audited
		31 Dec 2023		31 Dec 2022
Assets		ZMW'000		ZMW'000
Property, plant, and equipment		110,624		90,471
Intangible assets		14,260,690		3,377
Investment property		208,598		200,751
Investment in subsidiaries		282,384		405,051
Investments in associates		11,240,080		16,256,411
Financial assets at fair value through profit or loss		3,019,500		1,252,400
Trade and other receivables		4,586,471		958,162
Deferred tax assets		-		258,966
Inventories		-		16,427
Trade and other receivables		288,268		173,829
Term deposits		4,411,330		5,340,202
Cash and cash equivalents		61,137		45,586
Assets classified as held for sale		-		145,700
Total assets		38,469,082		25,147,333
Equity and liabilities
Capital and reserves		37,422,019		24,679,852
Deferred tax liability		618,059		-
Retirement Benefit Obligations		17,381		9,275
Provisions for environmental rehabilitation		54,498		39,357
Borrowings		-		-
Trade and other payables		78,288		121,005
Provisions		41,461		108,686
Current income tax liabilities		237,376		189,158
Total equity and liabilities		38,469,082		25,147,333

ABRIDGED GROUP STATEMENT OF CASH FLOWS
		Audited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Net cash flow generated from operating activities		(83,727)		1,463,062
Net cash flow used from investing activities		533,274		(1,113,001)
Net cash outflow from financing activities		(207,812)		(698,833)
Decrease in cash and cash equivalents		241,735		(348,772)
Effects of translation and exchange rate changes on cash and cash equivalents		(277,193)		(68,389)
Cash and cash equivalents at the beginning of the year		(81,060)		336,101
		(116,518)		(81,060)
Included in the statement of financial position		360,356		(358,947)
Included in assets held for sale		(476,874)		277,887
		(116,518)		(81,060)

ABRIDGED COMPANY STATEMENT OF CASH FLOWS
		Audited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Net cash flows from operating activities		(368,710)		4,766,330
Net cash flows used in investing activities		379,990		(4,761,256)
Net cash flows used in financing activities		-		(1,135)
Decreased in cash and cash equivalents		11,280		3,939
Effect of movement in exchange rates on cash held		4,271		(39,851)
Cash and cash equivalents at the beginning of the year		45,586		81,498
Cash and cash equivalents at the end of the period		61,137		45,586

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

		Audited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Balance at 1 Jan		7,908,807		12,808,905
Loss for the year		(4,075,823)		(3,785,533)
Other comprehensive income		(8,700,010)		(1,029,340)
Dividend paid		(723,608)		(85,225)
Balance at 31 Dec		(5,590,634)		7,908,807

ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY

			Audited		Audited
			31 Dec 2023		31 Dec 2022
			ZMW'000		ZMW'000
Balance at 1 Jan			24,679,852		24,732,194
Profit for the year			4,841,479		4,258,728
Other comprehensive income			8,624,296		(3,225,845)
Dividend paid			(723,608)		(85,225)
Balance at 31 Dec			37,422,019		24,679,852

1. FINANCIAL PERFORMANCE

In 2023, the Group faced financial challenges, with post-tax losses increasing from ZMW3,786 million (US$222.03 million) in 2022 to ZMW4,076 million (US$198.59 million). This was primarily due to the underperformance of Mopani Copper Mine Plc, which reported a significant loss of ZMW8.97 billion (US$436.94 million). Mopani's lower copper production and operational issues were key contributors to this decline.

Despite these difficulties, the Group's total assets grew from ZMW48.92 billion (US$2.81 billion) in 2022 to ZMW58.46 billion (US$2.30 billion) in 2023, though the value in US Dollars decreased due to currency depreciation. Liabilities also increased significantly, primarily due to the interest accrued on Mopani's loan from Glencore and the resulting foreign exchange losses.

Retained earnings were in a deficit of ZMW16.462 billion (US$639.40 million) by the end of 2023, worsening from the previous year's deficit of ZMW11.44 billion (US$561.56 million).

However, the Company itself reported an increase in profits, rising to ZMW4.84 billion (US$235.90 million) in 2023 from ZMW4.25 billion (US$249.78 million) in 2022, demonstrating resilience amidst broader financial challenges within the ZCCM-IH Group.

2. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS

1. 1. Mopani Copper Mines PLC (“MCM”)

Below is a summary of Mopani's financial performance which has been incorporated in the Groups Financial Statements:

	Statement of Profit and Loss and Other Comprehensive - Mopani Copper Mine Plc
ZMW'000		2023		2022
Revenue		1 1 ,552,419		1 1 , 854 , 038
Gross loss		(3,532,408)		(2,711,461)
Operating loss		(4,351,218)		( 2,814 ,464)
Net finance cost		(4,616,657)		(2,238,476)
Loss before tax		(8,967,875)		( 5 , 052,940 )
Loss for the year		(8,967,875)		( 5 , 052,940 )

Statement of Financial Position - Mopani Copper Mine Plc	2023		2022
	ZMW'000		ZMW'000
Property, plant, and equipment, including intangible assets	15,646,610		15,384,497
Inventories	3,489,128		4,836,680
Trade and other receivables	2,691,333		2,616,620
Environmental protection fund	147,553		94,433
Cash and cash equivalents	58,367		159,584
Total assets	22,032,991		23 ,091,8 14
Equity and liabilities
Capital and reserves	(40,916,634)		(14,981,992)
Borrowings	43,518,156		28,341,270
Trade and other payables	15,072,870		7,934,977
Bank overdraft	1,095,462		678,900
Provisions for environmental rehabilitation	3,263,137		1,118,659
Total equity and liabilities	22,032,991		23 ,091,8 14

Mopani Copper Mines plc (MCM) recorded a significant loss of ZMW 8.9 billion (US$436.94 million) in 2023, up from ZMW 5.05 billion (US$296.36 million) the previous year. This was due to decreased copper production, low equipment availability, delayed development, and multiple plant outages. In response, US$35 million was invested in sustaining and expanding projects, with full commissioning of expansion projects expected by 2027. In March 2024, a strategic investment of US$1.2 billion by International Resources Holding Limited (IRH), through its wholly-owned subsidiary Delta Mining Limited, was approved to enhance Mopani's financial and operational resilience.

1. 2. Kansanshi Royalty Right

ZCCM-IH converted its 20% dividend rights in Kansanshi Mining Plc into a 3.1% life-of-mine royalty right, resulting in royalty income and VAT refunds totalling ZMW1.2 billion (US$58.48 million) and ZMW170.74 million (US$8.32 million), respectively.

1. 3. Copperbelt Energy Corporation Plc (CEC)

ZCCM-IH increased its shareholding in Copperbelt Energy Corporation Plc (CEC) from 24.1% to 31.07%, driven by confidence in CEC's growth prospects, particularly in renewable energy.

1. 4. Konkola Copper Mines Plc (KCM)

ZCCM-IH and Vedanta Resources Group have resolved their disputes by entering into a settlement agreement aimed at resetting their relationship. The necessary steps to withdraw the proceedings related to these disputes are currently being undertaken.

1. 5. Mingomba Mining Limited (MML)

Mingomba Mining Limited, a new partnership formed in 2023, is conducting a drilling program using Artificial Intelligence (AI) techniques in Chililabombwe. This will expedite orebody definition and subsequent mine development.

1. 6. Investrust Bank Plc

ZCCM-IH holds a 71.4% stake in Investrust Bank Plc. The Bank of Zambia announced a takeover of Investrust on 2 April 2024, and trading of its shares was suspended. ZCCM-IH is monitoring the situation.

3. Outlook

ZCCM-IH remains focused on mining and mining-related investments, seeking partnerships that benefit the Zambian people and positioning itself to capitalize on opportunities in the mining sector.

By Order of the Board

Charles Mjumphi

Company Secretary

Issued in Lusaka, Zambia on 7 June 2024

Lusaka Securities Exchange Sponsoring Broker
	T | +260-211-232456 E | [email protected] W | www.sbz.com.zm Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 7 June 2024

APPENDICES

US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Revenue		572,356		699,145
Gross loss		(173,416)		(161,286)
Operating loss		(102,559)		(194,403)
Net finance income		(110,497)		(105,988)
Share of profit of equity accounted investees		110,173		94,026
Loss before tax		(102,883)		(206,365)
Income tax expenses		(58,762)		(14,547)
Loss from continuing operations		(161,645)		(220,912)
Loss from discontinued operations		(36,941)		(1,115)
Loss for the year		(198,586)		(222,027)
Earnings per share (US$)		(1.23)		(1.38)
Basic and diluted earnings per share (US$)		(1.23)		(1.38)

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US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Investment income		103,717		288,347
Revenue from contracts with customers		1,129		46
Operating profit		149,444		237,788
Net finance income		145,162		25,851
Profit before tax		294,606		263,639
Income tax expenses		(58,713)		(13,860)
Profit for the year		235,893		249,779
Earnings per share (US$)		1.47		1.55
Basic and diluted earnings per share (US$)		1.47		1.55

US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Assets
Property, plant, and equipment		9,666		756,962
Exploration and evaluation asset		1,998		2,767
Intangible assets		559,064		189,407
Investment property		8,102		11,120
Investments in associates		391,934		840,596
Financial assets at fair value through profit or loss		117,278		69,375
Trade and other receivables		63,264		162,390
Environmental Protection Fund		274		5,231
Deferred tax assets		-		6,805
Inventories		1,488		295,855
Trade and other receivables		13,173		42,256
Term deposits		172,857		295,815
Cash and cash equivalents		13,996		18,234
Assets classified as held for sale		917,654		116,536
Total assets		2,270,748		2,813,349
Equity and liabilities
Capital and reserves		(221,028)		541,639
Borrowings		-		1,522,053
Deferred tax liabilities		29,201		-
Retirement benefits		675		10,134
Provisions for environmental rehabilitation		4,379		67,640
Bank overdraft		-		38,118
Borrowings		-		47,883
Trade and other payables		12,148		412,750
Provisions		1,721		27,015
Current tax liabilities		9,265		10,533
Retirement benefits		-		7,707
Liabilities directly associated with assets classified as held for sale		2,434,387		127,877
Total equity and liabilities		2,270,748		2,813,349

*The Statement of Financial Position has been translated using the rate of K25.75/US$.

US DOLLAR ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Assets
Property, plant, and equipment		4,297		7,408
Intangible assets		553,888		198
Investment property		8,102		11,120
Investments in subsidiaries		10,968		22,437
Investments in associates		436,567		900,507
Financial assets at fair value through profit or loss		117,278		69,375
Trade and other receivables		178,140		53,076
Deferred tax assets		-		14,345
Inventory		-		830
Trade and other receivables		11,196		9,629
Term deposits		171,337		295,815
Cash and cash equivalents		2,375		2,525
Assets classified as held for sale		-		8,071
Total assets		1,494,148		1,395,336
Equity and liabilities
Capital and reserves		1,453,479		1,369,440
Deferred tax assets		24,006		-
Retirement benefits		675		514
Provisions for environmental rehabilitation		2,117		2,180
Trade and other payables		3,041		6,703
Provisions		1,610		6,021
Current tax liabilities		9,220		10,478
Total equity and liabilities		1,494,148		1,395,336

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