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ZCCM (EPA:MLZAM) ZCCM-IH AUDITED ABRIDGED FINANCIAL STATEMENTS_ 31 DECEMBER 2020

Directive transparence : information réglementée

24/02/2022 09:15

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

Authorised by: Chabby Chabala – 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. Stockbrokers Zambia Limited (“SBZ”)

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: 23 February 2022

ZCCM INVESTMENTS HOLDINGS PLC

(Incorporated in the Republic of Zambia)

AUDITED ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INTRODUCTION

In compliance with the requirements of the Listing Rules of Lusaka Securities Exchange, ZCCM Investments Holdings Plc (“ZCCM-IH or the Company”) announces the audited abridged financial statements results of the Company and its subsidiaries (Collectively referred to as the ‘‘the Group'') for the year ended 31 December 2020.

CHANGE OF FINANCIAL YEAR END

ZCCM-IH with effect from 1st April 2019, changed its financial year end from 31st March to 31st December to comply with the provisions of section 71 of the Public Finance Management Act No. 1 of 2018. The prior period runs for nine (9) months from 1st April 2019 to 31st December 2019, whilst the current period covers twelve (12) months from 1st January 2020 to 31st December 2020 and as a result, the comparative figures stated in the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cashflow and other related notes are not comparable.

STRUCTURE OF THE ZCCM-IH GROUP

The ZCCM-IH Group consist 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 100.00%
Kabundi Resources Limited 100.00%
Limestone Resources Limited 100.00%
Investrust Bank Plc 74.10%
Zambia Gold Company Limited 51.00%






The Company also has other interests in the undernoted companies:
Name Shareholding
Rembrandt Properties Limited 49.00%
Central African Cement Limited 49.00%
Consolidated Gold Company of Zambia 45.00%
Maamba Collieries Limited 35.00%
Konkola Copper Mines Plc (Provisional liquidation) 20.60%
Kansanshi Mining Plc 20.00%
Copperbelt Energy Corporation Plc 24.10%
CNMC Luanshya Copper Mines Plc 20.00%
Lubambe Copper Mine Ltd 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%



































ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
         
    31 Dec
2020
  31 Dec
2019
        (9 months)
    ZMW'000   ZMW'000
Revenue    
 113,088
   
62,432
Gross profit   55,740   9,417
Operating loss   (579,590)   (155,385)
Net finance income   944,878   139,074
Share of profit of equity accounted investees   1,487,537   420,348
Profit before tax    1,852,825    404,037
Income tax expense   (221,737)   (22,871)
Profit/(loss) from discontinued operations   500,399   (73,979)
Profit for the year    2,131,487    307,187
Earnings per share (ZMW)   13.26   1.91
Basic and diluted earnings per share (ZMW)   13.26   1.91

ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
         
    31 Dec
2020
  31 Dec
2019
        (9 months)
    ZMW'000   ZMW'000
Revenue from contracts with customers   3,695   -
Gross profit   695   -
Investment income    226,169   171,163
Operating (loss)/profit   (174,194)   17,096
Net finance income   955,040   158,505
Profit before tax    780,846   175,601
Income tax expense   (212,415)   (22,166)
Profit for the year   568,431    153,435
         
Earnings per share (ZMW)   3.54   0.95
Basic and diluted earnings per share (ZMW)   3.54   0.95
 

 

ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
         
    31 Dec 2020   31 Dec 2019
Assets   ZMW'000   ZMW'000
Property, plant and equipment   187,727   299,125
Goodwill   -   119,818
Intangible assets   749   648
Investment property   183,917   167,970
Investments in associates   19,351,000   11,855,067
Financial assets at fair value through profit or loss   292,000   -
Inventories   55,728   52,057
Trade and other receivables   1,295,594   729,685
Deferred tax assets   661,277   564,304
Assets held for sale   1,307,400   1,127,333
Term deposits   194,369   274,960
Cash and cash equivalents   181,209   56,816
Total assets   23,710,970   15,247,783
 
Equity and liabilities
       
Capital and reserves   20,899,212   12,629,831
Borrowings   161,370   -
Deferred tax liabilities   519,877   238,185
Trade and other payables   174,388   738,912
Liabilities associated with assets classified as held for sale   1,423,669   1,191,270
Bank overdraft   10,034   2,641
Provisions   121,177   83,118
Retirement benefits   13,194   34,669
Provisions for environmental rehabilitation   173,522   119,253
Current tax liabilities   214,527   209,904
Total equity and liabilities   23,710,970   15,247,783
 










       

 ABRIDGED COMPANY STATEMENT OF FINANCIAL POSITION
         
    31 Dec 2020   31 Dec 2019
Assets   ZMW'000   ZMW'000
Property, plant and equipment   79,052   88,439
Intangible assets   749   648
Investment property   183,917   167,970
Investments in subsidiaries   276,678   147,317
Investments in associates   20,666,806   10,746,818
Financial assets at fair value through profit or loss   292,000   -
Deferred tax assets   748,435   650,939
Trade and other receivables   1,256,579   719,855
Assets held for sale   392,357   387,110
Term deposits   194,369   273,717
Inventory   13,743   -
Cash and cash equivalents   120,639   54,359
Total assets   24,225,324   13,237,172
         
Equity and liabilities        
Capital and reserves   16,459,336   9,484,935
Borrowings   161,370   -
Deferred tax liabilities   7,099,183   3,339,411
Trade and other payables   102,551   52,271
Provisions   119,716   83,118
Retirement benefits   10,792   7,971
Provisions for environmental rehabilitation   66,595   55,258
Current tax liabilities   205,781   214,208
Total equity and liabilities   24,225,324   13,237,172

 

ABRIDGED GROUP STATEMENT OF CASH FLOWS
         
    31 Dec 2020   31 Dec 2019
    ZMW'000   (9 months)
ZMW'000
         
Net cash flow (used)/generated from operating activities   (183,930)   190,389
Net cash generated from investing activities   284,417   37,696
Net cash inflow/(outflow) from financing activities   158,655   (136,702)
Increase in cash and cash equivalents    259,142    91,383
Cash and cash equivalents at the beginning of the year   165,863   74,480
Cash and cash equivalents at the end of the period   425,005   165,863
Included in the statement of financial position:        
  • Cash and bank
  181,209   56,816
  • Bank overdraft
  (10,034)   (2,641)
  • assets held for sale
  253,830   111,688
    425,005   165,863

ABRIDGED COMPANY STATEMENT OF CASH FLOWS
         
    31 Dec 2020   31 Dec 2019
(9 months)
    ZMW'000   ZMW'000
         
Net cash (outflow)/inflow from operating activities   (124,291)   93,225
Net cash generated from investing activities   31,916   38,129
Net cash inflow/(outflow) from financing activities   158,655   (103,271)
Increase in cash and cash equivalents   66,280   28,083
Cash and cash equivalents at the beginning of the period/year   54,359   26,276
Cash and cash equivalents at the end of the period/year   120,639   54,359

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

         
    31 Dec 2020   31 Dec 2019
    ZMW'000   ZMW'000
         
Balance at 1 Jan/April   12,629,831   11,025,116
Profit for the period/year   2,131,487   307,187
Other comprehensive income   6,190,959   1,297,528
Dividend paid   (53,065)   -
Balance at 31 Dec   20,899,212   12,629,831

ABRIDGED PROVISIONAL COMPANY STATEMENT OF CHANGES IN EQUITY

         
    31 Dec
2020
  31 Dec
2019
    ZMW'000   ZMW'000
         
Balance at 1 Jan/April   9,484,935   8,661,948
 Profit/(loss) for the year   568,431   153,435
Other comprehensive income   6,459,035   669,552
Dividend paid   (53,065)   -
Balance at 31 Dec   16,459,336   9,484,935
               
  1. QUALIFIED AUDIT OPINION

The financial statements for the year ended 31 December 2020 are qualified based on the following:

ZCCM-IH holds 71.47% shareholding in Investrust Bank Plc (the bank) which shareholding the Company decided to dispose of. In the Consolidated statement of financial position, the assets of the bank with a total balance of ZMW 1.258 billion have been presented as assets held for sale and liabilities with a total balance of ZMW 1.424 billion have been presented as liabilities associated with assets classified as held for sale. The Group's share of the bank's loss of ZMW 58 million has been included in the Group's profit and loss account as a loss from discontinued operations. The figures for Investrust Bank Plc included in these financial statements are unaudited and the External Auditors were not able to obtain sufficient audit evidence as to whether any adjustments to the said figures are necessary.

The financial statements/information of the Bank considered in the ZCCM-IH's consolidated financial statements are pending an audit by their auditors whose reports have not yet been furnished to the ZCCM-IH Group auditors. Therefore, the ZCCM-IH Group Auditors opinion in so far as it relates to the amounts and disclosures included in respect of the Bank, is based solely on the unaudited information provided by the Management of the Bank.

  1. FINANCIAL PERFORMANCE

The Group reported a profit for the year of ZMW 2.132 billion (2019: ZMW 307 million), mainly due to the following:

  • Increase in the Group's share of profit in associated companies to ZMW 1.487 billion from ZMW 420 million recorded in December 2019. This is mainly due to the increase in the profitability of some investee companies in the mining sector such as Maamba Collieries Limited, CNMC Luanshya Copper Mines Plc, Non-Ferrous Corporation Africa Mining Plc and Kansanshi Mining Plc.
  • Exchange gains recorded from revaluation of the Group's foreign denominated assets.

The Group's total assets increased from ZMW 15.25 billion to ZMW 23.71 billion due to increased values of investments in associates and exchange gains arising from translation of US Dollar denominated investments.

  1. OUTLOOK

The Group will continue with the implementation of its Strategic Plan to enhance value creation for its shareholders. In addition, the Group will benefit from high levels of copper prices due to a surge in demand. ZCCM-IH in line with its Strategic plan will also focus on commodity diversification by improving production of other minerals such as Gold, Manganese and Amethyst among others. Exploring of value addition initiatives will also remain key on the agenda of ZCCM-IH going forward.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on Wednesday, 23 February 2022

Lusaka Securities Exchange Sponsoring Broker
    T | +260-211-232456

E | advisory@sbz.com.zm

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 , 23 February 2022
     

APPENDICES

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

         
    31 Dec
2020
  31 Dec
2019
        (9 months)
    US$'000   US$'000
Revenue    
 6,070
   
4,687
Gross profit   2,992   707
Operating profit   (31,109)   (11,664)
Net finance income   50,717   10,440
Share of profit of equity accounted investees   79,845   31,555
Profit before tax    99,453    30,331
Income tax expense   (11,902)   (1,717)
Profit/(loss) from discontinued operations   26,859   (5,554)
Profit for the year    115,410    23,060
Earnings per share (US$)   0.72   0.14
Basic and diluted earnings per share (US$)   0.72   0.14

US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
         
    31 Dec
2020
  31 Dec
2019
        (9 months)
    US$'000   US$'000
Revenue from contracts with customers   198   -
Gross profit   37   -
Investment income    12,140   12,849
Operating (loss)/profit   (9,350)   1,283
Net finance income   51,263   11,899
Profit before tax    41,913   13,182
Income tax expense   (11,402)   (1,664)
Profit for the year   30,511    11,518
         
Earnings per share (US$)   0.19   0.07
Basic and diluted earnings per share (US$)   0.19   0.07

 

US DOLLAR ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
         
    31 Dec 2020   31 Dec 2019
Assets   US$'000   US$'000
Property, plant and equipment   15,709   23,379
Goodwill   -   8,588
Intangible assets   140   135
Investment property   15,397   14,643
Investments in associates   914,768   956,164
Financial assets at fair value through profit or loss   13,804   -
Inventories   4,989   4,815
Trade and other receivables   61,246   52,298
Deferred tax assets   31,260   40,445
Assets held for sale   61,804   80,798
Term deposits   9,188   19,707
Cash and cash equivalents   8,566   4,072
Total assets   1,136,871   1,205,044
 
Equity and liabilities
       
Capital and reserves   1,003,953   1,017,413
Borrowings   7,628   -
Deferred tax liabilities   24,576   17,071
Trade and other payables   8,244   52,959
Liabilities associated with assets classified as held for sale   67,300   85,380
Bank overdraft   474   189
Provisions   5,728   5,957
Retirement benefits   624   2,484
Provisions for environmental rehabilitation   8,203   8,547
Current tax liabilities   10,141   15,044
Total equity and liabilities   1,136,871   1,205,044

 


US DOLLAR ABRIDGED PROVISIONAL COMPANY STATEMENT OF FINANCIAL POSITION
         
    31 Dec 2020   31 Dec 2019
Assets   US$'000   US$'000
Property, plant and equipment   6,733   7,237
Intangible assets   58   53
Investment property   14,563   13,707
Investments in subsidiaries   13,079   11,546
Investments in associates   976,969   874,341
Financial assets at fair value through profit or loss   13,804   -
Deferred tax assets   35,380   46,654
Trade and other receivables   59,402   51,593
Assets held for sale   18,548   29,060
Term deposits   9,188   19,618
Inventory   738   -
Cash and cash equivalents   5,703   3,896
Total assets   1,154,165   1,057,705
         
Equity and liabilities        
Capital and reserves   787,049   788,777
Borrowings   7,628   -
Deferred tax liabilities   335,595   239,341
Trade and other payables   4,848   3,746
Provisions   5,659   5,957
Retirement benefits   510   571
Provisions for environmental rehabilitation   3,148   3,960
Current tax liabilities   9,728   15,353
Total equity and liabilities   1,154,165   1,057,705


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