ZCCM-IH 2023 PROVISIONAL ABRIDGED UNAUDITED FINANCIAL RESULTS

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: 12 April 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 PROVISIONAL UNAUDITED 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” or “the Company”) announces the provisional 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 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 Oil Block 10.00% Nkana Alloy Smelting Company Limited 10.00% PROVISIONAL ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Revenue		11,746,920		11,959,354
Gross (loss)		(3,648,109)		(2,598,983)
Operating (loss)		(3,168,145)		(3,325,326)
Net finance cost		(2,271,098)		(1,813,846)
Share of profit of equity accounted investees		1,922,008		1,603,143
Profit/(loss) before tax		(3,517,236)		(3,536,029)
Income tax (expense)/credit		(1,079,968)		(249,504)
Loss for the year		(4,597,203)		(3,785,533)
Earnings per share (ZMW)		(28.59)		(23.54)
Basic and diluted earnings per share (ZMW)		(28.59)		(23.54)

PROVISIONAL ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME     Unaudited   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   2,615,495   4,054,286 Net finance income   2,979,315   440,763 Profit before tax   5,594,810    4,495,049 Income tax expense   (1,079,958)   (236,321) Profit for the year   4,514,852   4,258,728           Earnings per share (ZMW)   28.08   26.48 Basic and diluted earnings per share (ZMW)   28.08   26.48

PROIVISIONAL ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
Assets		ZMW'000		ZMW'000
Property, plant, and equipment		11,178,919		12,484,907
Exploration and evaluation asset		51,437		51,437
Intangible assets		3,122,950		3,148,325
Investment property		208,598		200,751
Investments in associates		10,095,344		15,174,862
Financial assets at fair value through profit or loss		3,019,500		1,252,400
Financial assets at fair value through OCI		14,259,000
Trade and other receivables		4,477,893		2,931,539
Environmental Protection Fund		147,553		94,433
Deferred tax assets		-		122,852
Inventories		3,552,778		4,921,366
Trade and other receivables		641,527		762,831
Assets held for sale		1,248,382		2,103,761
Term deposits		4,411,330		5,340,202
Cash and cash equivalents		450,472		329,173
Total assets		56,865,683		48,918,839
Equity and liabilities
Capital and reserves		(5,902,907)		7,908,807
Borrowings		43,518,156		27,476,859
Deferred tax liability		735,578		-
Retirement benefits		26,933		182,940
Provisions for environmental rehabilitation		1,741,652		1,221,068
Borrowings		-		864,411
Overdraft		1,095,462		688,120
Trade and other payables		12,205,870		7,451,177
Provisions		640,311		487,689
Current income tax liabilities		129,048		190,143
Retirement benefits		171,755		139,131
Liabilities associated with assets classified as held for sale		2,503,825		2,308,494
Total equity and liabilities		56,865,683		48,918,839

PROVISIONAL ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
Assets		ZMW'000		ZMW'000
Property, plant, and equipment		110,624		90,471
Intangible assets		1,690		3,377
Investment property		208,598		200,751
Investment in subsidiaries		202,283		405,051
Investments in associates		11,221,056		16,256,411
Financial assets at fair value through profit or loss		3,019,500		1,252,400
Financial assets at fair value through OCI		14,259,000		-
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 held for sale		-		145,700
Total assets		38,369,957		25,147,333
Equity and liabilities
Capital and reserves		37,385,987		24,679,852
Deferred tax liability		599,464		-
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		103,444		108,686
Current income tax liabilities		130,895		189,158
Total equity and liabilities		38,369,957		25,147,333

PROVISIONAL ABRIDGED GROUP STATEMENT OF CASH FLOWS
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Net cash flow generated from operating activities		26,616		1,463,062
Net cash flow used from investing activities		557,275		(1,113,001)
Net cash outflow from financing activities		(310,407)		(698,833)
Decrease in cash and cash equivalents		273,484		(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
		(84,769)		(81,060)
Included in the statement of financial position		(644,990)		(358,947)
Included in assets held for sale		560,221		277,887
		(84,769)		(81,060)

PROVISIONAL ABRIDGED COMPANY STATEMENT OF CASH FLOWS
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		ZMW'000		ZMW'000
Net cash flows from operating activities		(357,541)		4,766,330
Net cash flows used in investing activities		368,821		(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

PROVISIONAL ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

		Unaudited		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		(4,597,204)		(3,785,533)
Other comprehensive income		(8,490,903)		(1,029,340)
Dividend paid		(723,608)		(85,225)
Balance at 31 Dec		(5,902,908)		7,908,807

PROVISIONAL ABRIDGED COMPANY STATEMENT OF CHANGES IN EQUITY

			Unaudited		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			4,514,852		4,258,728
Other comprehensive income			8,914,891		(3,225,845)
Dividend paid			(723,608)		(85,225)
Balance at 31 Dec			37,385,987		24,679,852

1. FINANCIAL PERFORMANCE

The Group's financial performance has experienced a downturn, with an increased post-tax loss from ZMW3,786 million (US$222 million) in 2022 to ZMW4,597 million (US$224 million) in 2023, primarily due to the persistent underperformance of our subsidiary, Mopani Copper Mine Plc (Mopani). Mopani's operations have negatively impacted the Group, contributing a substantial loss of ZMW9.2 billion (US$449.46 million) this year.

The performance of Mopani was on account of lower copper production of 65,602 tons (2022: 72,694 ton). The lower production experienced in this year was mainly due to low equipment availability, and limited ore sources to mine due to delayed development. Mopani's future growth prospects hinges on its planned completion and commissioning of expansion capital projects. The Company has planned for a ramped-up production profile as these projects are expected to be commissioned to full capacity by 2027. Refer to section 2 (i) of this report for details.

Despite the challenges, the Group saw an upward trend in total assets, increasing from ZMW48.92 billion (US$2.8 billion) in 2022 to ZMW56.87 billion (US$2.21 billion) in 2023. However, when measured in US dollars, there was a decrease in total assets compared to the previous year, a consequence of the Kwacha's depreciation against the US Dollar.

Liabilities escalated significantly from ZMW41.0 billion in 2022 to ZMW62.8 billion in 2023, largely due to an outstanding interest on a US$1.5 billion loan provided to Mopani by Glencore and the exchange losses incurred from the Kwacha's devaluation over the year.

The Group's retained earnings as of December 31, 2023, were in a deficit of ZMW16.88 billion (US$655.78 million negative), worsened from the previous year's ZMW11.44 billion negative (US$561.56 million negative). This decline in retained earnings is linked to the Group's increased losses, which rose to ZMW4,597 million (US$224 million) in 2023 from ZMW3,786 million (US$222 million) in 2022.

Contrasting the Group's overall performance, the Company itself reported a positive outcome, with profits rising to ZMW4.51 billion (US$219.98 million) in 2023 from ZMW4.25 billion (US$249.78 million) in the preceding year, showcasing resilience amidst broader financial challenges within the Group.

1. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS

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	(3,823,174)	(2,711,461)
Operating loss	(4,641,984)	( 2,814 ,464)
Net finance cost	(4,616,657)	(2,238,476)
Loss before tax	(9,258,641)	( 5 , 052,940 )
Loss for the year	(9,258,641)	( 5 , 052,940 )

Statement of Financial Position - Mopani Copper Mine Plc	2023	2022
	ZMW'000	ZMW'000
Property, plant, and equipment	14,046,652	15,384,497
Inventories	3,489,128	4,836,680
Trade and other receivables	3,137,546	2,616,620
Environmental Protection Fund	147,553	94,433
Cash and cash equivalents	58,367	159,584
Total assets	20,879,246	23 ,091,8 14
Equity and liabilities
Capital and reserves	(40,874,301)	(14,981,992)
Borrowings	46,294,653	28,341,270
Trade and other payables	12,024,439	7,245,750
Bank overdraft	1,095,462	678,900
Retirement benefits	181,307	312,796
Provisions	536,867	376,431
Provisions for environmental rehabilitation	1,620,819	1,118,659
Total equity and liabilities	20,879,246	23 ,091,8 14

As we reflect on the fiscal year 2023, it's essential to address the challenges and strategic developments that have shaped our journey. Mopani Copper Mines plc (MCM), a significant part of our portfolio, recorded a loss of ZMW 9.25 billion (US$451.11 million), a marked increase from the previous year's ZMW 5.05 billion loss (US$296.36 million loss). This was primarily due to decreased copper production, which fell from 72,694 tons in 2022 to 65,602 tons in 2023. Key factors contributing to this downturn included limited equipment availability, delayed development affecting ore sources, and multiple outages at our fixed plants across all shafts.

In response to these challenges, our total capital expenditure for the year was US$35 million, focused on sustaining and expanding projects to ensure future growth. Despite these hurdles, we are committed to improving our operational efficiency and production capacity. To this end, we have outlined Mopani's expansion capital projects, with full commissioning expected by 2027, aimed at significantly enhancing Mopani's production profile.

After the year end, a significant development was recorded at an extraordinary meeting held on 23 February 2024, where shareholders approved a strategic investment by International Resources Holding Limited (IRH) through its subsidiary, Delta Mining Limited, acquiring a 51% interest in Mopani. This US$1.1 billion investment comprises US$620 million in new equity capital and US$ 400 million shareholder loans. This transaction, aligned with our strategic focus, promises to bolster Mopani's financial and operational resilience.

The investment by IRH is structured to address and streamline Mopani's financial obligations effectively. Key steps include Delta subscribing to new shares, resulting in a significant capital infusion of US$ 620 million, and a comprehensive strategy to manage existing Glencore debts, including repayment plans and the termination of previous off-take agreements. This investment will ensure Mopani's stable growth moving forward.

1. Kansanshi Royalty Model

At an Extraordinary General Meeting (“EGM”) held 31st March 2023, the shareholders of ZCCM-IH approved an agreement for a royalty transaction between ZCCM-IH and First Quantum Minerals Limited. The transaction involved ZCCM-IH's conversion of its 20% equity interest in Kansanshi Mining Plc into a 3.1% life of mine royalty. The transaction also provides for 20% of the KMP VAT refunds as at June 30, 2022, to be paid to ZCCM-IH, as and when these are received by KMP from the ZRA. Accordingly, the ZCCM-IH's 3.1% life of mine royalty has been reclassified as financial asset held at fair value through profit or loss.

To date, ZCCM-IH has recorded total royalty income and VAT refund of ZMW1.2 billion (US$ 58.48 million) and ZMW170.74 million (US$8.32 million) respectively.

1. Shareholding increase in Copperbelt Energy Corporation Plc (“CEC”)

During the period under review ZCCM-IH increased its shareholding in Copperbelt Energy Corporation Plc (“CEC”) from 24.1% held since 2018, to 31.07%. The increase was influenced by our strategic drive to maximize shareholder value in profitable and viable ventures; coupled with the confidence we have in CEC's projected business growth arising from its expansion into renewable energy.

1. Konkola Copper Mines Plc (‘'KCM'')

ZCCM-IH and Vedanta Resources Group have agreed to reset the relationship which resulted in the execution of an Implementation Agreement, and a New Shareholders Agreement on 6th November 2023. Subsequently, the parties entered into a Global Settlement Agreement which effectively resolved all disputes between the parties. The legal processes to withdraw the winding up petition in the Zambian Courts and the Arbitration proceedings in South Africa are still in progress.

1. Mingomba Mining Limited (“MML”)

Mingomba Mining Limited is a partnership between Mingomba Holdings Limited 52%, EMR Capital, 28%, and ZCCM-IH, 20%. MML was established in 2023 and is currently undertaking a drilling program in the Mingomba license area in Chililabombwe, a tenement close to the Konkola Copper Mine (“KCM”) and the Democratic Republic of Congo border area which was previously a part of the Lubambe mine license area.

So far, Kobold has drilled a total of about 32,322 meters in sixteen drill holes as at end of December 2023. Kobold is using Artificial Intelligence (“A.I”) computer-based techniques in the exploration process, which will help fast track the process to orebody definition and thereafter, mine development.

1. Investrust Bank Plc

ZCCM Investment Holdings Plc ("ZCCM-IH") holds a 71.4% stake in Investrust Bank Plc ("Investrust"). On 2 April 2024, the Bank of Zambia announced its takeover of Investrust, effective immediately. Concurrently, the Lusaka Securities Exchange (LuSE) suspended trading of Investrust shares starting 3 April 2024. ZCCM-IH is monitoring the situation and will update stakeholders on significant developments.

1. OUTLOOK

ZCCM-IH continues to position itself to pursue more opportunities in the mining sector. As per ZCCM-IH strategy, which is focused on mining and mining related investments, the Company will continue to seek mutually beneficial partnership that will benefit the Zambian people.

By Order of the Board

Charles Mjumphi

Issued in Lusaka, Zambia on 15 April 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 12 April 2024

APPENDICES

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

		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Revenue		572,347		701,428
Gross (loss)		(177,747)		(152,434)
Operating (loss)		(154,361)		(195,035)
Net finance income		(110,655)		(106,384)
Share of profit of equity accounted investees		93,646		94,026
(Loss) before tax		(171,370)		(207,393)
Income tax (expense) /credit		(52,619)		(14,634)
(Loss)/profit for the year		(223,989)		(222,027)
Earnings per share (US$)		(1.39)		(1.38)
Basic and diluted earnings per share (US$)		(1.39)		(1.38)

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US$ ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
		Unaudited		Audited
		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		127,435		237,788
Net finance income		145,162		25,851
Profit before tax		272,597		263,639
Income tax credit/(expense)		(52,619)		(13,860)
Profit for the year		219,978		249,779
Earnings per share (US$)		1.37		1.55
Basic and diluted earnings per share (US$)		1.37		1.55

US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Assets
Property, plant, and equipment		434,192		756,962
Exploration and evaluation asset		1,998		2,767
Intangible assets		121,296		189,407
Investment property		8,102		11,120
Investments in associates		392,105		840,596
Financial assets at fair value through profit or loss		117,278		69,375
Financial assets at fair value through OCI		553,823		-
Trade and other receivables		173,922		162,390
Environmental Protection Fund		5,731		5,231
Deferred tax assets		-		6,805
Inventories		137,991		295,855
Trade and other receivables		24,917		42,256
Term deposits		171,337		295,815
Cash and cash equivalents		17,496		18,234
Assets held for sale		48,487		116,536
Total assets		2,208,675		2,813,349
Equity and liabilities
Capital and reserves		(229,272)		541,639
Borrowings		1,690,255		1,522,053
Deferred tax liabilities		28,570		-
Retirement benefits		1,046		10,134
Provisions for environmental rehabilitation		67,646		67,640
Bank overdraft		42,548		38,118
Borrowings		-		47,883
Trade and other payables		474,079		412,750
Provisions		24,870		27,015
Current tax liabilities		5,013		10,533
Retirement benefits		6,671		7,707
Liabilities directly associated with assets classified as held for sale		97,249		127,877
Total equity and liabilities		2,208,675		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
		Unaudited		Audited
		31 Dec 2023		31 Dec 2022
		US$'000		US$'000
Assets
Property, plant, and equipment		4,297		7,408
Intangible assets		67		198
Investment property		8,102		11,120
Investments in subsidiaries		7,857		22,437
Investments in associates		435,828		900,507
Financial assets at fair value through profit or loss		117,278		69,375
Financial assets at fair value through OCI		553,823
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 held for sale		-		8,071
Total assets		1,490,300		1,395,336
Equity and liabilities
Capital and reserves		1,452,082		1,369,440
Deferred tax assets		23,283		-
Retirement benefits		675		514
Provisions for environmental rehabilitation		2,117		2,180
Trade and other payables		3,041		6,703
Provisions		4,018		6,021
Current tax liabilities		5,084		10,478
Total equity and liabilities		1,490,300		1,395,336

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