FINANCIAL PERFORMANCE HIGHLIGHTS
Group Performance
• The Group recorded a turnover of ZMW7.5 billion (US$ 435 million) for the six-month period ended 30th June 2022 compared to ZMW8.3 billion (US$ 368 million) reported during the six months to 30th June 2021. The 10% reduction in revenue is attributable to reduced production of copper at Mopani Copper Mines PLC (“Mopani”), which accounts for circa 97% of the total revenue for the Group.
• The Group’s share of profit of equity accounted investee companies was ZMW1.343 billion (US$ 78.4 million) compared to June 2021 of ZMW1.475 billion (US$ 65.6 million). The drop in share of profit by 9% is attributable to the appreciation of the Kwacha against the US Dollar. The Kwacha appreciated from the average of ZMW22.5/US$ in the first half of 2021 to ZMW17.1 in 2022.
• Overall, the Group recorded a loss after tax of ZMW817.4 million compared to a profit of ZMW479.7 million in the six months period to 30th June 2021. This was mainly due to a significant loss recorded by a subsidiary, namely Mopani Copper Mines PLC, of ZMW2.1 billion (US$70 million) in this period.
• The Group’s total assets reduced to ZMW59.1 billion as of 30th June 2022 from ZMW72.8 billion as of 30th June 2021 due to the decrease in foreign denominated assets arising from the appreciation of the Zambian Kwacha during the period.
All financial results for ZCCM-IH’s subsidiaries are combined line by line with ZCCM-IH separate financial statements as per IAS 27: Consolidated and Separate Financial Statements. Under this technique, all assets and liabilities of the subsidiary companies are added to the assets and liabilities of the ZCCM-IH separate financial statements. ZCCM-IH subsidiaries are listed under the sub-heading ‘Structure of the ZCCM-IH Group’ above.
Mopani’s performance is significant to the ZCCM-IH group financial results.During the period, Mopani contributed 97% and 258% of the group’s reported revenue and loss for the year, respectively. In addition, Mopani accounted for 60% and 94% of the group total assets and liabilities, respectively.