Agriculture, MiningAugust 29, 2017

Competitive Forces:  How ZNFU and Mopani make a classic Porters Model
Warren Buffet once said that “anything that can’t go on forever will end”. This is true for businesses that over time face the economic reality of buyer and supplier forces that are external and exert pressure on the firm’s ability to sustain profits. We have been following closely the debacle at the firms ZNFU and […]

MiningAugust 14, 2017

Copper, IMF. Whats the Big Deal?
There has been a lot of deliberation around whether Zambia needs an IMF package and quite a bit of hype around positive global sentiments regarding copper prices over the short to medium term. Citi research has gone as far as predicting that copper will close the year at USD7000/tonne and this is good news for […]

Mining, ZCCM-Investment Holdings PlcJune 15, 2017

ZCCM – IH – Skiing with hands full
We have often wondered what it is like to ski in the French Alps. Although we could not ski to save our lives, mining commodities have offered varying fortunes (mostly downhill)for players in this game globally. In order for extant players such as Rio Tinto to stay on the slopes for example, divestures have been […]

Mining, ZCCM-Investment Holdings PlcMarch 26, 2017

ZCCM-IH Getting bigger
ZCCM-IH’s 2014-2015 financials make for interesting reading. The company embarked on investments over the last two years that when consolidated into the accounts led to major impairments being declared in the financials. As a result, the consolidated group’s operating expenses were swollen due to administrative costs caused by impairments from its takeovers. Other external macro [&hell

MiningMarch 26, 2017

AEL Zambia Limited – Dynamite comes in reduced packages.
We have been waiting with baited breath for our first company analysis for 2017. The financials for AEL dropped on our desk and we knew it had interesting insights on the performance of this explosives company that services the mines. Although the annual report is not yet out (we used audit financial results for 2016 […]

MiningMarch 6, 2017

First Quantum – 2016 Half Year Results
The mining company has had a phenomenal over the last 3 months leading up to June 2016. According to their CEO and Chairman Philip Pascall, two of the company’s strategic bets are paying off. The first is its improvements in cost and efficiency notably at Kansashi in Zambia. What is fascinating about this mine is […]

MiningJuly 1, 2016

FQM – Mining EBITDA
“OUR FOCUS IS CLEAR” screamed the First Quantum Mining (FQM) 2015 Annual Report. From the onset, with the paradox of tumbling commodity prices from the New York stock exchange to the London metal exchange, it’s very clear that the management team want to convey a message of focus and strength at the mining conglomerate. They […]

MiningJune 1, 2016

Explosive Value from AEL Mining Services
Boom! That’s how I would like to imagine the 2015 annual report of AEL mining landing on the desk of shareholders laced with value. This formidable company traversed the turmoil of the 2015 macro environment in the mining sector that saw many of the mines in Zambia scaling back on production with some ease in […]