1
FOR THE YEAR ENDED 31 DECEMBER 2024
INTEGRATED
ANNUAL REPORT
Investing SMARTLY www.zccm-ih.com.zm
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Contents Page
About this report 1
About Us 2
§ Our investments 3 – 4
§ Our strategy and KPI’s 5
§ FY 2024 Group performance highlight 6 – 7
Chairperson’s statement 8 – 10
Report of the directors 11 – 22
Chief executive ofcer’s statement 23 – 25
Executive management team 26
Operation’s report
§ Subsidiary companies’ performance 27 – 30
§ Associate companies’ performance 31 – 38
§ Other investments performance 39 - 40
Directors’ responsibilities in respect of the preparation of the consolidated and company
nancial statements 41
2024 ZCCM-IH Plc Management report on internal controls over nancial reporting 42
Independent auditor’s report 44 – 49
Financial statements
Consolidated and company statements of nancial position 50 – 51
Consolidated and company statements of prot or loss and other comprehensive income 52 – 53
Consolidated and company statements of changes in equity 54 – 55
Consolidated and company statements of cash ows 56 – 57
Notes to the nancial statements 58 – 195
Corporate information 196
Appendix 197 – 201
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
1
About this Report
The Integrated Annual Report for the year ended 31 December 2024 provides a holistic view of ZCCM Investments
Holdings Plc (“the Company or ZCCM-IH”) and its subsidiaries (“the Group”) business model, how the Company is
managed and how it manages its investment portfolio. This report therefore provides a complete analysis of our
business to satisfy the information needs of key stakeholders that will use the Integrated Report. The information
presented aims to provide our various stakeholders with a good understanding of the nancial, human, social,
environmental and economic impacts of ZCCM-IH to enable them to evaluate our ability to create sustainable
value for our stakeholders.
Framework
The Financial Statements set out on Pages 50 to 195 have been prepared in accordance with and IFRS®
Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS
Accounting Standards). Our Integrated Report is prepared in compliance with the Companies Act of Zambia
and the listing requirements of the three stock markets on which ZCCM-IH is listed namely: Primary market –
Lusaka Securities Exchange, and Secondary markets – Paris Euronext Access and London Stock Exchanges.
Scope And Boundary
This report outlines who we are, what we do and how we create value, providing insights into our structure,
strategy, objectives, performance, governance, and future viability. The report provides an overview of the
operations and performance of all businesses in which ZCCM-IH is invested. The scope of this report relates
to ZCCM-IH as an investment holding company and as a group encompassing its subsidiary and associate
investee companies’ activities and material matters arising from its investment activities. Material developments
beyond the reporting period up to the date of publishing of this report have been included.
Materiality
This report provides information on all those matters that we believe could substantively affect value creation at
ZCCM-IH. Written primarily for current and prospective investors, the report is of interest to any stakeholder who
wishes to make an informed assessment of ZCCM-IH’s ability to create value over time. This report presents the
identied material information through a clearly structured narrative. Additional information not material for this
report, but of interest for other purposes, are provided on our website.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
2
ABOUT US
ZCCM Investments Holdings Plc (ZCCM-IH) is a premier diversied mining investment and operations company,
with signicant and focused interests in Zambia’s mining and energy sectors. The Group’s portfolio commodity
mix includes copper, gold, amethyst, manganese, limestone, coal and electric power energy. The shareholding
structure is as follows: the Industrial Development Corporation Ltd (IDC) holds 60.3%, Government of the Republic
of Zambia (GRZ) holds 17.3%, National Pension Scheme Authority (NAPSA) holds 15% and the remaining 7.4% is
held by private investors. The geographical spread of the minority shareholders, who number over 4000, cover
countries in Europe, Africa, the Caribbean, Australia, Asia and North America.
The Company has a primary listing on the Lusaka Securities Exchange, and secondary listings on the – Euronext
Access Paris and London Stock Exchanges under ISIN number ZM0000000037 on all listings.
Vision: “To be a world-class mining and energy investment company that benets the people of Zambia”
This vision’s underlining aspiration of being world class entails that:
• Our global competitiveness edge is driven by our value propositions, extensive and deep industry
knowledge and technical expertise in mining, nancial and investment management;
• We uphold the highest institutional standards in Environmental, Social and Governance principles and
Transparency; and that,
• We have a resilient organisational structure that thrives on a high-performance culture that has
exceptional employee skill sets and talent management practices.
Mission: “To create tangible wealth sustainably for the benet of the Zambian people and all our stakeholders”.
• The underlying and fundamental aspect of our mission is creation of wealth in a sustainable manner.
This entails that: Our strategy is informed by ambition that is focused, innovative, agile and adaptable to
the changing environment;
• We are driven by creating and maximising value through value addition and beneciation of commodities
within our portfolio; and,
• We build sustainability in all aspects through commodity diversication that will lead to sustained business
growth.
Our vision and mission are espoused and supported by our core values that are deeply ingrained principles
guiding all of our Company's actions. The following values serve as our corporate cultural cornerstones:
• Integrity: We resolve to always act and operate ethically, in dealing with one’s colleagues and for one’s
stakeholders even when no one is looking.
• Teamwork: We will always strive to work together as a team.
• Respect: We give respect to ourselves, our peers, our stakeholders, subordinates, our superiors and our
business partners
• Transparency and accountability: We respect processes and procedures in an open manner in all our
dealings and take ownership of our actions.
• Efciency: We will achieve more with less and apply all our resources optimally.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
3
ABOUT US (continued)
Our investments
S/N Asset Name % Interest Product/Service
Status as at date of this
report.
01 Limestone Resources
Limited
100.00 Supplier of limestone
products
Operational
02 Ndola Lime Company 100.00 Supplier of limestone
products
Winding up
03 Nkandabwe Coal Mine
Limited
100.00
Coal mining
Winding up
04 Misenge Environmental
and Technical Services
Limited
100.00 Services to the mining sector Discontinued operations
05 Kariba Minerals Limited 100.00 Amethyst mine Operational
06 Mushe Milling Limited 100.00 Milling In liquidation
07 Kabundi Resources Limited 100.00 Manganese mining Development
08 Investrust Bank Plc 71.40 Commercial bank Placed under compulsory
liquidation
09 Zambia Gold Company
Limited
51.00 Gold mining, exploration and
trading
Development/Exploration
10 Mopani Copper Mines Plc 49.00 Copper cathode and anode
slimes
Operational
11 Central African Cement
Limited
49.00 Cement and thermal power
energy
Winding up
12 Rembrandt Properties
Limited
49.00 Real estate Divestment
13 Maamba Energy Limited 35.00 Supplier of coal and
generator of 300Mw thermal
power
Operational
14 Copperbelt Energy
Corporation Plc
32.41 Distribution network to large-
scale copper mines on the
Copperbelt in Zambia
Operational
15 Konkola Copper Mines Plc 20.60 Copper cathode, copper-
cobalt alloys and anode
slimes
Operational
16 Lubambe Copper Mine Plc 20.00 Copper concentrates Operational
17 CNMC Luanshya Copper
Mines Plc
20.00 Copper concentrates and
copper cathode
Operational
18 Kansanshi Mine Plc 20.00 Copper concentrate, smelter,
Copper anode, copper
cathode and Gold Dore
Operational
19 Mingomba Mining Limited 20.00 Copper concentrates Exploration
20 Copper Tree Minerals
Limited
15.60 Copper cathode Divestment
21 NFCA Africa Mining Plc 15.00 Copper concentrates Operational
22 Chibuluma Mines Plc 15.00 Copper concentrates Operational/Further
Exploration
23 Nkana Alloy 15.00 Copper concentrates Inactive
24 Chambishi Metals Plc 10.00 Copper cathode and cobalt
metal processing
Care and maintenance
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
4
ABOUT US (continued)
Our investments (continued)
The current portfolio as per sectoral investment value contribution is illustrated in the gure below. The pie chart
further shows the direction the Company intends to take in line with the 2023-2026 strategic plan, realigning its
portfolio to focus on Mining, Energy and Beneciation/Value Addition.
ZCCM-IH PORTIFOLIO SNAPSHOT
SECTOR VALUE (ZMW'MILLION) CONCENTRATION (%)
Copper, Gold and Cobalt 42,242 73.6%
Energy 14,910 26.0%
Others 236 0.4%
Total 57,388 100.0%
Copper, Gold and Cobalt Energy Others
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
5
OUR STRATEGY AND KPIS
The year ended 31 December 2024 marked the second year of our revised four-year (2023 – 2026) strategy
period (SP). The key pillars underpinning ZCCM-IH SP and performance progress as at 31 December 2024 are
set out below:
No.
STRATEGIC GOAL/
PILLAR KEY TARGETS PERFORMANCE PROGRESS
1 Achieve nancial
excellence and
sustainability
• Increase in investment
income target 8%
• Prot growth target 5%
• Ensure consistency in
dividend pay-outs to
shareholders with a
dividend pay-out ratio of
35%
• Portfolio return (NAV
growth) above the higher
benchmark or 40%.
• Recorded an increase
in investment income of
13.6%
• Achieved a decrease in
prot after tax of 190.6%
• Achieved a dividend
payout ratio of 35%
• NAV per share increased
by 66%
2 Strengthen stakeholder
relationships and
improve stakeholder
satisfaction.
• Stakeholder satisfaction
index target 80%
• Brand Recognition index
target 70%
• Compliance rate target
100%
• Increased stakeholder
satisfaction index to 83%.*
• Increased brand
recognition to 72%.*
• Compliance at 100%.
3 Achieve operational
excellence and
business focus.
• Improve Corporate
Governance index target
80%
• Project Management Index
target 72%
• Index of subsidiary
oversight target 80%
• Corporate Governance
index at 88%.*
• Project management
index at 83%*
• Index of subsidiary
oversight at 100%*
4 Invest in our people. • % of Information
Communication
Technology productivity
tools used by staff - target
75%
• % of staff trained - target
75%
• % of ICT productivity tools
used at 89%.
• 76% of staff trained
*The achieved performance targets are based on surveys conducted among stakeholders.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
6
FY 2024 Group Performance Highlights
Five-Year Group Performance Highlights
2020 31 Dec 2021 31 Dec 2022 31 Dec 2023 31 Dec 2024
RETURNS
Total Returns (ZMW Mn) 8,428 -8,144 -4,815 -12,976 58,198
Return on Opening Equity (%) 67.00% -38.80% -37.61% -164.07% 1,022.69%
Earnings per share (ZMW) 13.91 -78.19 -23.54 -25.35 247.80
FINANCIAL POSITION
Total Assets (ZMW Mn) 23,296 46,818 48,919 58,464 57,286
Net Asset Value (ZMW Mn) 21,004 12,809 7,909 -5,691 52,264
NAV Per Share ZMW 130.62 79.66 49.18 -35.39 325.02
Current ratio 1.17 1.25 1.11 0.46 4.01
Cash and cash equivalents
(ZMW Mn)
181 185 329 360 526
GEARING
Debt (ZMW Mn) 171 25,414 29,029 - 3,347
Debt to equity % 0.81% 66.49% 78.59% 0.00% 6.02%
Net Cash (Debt) to Equity % 0.00% 66.33% 78.40% 5.96% 5.12%
ROA: Return on Assets, is computed as prot for the year expressed as a percentage of closing total assets for
the year
EPS: Earning Per Share, is computed as prot for the year divided by total number of issued shares
ZMW 3.21
billion
ZMW247.80
ZMW 39.85
billion
101.59%
Revenue
EPS
Prot for the year
ROA
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
7
FY 2024 Group Performance Highlights (continued)
Dividend Policy
The ZCCM-IH dividend policy provides that the Company may pay a minimum of 35% of the unconsolidated
realised net prot after tax for a particular nancial year, when conditions for declaring a dividend are met after
considering the Company’s free cash ows and investment needs.
The following table shows the Company’s historical dividend declaration:
Mar-15
251
Mar-17 135
Mar-18 98
Mar-19
53
Dec-19 53
Dec-20 85
Dec-21 336
Dec-22 387
Dec-23
243
Dec-24 529
251
135
98
53 53
85
336
387
243
529
0
100
200
300
400
500
600
ZMW'Million
Total Dividend (ZMW'Million)
TOTAL DIVIDEND DECLARED
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
8
CHAIRPERSON’S STATEMENT
Mr. Phesto Musonda
STRATEGIC INVESTMENTS DRIVING GROWTH
ZCCM-IH remains steadfast in its commitment to long-
term value creation and sustainable investments.
Our strategic focus continues to revolve around
enhancing Zambia’s mining and energy sectors,
optimizing operational efciency, and forging
strategic partnerships that drive growth. In 2024, we
took signicant steps in advancing our investment
portfolio, re-positioning the company as a key enabler
of Zambia’s economic transformation
1. Mopani Copper Mines Plc – A Transformational
Partnership
The transformational partnership between ZCCM-IH
and International Resources Holding (IRH) through
its wholly owned subsidiary, Delta has redened the
future of Mopani Copper Mines Plc (MCM). With
a landmark investment of US$1.1 billion, Mopani’s
operations have been stabilized, setting the
foundation for long-term production growth. Copper
output is projected to increase by over 60% within the
next ve years, driven by strategic capital injections,
operational improvements, and an optimized mining
plan. This investment has signicantly strengthened
Mopani’s balance sheet, alleviated legacy debt
constraints and ensured nancial sustainability. In
2024, Mopani reported net revenue of ZMW 16.36
billion (US$625.44 million), while net prot rose to ZMW
34.19 billion (US$1.31 billion), marking a major recovery
from previous losses.
At Group level, ZCCM-IH delivered a record-breaking
nancial turnaround, achieving a net prot of ZMW
39.85 billion (US$1.52 billion) a sharp reversal from
the post-tax loss of ZMW 4.08 billion (US$199 million)
in 2023. This performance was largely driven by
the successful completion of the Mopani Strategic
Equity Transaction, which repositioned Mopani as
a nancially viable operation, and the settlement
of US$1.71 billion in Glencore/Carlisa debt through
the Amendment, Restatement, and Consolidation
(ARCA) Agreement executed with IRH/Delta. Looking
ahead, continued capital investment in underground
mine development, infrastructure modernisation, and
ore recovery enhancements will unlock Mopani’s
full potential. This strategic partnership marks a new
chapter for Zambia’s mining sector, fostering job
security, economic growth, and sustainable value
creation for all stakeholders
2. Konkola Copper Mines Plc (KCM) – Revitalization
and Growth
The resolution of the long-standing KCM dispute
and the return of Vedanta Resources as the majority
shareholder represents a signicant milestone for
ZCCM-IH and Zambia’s copper industry. The US$1.2
billion investment committed by Vedanta will expand
operations, develop the Konkola Deep Mining Project,
and strengthen KCM’s nancial standing. The removal
of KCM from liquidation proceedings has restored
operational condence, ensuring increased copper
production and nancial stability.
I am honoured to present ZCCM Investments
Holdings Plc’s (ZCCM-IH) Chairperson’s Statement
for 2024. This has been a year of bold transformation,
strategic realignment, and reafrming ZCCM-IH’s
role as a cornerstone of Zambia’s mining and energy
sectors. Our commitment to operational excellence,
value creation, and sustainability continues to drive
our agenda, ensuring long-term prosperity for all
stakeholders.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
9
3. Mingomba Mining Limited – Unlocking Zambia’s
Copper Potential
Mingomba Mining Limited, a world-class exploration
project, has made substantial progress in geological
studies, positioning it as one of Zambia’s most promising
high-grade copper deposits. While the project did not
generate revenue in 2024 due to ongoing exploration
activities, ZCCM-IH remains fully committed, investing
US$9.7 million towards exploration and feasibility
studies. A resource statement has been completed,
with pre-feasibility studies set for completion in 2025.
The application of AI-driven mineral exploration
techniques at Mingomba sets a new standard for
innovation in Zambia’s mining sector.
4. Lubambe Copper Mine Limited – A Strengthened
Position
Lubambe Copper Mine is undergoing a major
operational restructuring, following the entry of
JCHX Mining Management Company as a new
strategic partner. JCHX has committed US$300
million in investment, aimed at stabilizing operations,
expanding production, and extending the mine’s life.
ZCCM-IH is expected to increase its equity stake from
20% to 30% in 2025. Lubambe is expected to improve
its production efciencies and maximize shareholder
value in the coming years.
5. Maamba Energies Limited (MEL) – Expansion into
the Energy Sector
Maamba Energies Limited continues to be a
cornerstone of Zambia’s power generation sector,
with its 300MW thermal power plant operating at
near-perfect efciency (99.95% Plant Load Factor).
The successful arbitration settlement with ZESCO has
provided nancial relief, though some outstanding
receivables remain a challenge.
To further solidify its energy portfolio, ZCCM-IH has
committed US$50 million to Maamba’s Phase II
expansion project, which will add an additional
300MW of generation capacity. The total project cost
is estimated at US$400 million, with the expansion set
to double Maamba’s output to 600MW, reinforcing
Zambia’s energy security and industrialization
agenda.
6. CNMC Luanshya Copper Mines (CNMC) – Unlocking
New Production Potential
Despite industry challenges, CNMC Luanshya Copper
Mines has maintained revenue growth, driven by
higher global copper prices. A key highlight in
2024 was the decision to reopen Shaft 28, a major
development project backed by a US$500 million
investment. This initiative is expected to signicantly
boost CNMC’s production capacity, securing long-
term sustainability and economic contributions.
7. Zambia Gold Company Limited (ZGCL) –
Repositioning for Growth
After resolving outstanding legal and regulatory
issues, remedial works at Kasenseli Gold Mine
resumed in 2024, paving the way for full-scale mining
operations in 2025. While ZGCL did not record gold
production in 2024, the company has redened its
long-term strategy, focusing on exploring alternative
gold license areas. These developments will position
ZGCL as a major contributor to Zambia’s gold industry,
aligning with the government’s diversication agenda
in the mining sector.
8. Kansanshi Mining Plc – Sustaining Production and
Expansion
Kansanshi Mining Plc, operated by First Quantum
Minerals (FQM), continues to be a key revenue
generator for ZCCM-IH through the Kansanshi Royalty
Model, which delivered ZMW 1.43 billion (US$54
million) in 2024.
Kansanshi’s S3 Expansion Project, currently under
accelerated implementation, with commissioning
now envisaged for the second half of 2025. The
S3 plant now has a projected operational life of
at least 25 years and will extend Kansanshi’s mine
processing output by at least three years. Despite the
drought-induced power constraints in Zambia, FQM
has successfully secured alternative power sources,
ensuring operational stability at Kansanshi.
STRATEGIC VISION FOR 2025 AND BEYOND
Looking ahead, ZCCM-IH remains committed to
delivering sustainable value creation, portfolio
optimization, and nancial resilience. Our strategic
focus will revolve around among others:
Working with our subsidiaries to turn them around
and make them sustainably protable.
Strengthening our energy investments, including
Maamba’s expansion and increased participation
in the development of new renewable energy
sources.
Enhancing beneciation and downstream value
addition, ensuring that Zambia captures more
value from its natural resources.
Developing a pipeline of new investments,
including critical minerals and exploration to
position ZCCM-IH for future growth.
Divestment from non-mining, non-energy-related,
and non-viable investments to streamline the
portfolio and align with ZCCM-IH’s strategic focus.
With Zambia targeting 3 million tonnes of copper
production annually by 2031, ZCCM-IH is well-
positioned to play a leading role in this vision, driving
economic transformation while delivering strong
returns to our shareholders.
CHAIRPERSON’S STATEMENT (continued)
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
10
ACKNOWLEDGMENT
Directorate Changes
During the year, the Company had two (2) changes
in terms of non-executive directors. I wish to thank
you Directors Bishop John Hardy Maambo and Moses
Smart Nyirenda, who retired from the Board for their
invaluable service and dedication to ZCCM-IH. At the
same time, I am condent that the newly appointed
Director Anthony Chilengi, will meet the expectations
of our shareholders and stakeholders, contributing
to the continued success and strategic vision of the
Company.
I extend my deepest appreciation to our employees,
CHAIRPERSON’S STATEMENT (continued)
partners, shareholders, and stakeholders for their
unwavering support and commitment. Your
contributions have been instrumental in ZCCM-IH’s
remarkable transformation and continued success.
As we move forward, we do so with condence,
purpose, and a shared vision for a future of sustained
growth, strategic leadership, and responsible mining
and energy investment.
Mr. Phesto Musonda
Board Chairperson
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
11
REPORT OF THE DIRECTORS
The Directors submit their report together with the audited nancial statements for the year ended 31 December
2024, which disclose the state of affairs of ZCCM Investments Holdings Plc (‘the Company’) and its subsidiaries
(together “the Group”).
BOARD OF DIRECTORS
Mr. Phesto Musonda
Board Chairperson
(Non - Executive Director)
Mr. Mubita Akapelwa
Vice Board Chairperson
(Non - Executive Director)
Mr. Philippe G. Taussac
(Non - Executive Director)
Mr. Anthony Chilengi
(Non - Executive Director)
Mr. Muyangwa Muyangwa
(Non - Executive Director)
Mr. Kakenenwa Muyangwa
Chief Executive Ofcer
( Executive Director)
Ms. Masitala Nanyangwe Mushinga
(Non - Executive Director
Bishop John Mambo
(Non - Executive Director)
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
12
REPORT OF THE DIRECTORS (continued)
SHARE CAPITAL
The authorised share capital of the Company remained unchanged at ZMW2,000,000 divided as follows:
120,000,000 “A” Ordinary Shares of ZMW 0.01 each; and
80,000,000 “B” Ordinary Shares of ZMW 0.01 each.
Class “A” Ordinary Shares and Class “B” Ordinary Shares all rank pari passu in all respects.
During the year, the issued share capital remained unchanged at 160,800,286 shares with a nominal value
of ZMW1, 608,003 as detailed below:
Number of
shares
Amount
ZMW
At beginning and end of year 160,800,286 1,608,003
SHAREHOLDING BY DIRECTORS
As at 31 December 2024, Mr Philippe G. Taussac (Non-Executive Director and Chairperson of the
Investments Committee of the Board) had 158,563 shares.
CHANGES TO SENIOR MANAGEMENT
During the year 2024, there were changes in the Company’s Senior Management. Mr Lombe Mbalashi
who was Chief Legal Ofcer and Mr Brian Musonda who was Chief Investments Ofcer, separated from
ZCCM-IH Plc effective 2nd December 2024. Subsequent to the year end, the Chief Executive Ofcer, Dr
Ndoba J. Vibetti, separated from ZCCM-IH Plc effective 30th April 2025. Effective 6 June 2025, Mr Kakenewa
Muyangwa was appointed Chief Executive Ofcer of ZCCM-IH Plc.
PRINCIPAL ACTIVITIES
ZCCM-IH (“the Company’’) is an investments holdings company which has a primary listing on the Lusaka
Securities Exchange and secondary listings on the London and Euronext Paris Stock Exchanges. The Company
has the majority of its investments held in the copper mining sector of Zambia. The Company’s focus going
forward will include the following:
Developing and implementing investments strategies and aligning Company operations towards
maximizing of shareholder value in the mining sector;
Monitoring the performance of investee companies to ensure they consistently declare reasonable
dividends and ensure Company growth;
Ensuring effective representation on the Boards of the investee companies;
Establishing and securing joint venture partnerships for projects assessed to be viable;
Establishing metal streaming arrangements;
Establishing a royalty model to maximize shareholder value; and
DIVIDENDS
During the year, the Company declared a dividend of ZMW529 million (2023: ZMW 243 million).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
13
REPORT OF THE DIRECTORS (continued)
DIRECTORATE CHANGE
During the year and up to signing date of this report, the following were changes in the directorate:
Name Position Date of Appointment/Retirement
Mr Anthony Chilengi Non-Executive Director Appointed on 21 November 2024
Mr Kakenenwa Muyangwa Chief Executive Ofcer Appointed on 6 June 2025
Mr Phesto Musonda Non-Executive Director Appointed on 9 June 2025
Dr Ndoba J. Vibetti Executive Director
Appointed 1 February 2023 and
retired 30 April 2025
Bishop John H Mambo Non-Executive Director
Retired on 12 December 2024 and
reappointed on 17 April 2025
Mr Tisa Chama Executive Director
Appointed on 30th April 2025 and
retired on 5th June 2025
Mr Moses Nyirenda Non-Executive Director
Appointed on 13 December 2021
and retired on 17 July 2024
AUDIT COMMITTEE
Name Position Date of Appointment/Retirement
Ms. Masitala Mushinga Chairperson Active
Mr Philippe G Taussac Non-Executive Director Active
Mr Mubita Akapelwa
(Non-Executive Director/Vice Board
Chairperson)
Active
Mr Vincent Nyambe Co-opted member Active
Bishop John H Mambo Non-Executive Director
Retired on 12 December 2024 and
reappointed on 17 April 2025
Dr Ndoba J. Vibetti Chief Executive Ofcer Retired on 30 April 2025
Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025
REMUNERATION COMMITTEE
Name Position Date of Appointment/Retirement
Mr Anthony Chilengi Chairperson Appointed on 5th June 2025
Mr Mubita Akapelwa Non-Executive Director Active
Mr Muyangwa Muyangwa Non-Executive Director Active
Ms Masitala Mushinga Non-Executive Director Active
Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025
Mr Bishop H Mambo Non-Executive Director
Retired on 12 December 2024 and
reappointed on 17 April 2025
Mr Moses Nyirenda Non-Executive Director Retired on 17 July 2024
Dr Ndoba J Vibetti Chief Executive Ofcer Retired on 30 April 2025
INVESTMENT COMMITTEE
Name Position Date of Appointment/Retirement
Mr Mubita Akapelwa Chairperson Appointed on 5th June 2025
Mr Philippe G Taussac Non-Executive Member Active
Mr Muyangwa Muyangwa Non-Executive Member Active
Mr Anthony Chilengi Non-Executive Member Active
Mr Albert Halwampa Co-opted Member Active
Mr Basil Nundwe Co-opted Member Active
Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025
Mr Moses S Nyirenda Non-Executive Member Retired on 17 July 2024
Dr Ndoba J. Vibetti Chief Executive Ofcer Retired on 30 April 2025
Mr Brian Musonda Chief Investments Ofcer Retired on 2 December 2024
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
14
REPORT OF THE DIRECTORS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
DIRECTORS’ PARTICIPATION IN MEETINGS
Record of attendance of Board and Committee meetings held during the period to 31 December 2024.
Board Meetings:
Name of Director
11/01/24
26/01/24
08/02/24
20/02/24
13/03/24
19/03/24
26/03/24
10/04/24
23/05/24
31/05/24
12/06/24
20/06/24
25/06/24
26/07/24
25/09/24
22/10/24
29/11/24
04/12/24
10/12/24
18/12/24
Mr Kakenenwa Muyangwa
(Chairperson)
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Mr Mubita Akapelwa (Vice
Chairperson)
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Mr Moses Nyirenda (Re-
tired)
√ √ √ √ √ √ √ √ √ √ √ √ √
£ £ £ £ £ £ £
Ms Masitala Mushinga √ X √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Mr Bishop John Mambo
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ ¨ ¨
Dr Ndoba J Vibetti √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Mr Philippe G Taussac √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Mr Muyangwa Muyangwa X X √ X √ X X √ X X X X √ X X √ √ √ √ √
Mr Anthony Chilengi
£ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £
√ √ √ √
* Mr Anthony Chilengi was appointed Director on 21
st
November 2024.
Key
√ - In attendance
X – Not in attendance
£ - Not a member on a stated date of meeting
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
15
REPORT OF THE DIRECTORS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
DIRECTORS’ PARTICIPATION IN MEETINGS (continued)
Record of attendance of Board and Committee meetings held during the period to 31 December 2024.
Audit Committee
The committee provides oversight on the effectiveness of the Group’s operational and nancial reporting sys-
tems and accuracy of information, and that the Group’s published Financial Statements represent a true and
fair reection. The specic terms of reference include:
§ Reviewing and appraising the soundness of risk management, internal controls, and the reliability and
integrity of nancial, managerial, and operating data.
§ Ascertaining compliance with the ZCCM-IH Group policies and procedures.
§ Evaluating asset safeguards and accountability.
§ Evaluating the economy and efciency with which resources are employed.
§ Reviewing operations or programs to assess whether they are being carried out as planned and whether
results are consistent with established objectives.
§ Providing advice to management regarding the adequacy and effectiveness of controls regarding major
decisions.
Meeting Attendance:
Name Of Director 13/4/24 29/2/24 20/3/24 22/5/24 4/9/24 13/11/24 06/12/24
Ms Masitala Mushinga
(chairperson)
√
√ √
√
√ √ √
Mr Philippe G Taussac √ √ √ √ √ √ √
Mr Mubita Akapelwa √ √ √ √ √ √ √
Mr Vincent Nyambe √ √ X √ √ √ X
Mr Bishop John Mambo √ √ √ √ √ √ √
Dr Ndoba J Vibetti √ √ √ √ √ √ √
Key
√ - In attendance
X - Not in attendance
£ - Not a member on a stated date of meeting
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
16
REPORT OF THE DIRECTORS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
DIRECTORS’ PARTICIPATION IN MEETINGS (continued)
Investments Committee
To adequately supervise and monitor the investment function of the Company, the Investments Committee of
the Board’s duties and responsibilities shall be:
§ To evaluate and approve or disapprove and refer all approved investments to the full Board.
§ To evaluate and recommend to the Board on the disinvestments.
§ To periodically review each investment in terms of performance against benchmark returns for the
Company.
§ To guide management on the activities of the Management Investment Committee and ensure they
comply with the laid down procedures.
§ To advise the Board and guide management on investment-related issues.
§ To circulate for information, quarterly reports to the Board and through the Chairman present on matters
therein, if necessary; and,
§ To determine the amount to be invested in a period.
Meeting Attendance
Name of Director 28/03/24 24/05/24 17/06/24 13/09/24 19/11/24
Mr Philippe G Taussac (Chairman)
√ √ √ √ √
Mr. Moses Nyirenda
√ √ √ √ √
Mr. Albert Halwampa
X √ √ √ √
Mr Basil Nundwe
X √ √ √ √
Mr Muyangwa Muyangwa
X X X √ √
Dr Ndoba J Vibetti
√ √ X √ √
Mr Mubita Akapelwa
√ √ √ √ √
Key
√ - In attendance
X – Not in attendance
£ - Not a member on a stated date of meeting
Remuneration Committee
The committee is responsible for formulating remuneration policies and principles that promote the
success of the Company. More specically, the Remuneration Committee’s terms of reference include:
§ Determine and agree with the Board the framework or broad policy for the remuneration of the Chief
Executive and such other members of the executive management as it is designated to consider.
§ Determine targets for any performance-related pay schemes operated by the Company.
§ In determining such remuneration packages, give due regard to the prevailing compensation levels in
comparable commercial organizations.
§ Agree the policy for authorising claims for expenses from the Chief Executive and Chairman.
§ Be exclusively responsible for establishing the selection criteria, selecting, appointing, and setting the terms
of reference for any remuneration consultants who advise the committee.
§ Report the frequency of, and attendance by members at, remuneration committee meetings in the annual
report.
§ Make the committee’s terms of reference publicly available. These should set out the committee’s
delegated responsibilities and be reviewed and, where necessary, update annually.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
17
REPORT OF THE DIRECTORS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
DIRECTORS’ PARTICIPATION IN MEETINGS (continued)
Remuneration Committee (continued)
Meeting Attendance:
Name of Director 24/1/24 18/3/24 11/4/24 16/5/24 18/6/24 12/9/24 11/11/24 6/12/24
Mr Moses Nyirenda
(Chairman)
√ √ √ √ √
£ £ £
Dr Ndoba J Vibetti √ √ √ √ X √ √ √
Mr Bishop John
Mambo (Retired)
√ √ √ √ √ √ √ √
Mr Muyangwa
Muyangwa
√ X √ X X √ √ X
Mr Mubita Akapelwa
£ £ £ £ £
√ √ √
Ms Masitala Mushinga X √ √ √ √ √ √ √
Mr Anthony Chilengi
£ £ £ £ £ £ £
√
Key
X – Not in attendance
√ - In attendance
£ - Not a member on a stated date of meeting
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
18
REPORT OF THE DIRECTORS (continued)
Remuneration Policies
Board of Directors fees and emoluments
Group Company
2024 2023 2024 2023
Item ZMW’000 ZMW’000 ZMW’000 ZMW’000
Executive Director’s fees and Emoluments 6,901 10,605 6,901 4,694
Non-executive Directors’ Fees 26,726 26,477 13,499 10,465
Total 33,627 37,082 20,400 15,159
Average number and remuneration of employees
The total amount paid as remuneration to employees during the year amounted to ZMW394.39 million (2023:
ZMW2.17 billion) for the Group and ZMW195.98 million (2023: ZMW157.32 million) for the Company. The average
number of employees was as follows:
Month Company Subsidiaries Group Month Company Subsidiaries Group
January 2024 110 495 605 July 2024 110 493 603
February 2024 110 503 613 August 2024 108 493 601
March 2024 110 496 606 September 2024 107 491 598
April 2024 110 496 606 October 2024 105 508 613
May 2024 110 499 609 November 2024 105 508 613
June 2024 110 502 612 December 2024 103 543 646
Staff expenses Group Company
2024 2023 2024 2023
ZMW’000 ZMW’000 ZMW’000 ZMW’000
Staff remuneration 394,387 2,167,145 195,976 157,323
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
19
REPORT OF THE DIRECTORS (continued)
BOARD COMMITTEE’S FUNCTIONS (continued)
Health and safety employee environment
Health and safety are a top priority in the Group. To maintain productivity, the Group ensured a healthy
environment by providing the following to employees:
Periodic health talks to educate and sensitise employees on various health issues.
Medical services with some medical facilities;
Subscription to the gym to ensure wellness;
Work-Life Balance by ensuring that employees took annual leave to refreshen their minds;
Hand sanitisers, fumigation of ofces buildings and generally a clean environment to prevent contraction
and spread of the Covid-19 virus.
The Group maintained a safe working environment by implementing the following measures:
Compliance with workplace safety laws and regulations, including ensuring the presence of trained rst
aiders and re marshals to respond to emergencies effectively;
Regular inspection and maintenance of re safety equipment, ensuring that re extinguishers remain
serviceable and readily available in case of re incidents.
Risk Management Framework
ZCCM IH has adopted an Enterprise-wide approach to risk management. The Enterprise-wide Risk Management
(ERM) approach can be dened as a process that enables organizations to effectively deal with varied types of
risks and opportunities, thus increasing stakeholder value.
ZCCM-IH has a comprehensive risk management framework that addresses nancial, operational, environmental,
and social risks. The framework includes:
i. Risk Identication: Risks are identied through a combination of top-down and bottom-up approaches,
including risk assessments, audits, and reviews.
ii. Risk Assessment: Risks are assessed using a risk matrix that considers the likelihood and potential impact of
each risk.
iii. Risk Mitigation: Risk mitigation strategies are developed and implemented to address identied risks.
iv. Risk Monitoring and Review: Risks are continuously monitored and reviewed to ensure that risk mitigation
strategies are effective and that new risks are identied and addressed.
v. Risk Reporting: The reporting structure ensures that risk response gaps are addressed, escalated to
Management and the risk responses are operating effectively under changing conditions.
In its normal operations, the Group is exposed to several risks including liquidity, market and credit risks. These are
described and explained in note 42 to the nancial statements.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
20
REPORT OF THE DIRECTORS (continued)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG)
1. ESG Governance and Commitment
ZCCM Investments Holdings Plc (ZCCM-IH) is rmly committed to integrating Environmental, Social, and
Governance (ESG) principles across its investment portfolio, ensuring that sustainability and responsible
business practices remain central to its long-term strategy. Recognizing the increasing global focus on
sustainability, decarbonization, and social responsibility, ZCCM-IH is actively aligning its operations with
international best practices, regulatory standards, and stakeholder expectations.
To enhance ESG oversight and compliance, ZCCM-IH has established dedicated governance structures,
ensuring that all investments and operations adhere to responsible mining and energy practices, strong
corporate governance principles, and social impact initiatives. These structures are designed to:
Strengthen ESG implementation across the Group;
Ensure compliance with local and international ESG regulations;
Promote sustainable mining, energy transition, and climate resilience;
Enhance engagement with communities, investors, and regulators.
2. Environmental Management and Climate Strategy
ZCCM-IH recognizes its role in supporting Zambia’s transition to a low-carbon economy and mitigating
environmental risks associated with mining and energy investments. The Board of Directors remains
committed to global decarbonization efforts, ensuring that the Company’s mining, energy, and
infrastructure investments prioritize sustainability and environmental stewardship.
2.1 Climate and Renewable Energy Initiatives
Key highlights of ZCCM-IH’s climate and sustainability strategy include:
Investment in Renewable Energy – Through its increased stake in Copperbelt Energy Corporation
Plc CEC) from 24.1% to 32.41%, ZCCM-IH has reinforced its commitment to energy transition
investments. This includes CEC Renewables’ successful commissioning of the 60MW Itimpi One
Solar Project in April 2024, signicantly enhancing Zambia’s renewable energy capacity.
Kariba Minerals’ Solar Transition – ZCCM-IH’s subsidiary, Kariba Minerals Ltd, has transitioned from
diesel to solar energy with a 250KVA solar captive power plant, reducing carbon emissions and
operational costs.
Sustainable Mining Practices – Mopani Copper Mines Plc is enhancing energy efciency, optimizing
waste management, and introducing emissions-reduction programs, ensuring responsible
environmental management.
2.2 Environmental Liability Management
ZCCM-IH, through Misenge Environmental and Technical Services (METS), remains proactive in
environmental monitoring and remediation efforts. During 2024, METS conducted routine environmental
assessments across several legacy mining sites:
Kitwe: Area E Overburden Dump (OB 53)
Chingola: Mimbula Open Pit (OB 5), Luano Open Pit (OB18), and Chingola B & C Overburden
Dumps (OB19 & OB4)
Kabwe: Open Pit 5 and 6
Key mitigation actions included:
Soil stabilization and site rehabilitation through reforestation and erosion control measures.
Enhanced security measures to prevent unauthorized mining activities.
Collaboration with regulatory authorities to address outstanding environmental liabilities.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
21
REPORT OF THE DIRECTORS (continued)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) (continued)
2.3 Water and Radiation Monitoring
ZCCM-IH has maintained its commitment to protecting water resources by conducting continuous
monitoring of high-risk environmental sites.
Key developments in 2024:
Water quality monitoring at Kabwe Mine conrmed compliance with Zambia Environmental
Management Agency (ZEMA) standards, with no material contamination reported.
Radiation surveillance at the Radioactive Waste Storage Building (RWSB) in Kalulushi was conducted
in collaboration with the Radiation Protection Authority (RPA).
Security enhancements were implemented at sensitive sites, with the support of the U.S. Department
of Energy’s Ofce of Radiological Security (ORS)
3. Social Impact and Community Development
ZCCM-IH is deeply committed to community engagement, social responsibility, and improving the
livelihoods of people in areas where it operates.
3.1 Health and Social Initiatives
In 2024, ZCCM-IH continued its Integrated Case Management (ICM) program in Kabwe, which focuses
on lead exposure reduction and health education.
Key achievements:
ICM clinic attendance rates of 58%–93%.
Home visitations covering an average of 73 households per month.
Community health education programs to reduce exposure to lead-contaminated environments.
3.2 Resettlement and Compensation
ZCCM-IH successfully resettled 11 households under its ZEMA-approved Resettlement Action Plan (RAP),
ensuring fair compensation and livelihood restoration. One outstanding case remains under review, with
stakeholder engagements ongoing.
4. Corporate Strategy and the Energy Transition
As the global energy landscape shifts towards decarbonization and sustainability, ZCCM-IH has taken
strategic steps to align its investment portfolio with the energy transition.
Key strategic initiatives:
Expanding exploration activities in critical minerals such as manganese (Kabundi Exploration
Licence) and lithium (Kariba Mineral Licence area).
Increasing investment in Zambia’s energy infrastructure, including the US$50 million commitment
towards the 300MW Phase II expansion of Maamba Energy Limited.
Strengthening partnerships with renewable energy players, such as CEC Renewables, to promote
solar and hydroelectric power generation.
These initiatives position ZCCM-IH to capitalize on the rising global demand for copper and other
critical minerals while ensuring long-term value creation for shareholders.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
22
REPORT OF THE DIRECTORS (continued)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) (continued)
5. Community Investment and Philanthropy
ZCCM-IH recognizes the importance of social responsibility and remains committed to giving back to
communities through Corporate Social Responsibility (CSR) initiatives.
Key CSR Projects in 2024
Donation of ZMW1 million to the Ministry of Health to support cholera outbreak response efforts.
Solar-powered water borehole installation at Mapatizya Clinic in Kalomo District, improving clean
water access.
Solar Power Solutions for health clinics, schools, police stations, and market centers in Mapatizya,
enhancing community services and security.
Tree Planting for Climate Resilience over 4,000 trees planned to be planted in 2025 across public
health institutions in Lusaka, Ndola, and Kitwe as part of Zambia’s climate adaptation strategy.
6. Strengthening Organizational Culture and Workforce Development
ZCCM-IH’s long-term success is built on its people. In 2024, the Company implemented a high-performance
culture strategy aimed at enhancing employee engagement, skills development, and innovation.
Key workforce initiatives:
Upskilling employees through targeted training and leadership development programs.
Establishing a performance-based culture, rewarding innovation and operational excellence.
Implementing a revised organogram, incentive structure, and performance reward mechanisms
to drive employee motivation and retention.
These initiatives ensure that ZCCM-IH remains competitive, agile, and well-positioned for sustainable
growth
7. Commitment to ESG and Sustainable Investments
ZCCM-IH remains fully committed to integrating Environmental, Social, and Governance (ESG) principles
across its investment strategy and operational framework.
ESG Commitment at a glance:
Environmental Stewardship – Supporting climate action, renewable energy, and responsible mining
practices.
Social Responsibility – Enhancing community engagement, workforce development, and
stakeholder relations.
Governance Excellence – Reinforcing ethical leadership, transparency, and accountability.
As the demand for sustainable investments rises, ZCCM-IH remains well-positioned to support Zambia’s
economic growth, deliver value to stakeholders, and drive the transition towards a responsible and
sustainable mining and energy sector
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
23
CHIEF EXECUTIVE OFFICER’S STATEMENT
Mr Kakenewa Muyangwa
I am honoured to present ZCCM Investments Holdings
Plc’s (ZCCM-IH) Chief Executive Ofcer Statement
for 2024. This has been a year of bold transformation,
strategic realignment, and reafrming ZCCM-IH’s
role as a cornerstone of Zambia’s mining and energy
sectors. Our commitment to operational excellence,
value creation, and sustainability continues to drive
our agenda, ensuring long-term prosperity for all
stakeholders.
Executing Strategy, Driving Operational Excellence,
and Building a Resilient Future
Introduction
The 2024 nancial year was a dening period for ZCCM
Investments Holdings Plc (ZCCM-IH) one in which
we executed transformative investment strategies,
navigated complex operational landscapes, and
strengthened our position as a key driver of Zambia’s
mining and energy sectors. Our commitment to
operational efciency, capital discipline, and long-
term sustainability has enabled us to deliver strong
results despite global market uncertainties.
The successful restructuring of Mopani Copper Mines
Plc (MCM), the resolution of Konkola Copper Mines
Plc (KCM), and signicant expansion in the energy
sector are clear markers of our strategic intent to
create long-term value for our shareholders and
stakeholders.
Operational Performance and Financial Strength
Our Group net prot rose to ZMW 39.85 billion (US$ 1.52
billion), reversing the post-tax loss of ZMW 4.08 billion
(US$ 198.59 million) recorded in 2023. This record-
breaking turnaround was largely driven by:
The Mopani Strategic Equity Transaction, which
provided nancial stability and restructured
Mopani’s balance sheet.
Settlement of the US$1.7 billion Glencore/
Carlisa legacy debt through the Amendment,
Restatement, and Consolidation (ARCA)
Agreement, executed with IRH/Delta.
An increase in prot from equity-accounted
investees of ZMW 3.33 billion (US$ 127.25 million),
up from ZMW 2.26 billion (US$ 110.17 million) in
2023.
Despite the Group’s strong nancial performance, at
the Company level, ZCCM-IH reported a loss of ZMW
4,383 million (US$ 167.62 million), driven by a one-off
investment expense of ZMW 3,860 million (US$ 150
million) related to the restructuring of Mopani Copper
Mine Plc.
However, total assets increased by 74% to ZMW 66.90
billion (US$2.39 billion), up from ZMW 38.47 billion
(US$1.49 billion) in 2023, reinforcing our nancial
resilience and growth trajectory.
Additionally, we transitioned our strategic ethos
from “Mining SMARTLY” to “Investing SMARTLY”,
emphasizing:
Sustainability
Proactive investment management
Timely decision-making
Long-term value creation
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
24
CHIEF EXECUTIVE OFFICER’S STATEMENT (continued)
Looking Ahead – Growth, Innovation, and Value
Creation
As we enter 2025, our focus will remain on:
Maximizing production efciency in Mopani,
Kansanshi, Konkola, and Lubambe.
Expanding critical mineral exploration and
beneciation projects.
Strengthening our energy investments to support
Zambia’s industrialization agenda.
Driving ESG leadership, embedding sustainability
into our operations.
With Zambia targeting 3 million tonnes of copper
production annually by 2031, ZCCM-IH is positioned
as a key enabler of this vision.
Strategic Investments – Strengthening Our Portfolio
1. Mopani Copper Mines Plc – Transformational
Growth
In 2024, we completed a landmark transaction
with International Resources Holding (IRH),
securing US$1.1 billion in capital investment for
Mopani. This will increase production by over
60% in the next ve years and enable Mopani
to achieve nancial independence. Mopani’s
nancial performance in 2024 was exceptional,
reporting:
Net revenue of ZMW 16.36 billion
(US$625.44 million).
Net prot of ZMW 34.19 billion (US$1.31
billion).
The restructuring has positioned Mopani for
long-term success, ensuring it remains one of
Zambia’s leading copper producers.
2. Konkola Copper Mines Plc – Rebuilding for the
Future
After years of legal and operational
uncertainty, KCM has successfully transitioned
back under Vedanta Resources, following the
resolution of ownership matters. With US$1.2
billion earmarked for operational revitalization,
KCM’s future is now anchored on:
Development of the Konkola Deep
Mining Project.
Infrastructure modernization to improve
efciencies.
Financial stabilization to sustain
operations and unlock long-term value.
3. Expanding Our Copper Footprint – Mingomba
and Lubambe
Mingomba Mining Limited: With ZCCM-IH’s
US$21.22 million investment, we have made
signicant progress in geological exploration
and feasibility studies to unlock one of
Zambia’s highest-grade copper deposits.
Lubambe Copper Mine: The US$300 million
investment by JCHX Mining has stabilized
operations, allowing ZCCM-IH to increase our
stake to 30% and secure marketing rights for
copper concentrate sales.
These investments are critical to Zambia’s long-
term copper production expansion goals.
4. Expanding Our Role in Zambia’s Energy Sector
Maamba Energy Limited – Strengthening
Power Security: ZCCM-IH committed US$50
million towards Maamba’s Phase II expansion,
a US$400 million project that will double
power generation to 600MW.
MEL achieved a 99.95% Plant Load
Factor, demonstrating operational
excellence and efciency.
The arbitration settlement with ZESCO
helped ease nancial challenges, improving
Maamba’s nancial position.
Copperbelt Energy Corporation (CEC) –
Strengthening Market Presence: increased
stake in CEC from 31.07% to 32.41%
reinforces our commitment to powering
Zambia’s industrial and mining sectors.
We continue to explore renewable energy
investments, ensuring long-term sustainability
and diversied power sources.
5. Our ESG Commitment – Embedding Sustainability
in Our Strategy
As Zambia’s leading mining and energy
investment rm, we are fully committed to
responsible and sustainable business practices.
Our ESG priorities in 2024 included:
Decarbonization: Kariba Minerals Ltd is
transitioning to solar power (250KVA system),
reducing diesel dependency.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Director
Masitala Mushinga
CEO
Kakenenwa Muyangwa
Jason Kazilimani, Jr
CHIEF EXECUTIVE OFFICER’S STATEMENT (continued)
Community Investment: Infrastructure,
education, and healthcare initiatives
continue to be a priority in our host
communities.
Governance Strengthening: Enhanced risk
management and transparency measures
have been implemented to align with
global best practices.
ZCCM-IH is integrating ESG across all
subsidiaries and investments, ensuring long-
term environmental, social, and governance
sustainability.
Reshaping Our Business for Operational
Excellence
As part of our strategic review in 2024, we
realigned our focus towards four key priorities:
1. Financial Excellence and Sustainability
– Ensuring strong returns and disciplined
capital allocation.
2. Operational Excellence and Business Focus
– Optimizing efciencies in mining and
energy investments.
3. Strengthening Stakeholder Relationships –
Enhancing partnerships with government,
communities, and investors.
4. Investing in Our People – Developing talent,
fostering innovation, and embedding a
high-performance culture.
Additionally, we transitioned our strategic ethos
from “Mining SMARTLY” to “Investing SMARTLY”,
emphasizing:
Sustainability;
Proactive investment management;
Timely decision-making;
Long-term value creation.
Looking Ahead – Growth, Innovation, and Value
Creation
As we enter 2025, our focus will remain on:
Restructuring our subsidiaries to ensure
sustainable protability.
Expanding critical mineral exploration and
beneciation projects.
Strengthening our energy investments to support
Zambia’s industrialization agenda.
Driving ESG leadership, embedding sustainability
into our operations.
With Zambia targeting 3 million tonnes of copper
production annually by 2031, ZCCM-IH is positioned
as a key enabler of this vision.
Acknowledgment
I extend my gratitude to our employees, management
team, partners, and shareholders for their unwavering
commitment and dedication. As we move forward,
we will continue driving ZCCM-IH’s transformation,
unlocking long-term value, and ensuring sustainable
growth for future generations.
ZCCM Investments Holdings Plc
Mr Kakenewa Muyangwa
Chief Executive Ofcer
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
26
EXECUTIVE MANAGEMENT TEAM
Mr. Kakenenwa Muyangwa
Chief Executive Ofcer
Ms Chilandu Sakala
Chief Financial Ofcer
Mr Shepherd Mwanza
Chief Internal Audit Ofcer
Mr Situmbeko Mubano
Acting Chief Investments Ofcer
Mr Charles Mjumphi
Company Secretary
Ms Mwaka Mwamulima
Risk Manager
Mr Gift Zulu
Procurement Manager
Mr Kalembo Tito
Strategy Manager
Ms Betty Meleki
Chief Human Resource and Administration Ofcer
Ms Loisa Mbatha
Corporate Affairs Manager
Mr Tisa Chama
Chief Technical Ofcer
Mr Mukuka Kangwa
Chief Information and Communications
Technology Ofcer
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
27
OPERATIONS REPORT
Portfolio Performance Review
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
A Subsidiary Companies
Zambia Gold Company Limited
(ZGCL)
Zambia Gold Company Limited (ZGCL) plays a pivotal role in the
formalization and expansion of Zambia’s gold sub-sector. The
company is engaged in gold exploration, mine development,
production, processing, and marketing both domestically and in-
ternationally aiming to enhance the sector’s contribution to the
national economy.
For the year ended 31 December 2024, no gold production was
recorded due to the continued suspension of mining activities
at Kasenseli by the Mines Safety Department since 2021. During
the year 2024 the mine resumed its operations, following the
completion of remedial works mandated by the regulator.
During the year, the Board of ZCCM-IH approved a US$5 million
facility for ZGCL to fund remedial works, including mine planning,
security enhancements, among others.
Financial Performance:
Revenue: ZMW Nil (2023: ZMW 38.52 million) previous year
revenue was derived from a 34kg gold sale.
Net Loss: ZMW 84.02 million (2023: ZMW 23.35 million loss).
Strategic Outlook:
Exploring alternative license areas in Rufunsa and Luano.
Establishing a gold trading centre in Mumbwa (launch
expected in 2026).
Plans to purchase gold from local miners and rene it into
bullion for offtake by the Bank of Zambia (BoZ).
Dividends: No dividend declared for the year (2023: Nil)
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
28
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
A Subsidiary Companies
Limestone Resources Limited
(LRL)
Limestone Resources Limited, formerly Ndola Lime Company, is engaged
in the production and supply of quicklime, hydrated lime, and other
specialized limestone products.
During 2024, LRL faced operational challenges, including:
Frequent plant failures and a lack of mobile mining equipment,
severely impacting production.
Shutdown of the sole operational kiln in May 2024 due to high material
losses and declining product quality resulting to sourcing products
from external suppliers to meet customer demand.
To address these challenges, a Techno-Economic Feasibility Study,
Market Analysis, and Business Plan were completed in 2024. A long-term
strategy has been developed and is pending approval in Q2 2025.
Financial Performance:
Revenue: ZMW 72.32 million (2023: ZMW 96.7 4million).
Net loss: ZMW 133.63 million (2023: ZMW 180.74 million).
Strategic Initiatives:
A working capital funding facility of US$4.4 million was provided
on 12
th
August, 2024, to support ongoing operational and nancial
requirements.
Implementation of a comprehensive restructuring plan to improve
operational and nancial performance.
Dividends: No dividend declared for the year (2023: Nil)
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
29
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
A Subsidiary Companies
Misenge Environmental
and Technical Services
Limited (METS)
Misenge Environmental and Technical Services Ltd (METS), a wholly owned
subsidiary of ZCCM-IH, provides environmental, analytical, radiation
safety, and engineering services to the mining and industrial sectors.
Financial Performance:
Revenue: ZMW 13.36 million (2023: ZMW 5.28 million).
Net loss: ZMW 3.78 million (2023: ZMW 0.93 million).
Strategy outlook:
The ZCCM-IH Board, in conjunction with the Misenge Board, has resolved
to dissolve Misenge Environmental and Technical Services Limited (METS)
and explore the integration of its key functions into ZCCM-IH to enhance
operational efciency and streamline service delivery.
Dividends: No dividend declared for the year (2023: Nil).
Kariba Minerals Limited
(KML)
Kariba Minerals Limited (KML), a subsidiary of ZCCM-IH, is a leading
producer of high-quality amethyst with a primary market in China and
India.
Operational Performance:
Amethyst production of 149.41 tonnes, exceeding budget by 10%.
High-grade amethyst output was 32% above budget.
Financial Performance:
Revenue: ZMW 49.86 million (2023: ZMW 29.87 million).
Net prot: ZMW 1.35 million (2023: ZMW 0.55 million).
Investment & Expansion:
The ZCCM-IH Board approved US$4.08 million for the Turnaround Plan,
funding among others:
Acquisition of mining equipment and vehicles.
Value addition, marketing, and geological exploration.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
30
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
A Subsidiary Companies
Kariba Minerals Limited
(KML)
Renewable Energy Initiative:
200KW solar plant commissioned in Mapatizya, reducing diesel
generator dependence.
Expansion to 400KW planned for 2025 to sustain wash plant
operations.
Dividends: No dividend declared for the year (2023: Nil)
Investrust Bank PLC On April 2, 2024 the Lusaka Securities Exchange (LuSE) and the Bank of
Zambia (BoZ) announced the suspension of trading of Investrust Bank Plc
and its takeover by BoZ due to insolvency.
As part of this process, BoZ terminated all shareholder interests in the bank,
leading to the subsequent delisting of Investrust from LuSE. Consequently,
ZCCM-IH no longer holds any shareholding or nancial interest in Investrust
Bank Plc.
Mushe Milling Company
Limited
Strategic Liquidation:
Mushe was deemed a non-strategic t under ZCCM-IH’s 2020-2026
strategic plan.
Liquidation proceedings commenced in July 2023.
Liquidation process is ongoing.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
31
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Maamba Energy Limited
(MEL)
Maamba Energy Limited (MEL) continued to demonstrate strong
nancial and operational performance in 2024.
Financial Performance:
Revenue for the year increased by 26% to ZMW6.32 billion
(US$241.78 million), compared to ZMW5.00 billion (US$243.69
million) in 2023.
Prot after tax stood at ZMW3.07 billion (US$117.45 million),
reecting an increase from ZMW2.57 billion (US$125.04 million)
in 2023.
The plant achieved record-high efciency, maintaining 100%
availability and a Plant Load Factor (PLF) of 99.95%.
Key Developments:
ZESCO, Zambia’s state-owned power utility, reached a
landmark settlement with Maamba Energy in 2022 to clear
outstanding arrears for power supplied. As of 31 December
2024, the outstanding balance from ZESCO was reduced to
US$210.02 million from US$323.18 million in 2023.
Maamba Energy Limited (MEL) successfully repaid the
outstanding project nance facility for the development of
the Phase 1 coal-red power plant, amounting to US$314.4
million. The repayment was completed during MEL’s nancial
year ending 31 March 2024, marking a notable milestone in
nancial restructuring.
On 14 August 2024, Maamba Energy Limited (MEL) ofcially
commenced construction of its 300 MW Phase II Power Plant
expansion project at a total cost of US$400 million. The Phase
II expansion will add 300 MW to MEL’s current capacity, effec-
tively doubling its total generation to 600 MW. This expansion
is critical to bolstering Zambia’s energy supply, supporting
industrial growth, and reducing reliance on energy imports.
The project is scheduled for completion by mid-2026, reinforc-
ing MEL’s commitment to sustainable power generation and
enhancing grid stability for the nation.
ZCCM-IH has committed US$50 million towards the Maamba
Energy Limited 300MW Phase II Project as part of its strategic
expansion plan.
The nancing structure includes US$35 million in equity and
US$15 million in debt. During the year ZCCM-IH disbursed US$5
million towards the project with the balance to be disbursed
in 2025. The debt portion has a tenor of 8.25 years, including
a 1.25-year moratorium during construction, with an interest
rate of 9% per annum.
Dividends: No dividends were declared for the year (2023: Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
32
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Mopani Copper Mines Plc Mopani Copper Mines continued its turnaround efforts under a
new strategic equity partnership, driving operational stability and
long-term investment.
Financial Performance:
Revenue for 2024 stood at ZMW16.36 billion (US$625.44 million),
compared to ZMW11.55 billion (US$562.87 million) in 2023.
Net prot increased to ZMW34.19 billion (US$1.31 billion), up
from ZMW8.97 billion (US$435.29 million) in 2023.
Copper production for the year was 63,610 tonnes, a decrease
from 65,602 tonnes in 2023, attributed to equipment availability
challenges and delayed mine development.
Key Developments, Strategic Partnership with IRH:
In March 2024, ZCCM-IH entered an equity partnership
with International Resources Holdings (IRH), a subsidiary of
International Holdings Company (IHC).
IRH, through Delta Mining Limited (Delta), acquired a 51%
stake in Mopani, while ZCCM-IH retained 49% ownership.
The agreement involved:
US$220 million equity injection into Mopani’s working
capital.
US$400 million additional investment over the next three
years under the Project Development Plan (PDP).
US$1.1 billion total investment, including a US$400 million
payment to Glencore to restructure Mopani’s US$1.71
billion historical debt.
Transformation Initiative:
A company-wide culture transformation initiative,
“TukaChimfya Pamo”, was introduced to promote
collaborative leadership and operational excellence.
Future Growth:
The PDP is expected to drive Mopani’s copper production
beyond 200,000 tonnes per year over the next 4–5 years.
Dividends: No dividends were declared for the year (2023: Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
33
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Konkola Copper Mines Plc
(KCM)
KCM successfully navigated a major legal and structural resolution in
2024, paving the way for investment and operational recovery.
Key Developments:
On 25 July 2024, the Lusaka High Court vacated the winding-up
petition, reinstating KCM’s Board of Directors and restoring full
management control to Vedanta Resources.
Investment Commitments:
Vedanta Resources pledged to invest US$1.2 billion over the next ve
years for:
Revamping mining operations
Expanding the Konkola Deep Mining Project (KDMP)
Enhancing copper production capacity
Vedanta provided US$250 million in working capital to clear
local supplier debts and stabilize operations.
A scheme of arrangement was implemented to restructure
liabilities and improve operational liquidity.
Financial Performance:
Recorded revenue of ZMW10.78 billion (US$412,15 million) Re-
corded prot for the year of ZMW12.15 billion (US$464.68 million)
Copper production for the period was 12,703 tonnes, a signi-
cant increase from 6,244 tonnes in 2023 attributed to improved
availability of equipment.
Dividends: No dividends were declared for the year (2023: Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
34
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Copperbelt Energy Corporation
Plc (CEC)
CEC Plc continued its strong nancial growth, driven by strategic
expansion in renewable energy and a successful Green Bond
program.
Financial Performance:
Revenue grew 43% to ZMW14.32 billion (US$547.65 million),
compared to ZMW7.85 billion (US$382.27 million) in 2023.
Prot after tax stood at ZMW2.53 billion (US$96.92 million) (2023:
ZMW2.83 billion (US$137.65 million)).
The CEC share price increased from ZMW7.09 to ZMW13.84 by
year-end.
Key Developments:
Expansion in Renewable Energy:
In 2024, CEC successfully commissioned the 60MWp Itimpi I Solar
PV Plant, which generated 95.3 GWh of renewable energy
during the year marking a key milestone in the Company’s
clean energy journey.
The CEC Board of Directors approved the development
of the 136MWp Itimpi II Solar PV Plant, with commissioning
anticipated in early 2026. Upon completion, this will increase
CEC Renewables’ total generation capacity to 230MWp,
further advancing the Company’s renewable energy targets.
During the year, CEC made its rst Green Bond coupon
payment of US$2.4 million and, in December 2024, issued the
second tranche of the Green Bond programme, raising US$96.7
million to nance the development of the Itimpi II project.
With this second issuance, the total capital raised under the
Green Bond Medium Term Note Programme has reached
US$150.27 million,
Green Bond Program:
Raised US$454 million in oversubscribed rst tranche of a US$200
million Green Bond Term Note Program.
The rst Green Bond coupon payment of US$2.4 million was
made in 2024.
Dividends: Declared US$60.12 million in dividends, with ZCCM-IH
receiving US$18.68 million (2023: US$14.59 million).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
35
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Mingomba Mining Limited
(MML)
Mingomba Mining Limited (MML) continued its exploration activi-
ties throughout 2024, with a focus on resource denition and feasi-
bility studies.
Financial Performance:
The company did not generate revenue during the year due to
its ongoing exploration phase.
Year-to-date expenditure stood at US$23.50 million, against a
budget of US$28.67 million.
The lower expenditure was primarily due to a slowdown in camp
construction, with most costs incurred related to architectural
design and early-stage infrastructure planning.
Exploration Progress:
Drilling Activities:
19 drill holes completed, covering a total of 55 km as of mid-
2024.
Geological assessments remained on track.
Resource Evaluation:
MML completed its rst resource statement in 2024, marking a
key milestone in dening the economic potential of the deposit.
Pre-feasibility studies are expected to conclude in 2025, further
informing development plans.
ZCCM-IH Investment Commitment:
ZCCM-IH contributed US$9.7 million in cash calls for the nancial
year 2024, in line with its shareholding obligations.
The Company will continue to participate in additional capital
contributions as per the approved Annual Budget for MML.
Dividends: No dividends were declared for the year (2023: Nil)
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
36
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
Rembrandt Properties
Limited
Rembrandt Properties Limited (Rembrandt) is a Special Purpose
Vehicle (SPV) established for the development and operation of the
Leopard’s Square Hotel.
Ownership Structure:
ZCCM-IH holds a 49% stake, alongside Urban Brands Asset Management
(25.5%) and Sims Capital Ltd (25.5%).
Financial Performance:
Revenue for 2024: ZMW18.79 million, up from ZMW14.77 million in
2023.
Net prot: ZMW3.69 million, compared to a net loss of ZMW2.47
million in 2023.
The positive nancial turnaround was driven by increased
operational efciency and service demand.
Construction Status and Developments:
The hotel project is 95% complete.
Operational Activities:
Despite the delay, Leopard’s Square Hotel has been operational
since Q2 2022, offering accommodation, conferencing, and dining
services.
Strategic Realignment:
On 10 September 2024, ZCCM-IH announced a call for expressions
of interest (EOI) to sell its 49% stake in Rembrandt.
The divestment is part of ZCCM-IH’s strategic refocus, which
prioritizes investments in mining, energy, and beneciation sectors.
Dividends: No dividends were declared during the year (2023: Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
37
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANYPORTFOLIO COMPANY 2024 PERFORMANCE REVIEW2024 PERFORMANCE REVIEW
B Associate Companies
Lubambe Copper Mine Limited Lubambe Copper Mine Limited reported total revenue of
ZMW3.90 billion (US$148.98 million) for the year ended 31 De-
cember 2024, representing a 78.1% increase from ZMW2.19
billion (US$106.59 million) in 2023. Despite the revenue growth,
the company recorded a net loss of ZMW2.71 billion (US$103.5
million), an improvement from the ZMW2.98 billion (US$144.94
million) loss in 2023.
Production Performance:
Lubambe produced 8,745 tonnes of payable copper in
2024, a signicant decline from 14,984 tonnes in 2023.
The lower output was attributed to operational challenges,
delayed mine development, and equipment availability is-
sues.
Production Performance:
Revenue for 2024 ZMW3.90 billion (148.98$ million) up from
ZMW2.52 billion (US$122.59 million).
Net loss in 2024 of ZMW2.71 billion (US$103.50 million) com-
pared to ZMW3.06 billion (US$148.86 million).
Strategic Ownership Changes & Investment:
On 10 July 2024, EMR Capital sold its 80% stake in Lubam-
be to JCHX Mining Management Company Limited (JCHX).
JCHX acquired this stake through its wholly owned subsidi-
ary, Sundimo Mining Investments Limited.
This change necessitated the renegotiation of the Share-
holders’ Agreement and commercial terms between ZC-
CM-IH and Sundimo.
JCHX announced a US$300 million investment commitment
aimed at improving operational efciency and extending
the mine’s life.
With JCHX now in control, Lubambe is undergoing a turn-
around strategy aimed at stabilizing production, optimizing
operations, and extending the mine life. The company ex-
pects further investment in mine development and infra-
structure to unlock its long-term value.
ZCCM-IH Increases Stake in Lubambe:
On 28 August 2024, ZCCM-IH acquired an additional 10%
shareholding for US$1, increasing its stake from 20% to 30%.
JCHX’s stake reduced from 80% to 70% following the trans-
action.
Dividends: No dividends were declared during the year (2023:
Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
38
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
B Associate Companies
CNMC Luanshya Copper
Mines Plc (CLM)
CNMC Luanshya Copper Mines Plc continued its core operations
in copper mining and exploration, with improved nancial and
production performance in 2024.
Financial Performance:
Total revenue: ZMW11.76 billion (US$449.59 million), reecting a
38.4% increase from ZMW8.49 billion (US$414.51 million) in 2023.
Net prot: ZMW3.92 billion (US$149.76 million), up from ZMW2.93
billion (US$142.71 million) in 2023.
The revenue increase was mainly driven by strong copper prices
and operational efciencies.
Production Performance:
Copper output in 2024: 25,293 tonnes, signicantly lower than
48,904 tonnes in 2023.
The decline was attributed to temporary operational constraints
and equipment maintenance.
Key Developments:
CLM announced a US$500 million investment to re-open the
old Luanshya Mine (“Shaft 28”), a key asset that has been non-
operational for over 22 years. The re-opening of Old Luanshya
Mine (“28 Shaft”) is expected to extend the LoM from 6 years to
25 years. 28 Shaft will ofcially be called Luanshya New Mine.
Luanshya New Mine has an estimated total life of 20 years
The mine dewatering process commenced, with a budget of
US$100 million allocated for this exercise.
As of 30 June 2024, 9 million cubic meters of water had been
pumped out into the Kafue River.
The dewatering process is expected to take between 18 to
24 months, paving the way for full-scale mining operations to
resume.
Dividends: Declared dividends of US$50 million, with US$10 million
paid to ZCCM-IH (2023: US$30 million was declared).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
39
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
C Other Investments
NFC Africa Mining Plc (NFCA) NFC Africa Mining Plc (NFCA) delivered a strong nancial
performance, driven by cost-cutting initiatives and favourable
copper prices.
Financial Performance:
Total revenue: ZMW15.87 billion (US$606.98 million), up from
ZMW12.8 billion (US$619.82 million) in 2023.
Net prot: ZMW3.25 billion (US$124.41 million), a 116.7%
increase from ZMW1.5 billion (US$76 million) in 2023.
Production Performance:
Copper production: 34,427 tonnes, down from 68,757 tonnes
in 2023.
Despite lower production, protability improved due to
higher copper prices and cost optimization measures.
Debt Management:
NFCA continues to operate under a high debt burden,
and the increase in US$-denominated lending rates has
signicantly raised interest costs.
Dividends: Declared dividends of US$10 million, with ZMW36.62
million (US$1.5 million) paid to ZCCM-IH (2023: Nil).
Chibuluma Mines Plc Chibuluma Mines Plc remained on lease to LC & Y as the mine’s
operational life has been depleted.
Financial Performance:
Royalty revenue: US$0.95 million, down from US$2.58 million in
2023.
Net prot: US$0.34 million, a decline from US$1.87 million in
2023.
Exploration Activities:
Chibuluma is exploring potential new mining areas and has
partnered with Kobold Metals (USA) to leverage Articial In-
telligence (AI) for enhanced mineral exploration.
Dividends: No dividends were declared during the year (2023:
Nil)
Chambishi Metals Plc Chambishi Metals remained under care and maintenance,
primarily due to a lack of feedstock and strategic operational
limitations.
Dividends: No dividends were declared during the year (2023:
Nil).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
40
OPERATIONS REPORT (continued)
Portfolio Performance Review (continued)
PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW
C Other Investments
Kansanshi Mining Plc
(Kansanshi)
Kansanshi Mining Plc continued its core operations in mining,
processing, and exploration of copper and gold in North
Western Province.
Key Developments:
The S3 Expansion Project is First Quantum Minerals (FQM)’s
primary focus.
Completion of the S3 expansion is scheduled for mid-2025,
extending the mine’s life by ve years to 2029.
ZESCO implemented 8-hour daily load shedding starting
March 11, 2024, affecting Kansanshi’s power supply.
FQM received a force majeure notice from ZESCO, allowing
it to source alternative power solutions.
Financial Performance:
Total revenue: ZMW53.61 billion (US$2.05 billion), which is
signicantly higher than ZMW32.30 billion (US$1.57 billion) in
2023.
Net prot: ZMW9.5 billion (US$362.23), which is signicantly
higher than ZMW343.83 million (US$16.75 million) in 2023.
Production Performance:
Copper production: 170,929 tonnes, 27% higher than 2023,
marking the highest production since 2021.
Gold production: 105,103 ounces, up 52% from 2023, driven
by selective mining of high-grade veins.
Royalty & Dividend Income:
Royalties received: ZMW1,425.67 million (US$54.51 million)
(2023: ZMW1,200 million (US$56.13 million)).
No dividends declared for 2024 (2023: US$9.05 million).
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
41
Directors’ responsibilities in respect of the preparation of
consolidated and separate annual nancial statements
The Companies Act, 2017 of Zambia requires the Directors to prepare the consolidated and company nancial
statements for each nancial year that give a true and fair view of the state of affairs of the Group and Company
as at the end of the nancial year and of its nancial performance. It also requires the Directors to ensure
that the Group and Company keeps proper accounting records that disclose, with reasonable accuracy, the
nancial position of the Group and Company. They are also responsible for safeguarding the assets of the Group
and Company. The Directors are further required to ensure the Group and Company adheres to the corporate
governance principles or practices contained in Sections 82 to 122 of Part VII of the Companies Act, 2017 of
Zambia.
The Directors accept responsibility for the consolidated and company nancial statements, which have been
prepared using appropriate accounting policies supported by reasonable estimates, in conformity with IFRS®
Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS
Accounting Standards), the requirements of the Companies Act 2017 of Zambia and the Securities Act of
Zambia.
The Directors further accept responsibility for the maintenance of accounting records that may be relied
upon in the preparation of consolidated and company nancial statements, and for such internal controls
as the Directors determine necessary to enable the preparation of the consolidated and company nancial
statements that are free from material misstatement whether due to fraud or error.
The Directors are of the opinion that the consolidated and company nancial statements set out on pages
50 to 195 give a true and fair view of the state of the nancial affairs of the Group and Company and of
its nancial performance in compliance with IFRS® Accounting Standards and its interpretations as issued
by the International Accounting Standards Board (IFRS Accounting Standards) and in compliance with the
requirements of the Companies Act of Zambia and the Securities Act of Zambia. The Directors further report that
they have implemented and further adhered to the corporate governance principles or practices contained in
Sections 82 to 122 of Part VII of the Companies Act, 2017 of Zambia.
Nothing has come to the attention of the Directors to indicate that the Group and Company will not remain a
going concern for at least twelve months from the date of these nancial statements.
Signed on behalf of the Board of Directors,
_______________________ _______________________
Mr Phesto Musonda Ms Masitala N Mushinga
Director Director
Date: 18 June 2025
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
42
Director
Masitala Mushinga
CEO
Kakenenwa Muyangwa
Jason Kazilimani, Jr
ZCCM-IH PLC MANAGEMENT REPORT ON INTERNAL CONTROLS
OVER REPORTING
Internal Controls over Financial Reporting and Accountability Compliance
The Securities Act requires SEC registrants to publish in the annual report the assessment of the Companies’
internal controls over nancial reporting (ICOFR). In pursuant of this requirement, the Company continues to
strengthen its internal control environment to ensure the reliability and integrity of its nancial reporting.
In line with ongoing engagements with the Securities and Exchange Commission, the Company has not included
the ICOFR reporting in the 2024 Annual Report. Instead, a comprehensive Gap Analysis Report will be submitted
by 30th June 2025, detailing identied deciencies within the current internal control framework and setting out
targeted remedial actions to strengthen control effectiveness across key nancial reporting processes.
Furthermore, the Company will continue to provide quarterly progress updates to the Commission on the
implementation status of the ICOFR framework, including the design, documentation, and operationalisation of
entity-level, IT general, and business process controls, consistent with the COSO 2013 principles.
These actions demonstrate the Company’s ongoing commitment to regulatory compliance, transparency, and
strong corporate governance.
Signed by
Chief Executive Ofcer Chief Financial Ofcer
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
43
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
44
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF ZCCM INVESTMENTS HOLDINGS PLC
Report on the audit of the consolidated and separate nancial statements
Opinion
We have audited the consolidated and separate nancial statements of ZCCM Investments Holdings Plc ("the
Group and Company") set out on pages 50 to 195, which comprise the consolidated and company statement
of nancial position as at 31 December 2024, and the consolidated and company statements of prot or
loss and other comprehensive income, consolidated and company changes in equity and consolidated and
company statements of cash ows for the year then ended, the notes to the nancial statements, and a
summary of material accounting policy information.
In our opinion, the accompanying consolidated and separate nancial statements give a true and fair view of
the consolidated and separate nancial position of ZCCM Investments Holdings Plc as at 31 December 2024,
and of its consolidated and company nancial performance and consolidated and separate cash ows for the
year then ended in accordance with IFRS® Accounting Standards as issued by the International Accounting
Standards Board (IFRS Accounting Standards) and in compliance with the requirements of the Companies Act
of Zambia and the Securities Act of Zambia.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's responsibilities for the Audit of the consolidated
and separate nancial statements section of our report. We are independent of the Group and Company in
accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for
Professional Accountants (including International Independence Standards) (IESBA Code) together with the
ethical requirements that are relevant to our audit of the consolidated and separate nancial statements in
Zambia, and we have fullled our other ethical responsibilities in accordance with these requirements and the
IESBA Code. We believe that the audit evidence we have obtained is sufcient and appropriate to provide a
basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most signicance in our audit
of the consolidated and separate nancial statements of the current period. These matters were addressed in
the context of our audit of the consolidated and separate nancial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
45
Valuation of investments in subsidiaries and associates
Only applicable to the separate nancial statements.
Refer to note 4: Use of estimates and judgments, note 22: Investment in subsidiaries, note 23 (c): Investment in
associates and note 45(a)(ii): Subsidiaries and note 45(a)(v) : Interest in equity accounted investees.
Key audit matter How the matter was addressed in our audit
The Company recognises its investments in
subsidiaries and associates at fair value through
other comprehensive income (FVTOCI). As at 31
December 2024 these balances amounted to ZMW
191,501,000 and ZMW 34,452,165,000 respectively.
Management utilised a valuation expert to
determine the fair value of its investments.
Management exercises signicant judgement when
determining the valuation inputs utilised to value its
level 3 investments. The approach could either be
the discounted cash ows, relative valuation or net
asset values depending on the industry, life cycle
and comparability of the investee’s business to
other similar listed companies.
The key inputs and assumptions involving
signicant estimation judgement and having the
most signicant impact on the fair value of the
investments is the:
• Valuation technique used - Discounted cash
ow/or relative valuation
• Weighted average cost of capital (WACC)
• Market risk premium
• Future cash ows
This was an area of focus and considered a key audit
matter due to the signicant complexity, estimation
and judgement applied by management in
the valuation of investments in subsidiaries and
associates.
The following procedures were performed:
• We assessed the competence, independence and
experience of management’s expert by inspecting
their qualications and experience obtained in
performing valuations of a similar nature.
• We evaluated the reasonableness of the future
cash ows used in the computation by comparing
the values used to actual results.
• We evaluated the design, implementation and
operating effectiveness of relevant key controls
relating to management’s review of the valuation
expert’s fair valuation report.
• With the assistance of our internal valuation
specialists:
We challenged the approach employed
by management’s appointed expert for the
discounted cash ow, including assessing the
reasonableness of the weighted average cost
of capital and market risk premiums used by
comparing it to external data;
We assessed comparability of companies
used where the relative valuation technique
was utilised for reasonableness by evaluating
whether industry and risk proles were similar;
We recalculated the fair value of investments
in subsidiaries and associates and compared
it to management’s valuation expert’s
calculation.
• We assessed the adequacy of the disclosures
in the separate nancial statements, related to
the valuation of investments in subsidiaries and
associates by comparing the notes to the separate
nancial statements to the valuation reports and
assessing against the requirements of IFRS 13.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
46
Valuation of nancial assets at fair value through prot or loss
Applicable to both consolidated and separate nancial statements.
Refer to note 4: use of estimates and judgement, note 24: Financial assets at fair value through prot and loss
and note 45(d) : Financial instruments.
Key audit matter How the matter was addressed in our audit
The Group and Company recognises its nancial
assets at fair value through prot or loss (FVTPL). As at
December 2024 these balances amounted to ZMW
2,741,000,000 for the consolidated and separate
nancial statements.
Management utilised a valuation expert to determine
the fair value of its nancial assets.
Management exercises signicant judgement when
determining the valuation inputs utilised to value its
level 3 investments. The approach used can either
be the discounted cash ows, relative valuation or
net asset values depending on the industry, life cycle
and comparability of the investee’s business to other
similar listed companies.
The key inputs and assumptions involving signicant
estimation judgement and having the most signicant
impact on the fair value of the investments is the:
• Valuation technique used: Discounted cash ow
and relative valuation
• Weighted average cost of capital (WACC)
• Market risk premium
• Future cash ows
This was an area of focus and considered a key audit
matter due to the signicant complexity, estimation
and judgement applied by management in the
valuation of nancial assets at fair valuation through
prot or loss.
The following procedures were performed:
We assessed the competence, independence and
experience of management’s expert by inspecting
their qualications and experience obtained in
performing valuations of a similar nature.
We evaluated the reasonableness of the future cash
ows used in the computation by comparing the
values used to actual results.
We evaluated the design, implementation and
operating effectiveness of relevant key controls
relating to management’s review of the valuation
expert’s fair valuation report.
We evaluated the arithmetic accuracy of the data
used in the valuation calculations by performing a roll
forward reconciliation.
With the assistance of our internal valuation specialists:
• We challenged the approach employed by
management’s appointed expert, including
assessing the reasonableness of the weighted
average cost of capital and market risk premiums
used by comparing it to external data;
• We recalculated the fair value of nancial assets
at fair value through prot or loss by establishing
a company’s relative positioning among peer
companies through the relative valuation
approach for associates and compared the results
to management’s valuation expert’s calculation.
We assessed the adequacy of the disclosures in the
consolidated and separate nancial statements
related to the valuation of the investments in
accordance with IFRS 13 by comparing the notes to
the nancial statements to the valuation reports.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
47
Valuation of the royalty right interest
Applicable to both consolidated and separate nancial statements.
Refer to note 4:use of estimates and judgement, note 19 Intangible assets and 45(g) Intangible assets.
Key audit matter How the matter was addressed in our audit
The Group and Company recognised its royalty right
as ZMW 19,909,353,000.
Management utilised a valuation expert to determine
the fair value of its royalty right.
Management exercises signicant judgement when
determining the valuation inputs utilised to value
its level 3 investments. The approach used is the
discounted cash ows (DCF).
The key inputs and assumptions involving signicant
estimation judgement and having the most signicant
impact on the fair value of the royalty right interest is
the:
- Valuation technique used being the DCF
- Weighted average cost of capital (WACC)
- Future cash ows
This was an area of focus and considered a key audit
matter due to the signicant complexity, estimation
and judgement applied by management in the
valuation of the royalty right.
The following procedures were performed:
We assessed the competence, independence and
experience of management’s expert by inspecting
their qualications and experience obtained in
performing valuations of a similar nature.
We evaluated the reasonableness of the future cash
ows used in the computation by comparing the
values used to actual results.
We evaluated the design, implementation and
operating effectiveness of relevant key controls
relating to management’s review of the valuation
expert’s fair valuation report.
With the assistance of our internal valuation specialists:
• We challenged the approach employed by
management’s appointed expert, including
assessing the reasonableness of the WACC used
by comparing it to external data;
• We recalculated the fair value of royalty right
interest and compared it to management’s
valuation expert’s calculation.
We assessed the adequacy of the disclosures in the
consolidated and separate nancial statements
related to the valuation of investments in accordance
with IFRS 13, Fair value measurement by comparing
the notes to the nancial statements to the valuation
reports.
Other information
The directors are responsible for the other information. The other information comprises the information included in
the document titled “ZCCM Investments Holdings Plc Integrated Annual Report for the year ended 31 December
2024” which includes the Report of the Directors of the consolidated and separate nancial statements as
required by the Companies Act of Zambia. The other information does not include the consolidated and
separate nancial statements and our auditor's report thereon.
Our opinion on the consolidated and separate nancial statements does not cover the other information and
we do not express an audit opinion or any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate nancial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated and separate nancial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this
regard.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
48
Responsibilities of the directors for the consolidated and separate nancial statements
The directors are responsible for the preparation of consolidated and separate nancial statements that give
a true and fair view in accordance with IFRS® Accounting Standards as issued by the International Accounting
Standards Board (IFRS Accounting Standards) and in compliance with the requirements of the Companies Act
of Zambia and the Securities Act of Zambia, and for such internal control as the directors determine is necessary
to enable the preparation of consolidated and separate nancial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated and separate nancial statements, the directors are responsible for assessing the
Group's and Company's ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either intend to liquidate
the Group and/or Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the consolidated and separate nancial statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate nancial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to inuence the economic decisions of users taken on the basis of these
consolidated and separate nancial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate nancial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufcient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group's and Company's internal controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast signicant doubt on the Group and Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to
the related disclosures in the consolidated and separate nancial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor's report. However, future events or conditions may cause the Group and/or Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate nancial
statements, including the disclosures, and whether the consolidated and separate nancial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufcient appropriate audit evidence, regarding the nancial
information of the entities or business units within the group, as a basis for forming an opinion on the
group nancial statements. We are responsible for the direction, supervision and review of the audit work
performed for the purposes of the group audit. We remain solely responsible for our audit opinion.
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
49
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and signicant audit ndings, including any signicant deciencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most signicance
in the audit of the consolidated and separate nancial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benets of such communication.
Report on other legal and regulatory requirements
Companies Act of Zambia
In accordance with Section 259 (3) (a) of the Companies Act of Zambia (the Act), we consider and report that:
• there is no relationship, interest or debt we have with the Company; and
• there were no serious breaches of corporate governance principles or practices by the directors as dened
by the guidelines on serious breaches of corporate governance issued by the Zambia Institute of Chartered
Accountants.
Securities Act of Zambia
In accordance with Rule 18 of the Securities (Accounting and Financial Reporting Requirements) Rules (SEC
Rules), Statutory Instrument No.163 of 1993, we consider and report that:
• The consolidated and separate statements of nancial position and consolidated and separate statements
of prot or loss and other comprehensive income were in agreement with the accounting records; and
• We have obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purposes of our audit.
KPMG Chartered Accountants 20 June 2025
Jason Kazilimani, Jr AUD/F000336
Partner signing on behalf of the rm
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
50
Director
Masitala Mushinga
CEO
Kakenenwa Muyangwa
Jason Kazilimani, Jr
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
31 December 31 December
2024 2023
Note ZMW’000 ZMW’000
Assets
Property, plant and equipment 17 406,123 248,857
Exploration and evaluation asset 18 15,431 51,437
Intangible assets 19 19,987,739 14,393,945
Investment property 20 205,891 208,598
Investment in associates 23 24,404,820 10,090,940
Financial assets at fair value through prot or loss 24 2,741,000 3,019,500
Trade and other receivables 26 2,553,051 1,628,837
Environmental protection fund 27 369 7,060
Long term bonds 29 329,525 -
Total non-current assets 50,643,949 29,649,174
Inventories 25 32,536 38,299
Trade and other receivables 26 969,708 339,169
Short term deposits 29 5,015,626 4,450,451
Burden costs for mining 28 6,599 -
Cash and cash equivalents 30 525,685 360,356
Assets classied as held for sale 21(ii) 92,140 23,626,388
Total current assets 6,642,294 28,814,663
Total assets 57,286,243 58,463,837
Equity
Share capital 33(i) 1,608 1,608
Share premium 33(iii) 2,089,343 2,089,343
Other reserves 27,214,750 8,861,258
Retained earnings 22,920,994 (16,468,059 )
Equity attributable to shareholders 52,226,695 (5,515,850 )
Non-controlling interest 22(c) 37,016 (174,784 )
Total equity 52,263,711 (5,690,634 )
Liabilities
Borrowings 35 2,808,418 -
Deferred tax liability 36 296,134 751,833
Retirement benets 37 17,373 17,381
Provisions for environmental rehabilitation 38 245,810 112,751
Total non-current liabilities 3,367,735 881,965
Borrowings 35 538,449 -
Trade and other payables 31 179,602 312,756
Provisions 32 49,671 44,243
Current income tax liabilities 14 872,770 238,553
Liabilities directly associated with assets classied as held for sale 21(ii) 14,305 62,676,954
Total current liabilities 1,654,797
Total liabilities 5,022,532 64,154,471
Total equity and liabilities 57,286,243 58,463,837
The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements.
he consolidated nancial statements were approved and authorised for issue by the Board of Directors on
18 June 2025 and signed on its behalf by:
………………………........……. ……………………….......…
Mr Kakenenwa Muyangwa Ms Masitala N Mushinga
Director Director
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
51
Director
Masitala Mushinga
CEO
Kakenenwa Muyangwa
Jason Kazilimani, Jr
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
31 December
2024
31 December
2023
Note ZMW’000 ZMW’000
Assets
Property, plant and equipment 17
143,625 110,624
Intangible assets 19
19,909,353 14,260,690
Investment property 20
205,891 208,598
Investments in subsidiaries 22
191,501 282,384
Investment in associates 23 34,452,165 11,240,080
Financial assets at fair value through prot or loss 24
2,741,000 3,019,500
Long term bonds 29
329,525 -
Trade and other receivables 26 2,699,139 4,586,471
Total non-current assets 60,672,199 33,708,347
Trade and other receivables 26 921,676 288,268
Short term deposits 29
5,015,626 4,411,330
Cash and cash equivalents 30 221,736 61,137
6,159,038 4,760,735
Assets classied as held for sale 73,588 -
Total current assets 6,232,626 4,760,735
Total assets 66,904,825 38,469,082
Equity
Share capital 35
1,608 1,608
Share premium 36
2,089,343 2,089,343
Other reserves 37 53,320,199 23,821,722
Retained earnings 38 6,881,393 11,509,346
Equity attributable to shareholders 62,292,543 37,422,019
Liabilities
Borrowings 35
2,808,418 -
Deferred income tax liability 36
175,810 618,059
Retirement benet obligations 37 17,373 17,381
Provisions for environmental rehabilitation 38 71,289 54,498
Total Non-current liabilities 3,072,890 689,938R
Borrowings 35
538,449 -
Trade and other payables 31 103,133 78,288
Provisions 32 25,551 41,461
Current income tax liabilities 14 872,259 237,376
Total Current liabilities 1,539,392 357,125
Total liabilities 4,612,282 1,047,063
Total equity and liabilities 66,904,825 38,469,082
The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements.
The Company nancial statements were approved and authorised for issue by the Board of Directors on
18 June 2025 and signed on its behalf by:
……………………………........ ……………….........………
Mr Kakenenwa Muyangwa Ms Masitala N Mushinga
Director Director
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
52
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
31 December
2024
31 December
2023
Note ZMW’000 ZMW’000
Continuing operations
Revenue from contracts with customers 7 3,208,963 11,747,105
Cost of sales 11 (3,695,521 ) (15,306,333 )
Gross loss (486,558 ) (3,559,228 )
Net investment income 8 1,668,192 1,388,863
Other income 9 34,233,364 243,727
Fair value adjustment on nancial assets at fair value through prot
or loss
24 (278,500 ) 1,767,100
Net impairment losses on nancial assets 10 (26,949 ) (80,165 )
Administration expenses 11 (6,860,387 (1,865,261 )
Operating prot/(loss) 28,249,162 (2,104,964 )
Finance income 13 1,091,873 2,212,694
Finance costs 13 (1,750,369 ) (4,480,532 )
Net nance costs 13 (658,496 ) (2,267,838 )
Gain on reclassication of investee company 21(iv) 8,588,986 -
Gain on derecognition of subsidiary 21(iii)/22(d) 910,428 -
Share of prot or loss of equity-accounted investees, net of tax 23(a) 3,327,837 2,261,209
Prot/(loss) before income tax 40,417,917 (2,111,593 )
Income tax expense 14 (567,486 ) (1,206,049 )
Prot/(loss) for the year from continuous operations 39,850,431 (3,317,642 )
Loss from discontinued operations 21(iii)/22(c) (3,780 ) (758,181 )
Prot/(loss) for the year 39,846,651 (4,075,823 )
Other comprehensive income
Items that will never be reclassied to prot or loss
Revaluation surplus on transfer of property, plant and equipment 17 - 3,794
Deferred income tax on revaluation reserve 36 221 221
Remeasurements of post-employment benet obligations 37 (2,305 ) 24,134
Deferred income tax on remeasurements of post-employment
benet obligations
36 692 2,944
Equity-accounted investees- share of other comprehensive
income
23 (1,558 ) 11,529
Fair value change in equity 35 714,181 -
Fair value change on royalty right 19 6,272,769 3,586,824
Items that are or may be reclassied to prot or loss
Foreign currency translation differences - equity - accounted
investees
23(a) 10,922,393 3,907,834
Foreign currency translation differences- subsidiaries 34 444,665 (16,437,514 )
Other comprehensive income, net of tax 18,351,058 (8,900,234 )
Total comprehensive income 58,197,709 (12,976,057 )
Prot/(loss) attributable to:
Owners of the Company 39,887,820 (3,847,544 )
Non-controlling interests 22(c) (41,169 ) (228,279 )
Total comprehensive income attributable to:
Owners of the Company 58,238,878 (12,747,778 )
Non-controlling interests 22(c) (41,169 ) (228,279 )
Earnings per share
Basic and diluted earnings per share (ZMW) 15 247.80 (25.35 )
Earnings per share- continuing operations
Basic and diluted earnings per share (ZMW) 15 247.83 (20.63 )
Earnings per share- discontinuing operations
Basic and diluted earnings per share (ZMW) 15 (0.02 ) (4.72 )
The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
53
COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
31 December
2024
31 December
2023
Note ZMW’000 ZMW’000
Investment income 8 2,418,221 2,128,699
Revenue from contracts with customers 7 - 23,180
Cost of sales related to revenue from contracts with customer 11 - (16,878)
Other (expenses)/ income 9 (4,651,873) 42,300
Fair value adjustment on nancial asset at fair value through prot
or loss 24 (278,500) 1,767,100
Net impairment losses on nancial assets 10 (265,126) (83,055)
Administration expenses 11 (1,387,894) (794,148)
Operating (loss)/ prot (4,165,172) 3,067,198
Finance income 13 1,022,734 2,980,430
Finance costs 13 (661,087) (1,115)
Net nance income 13 361,647 2,979,315
(Loss)/prot before tax (3,803,525) 6,046,513
Income tax expense 14 (580,188) (1,205,034)
(Loss)/prot for the year (4,383,713) 4,841,479
Other comprehensive income
Items that will never be reclassied to prot or loss
Deferred income tax on revaluation reserve 36 221 221
Remeasurements of post-employment benet obligations 37 (2,305) (9,813)
Deferred income tax on remeasurements of post-employment
benet obligations 36 692 2,944
Fair value change in investments in subsidiaries 22 (173,782) (464,207)
Fair value change in investments in associates 23 22,685,093 5,508,327
Fair value change in assets held for sale 732 -
Fair value change in equity 35 714,181 -
Fair value change on royalty right 19 6,272,769 3,586,824
Other comprehensive income, net of tax 29,497,601 8,624,296
Total comprehensive income 25,113,888
13,465,775
Earnings per share
Basic and diluted earnings per share (ZMW) (27.26) 30.11
The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
54
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Other reserves
ZMW’000 Note
Share
capital
Share
premium
Revaluation
reserve
Translation/
fair value
reserve
Non-
controlling
interests
Retained
earnings Total
Balance at 1 January 2023 1,608 2,089,343 278,698 17,522,138 (46,729 )
(11,936,251 ) 7,908,807
Loss for the year - - - - (228,279 )
(3,847,544 ) (4,075,823 )
Other comprehensive income
Currency translation – equity accounted investees 23(a) - - - 3,907,834 - - 3,907,834
Currency translation of foreign denominated subsidiaries 34(ii) - - - (16,437,514 ) - - (16,437,514 )
Revaluation surplus - - 3,794 - - - 3,794
Transfer of excess depreciation - - (737 ) - - 737 -
Deferred tax on transfer of excess depreciation 36 - - 221 - - - 221
Fair value change on royalty right 19 - - - 3,586,824 - - 3,586,824
Remeasurements of post-employment benet obligations 37 - - - - - 24,134 24,134
Share of associates other comprehensive income 23(a) - - - - -
Deferred tax on remeasurements of post-employment benet obligations 36 - - - - - 2,944 2,944
Total comprehensive income - - 3,278 (8,942,856 ) (228,279 ) (3,808,200 ) (12,976,057 )
Transaction with owners of the Company – Distributions
Dividends - - - - - (723,608 ) (723,608 )
Derecognition - - - - 733
- - - - 99,491
-
99,491
Balance at 31 December 2023 1,608 2,089,343 281,976 8,579,282 (174,784 )
(16,468,059 )
(5,690,634 )
Balance at 1 January 2024 1,608 2,089,343 281,976 8,579,282 (174,784 ) (16,468,059 ) (5,690,634 )
(Loss)/prot for the year - - - - (41,169 ) 39,887,820 39,846,651
Other comprehensive income
Currency translation – equity accounted investees 23(a) - - - 10,922,393 - - 10,922,393
Currency translation of foreign denominated subsidiaries
34(ii) - - - 444,665 - - 444,665
Transfer of excess depreciation - - (737 ) - - 737 -
Fair value change on royalty right 19 - - - 6,272,769 - - 6,272,769
Remeasurements of post-employment benet obligations 37 - - - - - (2,305 ) (2,305 )
Deferred tax on transfer of excess depreciation 36 - - 221 - - - 221
Fair value change in equity 35 - - 714,181 - - - 714,181
Share of associates other comprehensive income 23(a) - - - - - (1,558 ) (1,558 )
Deferred tax on remeasurements of post-employment benet obligations 36 - - - - - 692 692
Total comprehensive income - - 713,665 17,639,827 (41,169 ) 39,885,386 58,197,709
Transaction with owners of the Company – Distributions
Dividends - - - - - (243,364 ) (243,364 )
Derecognition of NCI In Investrust Bank Plc
22(c)
Balance at 31 December 2024 1,608 2,089,343 995,641 26,219,109 37,016 22,920,994 52,263,711
Retained earnings are the brought forward recognised income, net of expenses, of the Group plus current period prot or loss attributable to shareholders.
The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
55
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Other Reserves
Note Share
capital
Share
Premium
Revaluation
reserve
Fair value
reserve
Retained
earnings
Total
ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000
Balance at 1 January 2023 1,608 2,089,343 29,484 15,161,810 7,397,607 24,679,852
Prot for the year - - - - 4,841,479 4,841,479
Other comprehensive income
Transfer of excess depreciation - - (737) - 737 -
Deferred tax on transfer of excess depreciation 36 - - 221 - - 221
Change in fair value of investments in subsidiaries 21/22 - - - (464,207) - (464,207)
Change in fair value of investments in associates 23 - - - 5,508,327 - 5,508,327
Remeasurements of post-employment benet obligations 37 - - - - (9,813) (9,813)
Fair value change on royalty right
19
- - -
3,586,824
- 3,586,824
Deferred income tax on remeasurements of post-employment benet obligations 36 - - - - 2,944 2,944
Total comprehensive income - - (516) 8,630,944 4,835,347 13,465,775
Transactions with owners of the Company – distributions
Dividends - - - - (723,608) (723,608)
Balance at 31 December 2023 1,608 2,089,343 28,968 23,792,754 11,509,346 37,422,019
Balance at 1 January 2024 1,608 2,089,343 28,968 23,792,754 11,509,346 37,422,019
Loss for the year - - - - (4,383,713) (4,383,713)
Other comprehensive income
Transfer of excess depreciation - - (737) - 737 -
Deferred tax on transfer of excess depreciation 36 - - 221 - - 221
Change in fair value of investments in subsidiaries 21/22 - - - (173,782) - (173,782)
Change in fair value of investments in associates 23 - - - 22,685,093 - 22,685,093
Remeasurements of post-employment benet obligations
37 - - - - (2,305) (2,305)
Fair value change on royalty right 19 - - - 6,272,769 - 6,272,769
Fair value change in equity - - 714,181 - - 714,181
Fair value change in assets held for sale 21 - - - 732 - 732
Deferred income tax on remeasurements of post-employment benet obligations 36 - - - - 692 692
Total comprehensive income - - 713,665 28,784,812 (4,384,589) 25,113,888
Transactions with owners of the Company – distributions
Dividends - - - - (243,364) (243,364)
Balance at 31 December 2024 1,608 2,089,343 742,633 52,577,566 6,881,393 62,292,543
Retained earnings are the carried forward recognised income, net of expenses, of the Company plus current period prot or loss attributable to shareholders.
The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
56
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
Notes
31 December
2024
ZMW’000
31 December
2023
ZMW’000
Cash ows from operating activities
Prot/(loss) before tax from continuing operations 40,417,917 (2,111,593 )
Loss before tax from discontinued operations 21(iii) (3,780 ) (758,181 )
Adjustments for:
Depreciation 17 52,702 1,783,108
Amortisation of intangible assets 19 628,841 389,366
Gain on disposal of property, plant and equipment 9 (644 ) (233 )
Interest income from related parties and term deposits 8,13 (456,276 ) (211,452 )
Interest expense 13 1,288,381 4,037,815
Impairment of assets – PPE 17/18 37,171 44
Impairment of Intangible assets 66,561 -
Net impairment losses on nancial assets 10 26,949 80,165
Impairment of investment in associates 23 4,461,755 -
Mopani investment expense 35 3,859,125 -
Exchange difference on borrowings 35 299,520 -
Other Income from Mopani loan modication 9 (38,881,600 ) -
Gain on derecognition of subsidiaries net liabilities 21/22 (9,499,414 ) (19,366 )
Change in fair value on nancial assets at fair value through prot or loss 24 278,500 (1,767,100 )
Fair value change on investment property 20 (16,654 ) (22,521 )
Dened benets expense 37 4,861 36,853
Movement in provision for environmental rehabilitation 38 39,320 39,822
Other provisions charged to income statement 32 7,761 (67,015 )
Share of prot of equity – accounted investees, net of tax 23 (3,327,837 ) (2,261,209 )
Unrealised foreign currency gain on cash held (15,303 ) (4,271 )
(732,144 ) (855,768 )
Change in:
Inventories 5,763 1,393,938
Trade and other receivables (1,265,079 ) (98,657 )
Trade and other payables (133,486 ) (414,818 )
Assets and liabilities held for sale 4,531,119 1,008,129
Burden costs for mining (6,599 ) -
Environmental Protection Fund 6,691 (17,322 )
Cash generated from operating activities 2,406,265 1,015,502
Interest paid 35 (318,038 ) -
Tax paid 14 (389,277 ) (279,789 )
Retirement benets paid 37 (7,174 ) (11,078 )
Dividends paid (243,032 ) (808,362 )
Net cash inow/(outow) from operating activities 1,448,744 (83,727 )
Cash ows from investing activities
Interest received 8,13 139,653 198,637
Dividend received 23 750,029 739,836
Acquisition of property and equipment 17 (113,895 ) (754,113 )
Acquisition of intangible assets 19 (16,455 ) (221 )
Proceeds on disposal of property, plant and equipment 729 233
Acquisition of investment property 20 (849 ) -
Acquisition of investments in associates 23(a) (566,340 ) (540,849 )
Proceeds from term deposits 29 4,450,451 5,340,202
Investments in term deposits 29 (5,345,151 ) (4,450,451 )
Net cash (used in)/generated from investing activities (701,828 ) 533,274
Cash ows from nancing activities
Minority equity nance 22 - 99,491
Proceeds from borrowings 35 1,162,139 128,733
Repayment of borrowings 35 (1,282,155 ) (436,036 )
Net cash used in nancing activities (120,016 ) (207,812 )
Net increase in cash and cash equivalents 626,900 241,735
Effects of translation of cash and cash equivalents (1,220 ) (281,464 )
Effect of movement in exchange rates on cash held 16,523 4,271
Cash and cash equivalents at 1 January (116,518 ) (81,060 )
Cash and cash equivalents at 31 December 30 525,685 (116,518 )
Included in the statement of nancial position 506,028 360,356
Included in assets held for sale 21 19,657 (476,874 )
Cash and cash equivalent at 31 December 525,685 (116,518 )
The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
57
COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
31 December
2024
ZMW’000
31 December
2023
ZMW’000
Cash ows from operating activities
(Loss)/prot before tax (3,803,525) 6,046,513
Adjustments for:
Depreciation 17 12,867 11,276
Amortisation of intangible assets 19 628,765 365,658
Gain on disposal of property, plant and equipment 9 (644) (233)
Fair value changes of nancial assets at fair value through prot or loss 24 278,500 (1,767,100)
Net impairment losses on nancial assets 10 265,126 83,055
Dened benets expense 37 4,861 2,619
Fair value change on investment property 20 (16,654) (22,521)
Mopani investment expense 35 3,859,125 -
Interest expense 35
340,457 -
Exchange difference on borrowings 35
299,520 -
Interest receivable on loan and held to maturity investments 13,8 (510,201) (434,433)
Dividend income 8 (786,652) (739,836)
Royalty income 8 (1,425,969) (1,201,395)
Provision for environmental rehabilitation charged to the income statement 38 16,791 15,141
Other provisions charged to income statement 32 (15,910) (67,225)
Unrealised foreign currency gain on cash held (16,523) (4,271)
(870,066) 2,287,248
Change in:
Inventory - 16,427
Trade and other receivables
1,837,444 (3,440,758)
Trade and other payables 24,513 42,037
Assets held for sale (39,348) -
Cash used in operating activities 234,410 (1,095,046)
Interest paid 35 (318,038) -
Tax paid 14 (386,641) (276,626)
Dividends received 833,556 801,139
Dividends paid (243,032) (808,362)
Royalty received 1,221,882 1,014,511
Retirement benet paid 37 (7,174) (4,326)
Net cash generated/(used in) from operating activities 1,334,963 (368,710)
Cash ows from investing activities
Interest received
536,871 198,637
Acquisition of property, plant and equipment 17
(25,743) (16,755)
Acquisition of intangible assets 19
(4,659) (147)
Acquisition of investment property 20 (849) -
Proceeds on disposal of property, plant and equipment 729 233
Proceeds from term deposits 29 4,411,330 5,340,202
Acquisition of investments in subsidiaries 22 (116,407) (190,001)
Acquisition of investments in associates 23(a) (566,340) (540,849)
Acquisition of assets held for sale 39,348 -
Investments in term deposits 29 (5,345,151) (4,411,330)
Net cash ows (used in)/generated from investing activities (1,070,871) 379,990
Cash ows from nancing activities
Borrowings 35 1,162,139 -
Repayment of borrowings 35 (1,282,155) -
Net cash used in nancing activities (120,016) -
Increase in cash and cash equivalents 144,076 11,280
Effect of movement in exchange rates on cash held 16,523 4,271
Cash and cash equivalents at 1 January 61,137 45,586
Cash and cash equivalents at 31 December 30
221,736 61,137
The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
58
NOTES TO THE FINANCIAL STATEMENTS
in thousands of Kwacha
1 Reporting entity
registered office is at Stand No. 16806, Alick Nkhata Road, Mass Media Complex Area, P.O Box 30048,
in associates (together referred to as the ‘Group’). The principal activity of the Company is to manage
the Zambian Government’s stake in the mining sector, as the Zambian Government through the Industrial
Development Corporation (IDC), is the principal shareholder of the Company.
The Company’s shares are listed on the Lusaka Securities Exchange (LuSE), the London Stock Exchange
and Euronext.
2 Basis of preparation
TThe consolidated and company financial statements are prepared in compliance with IFRS®
Accounting Standards and its interpretations as issued by the International Accounting Standards Board
(IFRS Accounting Standards). The measurement basis applied is the historical cost basis, except where
otherwise stated in the accounting policies below. The Consolidated and company financial statements
are presented in Zambian Kwacha (ZMW), rounded to the nearest thousand. In accordance with the
Company’s Act. 2017 of Zambia and Securities’ Act of Zambia, the financial statements for the year
ended 31 December 2024 have been approved for issue by the Directors. Reference to “financial
statements” in this report refers to the Consolidated financial statements.
The preparation of annual consolidated and company financial statements in conformity with IFRS
Accounting Standards requires the use of estimates and assumptions. It also requires the Directors to
exercise judgement in the process of applying the Group’s accounting policies. The areas involving
higher degree of judgement or complexity, or where assumptions and estimates are significant to the
consolidated and company financial statements are disclosed in Note 4.
Certain comparative information has been reclassified to conform to the current year's presentation.
Going concern assumption
These financial statements have been prepared on a going concern basis.
The Directors have considered the Group and Company’s financial position, cash flow forecasts, and
available financing facilities, and are satisfied that the Group and Company have adequate resources
to continue in operational existence for the foreseeable future, being at least 12 months from the date of
approval of the financial statements.
Accordingly, the financial statements have been prepared on a going concern basis. In forming their
view, the Directors have assumed that operations will continue in the normal course of business, and
that the Group and Company will be able to realise their assets and discharge their liabilities, including
contractual obligations, as they fall due.
3 Functional and presentation currency
These Group and Company financial statements are presented in Zambian Kwacha. The functional
currency for the Company is Zambian Kwacha. All amounts presented in Kwacha have been rounded to
the nearest thousand, unless otherwise indicated.
Several of the Company’s equity investments prepare financial statements in US Dollars, which is their
functional currency, due to the nature of the industry in which they operate. This has resulted in a foreign
currency translation reserve at the Group level. More detail is included in notes 22 and 23.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
59
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
4 Use of estimates and judgements
In preparing these financial statements, management has made judgements, estimates and assumptions
that affect the application of the Group’s and Company’s accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively.
(a) Judgements
Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the consolidated and company financial statements are
included in:
Note 19, 22, 23 and 24 – Determining the fair values of investment in subsidiaries, associates, royalty
right and financial assets at fair value through profit or loss based on of significant unobservable
inputs.
Valuation of the Group and Company’s unquoted investments is an area of judgement which
involves the use of significant estimates and assumptions. Management uses various valuation
techniques when determining the fair values of unquoted investee companies whose outcome is
dependent on several significant unobservable inputs and assumptions as disclosed under Note
19, 22, 23 and 24.
Note 45 (a) v – consolidation: whether the Company has significant influence over an investee or
de facto control over an investee.
Management has reassessed its involvement in Rembrandt Properties Limited (49%) in accordance
with IFRS 10’s control definition and guidance. It has concluded that the Company has significant
influence but not outright control. In making its judgement, management considered the following:
• Company’s voting rights – the Company’s voting rights are limited to 49% but in relation to
the dispersion of the voting rights held by other shareholders the Company has a significant
right; and
• Relative size – in relation to the extent of recent participation by those shareholders in general
meetings, the Company is deemed to have significant influence over the investees.
Further, management has reassessed its involvement in Mopani Copper Mine Plc (49%)
in accordance with IFRS 10’s control definition and guidance. It has concluded that the
Company has significant influence but not outright control, In making its judgement,
management considered the following:
• ZCCM-IH’s representation on the board of the investee Company
• Appointment of key management staff
• Number of voting rights.
Following the above assessment, management has determined that the Company’s involvement
in all its investee companies in accordance with IFRS 10’s control definition and guidance has
changed from prior year.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
60
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
4 Use of estimates and judgements (continued)
(a) Judgements (continued)
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting
in a material adjustment in the year ended 31 December 2024 is included in the following notes:
• Notes 22, 23 and 24 – measurement of fair value of investee companies; key assumptions
about discounted cash flow assumptions;
• Note 32 and 40 – recognition and measurement of provisions and contingencies: key
assumptions about the likelihood and magnitude of an outflow of resources;
• Note 42 – measurement of ECL allowance for trade receivables and contract assets: key
assumptions in determining the weighted-average loss rate.
(b) Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.
The Group has an established control framework with respect to the measurement of fair values.
Significant valuation issues are reported to the Group Audit Committee. This includes the Group
finance team that has overall responsibilities for overseeing all significant fair value measurement
including level 3 fair values and reports directly to the Chief Financial Officer (CFO).
The finance team regularly reviews significant unobservable inputs and valuation adjustments. If
third party information arises such as broker quotes or pricing services, used to measure fair values,
then the finance team assesses the evidence obtained from third parties to support the conclusion
that such valuations meet the requirement of IFRS Accounting Standard, including the level in the
fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Group uses observable market data as
far as possible. Fair values are categorised into different levels in a fair value hierarchy based on
the inputs used in the valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
61
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
4. Use of estimates and judgements (continued)
(c) Determination of ore reserves and life of mine plan
Reserves are estimates of the amount of product that can be economically and legally extracted
from the group’s properties. Estimating the quantity and/or grade of reserves requires the size,
shape and depth of ore bodies or fields to be determined by analysing geological data such
as drilling samples. Following this, the quantity of ore that can be extracted in an economical
manner is calculated using data regarding the life of mine plans and forecast sales prices (based
on current and long-term historical average price trends).
A majority of the groups’ property, plant and equipment associated with its mining subsidiaries
are depreciated over the estimated lives of the assets on a units-of-production basis. This also
includes the timing of repayments of life of mine linked borrowings. The calculation of the units-of-
production rate, and therefore the annual depreciation expense could be materially affected by
changes in the underlying estimates which are driven by the life of mine plans. Changes in estimates
can be the result of actual future production differing from current forecasts of future production,
expansion of mineral reserves through exploration activities, differences between estimated and
actual costs of mining and differences in the commodity prices used in the estimation of mineral
reserves.
Changes in the proven and probable reserves estimates may impact the carrying value of property,
plant and equipment, asset retirement obligation provision, recognition of deferred income tax
amounts and depreciation expense amount.
Further information about the assumptions made in measuring fair values is included in the following
notes:
• Note 42 – Financial instruments
• Note 20 – Investment property
• Note 22 – Investment in subsidiaries
• Note 23 – Investment in associates; and
• Note 24 – Financial assets at fair value through profit or loss.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
62
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
5 New or revised Standards or Interpretations
5.1 New and amended standards adopted by the Company and Group
The Group has adopted the applicable new, revised or amended accounting pronouncements as
issued by the International and Accounting Standards Board (IASB), which were effective for the
Group from 1 January 2024.
The amendments to accounting standards below, effective for the reporting period 1 January
2024 did not have any material impact on the Group’s accounting policies and required no
retrospective adjustments to the financial statements of the Group.
Amendments to IAS 1 – Non-current liabilities with covenants. These amendments clarify how
conditions with which an entity must comply within twelve months after the reporting period affect
the classification of a liability. The amendments also aim to improve information an entity provides
related to liabilities subject to these conditions. These amendments are applicable for annual
periods beginning on or after 1January 2024.
Amendment to IFRS 16 – Leases on sale and leaseback. These amendments include requirements
for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and
leaseback after the date of the transaction. Sale and leaseback transactions where some or all
the lease payments are variable lease payments that do not depend on an index or rate are most
likely to be impacted. These amendments are applicable for annual periods beginning on or after
1 January 2024.
Amendments to Supplier Finance Arrangements (IAS 7 and IFRS 7). These amendments require
disclosures to enhance the transparency of supplier finance arrangements and their effects on a
company’s liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the
IASB’s response to investors’ concerns that some companies’ supplier finance arrangements are
not sufficiently visible, hindering investors’ analysis. These amendments are applicable for annual
periods beginning on or after 1 January 2024.
5.2 New and amended standards not yet adopted by the Group
Certain new accounting standards and interpretations have been published that are not
mandatory for 31 December 2024 reporting periods and have not been early adopted by the
Group. These standards are not expected to have a material impact on the entity in the current or
future reporting periods and on foreseeable future transactions.
Amendments to IAS 21 Lack of Exchangeability (Amendments to IAS 21). An entity is impacted
by the amendments when it has a transaction or an operation in a foreign currency that is not
exchangeable into another currency at a measurement date for a specified purpose. A currency
is exchangeable when there is an ability to obtain the other currency (with a normal administrative
delay), and the transaction would take place through a market or exchange mechanism that
creates enforceable rights and obligations. These amendments are applicable for annual periods
beginning on or after 1 January 2025.
Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS
9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures) clarify financial assets and
financial liabilities are recognized and derecognized at settlement date except for regular way
purchases or sales of financial assets and financial liabilities meeting conditions for new exception.
The new exception permits companies to elect to derecognize certain financial liabilities settled
via electronic payment systems earlier than the settlement date. They also provide guidelines to
assess contractual cash flow characteristics of financial assets, which apply to all contingent cash
flows, including those arising from environmental, social, and governance (ESG)-linked features.
These amendments are applicable for annual periods beginning on or after 1 January 2026.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
63
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
5 New or revised Standards or Interpretations (continued)
5.2 New and amended standards not yet adopted by the Group (continued)
IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024 to replace
IAS 1 Presentation of Financial Statements. IFRS 18 aims to improve financial reporting by:
requiring additional defined subtotals in the statement of profit or loss; requiring disclosures about
management-defined performance measures; and adding new principles for the aggregation
and disaggregation of items. The IASB did not reconsider all aspects of IAS 1 when developing IFRS
18 but instead focused on the statement of profit or loss. The IASB retained some paragraphs from
IAS 1 in IFRS 18 and moved some paragraphs from IAS 1 to IAS 8 Basis of Preparation of Financial
Statements and IFRS 7 Financial Instruments: Disclosures. These amendments are applicable for
annual periods beginning on or after 1 January 2027.
Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7.
Companies face challenges in applying IFRS 9 Financial Instruments to contracts referencing
nature-dependent electricity – sometimes referred to as renewable power purchase agreements
(PPAs). The International Accounting Standards Board (IASB) has now amended IFRS 9 to address
these challenges. The amendments include guidance on:
• the ‘own use’ exemption for purchasers of electricity under such PPAs;
• and hedge accounting requirements for companies that hedge their purchases or sales of
electricity using PPAs.
IFRS 19 Subsidiaries without Public Accountability: Disclosures
Subsidiaries of companies using IFRS® Accounting Standards can substantially reduce their
disclosures and focus more on users’ needs following the release of IFRS 19 Subsidiaries without
Public Accountability: Disclosures, from the International Accounting Standards Board (IASB).
A subsidiary that does not have public accountability, and has a parent that produces consolidated
accounts under IFRS Accounting Standards, is permitted to apply IFRS 19.
The IASB has also added new disclosure requirements for certain PPAs to IFRS 7 Financial Instruments:
Disclosures
Annual Improvements to IFRS Accounting Standards – Amendments to:
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
- IFRS 9 Financial Instruments;
- IFRS 10 Consolidated Financial Statements; and
- IAS 7 Statement of Cash flows.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
64
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments
(a) Basis for segmentation
The Group has two operational reportable segments, as described below, which are the Group’s
strategic operations. The strategic operation offers different products and services and are
managed separately because they require different technology and marketing strategies.
The group’s management committee, consisting of the Chief Executive Officer, the Chief Financial
Officer, Chief Investment Officer, Chief Legal Officer, Chief Internal Audit Officer, Chief ICT Officer,
Chief Human Resource and Administration Officer, Chief Technical Officer, and Company
Secretary, examines the group’s performance from an operations perspective and has identified
two reportable segments of its business:
1. Investments – This comprises of only ZCCM-IH. This is a premiere diversified mining investments
and operations Company whose majority owner is Industrial Development Corporation
The Company’s focused interests are investments in Zambia’s mining and energy sectors.
2. Mining and processing – This comprise of entities actively in the exploration activities, mining
of minerals and processing to finished products. The minerals mined include copper, gold,
amethyst, manganese, and limestone.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
65
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(a) Basis for segmentation (continued)
The Group’s Chief Executive Officer and the management committee reviews internal reports of each division at least quarterly. The following
summary describes the operations of each reportable segment.
2024
| Segment | Entity | |||||||
| Country of | ||||||||
| operations | ||||||||
| Total | ||||||||
| revenue | ||||||||
| Revenue | ||||||||
| from | ||||||||
| Zambia | ||||||||
| Revenue | ||||||||
| from foreign | ||||||||
| countries | ||||||||
| Total | ||||||||
| segment | ||||||||
| assets | ||||||||
| Non-current | ||||||||
| assets | ||||||||
| Current | ||||||||
| assets | ||||||||
| Investments | ZCCM-IH Plc | Zambia | - | - | - | 20,258,869 | 20,258,869 | - |
| Mining and processing | ||||||||
| Mopani Copper Mine | ||||||||
| Plc* | ||||||||
| Zambia | 3,086,791 | 1,218,257 | 1,868,534 | 18,132,025 | 14,598,625 | 3,533,400 | ||
| Mining and processing | ||||||||
| Limestone Resources | ||||||||
| Limited | ||||||||
| Zambia | 72,315 | 51,358 | 20,957 | 118,142 | 98,885 | 19,257 | ||
| Mining and processing | ||||||||
| Kabundi Resources | ||||||||
| Limited | ||||||||
| Zambia | - | - | - | 22,733 | 21,754 | 979 | ||
| Mining and processing | ||||||||
| Zambia Gold Company | ||||||||
| Limited | ||||||||
| Zambia | - | - | - | 191,397 | 191,397 | - | ||
| Mining and processing | Kariba Minerals Limited | Zambia | 49,857 | - | 49,857 | 58,681 | 46,381 | 12,300 |
| Technical services | ||||||||
| Misenge Environmental | ||||||||
| and Technical Services | ||||||||
| Limited (Discontinued | ||||||||
| operation) | ||||||||
| Zambia | 13,361 | 13,361 | - | 16,654 | 16,654 | - | ||
| Total from segments | 3,222,324 | 1,282,976 | 1,939,348 | 38,798,501 | 35,232,565 | 3,565,936 | ||
| (Less)/add consolida- | ||||||||
| tion adjustments | ||||||||
| (13,361) | (13,361) | - | 17,841 | 17,841 | - | |||
| Consolidated balance | 3,208,963 | 1,269,615 | 1,939,348 | 38,816,342 | 35,250,406 | 3,565,936 |
Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets
Revenue from foreign countries is distributed as follows:
| Country | Foreign revenue - ZMW |
| Switzerland | 1,868,534 |
| Malawi | 20,830 |
| Zimbabwe | 127 |
| India | 49,857 |
| Total | 1,939,348 |
Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets
* Revenues relating to Mopani Copper Mine Plc have been included in the Segment Report for the period up to 20th March 2024 before it was
reclassified as an Associate Company.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
66
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(a) Basis for segmentation (continued)
The Group’s Chief Executive Officer and the management committee reviews internal reports of each division at least quarterly. The following
summary describes the operations of each reportable segment.
2023
| Segment | Entity | |||||||
| Country of | ||||||||
| operations | ||||||||
| Total | ||||||||
| revenue | ||||||||
| Revenue | ||||||||
| from | ||||||||
| Zambia | ||||||||
| Revenue | ||||||||
| from foreign | ||||||||
| countries | ||||||||
| Total | ||||||||
| segment | ||||||||
| assets | ||||||||
| Non-current | ||||||||
| assets | ||||||||
| Current | ||||||||
| assets | ||||||||
| Investments | ZCCM-IH Plc | Zambia | 23,180 | 23,180 | - | 14,579,912 | 14,579,912 | - |
| Mining and processing | ||||||||
| Mopani Copper Mine | ||||||||
| Plc* | Zambia | 11,552,419 | 2,173,264 | 9,379,155 | 19,135,738 | 15,646,610 | 3,489,128 | |
| Mining and processing | ||||||||
| Limestone Resources | ||||||||
| Limited | Zambia | 96,741 | 75,058 | 21,683 | 85,317 | 57,013 | 28,304 | |
| Mining and processing | ||||||||
| Kabundi Resources | ||||||||
| Limited | Zambia | 1,095 | 1,095 | - | 13,858 | 13,008 | 850 | |
| Mining and processing | ||||||||
| Zambia Gold Company | ||||||||
| Limited | Zambia | 38,524 | 38,524 | - | 211,303 | 211,303 | - | |
| Mining and processing | Kariba Minerals Limited | Zambia | 29,868 | - | 29,868 | 37,442 | 28,297 | 9,145 |
| Technical services | ||||||||
| Misenge Environmental | ||||||||
| and Technical Services | ||||||||
| Limited (Discontinued | ||||||||
| operation) | Zambia | 20,308 | 20,308 | - | 14,095 | 14,095 | - | |
| Total from segments | 11,762,135 | 2,331,429 | 9,430,706 | 34,077,665 | 30,550,238 | 3,527,427 | ||
| Less consolidation | ||||||||
| adjustments | (15,030) | (15,030) | - | - | - | - | ||
| Consolidated balance | 11,747,105 | 2,316,399 | 9,430,706 | 34,077,665 | 30,550,238 | 3,527,427 |
Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets
Revenue from foreign countries is distributed as follows:
| Country | Foreign revenue - ZMW |
| Switzerland | 9,379,155 |
| Malawi | 6,687 |
| Zimbabwe | 14,996 |
| India | 29,868 |
| Total | 9,430,706 |
Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
67
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(b) Information about reportable segments
Information recorded on each reportable segment is set out below. Segment profit before tax, as included in internal management reports reviewed by the
Group’s Chief Executive Officer is used to measure performance because management believes that such information is the most relevant in evaluating the
results of the respective segments relative to other entities that operate in the same industries. Only one segment meets the 10% reportable segment criteria per
IFRS 8 - Segment Reporting. The segment results for the Group were as follows:
The segment results for the Group were as follows:
| December 2024 | |||||||||
| Investments | Mining and processing | ||||||||
| Discontinued | |||||||||
| Operations | |||||||||
| ZCCM-IH | |||||||||
| ZMW’000 | |||||||||
| Mopani Copper | |||||||||
| Mine Plc (Held | |||||||||
| for sale) | |||||||||
| ZMW’000 | |||||||||
| Limestone | |||||||||
| Resources | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Zambia Gold | |||||||||
| Company | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Kabundi | |||||||||
| Resources | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Kariba | |||||||||
| minerals | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Misenge | |||||||||
| Environmental | |||||||||
| and Technical | |||||||||
| Services | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Consolidation | |||||||||
| Adjustments | |||||||||
| ZMW’000 | |||||||||
| Consolidated | |||||||||
| ZMW’000 | |||||||||
| Revenue from external customers: | |||||||||
| Sales | - | 3,086,791 | 72,315 | - | - | 49,857 | - | - | 3,208,963 |
| Services | - | - | - | - | - | - | 13,361 | (13,361) | - |
| Total revenue from external | |||||||||
| customers | - | 3,086,791 | 72,315 | - | - | 49,857 | 13,361 | (13,361) | 3,208,963 |
| Inter-segment revenue | - | - | - | - | - | - | - | ||
| Total segment revenue | - | 3,086,791 | 72,315 | - | - | 49,857 | 13,361 | (13,361) | 3,208,963 |
| Consolidated revenue | - | 3,086,791 | 72,315 | - | - | 49,857 | 13,361 | (13,361) | 3,208,963 |
| Cost of sales | - | (3,541,986) | (117,820) | - | (250) | (35,465) | (11,615) | 11,615 | (3,695,521) |
| Interest income | 205,600 | - | - | - | - | - | - | - | 205,600 |
| Finance income | 1,022,734 | - | - | - | - | - | - | 69,139 | 1,091,873 |
| Interest expense | (661,087) | (25,479) | (21,270) | - | - | - | - | (1,042,533) | (1,750,369) |
| Net (impairment)/recovery of | |||||||||
| financial assets | (265,126) | - | 3,199 | - | - | - | 1,633 | 233,345 | (26,949) |
| Personnel expenses | (195,976) | (111,707) | (48,187) | (12,784) | (3,137) | (22,596) | (10,007) | 10,007 | (394,387) |
| Depreciation and amortisation | |||||||||
| expense | (641,632) | (426,003) | (9,242) | (12,693) | (8,219) | (6,144) | (4,407) | 17,841 | (1,090,499) |
| Loan modification income | - | 35,916,739 | - | - | - | - | - | - | 35,916,739 |
| Transitional tax offsets income | - | 2,964,861 | - | - | - | - | - | - | 2,964,861 |
| Impairment on investments in | |||||||||
| associates | - | - | - | - | - | - | - | 4,461,755 | 4,461,755 |
| Consultancy and legal expenses | (200,641) | - | - | - | - | - | - | - | (200,641) |
| Mopani investment expense | (3,859,125) | - | - | - | - | - | - | - | (3,859,125) |
| Other income/(expenses) | 791,728 | (1,250,956) | (12,343) | (73,772) | (186) | 15,563 | 7,665 | 780,081 | 257,780 |
| Total profit/ (loss) before tax for | |||||||||
| reported segments | (3,803,525) | 36,612,260 | (133,348) | (99,249) | (11,792) | 1,215 | (3,370) | 4,527,889 | 37,090,080 |
| Income tax credit/(expense) | (580,188) | - | (278) | 15,230 | (2,381) | 131 | (410) | 410 | (567,486) |
| Share of profit of equity accounted | |||||||||
| investees | - | - | - | - | - | - | - | 3,327,837 | 3,327,837 |
| Loss from discontinued operations | - | - | - | - | - | - | - | (3,780) | (3,780) |
| Consolidated profit for the year | (4,383,713) | 36,612,260 | (133,626) | (84,019) | (14,173) | 1,346 | (3,780) | 7,852,356 | 39,846,651 |
* Revenues relating to Mopani Copper Mine Plc have been included in the Segment Report for the period up to 20th March 2024 before it was reclassified as
an Associate Company.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
68
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(b) Information about reportable segment (continued)
| December 2024 | |||||||||
| Investments | Mining and processing | ||||||||
| Discontinued | |||||||||
| Operations | |||||||||
| ZCCM-IH | |||||||||
| ZMW’000 | |||||||||
| Mopani | |||||||||
| Copper Mine | |||||||||
| Plc (held for | |||||||||
| sale) | |||||||||
| ZMW’000 | |||||||||
| Limestone | |||||||||
| Resources | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Zambia Gold | |||||||||
| Company | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Kariba | |||||||||
| minerals | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Kabundi | |||||||||
| Resources | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Misenge | |||||||||
| Environmental | |||||||||
| and Technical | |||||||||
| Services | |||||||||
| Limited | |||||||||
| ZMW’000 | |||||||||
| Consolidation | |||||||||
| Adjustments | |||||||||
| ZMW’000 | |||||||||
| Consolidated | |||||||||
| ZMW’000 | |||||||||
| Segment assets* | |||||||||
| Opening balance | 14,579,912 | 19,135,768 | 85,317 | 211,303 | 37,442 | 13,858 | 14,095 | - | 34,077,695 |
| Additions | 31,251 | 158,064 | 51,114 | 95,354 | 24,228 | 16,965 | 8,131 | - | 385,107 |
| Mineral royalty/right | - | - | - | - | - | - | - | - | - |
| Movement in inventory | - | 44,272 | (9,047) | - | 3,155 | 129 | - | - | 38,509 |
| Property plant and equipment | |||||||||
| Revaluation | - | - | - | - | - | - | - | - | - |
| Increase/(Decrease) in environ- | |||||||||
| mental asset | - | (780,076) | - | - | - | - | - | - | (780,076) |
| Disposal | (85) | - | - | - | - | - | - | - | (85) |
| Depreciation and amortisation | (641,632) | (426,003) | (9,242) | (12,693) | (6,144) | (8,219) | (4,407) | 17,841 | (1,090,499) |
| Fair value change | 6,289,423 | - | - | - | - | - | - | - | 6,289,423 |
| Transfer | - | - | - | - | - | - | - | - | - |
| Impairment of PPE | - | - | - | (102,567) | - | - | (1,165) | - | (103,732) |
| Closing balance | 20,258,869 | 18,132,025 | 118,142 | 191,397 | 58,681 | 22,733 | 16,654 | 17,841 | 38,816,342 |
| Equity accounted investees | 34,452,165 | - | - | - | - | - | - | (10,047,345) | 24,404,820 |
| Other assets | 12,193,791 | 4,162,547 | 122,104 | 134,942 | 61,182 | 47,882 | 31,626 | (22,688,993) | (5,934,919) |
| Total assets | 66,904,825 | 22,294,572 | 240,246 | 326,339 | 119,863 | 70,615 | 48,280 | (32,718,497) | 57,286,243 |
| Segment liabilities | 114,213 | 2,485,985 | - | - | - | - | 3,005 | - | 2,603,203 |
| Other liabilities | 4,498,069 | 24,475,881 | 422,254 | 245,201 | 22,197 | 18,160 | 15,547 | (27,277,980) | 2,419,329 |
| Total liabilities | 4,612,282 | 26,961,866 | 422,254 | 245,201 | 22,197 | 18,160 | 18,552 | (27,277,980) | 5,022,532 |
| Cashflows from operating activities | 1,334,963 | (7,263,688) | (86,927) | (90,118) | (4,117) | (6,484) | (2,696) | 7,567,811 | 1,448,744 |
| Cashflows from investing activities | (1,070,871) | (3,413,413) | (7,366) | (36,024) | (24,228) | (2,618) | (8,131) | 3,860,823 | (701,828) |
| Cashflows from financing activities | (120,016) | 10,874,976 | 116,125 | 139,068 | - | - | - | (11,130,169) | (120,016) |
* Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
69
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(b) Information about reportable segment (continued)
| December 2023 | ||||||||||
| Investments | Mining and processing | Technical services | ||||||||
| ZCCM-IH | ||||||||||
| ZMW’000 | ||||||||||
| Mopani | ||||||||||
| Copper Mine | ||||||||||
| Plc | ||||||||||
| ZMW’000 | ||||||||||
| Limestone | ||||||||||
| Resources | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Zambia | ||||||||||
| Gold | ||||||||||
| Company | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Kabundi | ||||||||||
| Resources | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Kariba | ||||||||||
| minerals | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Misenge | ||||||||||
| Environmental and | ||||||||||
| Technical Services | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Others | ||||||||||
| (Discontinued | ||||||||||
| operations) | ||||||||||
| Consolidation | ||||||||||
| Adjustments | ||||||||||
| ZMW’000 | ||||||||||
| Consolidated | ||||||||||
| ZMW’000 | ||||||||||
| Revenue from external customers: | ||||||||||
| Sales * | 23,180 | 11,552,419 | 96,741 | 38,524 | 1,095 | 29,868 | - | - | - | 11,741,827 |
| Services | - | - | - | - | - | - | 5,278 | - | - | 5,278 |
| Total revenue from external customers | 23,180 | 11,552,419 | 96,741 | 38,524 | 1,095 | 29,868 | 5,278 | - | - | 11,747,105 |
| Inter-segment revenue | - | - | - | - | - | 15,030 | - | (15,030) | - | |
| Total segment revenue | 23,180 | 11,552,419 | 96,741 | 38,524 | 1,095 | 29,868 | 20,308 | - | (15,030) | 11,747,105 |
| - | ||||||||||
| Consolidated revenue | 23,180 | 11,552,419 | 96,741 | 38,524 | 1,095 | 29,868 | 20,308 | - | (15,030) | 11,747,105 |
| Cost of sales** | (16,878) | (15,084,827) | (139,146) | (28,518) | (1,746) | (22,014) | (13,204) | (15,306,333) | ||
| Interest income | 434,433 | - | - | - | - | - | - | 206,224 | (206,224) | 434,433 |
| Interest expense | - | (2,971,812) | (13,995) | - | - | (1,240) | - | (95,445) | 305,741 | (2,776,751) |
| Net (impairment)/recovery of financial | ||||||||||
| assets | (83,055) | - | (2,607) | - | - | - | (3,986) | 545,886 | (536,403) | (80,165) |
| Personnel expenses | (157,323) | (1,925,389) | (48,022) | (10,047) | (2,283) | (15,950) | (8,131) | (104,647) | 104,647 | (2,167,145) |
| Depreciation and amortisation expense | (13,110) | (1,765,630) | (10,913) | (13,043) | (2,397) | (2,770) | (1,546) | (8,180) | 1,421,076 | (396,513) |
| Other income/(expenses) | 5,859,266 | 1,227,364 | (62,645) | (11,203) | 12,400 | 10,837 | 6,040 | (1,302,019) | (1,567,473) | 4,172,567 |
| Total profit/ (loss) before tax for reported | ||||||||||
| segments | 6,046,513 | (8,967,875) | (180,587) | (24,287) | 7,069 | (1,269) | (519) | (758,181) | (493,666) | (4,372,802) |
| Income tax credit/(expense) | (1,205,034) | - | (149) | 942 | (3,217) | 1,817 | (408) | - | - | (1,206,049) |
| Share of profit of equity accounted | ||||||||||
| investees | - | - | - | - | - | - | - | - | 2,261,209 | 2,261,209 |
| Loss from discontinued operations | - | - | - | - | - | - | - | - | (758,181) | (758,181) |
| Consolidated profit for the year | 4,841,479 | (8,967,875) | (180,736) | (23,345) | 3,852 | 548 | (927) | (758,181) | 1,009,362 | (4,075,823) |
*The Group’s main customer, Glencore International AG of Switzerland, accounts for 79% of the Group’s total revenue.
**Following the IFRS Interpretations Committee’s final agenda decision on operating segments regarding the disclosure of material items of income and expenses
in terms of IFRS 8.23(f) and IAS 1.97 during the financial year, the Group updated its disclosure of items included in operating profit per segment. The prior year
information was updated to align to the current year disclosures.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
70
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
6 Operating segments (continued)
(b) Information about reportable segment (continued)
| December 2023 | ||||||||||
| Investments | Mining and processing | |||||||||
| Technical | ||||||||||
| services | ||||||||||
| ZCCM-IH | ||||||||||
| ZMW’000 | ||||||||||
| Mopani | ||||||||||
| Copper Mine | ||||||||||
| Plc | ||||||||||
| ZMW’000 | ||||||||||
| Limestone | ||||||||||
| Resources | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Zambia Gold | ||||||||||
| Company | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Kariba | ||||||||||
| minerals | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Kabundi | ||||||||||
| Resources | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Misenge | ||||||||||
| Environmental | ||||||||||
| and Technical | ||||||||||
| Services | ||||||||||
| Limited | ||||||||||
| ZMW’000 | ||||||||||
| Others | ||||||||||
| (Discontinued | ||||||||||
| operations) | ||||||||||
| Consolidation | ||||||||||
| Adjustments | ||||||||||
| ZMW’000 | Consolidated | |||||||||
| Segment assets* | ||||||||||
| Opening balance | 311,026 | 20,221,177 | 103,943 | 118,459 | 39,639 | 8,872 | 5,220 | 109,447 | - | 20,917,783 |
| Additions | 16,902 | 718,550 | 1,382 | 266 | 161 | 6,647 | 10,426 | 9,373 | - | 763,707 |
| Mineral royalty/right | 14,259,000 | - | - | 133,122 | - | - | - | - | - | 14,392,122 |
| Movement in inventory | (16,427) | (1,347,552) | 187 | (27,501) | (3,382) | 736 | - | (10,933) | - | (1,404,872) |
| Property plant and equipment | ||||||||||
| Revaluation | - | - | - | - | 3,794 | - | - | - | - | 3,794 |
| Increase/(Decrease) in environmental | ||||||||||
| asset | - | 1,309,193 | (9,243) | - | - | - | - | |||
| - | ||||||||||
| - | 1,299,950 | |||||||||
| Disposal | - | - | - | - | - | - | - | (5,440) | - | (5,440) |
| Depreciation and amortisation | (13,110) | (1,765,630) | (10,913) | (13,043) | (2,770) | (2,397) | (1,546) | (8,180) | 8,939 | (1,808,650) |
| Fair value change | 22,521 | - | - | - | - | - | - | - | - | 22,521 |
| Transfer | - | - | - | - | - | - | - | (94,267) | - | (94,267) |
| Impairment of PPE | - | - | (39) | - | - | - | (5) | - | - | (44) |
| Closing balance | 14,579,912 | 19,135,738 | 85,317 | 211,303 | 37,442 | 13,858 | 14,095 | - | 8,939 | 34,086,604 |
| Equity accounted investees | 11,240,080 | - | - | - | - | - | - | - | (1,149,140) | 10,090,940 |
| Other assets | 12,649,090 | 2,897,253 | 104,245 | 115,491 | 90,274 | 55,662 | 38,886 | 1,593,397 | (3,258,005) | 14,286,293 |
| Total assets | 38,469,082 | 22,032,991 | 189,562 | 326,794 | 127,716 | 69,520 | 52,981 | 1,593,397 | (4,398,206) | 58,463,837 |
| - | ||||||||||
| Segment liabilities | 113,340 | 4,488,361 | - | - | - | - | 2,333 | - | - | 4,604,034 |
| Other liabilities | 933,723 | 58,461,265 | 103,165 | 161,643 | 30,093 | 5,569 | 17,140 | 2,606,990 | (2,769,151) | 59,550,437 |
| Total liabilities | 1,047,063 | 62,949,626 | 103,165 | 161,643 | 30,093 | 5,569 | 19,473 | 2,606,990 | (2,769,151) | 64,154,471 |
| - | ||||||||||
| Cashflows from operating activities | (368,710) | (1,662,537) | (93,682) | 18,599 | (4,394) | 7,440 | (1,323) | 4,167 | 2,016,713 | (83,727) |
| Cashflows from investing activities | 379,990 | (728,812) | (1,383) | (267) | (146) | (7,488) | (10,427) | (9,373) | 911,180 | 533,274 |
| Cashflows from financing activities | - | 2,155,034 | 132,767 | 95,247 | 90,417 | - | - | - | (2,681,277) | (207,812) |
* Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets.
Group reconciliation of reported assets and liabilities
(i) Other assets consist of trade and other receivables, term deposits, cash and cash equivalents.
(ii) Other liability includes tax liabilities, retirement benefits, environmental liability and legal provision.
Elimination adjustments relate to intersegment transactions. The adjustment to other liabilities relates to the elimination of shareholder loans and the
reclassification of deferred tax
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
71
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
7 Revenue from contracts with customers
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Sales of goods transferred at a point in time | 3,274,950 | 12,176,323 | - | 23,180 |
| Realisation charges (i) | (65,987) | (434,496) | - | - |
| Services transferred over time | - | 5,278 | - | - |
| 3,208,963 | 11,747,105 | - | 23,180 |
(i) Realisation charges
Realisation charges relate to deductions from the purchase price in line with the sales agreement which
includes freight and transportation costs.
Disaggregation of revenue by product line:
| Revenue by product line: | ||||
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Copper cathodes | 2,946,044 | 11,068,316 | - | - |
| Sulphuric acid | 58,969 | 352,050 | - | - |
| Slimes | 52,001 | 114,997 | - | - |
| Limestone | 72,315 | 96,741 | - | - |
| Gold | - | 61,461 | - | 23,180 |
| Amythest | 49,857 | 29,868 | - | - |
| Copper concentrates | - | 10,262 | - | - |
| Copper anodes | - | 6,793 | - | - |
| Technical services | - | 5,278 | - | - |
| Manganese | - | 1,095 | - | - |
| Other Goods (Value addition sales) | 29,777 | 244 | - | - |
| Total | 3,208,963 | 11,747,105 | - | 23,180 |
*The amounts were restated as a result of a prior period error. Refer to note 45 for impact on
restatement.
8 Investment income
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Investment income | ||||
| Dividends income | 36,623 | - | 786,652 | 739,836 |
| Interest income | 205,600 | 187,468 | 205,600 | 187,468 |
| Royalty income | 1,425,969 | 1,201,395 | 1,425,969 | 1,201,395 |
| Total Investment income | 1,668,192 | 1,388,863 | 2,418,221 | 2,128,699 |
During the year, ZCCM-IH (the Company) recorded total royalty and dividend income of ZMW1,426 million
(US$54.51 million),(2023: ZMW1,201 million (US$58.48 million)) and ZMW787 million (US$30.27 million), (2023:
ZMW740 million (US$36.05 million)) respectively.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
72
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
9 Other (expenses)/income
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Management fees and commissions | - | 5,083 | - | 5,378 |
| Fair value adjustment- investment property | ||||
| (Note 20) | 16,654 | 22,521 | 16,654 | 22,521 |
| Rental income | 10,232 | 9,955 | 11,650 | 10,097 |
| Gain/(loss) on disposal of property, plant and | ||||
| equipment | 644 | 233 | 644 | 233 |
| Derecognition of subsidiaries’ net liabilities | ||||
| (Note 22(d)) | - | 19,366 | - | - |
| Derecognition of loan due to modification | (826,279) | - | (826,279) | - |
| Loan modification income* | 35,916,739 | - | - | - |
| Tax obligations write back** | 2,964,861 | - | - | - |
| Mopani investment expenses (Note 35) | (3,859,125) | - | (3,859,125) | - |
| Sundry income | 9,638 | 186,569 | 4,583 | 4,071 |
| Total balance | 34,233,364 | 243,727 | (4,651,873) | 42,300 |
* Mopani loan modification income
For 2024, the amount includes a one-off income arising from the write-down of the loans from Glencore
and from Carlisa of ZMW44.72 billion (US$1.71 billion) to ZMW7.85 billion (US$300 million). This write-down
resulted in a loan restructuring adjustment of ZMW35.92 billion (US$1.41 billion). The loan modification was
part of the finalisation of the transaction agreement.
** Tax obligations write back
The tax obligations write back recognised during the year relates to a combined tax payable position
amounting to ZMW2.96 billion (US$117 million) that was written back as part of the finalisation process of
the transaction agreement. The combined net tax payable arose from the netting off of withholding tax
payable, VAT receivable, income tax payable and mineral royalty tax payable by Mopani. The combined
net payable position of Mopani was written off because it is no longer expected to be paid.
10 Net impairment losses on financial assets
Movements on the provision for impairment of loans and receivables are as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Balance at 1 Jan | 1,168,124 | 1,087,959 | 1,222,025 | 1,168,203 |
| Impairment recognised | 54,978 | 325,595 | 289,956 | 341,190 |
| Impairment recoveries | (28,029) | (245,430) | (24,830) | (258,135) |
| Net impairment (release)/expense recognised | 26,949 | 80,165 | 265,126 | 83,055 |
| Reclassification from assets held for sale | 13,881 | - | - | - |
| Derecognition of loan due to modification (Note: 39 b(viii) | 902,291 | - | 902,291 | - |
| Included in assets held under discontinued operations | (5,126) | - | - | (29,233) |
| Balance at 31 Dec (Note 26) | 2,106,119 | 1,168,124 | 2,389,442 | 1,222,025 |
The following significant changes in the gross carrying amounts of trade receivables contributed to the
changes in the impairment loss allowance during 2024:
• The repayment of contractual obligations from the financial assets which resulted in a decrease in the trade
receivables. As at 31 December 2024, Maamba Energy Limited had fully repaid US$10 million shareholder
loan along with the accrued interest of US$2.68 million.
• The modification of contractual cash flows on financial assets which resulted in a decrease in the trade
receivables. On 20 March 2024, the terms of the Mopani loan were modified in response to developments
under the Strategic Equity Partnership transaction. The modification resulted in a reduction in the interest rate
from SOFR + 8% to SOFR + 1%.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
73
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
10 Net impairment losses on trade and other receivables (continued)
• A resulting loss of ZMW902 million (being the difference between the carrying amount of the old
loan and the fair value of the new loan) has been recognised in profit and loss.
11 Expenses by nature
Profit/(loss) before income tax is stated after charging:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Cost of sales | ||||
| Inventories valuation write (down)/up | 1,624,722 | 1,337,198 | - | (5,729) |
| Mining and mineral processing costs | 1,656,533 | 10,148,519 | - | - |
| Employee costs | 152,663 | 1,373,457 | - | - |
| Depreciation and amortisation* | 12,639 | 1,773,107 | - | - |
| Other cost of sales | 248,964 | 674,052 | - | 22,607 |
| 3,695,521 | 15,306,333 | - | 16,878 | |
| Administration expenses | ||||
| Depreciation and amortisation | 1,090,499 | 396,513 | 641,632 | 376,934 |
| Auditors’ remuneration: | ||||
| - Audit fees of financial statements | 4,233 | 6,506 | 1,980 | 1,285 |
| - Taxation services | 870 | 306 | 178 | 117 |
| Employee costs | 241,724 | 793,688 | 195,976 | 157,323 |
| Impairment of property, plant and equipment | ||||
| and other assets | 102,567 | 40 | - | - |
| Impairment of investment in associates | 4,461,755 | - | - | - |
| Environmental consultancy expenses | 8,588 | - | 8,048 | 15,030 |
| Provision for environmental rehabilitation | 25,599 | (1,632) | 12,121 | (1,632) |
| Corporate and administration expenses (i) | 924,552 | 669,840 | 527,959 | 245,091 |
| 6,860,387 | 1,865,261 | 1,387,894 | 794,148 |
(i) Corporate and administration expenses include Mopani’s administration cost of ZMW268 million (2023:
ZMW377 million)
12 Personnel expenses
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Salaries and wages | 324,948 | 2,120,337 | 184,883 | 149,831 |
| Retirement benefit costs: | ||||
| Defined benefit scheme (Note 37) | 4,861 | 36,853 | 4,861 | 2,619 |
| Other Pension Scheme (Note 37)* | 57,932 | - | - | - |
| Mukuba Pension Scheme (Note 37)* | 4,325 | 4,967 | 4,325 | 3,210 |
| National Social Security Funds (Note 37)* | 2,321 | 4,988 | 1,907 | 1,663 |
| 394,387 | 2,167,145 | 195,976 | 157,323 |
*The pension schemes operate as defined contribution plans.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
74
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
13 Finance income and finance costs
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Interest on borrowings (Note 35) | (340,457) | (2,776,751) | (340,457) | - |
| Interest on letter of credit and withholding tax | (947,924) | (1,261,064) | - | - |
| Exchange differences | (457,818) | (419,197) | (320,630) | (1,115) |
| Unwinding of discount on site restoration | (4,170) | (23,520) | - | - |
| Finance costs | (1,750,369) | (4,480,532) | (661,087) | (1,115) |
| Interest income from associate companies | 256,447 | 24,707 | 304,601 | 246,965 |
| Exchange differences | 835,426 | 2,187,987 | 718,133 | 2,733,465 |
| Finance income | 1,091,873 | 2,212,694 | 1,022,734 | 2,980,430 |
| Net finance income recognised in profit or loss | (658,496) | (2,267,838) | 361,647 | 2,979,315 |
14 Income tax expense
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Amounts recognised in profit or loss: | ||||
| Current income tax | (1,022,272) | (328,199) | (1,021,524) | (324,844) |
| Deferred income tax credit/(charge) (note 36) | 454,786 | (877,850) | 441,336 | (880,190) |
| Income tax expense | (567,486) | (1,206,049) | (580,188) | (1,205,034) |
The tax on the Group and Company profit before income tax differs from the theoretical amount that
would arise using the statutory income tax rate as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Profit/(loss) before income tax from continuing | ||||
| operations | 40,417,917 | (2,111,593) | (3,803,525) | 6,046,513 |
| Total amount | 40,417,917 | (2,111,593) | (3,803,525) | 6,046,513 |
| Tax calculated at rates applicable to profits @ 30% | ||||
| (2023: 30%) Tax effect of: | 12,125,375 | (633,478) | (1,141,058) | 1,813,954 |
| Non-deductible expenses* | 2,316,807 | 2,636,975 | 1,886,927 | (439,349) |
| Non-taxable income** | (10,988,507) | - | - | - |
| Income taxed at a lower rate*** | (1,498,141) | (173,475) | (165,582) | (173,458) |
| Non-taxable income from share of profits from | ||||
| associates | (1,426,216) | (678,363) | ||
| Unrecognised deferred tax | 38,168 | 54,390 | (99) | 3,887 |
| Total income tax expense | 567,486 | 1,206,049 | 580,188 | 1,205,034 |
* Included in the Non-deductible are expenses that are not allowable for deduction for tax purposes such as
Mopani investment expense and the loan modification expense.
** Included in the Non-taxable income is income that is not subjected to tax such as Mopani’s loan modification
income.
*** Income taxes at lower rate relates to rental income and dividends taxed at 15% and 0% respectively.
Dividend income received from Zambian mines is subject to zero tax. Dividend taxed at 0% tax rate amounted
to ZMW303 million (2023: ZMW404 million).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
75
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
14 Income tax expense (Continued)
Current income tax movement in the statement of financial position
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Opening balance 1 Jan | 238,553 | 190,143 | 237,376 | 189,158 |
| Charge for the year | 1,022,272 | 328,199 | 1,021,524 | 324,844 |
| Tax paid | (389,277) | (279,789) | (386,641) | (276,626) |
| Included in assets held for sale | 1,222 | - | - | - |
| Closing balance | 872,770 | 238,553 | 872,259 | 237,376 |
15 Earnings per share
(a) Basic earnings per share
The calculation of basic earnings per share has been calculated based on profit or loss attributable to ordinary
shareholders and weighted average number of ordinary shares outstanding.
i) Profit/(loss) attributable to ordinary shareholders (basic)
| Group | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
| Continuing | ||||||
| operations | ||||||
| Discontinued | ||||||
| operations | Total | |||||
| Continuing | ||||||
| operations | ||||||
| Discontinued | ||||||
| operations | Total | |||||
| Loss for the year, | ||||||
| attributable to ordinary | ||||||
| shareholders | 39,850,431 | (3,780) | ||||
| 39,846,651 | (3,317,642) | (758,181) | ||||
| (4,075,823) |
| Company | ||||||
| 31 Dec 2024 | 31 Dec 2023 | |||||
| Continuing | ||||||
| operations | ||||||
| Discontinued | ||||||
| operations | Total | |||||
| Continuing | ||||||
| operations | ||||||
| Discontinued | ||||||
| operations | Total | |||||
| Profit for the year, | ||||||
| attributable to | ||||||
| ordinary shareholders | (4,383,713) | - | ||||
| (4,383,713) | 4,841,479 | - | ||||
| 4,841,479 |
*The amounts were restated as a result of a prior period error. Refer to note 45 for impact on restatement.
ii) Weighted average number of shares (basic)
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Opening balance at 1 January | ||
| 160,800,286 | 160,800,286 | |
| Closing balance | ||
| 160,800,286 | 160,800,286 |
The weighted average number of shares is determined by taking the number of additional shares issued and
multiplying by the number of days the new shares were in issue over the reporting period.
(b) Diluted earnings per share
There were no potentially dilutive shares outstanding at 31 December 2024 (2023: nil). Diluted earnings
per share are therefore the same as basic earnings per share.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
76
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
15 Earnings per share (continued)
(b) Diluted earnings per share (continued)
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Basic and diluted earnings per share | 247.80 | (25.35) | (27.26) | 30.11 |
16 Dividends per share
A dividend of ZMW 3.29 per share was declared for the year ended 31 December 2024 results. (2023:
ZMW 1.51 per share).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
77
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
17 Property, plant and equipment
Reconciliation of carrying amount
| Group | |||||||
| Land and | |||||||
| buildings | |||||||
| Plant and | |||||||
| equipment | |||||||
| Vertical | |||||||
| and rotary | |||||||
| kilns | |||||||
| Mine | |||||||
| Development | |||||||
| Motor | |||||||
| vehicles | |||||||
| Work in | |||||||
| progress | Total | ||||||
| Cost or revaluation | |||||||
| Balance at 1 January 2023 | |||||||
| 738,885 | 10,138,722 | 101,015 | 2,916,355 | 594,107 | 1,286,811 | 15,775,895 | |
| Additions | |||||||
| 1,253 | 8,473 | - | - | 536 | 743,851 | 754,113 | |
| Transfers | |||||||
| 13,205 | 13,265 | - | - | - | (26,470) | - | |
| Transfer from investment | |||||||
| property (Note 20) | 16,790 | - | - | - | - | - | 16,790 |
| Transfer to investment property | |||||||
| (Note 20) | (2,116) | - | - | - | - | - | (2,116) |
| Revaluation | |||||||
| 1,081 | (7,083) | - | - | (1,971) | - | (7,973) | |
| Increase in environmental asset | |||||||
| - | 1,309,193 | - | - | - | - | 1,309,193 | |
| Disposal | |||||||
| - | (5,107) | - | - | (2,333) | - | (7,440) | |
| Reclassified to assets held for | |||||||
| sale (Note 21) | |||||||
| (620,012) | |||||||
| (11,331,194) | - | (2,916,355) | (471,903) | ||||
| (1,886,625) | (17,226,089) | ||||||
| Balance at 31 December 2023 | |||||||
| 149,086 | 126,269 | 101,015 | - | 118,436 | 117,567 | 612,373 | |
| Balance at 1 January 2024 | |||||||
| 149,086 | 126,269 | 101,015 | - | 118,436 | 117,567 | 612,373 | |
| Additions | |||||||
| 9,038 | 23,174 | 30,767 | - | 10,467 | 40,449 | 113,875 | |
| Transfers | |||||||
| 845 | 11,588 | - | - | 22,200 | (34,633) | - | |
| Transfer from investment | |||||||
| property (Note 20) | 20,210 | - | - | - | - | - | 20,210 |
| Impairment | |||||||
| - | - | - | - | - | (1,165) | (1,165) | |
| Increase in environmental asset | - | 93,739 | - | - | - | - | 93,739 |
| Disposal | |||||||
| - | - | - | - | (7,290) | - | (7,290) | |
| Reclassified to assets held for | |||||||
| sale (Note 21) | (372) | (16,484) | - | - | (7,121) | (1,091) | (25,068) |
| Balance at 31 December 2024 | |||||||
| 178,807 | 238,286 | 131,782 | - | 136,692 | 121,127 | 806,694 | |
| Accumulated depreciation and | |||||||
| impairment losses | |||||||
| Balance at 1 January 2023 | |||||||
| 246,551 | 1,913,613 | 50,968 | 809,339 | 159,134 | 111,383 | 3,290,988 | |
| Charge for the year | |||||||
| 123,233 | 1,052,636 | 4,352 | 349,341 | 253,546 | - | 1,783,108 | |
| Impairment | |||||||
| 39 | 5 | - | - | - | - | 44 | |
| Revaluation | |||||||
| (1,372) | (6,840) | - | - | (3,555) | - | (11,767) | |
| Decrease in environmental asset | |||||||
| - | - | 9,243 | - | - | - | 93,243 | |
| Disposal | |||||||
| - | (5,107) | - | - | (2,333) | - | (7,440) | |
| Reclassified to assets held for | |||||||
| sale (Note 21) | (351,578) | (2,886,441) | - | ||||
| (1,158,680) | (303,961) | - | (4,700,660) | ||||
| Balance at 31 December 2023 | |||||||
| 16,873 | 67,866 | 64,563 | - | 102,831 | 111,383 | 363,516 | |
| Balance at 1 January 2024 | |||||||
| 16,873 | 67,866 | 64,563 | - | 102,831 | 111,383 | 363,516 | |
| Charge for the year | 10,949 | 23,022 | 4,234 | - | 14,497 | - | 52,702 |
| Disposal | |||||||
| - | - | - | - | (7,205) | - | (7,205) | |
| Reclassified to assets held for | |||||||
| sale (Note 21) | (676) | (5,741) | - | - | (2,025) | - | (8,442) |
| Balance at 31 December 2024 | 27,146 | 85,147 | 68,797 | - | 108,098 | 111,383 | 400,571 |
| Carrying amounts | |||||||
| Balance at 31 December 2023 | |||||||
| 132,213 | 58,403 | 36,452 | |||||
| - | |||||||
| 15,605 | 6,184 | 248,857 | |||||
| Balance at 31 December 2024 | |||||||
| 167,187 | 137,613 | 62,985 | |||||
| - | |||||||
| 28,594 | 9,744 | 406,123 |
(i) Impairment
Property, plant and equipment are reviewed for impairment in accordance with note 45 (j)(ii) ZMW1.17
thousand worth of assets were impaired during the year (2023: ZMW44 thousand)
ii. Assets pledged as security
Refer to note 40 (iii) for information on non-current assets pledged as security by the Group.
iii. Leased plant and equipment
The Group did not have any assets under lease as at 31 December 2024 (2023: nil).
iv. Work in progress
Work in progress relates to the Group’s property plant and equipment in transit and under construction.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
78
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
17 Property, plant, and equipment (continued)
| Reconciliation of carrying amount | |||||
| Company | |||||
| Land and | |||||
| buildings | |||||
| Plant and | |||||
| equipment | |||||
| Motor | |||||
| vehicles | |||||
| Work in | |||||
| progress | Total | ||||
| Cost or revaluation | |||||
| Balance at 1 January 2023 | 67,706 | 29,197 | 36,362 | 6,541 | 139,806 |
| Additions | 240 | 1,922 | - | 14,593 | 16,755 |
| Transfers | 13,205 | 6,377 | - | (19,582) | - |
| Disposal | - | (5,107) | (2,333) | - | (7,440) |
| Transfer from investment property (Note 20) | 16,790 | - | - | - | 16,790 |
| Transfer to investment property (Note 20) | (2,116) | - | - | - | (2,116) |
| Balance at 31 December 2023 | 95,825 | 32,389 | 34,029 | 1,552 | 163,795 |
| Balance at 1 January 2024 | 95,825 | 32,389 | 34,029 | 1,552 | 163,795 |
| Additions | 1,775 | 2,200 | - | 21,768 | 25,743 |
| Transfers | 845 | 4,508 | |||
| 16,216 | |||||
| (21,569) | |||||
| - | |||||
| Disposal | - | - | |||
| (7,290) | |||||
| - | |||||
| (7,290) | |||||
| Transfer from investment property (Note 20) | 20,210 | - | - | - | 20,210 |
| Balance at 31 December 2024 | 118,655 | 39,097 | 42,955 | 1,751 | 202,458 |
| Accumulated depreciation and impairment | |||||
| losses | |||||
| Balance at 1 January 2023 | 723 | 22,526 | 25,099 | 987 | 49,335 |
| Charge for the year | 1,704 | 4,108 | 5,464 | - | 11,276 |
| Disposal | - | (5,107) | (2,333) | - | (7,440) |
| Balance at 31 December 2023 | 2,427 | 21,527 | 28,230 | 987 | 53,171 |
| Balance at 1 January 2024 | 2,427 | 21,527 | 28,230 | 987 | 53,171 |
| Charge for the year | 2,443 | 4,905 | 5,519 | - | 12,867 |
| Disposal | - | - | (7,205) | - | (7,205) |
| Balance at 31 December 2024 | 4,870 | 26,432 | 26,544 | 987 | 58,833 |
| Carrying amount | |||||
| Balance at 31 December 2023 | 93,398 | 10,862 | 5,799 | 565 | 110,624 |
| Balance at 31 December 2024 | 113,785 | 12,665 | 16,411 | 764 | 143,625 |
Revaluation
The buildings were last revalued on 31 December 2022, by independent registered valuers, Sherwood Greene.
Valuations were made based on the Open Market Value. The Company revalues land and buildings every three
years. The carrying values of the properties were adjusted to their revalued amounts and the resultant surplus net
of deferred income tax was credited to the revaluation surplus in shareholders’ equity. Revaluations are done
with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value.
The register showing the details of property, as required by section 30 of the Companies Act, 2017 of Zambia, is
available for inspection during business hours at the registered office of the Company.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
79
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
17 Property, plant and equipment (continued)
Revaluation (Continued)
The carrying amounts of revalued land and buildings were stated on the historical cost basis, the amounts
would be as follows:
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| ZMW,000 | ZMW,000 | |
| Land and buildings | ||
| Cost | ||
| 38,489 | 38,489 | |
| Accumulated depreciation | ||
| (16,693) | (11,110) | |
| Net book amount | ||
| 21,796 | 27,379 |
18 Exploration and evaluation asset
| Reconciliation of carrying amount | Group |
| Cost | ZMW’000 |
| Balance at 1 January 2023 | 53,161 |
| Additions | - |
| Balance at 31 December 2023 | 53,161 |
| Balance at 1 January 2023 | 53,161 |
| Additions | (36,006) |
| Balance at 31 December 2024 | 17,155 |
| Accumulated depreciation and impairment losses | |
| Balance at 1 January 2023 | 1,724 |
| Depreciation adjustment* | - |
| Balance at 31 December 2023 | 1,724 |
| Balance at 1 January 2024 | 1,724 |
| Charge for the year | - |
| Balance at 31 December 2024 | 1,724 |
| Carrying amount | |
| Balance at 31 December 2023 | 51,437 |
| Balance at 31 December 2024 | 15,431 |
Exploration and evaluation assets represent costs capitalized by the Group in relation to diamond drilling,
laboratory analysis of drilling core samples, geochemical and geophysical studies as well as costs incurred in
acquisition of rights to explore the license area in Kasenseli, Mwinilunga district. The site has been deemed to
possess commercial reserves.
During the financial year ended 31 December 2024, part of the mining licence area for Zambia Gold Company
Limited was handed back to PCB. Therefore, the carrying value of ZMW51.44 million represented costs incurred
on the entire mining licence area. 70% of this cost is attributed to the costs incurred in the mining licence area
under PCB valued at ZMW36.01 million. Management determined that the carrying amount of ZMW51.44 million
is higher than the recoverable amount of ZMW15.53 million, therefore an impairment amount of ZMW36.01
million was recognised.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
80
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
19 Intangible assets
The Group’s intangible assets relate to mineral rights and acquired computer software programmes while the
company’s intangible assets relate to computer software.
| Reconciliation of carrying amount: | ||||||
| Group | ||||||
| Mineral | ||||||
| rights | ||||||
| Group | ||||||
| Computer | ||||||
| software | ||||||
| Group | ||||||
| /Company | ||||||
| Royalty | ||||||
| right | ||||||
| Total Group | ||||||
| intangible | ||||||
| assets | ||||||
| Company | ||||||
| Computer | ||||||
| software | ||||||
| Total | ||||||
| Company | ||||||
| intangible | ||||||
| assets | ||||||
| Cost | ||||||
| Balance as at 1 January 2023 | 3,281,457 | 9,507 | - | 3,290,964 | 8,969 | 8,969 |
| Additions | 133,122 | 221 | - | 133,343 | 147 | 147 |
| Disposals | - | (1,841) | - | (1,841) | (1,841) | (1,841) |
| Transfer from Associates (Note 23 (c)) | - | - | 11,036,000 | 11,036,000 | - | 11,036,000 |
| Fair valuation | - | - | 3,586,824 | 3,586,824 | - | 3,586,824 |
| Classified to assets held for sale | (3,281,457) | - | - | (3,281,457) | - | - |
| Balance at 31 December 2023 | 133,122 | 7,887 | 14,622,824 | 14,763,833 | 7,275 | 14,630,099 |
| Balance at 1 January 2024 | 133,122 | 7,887 | 14,622,824 | 14,763,833 | 7,275 | 14,630,099 |
| Additions | 11,796 | 4,659 | - | 16,455 | 4,659 | 4,659 |
| Fair valuation | - | - | 6,272,769 | 6,272,769 | - | 6,272,769 |
| Impairment | (66,561) | - | - | (66,561) | - | - |
| Classified to assets held for sale | - | (254) | - | (254) | - | - |
| Balance at 31 December 2024 | 78,357 | 12,292 | 20,895,593 | 20,986,242 | 11,934 | 20,907,527 |
| Amortisation | ||||||
| Balance as at 1 January 2023 | 136,653 | 5,986 | - | 142,639 | 5,592 | 5,592 |
| Disposals | - | (1,841) | - | (1,841) | (1,841) | (1,841) |
| Amortisation charge | 23,623 | 1,919 | 363,824 | 389,366 | 1,834 | 365,658 |
| Classified to assets held for sale | (160,276) | - | - | (160,276) | - | - |
| Balance at 31 December 2023 | - | 6,064 | 363,824 | 369,888 | 5,585 | 369,409 |
| Balance as at 1 January 2024 | - | 6,064 | 363,824 | 369,888 | 5,585 | 369,409 |
| Amortisation charge | - | 2,072 | 626,769 | 628,841 | 1,996 | 628,765 |
| Classified to assets held for sale | - | (226) | - | (226) | - | - |
| Balance at 31 December 2024 | - | 7,910 | 990,593 | 998,503 | 7,581 | 998,174 |
| Carrying amount | ||||||
| Balance at 31 December 2023 | 133,122 | 1,823 | 14,259,000 | 14,393,945 | 1,690 | 14,260,690 |
| Balance at 31 December 2024 | 78,357 | 4,382 | 19,905,000 | 19,987,739 | 4,353 | 19,909,353 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
81
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
19 Intangible assets (continued)
Royalty right interest
The following table shows the valuation technique used in measuring the fair value of royalty right in Kansanshi Mining Plc as well as the significant unobserv-
able inputs used.
| Royalty right | Valuation technique | Significant unobservable inputs and key assumptions | |
| Inter-relationship between key | |||
| unobservable inputs and fair | |||
| value measurement | |||
| Kansanshi | |||
| Mining Plc | |||
| Discounted cash flows: It is | |||
| an income approach to val- | |||
| uation and the most widely | |||
| used valuation methodolo- | |||
| gy. It computes the value of | |||
| a business by calculating the | |||
| present value of anticipated | |||
| future cash flows generated | |||
| by the business. The expect- | |||
| ed net cash flows are dis- | |||
| counted using risk adjusted | |||
| discount rates. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024:11.0%, 2023: 11.0%). | |||
| - Equity to total capitalisation (2024:89.0%, 2023:89.0%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 4.5%, 2023: 4.5%) | |||
| - Effective tax rate (2024: 30%, 2023: 30%) | |||
| - After tax cost of debt (2024: 3.2%, 2023: 3.2%) | |||
| • Cost of equity | |||
| - Risk free rate (2024: 4.58%, 2023: 3.88%) | |||
| - Market risk premium (2024: 8.54%, 2023: 9.7%) | |||
| - Levered beta (2024: 0.56, 2023: 0.7). | |||
| - Cost of equity (2024:9.3%, 2023: 10.7%) | |||
| • WACC (2024: 8.65%, 2023: 9.88%) | |||
| • Key assumptions considered were as follows: | |||
| - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from | |||
| 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. | |||
| Mineral royalty is treated as deductible from income tax from 2024 onwards. | |||
| - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as | |||
| deductible from income tax from 2024 onwards. | |||
| - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 /ton and | |||
| US$10,570/ton respectively. Gold price forecasts for 2025-2027 are US$2,793/ | |||
| oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate | |||
| of US$9,211/ton was used for copper and US$2,190/oz was used for gold. * | |||
| - Capex expenditure has been projected at US$1.1 billion to be invested by | |||
| 2029. This excludes sustaining capex which is expected to account for an | |||
| additional US$900 million over 2025-2029. | |||
| - | Life of mine was estimated to be 22 years with a further 3-year processing. | ||
| The estimated fair value would | |||
| increase/(decrease) if: | |||
| • Equity to total capitalisation | |||
| were (lower)/higher | |||
| • The cost of debt were | |||
| (higher)/lower | |||
| • The cost of equity were | |||
| (higher) /lower. | |||
| • The copper price increased / | |||
| (reduced). | |||
| • WACC lower/(higher) |
*Gold only contributed 12% to the revenues of Kansanshi for the year ended 31 December 2024.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
82
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
19 Intangible assets (continued)
Royalty right interest (continued)
A sensitivity analysis table of the equity value, which is based on the discount rate and long-term copper
price over the life of mine indicating reasonably possible changes at the reporting date to one of the
relevant valuation assumptions, holding other assumptions constant, would have affected the value of
the investment by the amounts shown below:
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Copper Price (US$ /lb) | ||||||
| 3.76 | 3.97 | 4.18 | 4.39 | 4.61 | ||
| Long-Term Gold Price (US$/oz) | ||||||
| 1,971 | 2,081 | 2,190 | 2,300 | 2,409 | ||
| WACC | ||||||
| 6.9% | 20,953,000 | 21,707,000 | 22,462,000 | 23,216,000 | 23,971,000 | |
| 7.8% | 19,725,000 | 20,422,000 | 21,120,000 | 21,818,000 | 22,516,000 | |
| 8.7% | 18,612,000 | 19,258,000 | 19,905,000 | 20,551,000 | 21,198,000 | |
| 9.5% | 17,600,000 | 18,200,000 | 18,800,000 | 19,401,000 | 20,001,000 | |
| 10.4% | 16,678,000 | 17,237,000 | 17,795,000 | 18,353,000 | 18,911,000 |
The fair value ranges from ZMW18.2 billion (2023: ZMW13.7 billion) to ZMW21.8 billion (2023: ZMW15.7 billion)
with the calculated equity value being ZMW19.9 billion (2023: ZMW14.3 billion).
The fair value of the Company’s investment in Kansanshi of ZMW19.9 billion (2023: ZMW14.3 billion) has
been categorised as a level 3 fair value based on the inputs to the valuation technique used.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
83
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
20 Investment property
(i) Reconciliation of carrying amounts
| Group & Company | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Balance at 1 January | 208,598 | 200,751 |
| Additions | 849 | - |
| Transfer from property, plant and equipment (Note 17) | - | 2,116 |
| Transfer to property, plant and equipment (Note 17) | (20,210) | (16,790) |
| Change in fair value (Note 9) | 16,654 | 22,521 |
| Closing balance | 205,891 | 208,598 |
(ii) Amounts recognised in profit or loss for investment properties.
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Rental income from operating leases | ||||
| (note 9) | 10,221 | 9,955 | 11,650 | 10,097 |
| Direct operating expenses from property that generated | ||||
| rental income | (2,198) | (3,466) | (2,918) | (3,466) |
| Net rental Income | 8,023 | 6,489 | 8,732 | 6,631 |
(iii) Leasing arrangements
The investment properties are leased to tenants under operating leases with rentals payable quarterly. Lease
income from operating leases where the group is a lessor is recognised in income on a straight-line basis over the
lease term. There are no variable lease payments that depend on an index or rate. Where considered necessary
to reduce credit risk, the Group may obtain three months rental deposit for the term of the lease.
Minimum lease payments receivable on leases of investment properties are as follows:
| Group and Company | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Within 1 year | 8,366 | 7,405 |
(iv) Measurement of fair value
Investment properties, principally office buildings and residential apartments, are held for long-term rental yields.
They are carried at fair value. Changes in fair values are presented in profit or loss as part of other income.
Fair value hierarchy
The fair value of investment property for the Company was determined, as at 31 December 2024 by Sherwood
Green Property Consultants, who are independent property valuers, having appropriate recognised professional
qualifications and recent experience in the location and category of the property being valued.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
84
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
20 Investment property (continued)
(iv) Measurement of fair value (continued)
Fair value hierarchy (continued)
The fair value measurement for investment property of ZMW206 million (2023: ZMW209 million) has been cate-
gorised as a Level 3 fair value based on the inputs to the valuation technique used.
Valuation techniques and significant unobservable inputs
The following table shows the valuation technique used in measuring the fair value of investment property, as
well as the significant unobservable inputs used:
| Valuation technique | ||
| Significant unobservable | ||
| inputs | ||
| Inter-relationships between Key | ||
| unobservable inputs and fair value | ||
| measurement | ||
| The investment method of | ||
| valuation was applied for valuation | ||
| of the investment properties. In the | ||
| Investment Method, the annual | ||
| rental income presently received | ||
| or expected over a period of time | ||
| for the lease of the property is | ||
| estimated and deducted there | ||
| from the expenses or outgoings | ||
| incidental to the ownership of | ||
| the property to obtain the net | ||
| annual rental value. This net annual | ||
| income is then capitalised by an | ||
| appropriate capitalisation rate or | ||
| years’ purchase figure to arrive at | ||
| the present capital value of the | ||
| property. | ||
| In addition, the direct comparison | ||
| method of valuation was also | ||
| applied for residential properties. | ||
| In the direct comparison method, | ||
| a number of similar properties | ||
| called comparable are assembled | ||
| and analysed preferably within | ||
| the vicinity. The analysis involves | ||
| comparing relevant aspects of | ||
| the subject property with the | ||
| comparable such as the condition, | ||
| location, design, accessibility | ||
| and amenities in the area among | ||
| others. Weights in terms of figures | ||
| or percentages are assigned to | ||
| determine a fair rate to be applied | ||
| to the subject property. | ||
| • Expected market rental | ||
| growth (3 - 5%. Weighted | ||
| average 4%) (2024: 4%, 2023: | ||
| 4%) | ||
| • Void periods (average 6 | ||
| months after the end of | ||
| each lease) (2024: 6 months, | ||
| 2023: 6 months) | ||
| • Occupancy rate (90-95%, | ||
| weighted average 90%) | ||
| (2024: 90%, 2023: 90%) | ||
| • Rent-free periods (1-month | ||
| period on new leases) (2024: | ||
| 1 month, 2023: 1 month) | ||
| • Risk-adjusted discount | ||
| rates (9% - 10.5%. weighted | ||
| average 10%) (2024: 10% | ||
| 2023: 10%). | ||
| • Land value assessment, a | ||
| rate per acre of K1,000,000 | ||
| was adopted. | ||
| • Capitalization rate ranging | ||
| 9% - 12% has been applied. | ||
| • Costs associated with | ||
| managing and maintaining | ||
| a property or building range | ||
| from 15% -20%. | ||
| • The estimated fair value would | ||
| increase or (decrease) if: | ||
| • expected market rental growth were | ||
| higher (lower); | ||
| • void periods were shorter (longer); | ||
| • the occupancy rate were higher | ||
| (lower): | ||
| • Rent-free periods were shorter | ||
| (longer); or | ||
| • The risk-adjusted discount rate were | ||
| lower (higher). |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
85
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
21 Assets classified as held for sale
(i) Description
Reconciliation of carrying amount for the Company;
| Company | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Balance at 1 Jan | - | 145,700 |
| Additions | 72,856 | - |
| Impairment | - | - |
| Change in fair value | 732 | (145,700) |
| Balance at 31 Dec | 73,588 | - |
Investrust Bank Plc
Rembrandt Properties Limited (“Rembrandt”), a Special Purpose vehicle (SPV), was established through a
partnership involving ZCCM-IH (49% stake), Urban Brands Asset Management (25.5%), and Sims Capital Limited
(25.5%). The entity was specifically created for the development of the Leopards Square Hotel, a boutique hotel
featuring 74 rooms in Woodlands, Lusaka.
On 4th September 2024, ZCCM-IH issued a public call for Expressions of Interest (EOI) through national newspapers
and social media, announcing its intention to divest from Rembrandt as part of its strategic realignment towards
core investments in mining, energy, and mineral beneficiation. Subsequently, on 4th December 2024, the Board
of ZCCM-IH approved Management’s proposal to exit from its investment in Rembrandt.
The results of Rembrandt are presented separately in the financial statements as a discontinued operation in line
with IFRS 5 – Non-current Assets Held for Sale and Discontinued operations.
Misenge Environmental and Technical Services Limited
As part of ZCCM-IH Plc’s strategic review and performance assessment, Misenge Environmental and Technical
Services Limited (METs) has been classified as a discontinued operation in the consolidated financial statements
for the year ended 31 December 2024.
The results of METs are presented separately in the financial statements as a discontinued operation in line with
IFRS 5 – Non-current Assets Held for Sale and Discontinued operations.
Suspension and Liquidation of Investrust Bank Plc
During the financial year ended 31 December 2024, the Bank of Zambia (“BoZ”) exercised regulatory authority
over Investrust Bank Plc (“Investrust”). On 2 April 2024, the Lusaka Securities Exchange (“LuSE”) issued a notice
halting the trading of Investrust’s securities, and subsequently, on 24 April 2024, LuSE formally suspended the
listing of Investrust Bank Plc.
Further, on 8 July 2024, BOZ issued a Notice on the Resolution of Investrust, in accordance with Section 127 of
the Banking and Financial Services Act, 2017. The notice confirmed that Investrust had been placed under
compulsory liquidation to address residual matters. As part of the resolution process, BOZ appointed a Liquidation
Manager to oversee and administer the liquidation process.
The Company continues to monitor developments regarding the liquidation process and, ensuring appropriate
disclosures in line with applicable financial reporting standards.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
86
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
21 Assets classified as held for sale (continued)
(ii) The assets and liabilities of the investments classified as held for sale are as follows:
| 31 Dec 2024 | Group | Company | |
| Assets | Liabilities | Fair value | |
| Rembrandt Properties Limited | 43,860 | - | 43,860 |
| Misenge Environmental and Technical Services Ltd | 48,280 | (14,305) | 29,728 |
| Total | 92,140 | (14,305) | 73,588 |
| 31 Dec 2023 | Group | Company | |
| Assets | Liabilities | Fair value | |
| Mopani Copper Mines Plc | 22,032,991 | (60,173,129) | - |
| Investrust Bank Plc | 1,593,397 | (2,503,825) | - |
| Total | 23,626,388 | (62,676,954) | - |
(iii) Financial performance and cash flow information
The financial performance and cashflow information presented for the year ended 31 December 2024:
| Misenge Environmental and | |
| Technical Services Limited | |
| 31 Dec 2024 | |
| Revenue | 13,361 |
| Cost of sales and expenses | (16,731) |
| Profit/(loss) before income tax | (3,370) |
| Income tax expense | (410) |
| Profit/(loss) after income tax | (3,780) |
| Net cash inflow/(outflow) from operating activities | (2,696) |
| Net cash (outflow) from investing activities | (8,131) |
| Net cash (outflow) from financing activities | - |
| Net cash inflow/(outflow) | (10,827) |
| Misenge Environmental and | ||
| Technical Services Limited | Group | |
| 31 Dec 2024 | ||
| Assets classified as held for sale | ||
| Property, plant, and equipment | 16,626 | 16,626 |
| Trade and other receivables | 10,731 | 10,731 |
| Other assets | 1,266 | 1,266 |
| Cash and cash equivalents | 19,657 | 19,657 |
| Total assets of disposal group held for sale | 48,280 | 48,280 |
| Liabilities directly associated with assets classified as | ||
| held for sale | ||
| Trade and other payables | (18,552) | (18,552) |
| Less intercompany eliminations on consolidation | - | 4,247 |
| Total liabilities directly associated with assets classified | ||
| as held for sale | (18,552) | (14,305) |
| Net assets held for sale | 29,728 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
87
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
21 Assets classified as held for sale (continued)
(iii) Financial performance and cash flow information (continued)
The financial performance and cashflow information presented for the year ended 31 December 2023:
| Investrust Bank | ||
| Plc | Total | |
| 31 Dec | ||
| 2023 | ||
| 31 Dec | ||
| 2023 | ||
| Revenue | 188,822 | 188,822 |
| Other income | 13,977 | 13,977 |
| Cost of sales and expenses | (960,980) | (960,980) |
| Loss before income tax | (758,181) | (758,181) |
| Income tax expense | - | - |
| Loss for the year | (758,181) | (758,181) |
| Loss attributable to non-controlling interest | (216,840) | (216,840) |
| Net cash inflow from operating activities | 569,594 | 569,594 |
| Net cash (outflow) from investing activities | (9,373) | (9,373) |
| Net cash inflow/(outflow) from financing activities | - | - |
| Net cash in flow | 560,221 | 560,221 |
The following assets and liabilities were reclassified as discontinued operations as at 31 December 2024:
| Misenge | ||
| Environmental | ||
| and Technical | ||
| Services Ltd | Total | |
| Assets classified as held for sale | ||
| Property, plant, and equipment | 16,626 | 16,626 |
| Intangible assets | 28 | 28 |
| Trade and other receivables | 10,731 | 10,731 |
| Other assets | 1,238 | 1,238 |
| Cash and cash equivalents | 19,657 | 19,657 |
| Total assets of disposal group held for sale | 48,280 | 48,280 |
| Liabilities directly associated with assets classified as held for sale | ||
| Equity | - | - |
| Provisions | (3,005) | (3,005) |
| Trade and other payables | (15,547) | (15,547) |
| Total liabilities directly associated with assets classified as held for sale | (18,552) | (18,552) |
For segment reporting purposes, Misenge Environmental and Technical Services Limited has been classified
under assets held for sale and discontinued operations.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
88
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
21 Assets classified as held for sale (continued)
(iii) Financial performance and cash flow information (continued)
The following assets and liabilities were reclassified as held for sale as at 31 December 2023;
| Mopani | |||
| Copper Mines | |||
| Plc | |||
| Investrust | |||
| Bank Plc | Total | ||
| Assets classified as held for sale | |||
| Property, plant, and equipment | 12,525,429 | - | 12,525,429 |
| Intangible assets | 3,121,181 | - | 3,121,181 |
| Trade and other receivables | 2,691,333 | 28,161 | 2,719,494 |
| Term deposits | - | 1,005,015 | 1,005,015 |
| Inventories | 3,489,128 | - | 3,489,128 |
| Other assets | 147,553 | - | 147,553 |
| Cash and cash equivalents | 58,367 | 560,221 | 618,588 |
| Total assets of disposal group held for sale | 22,032,991 | 1,593,397 | 23,626,388 |
| Liabilities directly associated with assets classified as held | |||
| for sale | |||
| Borrowings | (43,518,156) | - | (43,518,156) |
| Provisions for environmental rehabilitation | (3,263,137) | - | (3,263,137) |
| Bank Overdraft | (1,095,462) | - | (1,095,462) |
| Trade and other payables | (12,296,374) | (2,503,825) | (14,800,199) |
| Total liabilities directly associated with assets classified as | |||
| held for sale | (60,173,129) | (2,503,825) | (62,676,954) |
| Net liabilities held for sale | (38,140,138) | (910,428) | (39,050,566) |
| Accumulated non-controlling Interest | - | (252,969) | (252,969) |
For segment reporting purposes, Investrust Bank Plc included in the assets held for sale above, was classified
under investments segment as part of other assets in 2023. Mopani Copper Mines Plc has been classified under
the mining and processing segment.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
89
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
21 Assets classified as held for sale (continued)
(iv) Reclassification of asset from held for sale to investments in associates
ZCCM-IH Plc held a controlling interest in Mopani until the shareholders approved the Strategic Equity
Transaction at an Extraordinary Meeting held on Friday 23 February 2024. This new partnership resulted in
International Resources Holdings RSC Limited (“IRH”), through its wholly owned subsidiary, Delta Mining Limited
(“Delta”) acquiring a 51% stake in Mopani which diluted ZCCM-IH’s stake from 100% to 49%. As a result, Mopani
was reclassified as an associate in accordance with IFRS 10 Consolidated Financial Statements and IAS 28
Investments in Associates and Joint Ventures.
Upon the reclassification, Mopani was derecognised from the Group’s Statement of Financial Position as a
subsidiary and recognised as part of the Group’s investment in associates on 20th March 2024.
| Mopani Copper | ||
| Mines Plc | ||
| 20 Mar 2024 | ||
| Total | ||
| 20 Mar 2024 | ||
| Property, plant, and equipment | 14,598,625 | 14,598,625 |
| Environmental protection fund | 147,728 | 147,728 |
| Inventories | 3,533,399 | 3,533,399 |
| Receivables | 2,378,985 | 2,378,985 |
| Cash and Bank | 1,635,834 | 1,635,834 |
| Total assets on reclassification | 22,294,571 | 22,294,571 |
| Borrowings | (7,738,900) | (7,738,900) |
| Mopani Intercompany Loan | (2,452,218) | (2,452,218) |
| Rehabilitation and restoration provisions | (2,356,069) | (2,356,069) |
| Retirement Benefits Provision | (129,916) | (129,916) |
| Taxation and other payables | (13,456,454) | (13,456,454) |
| Total Liabilities | (26,133,557) | (26,133,557) |
| Gain on disposal | 3,838,986 | 3,838,986 |
| Investments in associates @49% | 4,750,000 | 4,750,000 |
| Gain on reclassification | 8,588,986 | 8,588,986 |
| Mopani | |||
| Copper Mines | |||
| Plc | |||
| Investrust | |||
| Bank Plc | Total | ||
| Gain on derecognition | 8,588,986 | 910,428 | 9,499,414 |
| Total gain on derecognition | 8,588,986 | 910,428 | 9,499,414 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
90
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries
The following are considered when determining whether the Company has control over the investee compa-
nies:
• ZCCM-IH’s representation on the board of the investee company
• Appointment of key management staff
• Number of voting rights.
Currently all subsidiaries are wholly owned by ZCCM-IH except for Zambia Gold Company Limited which is
in its development stage. During the year, ZCCM-IH appointed key management personnel for the investee
company, funds and exercised control over its operations and activities. ZCCM-IH is deemed to exercise con-
trol over the entity.
Set out below is a list of subsidiaries:
| December 2024 | ||||||||
| Company | ||||||||
| Country of | ||||||||
| incorpora- | ||||||||
| tion | ||||||||
| Principal | ||||||||
| place of | ||||||||
| business | ||||||||
| Held % | ||||||||
| Interest | ||||||||
| Opening | ||||||||
| carrying | ||||||||
| amount | Addition | |||||||
| Conver- | ||||||||
| sion of | ||||||||
| loan | ||||||||
| Change in | ||||||||
| fair value | ||||||||
| Closing | ||||||||
| carrying | ||||||||
| amount | ||||||||
| Misenge Environmental and | ||||||||
| Technical Services | Zambia | Kalulushi | 100 | 33,508 | - | (33,508) | - | - |
| Kariba Minerals Limited | Zambia | Mapatizya | 100 | 99,624 | - | - | (1,958) | 97,666 |
| Kabundi Resources Limited | Zambia | Serenje | 100 | 64,850 | - | - | (12,395) | 52,455 |
| Limestone Resources Limited | Zambia | Ndola | 100 | - | 116,326 | - | (116,326) | - |
| Zambia Gold Company | ||||||||
| limited | Zambia | Lusaka | 51 | 84,402 | 81 | - | (43,103) | 41,380 |
| Central African Cement | ||||||||
| Company limited | Zambia | Lusaka | 49 | - | - | - | - | - |
| 282,384 | 116,407 | (33,508) | (173,782) | 191,501 |
| December 2023 | ||||||||
| Company | ||||||||
| Country of | ||||||||
| incorpora- | ||||||||
| tion | ||||||||
| Principal | ||||||||
| place of | ||||||||
| business | ||||||||
| Held % | ||||||||
| Interest | ||||||||
| Opening | ||||||||
| carrying | ||||||||
| amount | Addition | |||||||
| Impair- | ||||||||
| ment | ||||||||
| Change in | ||||||||
| fair value | ||||||||
| Closing | ||||||||
| carrying | ||||||||
| amount | ||||||||
| Mopani Copper Mine Plc | Zambia | Kitwe | 100 | - | - | - | - | - |
| Misenge Environmental and | ||||||||
| Technical Services | ||||||||
| Zambia | Kalulushi | 100 | 45,323 | - | - | (11,815) | 33,508 | |
| Kariba Minerals Limited | Zambia | Mapatizya | 100 | - | 93,568 | 5,839 | 217 | 99,624 |
| Kabundi Resources Limited | Zambia | Serenje | 100 | 85,927 | - | - | (21,077) | 64,850 |
| Limestone Resources Limited | Zambia | Ndola | 100 | 172,553 | 94,521 | - | (267,074) | - |
| Zambia Gold Company | ||||||||
| Limited | ||||||||
| Zambia | Lusaka | 51 | 99,811 | 1,912 | - | (17,321) | 84,402 | |
| Central African Cement | ||||||||
| Company Limited | ||||||||
| Zambia | Lusaka | 49 | 1,437 | - | - | (1,437) | - | |
| 405,051 | 190,001 | 5,839 | (318,507) | 282,384 |
Capital Contributions
• During the year 2024, ZCCM-IH Plc made equity contributions to Limestone Resources Limited amounting to
ZMW116 million.
• In 2023, ZCCM-IH Plc made equity contributions to Kariba Minerals Limited, Limestone Resources Limited and
Zambia Gold Company Limited amounting to ZMW93.57 million, ZMW94.52 million and ZMW1.91 million re-
spectively.
The capital contribution was aimed at strengthening balance sheets and improve the operations of the respec-
tive companies.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
91
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries (continued)
(a) Reconciliation of carrying amounts
| Company | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Balance at 1 January | 282,384 | 405,051 |
| Additions | 116,407 | 190,001 |
| Change in fair through other comprehensive income | (173,782) | (318,507) |
| Transfer to assets held for sale | (33,508) | - |
| Conversion of loan to equity | - | 5,839 |
| Closing Balance | 191,501 | 282,384 |
In line with the accounting policy for investments in subsidiaries, to carry all its investments at fair value, the Company
performs annual fair valuation of its investments in subsidiaries and fair value gain/(loss) is recognised. The fair value
gain/(loss) is recognised in the other comprehensive income (OCI). During the year, a fair value movement of
ZMW173.78 million was recognised (2023: ZMW318.51 million). Valuation techniques used are disclosed in note 22
(b).
(b) Measurement of fair value
During the year ZCCM – IH Plc engaged an independent expert Stockbrokers Zambia (“SBZ”) to perform the
valuation of the investments held at the year end. SBZ performed a full valuation and provided an independent
valuation opinion in accordance with IFRS 13: “Fair Value Measurement” and IFRS 9: “Financial Instruments”.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
92
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries (continued)
(b) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs
The following table shows the valuation technique used in measuring the fair value of investment in
subsidiaries as well as the significant unobservable inputs used.
| Subsidiary | |||
| Valuation | |||
| technique | |||
| Significant inputs and | |||
| key assumptions | |||
| Inter-relationship between Key unobserv- | |||
| able inputs and fair value measurement | |||
| Limestone Resources | |||
| Limited | |||
| Net asset value | |||
| approach | |||
| ■ Availability of the Kiln | |||
| ■ Cost of materials | |||
| used in the produc- | |||
| tion of lime | |||
| The estimated fair value would increase/ | |||
| (decrease) if: | |||
| ■ Availability of the Kiln increase/(de- | |||
| crease) | |||
| ■ Cost of materials used in the production | |||
| of lime (increase)/decrease | |||
| Misenge Environmen- | |||
| tal and Technical | |||
| Services | |||
| Net asset value | |||
| approach | |||
| ■ The level of activity | |||
| from the environ- | |||
| mental and radia- | |||
| tion safety services | |||
| ■ The level of activity | |||
| from the analytical | |||
| services | |||
| ■ The level of activity | |||
| from the engineer- | |||
| ing services | |||
| The estimated fair value would increase/ | |||
| (decrease) if: | |||
| ■ The level of activity from the environ- | |||
| mental and radiation safety services | |||
| increase/(decrease) | |||
| ■ The level of activity from the analytical | |||
| services increase/(decrease) | |||
| ■ The level of activity from the engineer- | |||
| ing services increase/(decrease) | |||
| Kariba Minerals | |||
| Limited | |||
| Net asset value | |||
| approach | |||
| ■ The grade of ame- | |||
| thyst being mined | |||
| ■ The level of mining | |||
| activity affects the | |||
| operational costs | |||
| The estimated fair value would increase/ | |||
| (decrease) if: | |||
| ■ The grade of amethyst being mined | |||
| increase/(decrease) | |||
| ■ The level of mining activity affects the | |||
| operational costs increase/(decrease) | |||
| Kabundi Resources | |||
| Limited | |||
| Net asset value | |||
| approach | |||
| ■ The level of mining | |||
| activity being per- | |||
| formed | |||
| ■ The level of mining | |||
| activity affects the | |||
| operational costs | |||
| The estimated fair value would increase/ | |||
| (decrease) if: | |||
| ■ The level of mining activity being per- | |||
| formed | |||
| ■ The level of mining activity affects the | |||
| operational costs |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
93
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries (continued)
(b) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs (continued)
| Subsidiary | |||
| Valuation | |||
| technique | |||
| Significant | |||
| unobservable inputs | |||
| and key assumptions | |||
| Inter-relationship between Key | |||
| unobservable inputs and fair value | |||
| measurement | |||
| Zambia Gold | |||
| Company Limited | |||
| Net asset value | |||
| approach | |||
| • The level of mining | |||
| activity being | |||
| performed | |||
| • Operational costs | |||
| incurred which are | |||
| marginally related | |||
| to mining activities | |||
| The estimated fair value would increase/ | |||
| (decrease) if: | |||
| • The level of mining activity being | |||
| performed increase/(decrease) | |||
| • Operational costs incurred which are | |||
| marginally related to mining activities | |||
| (Increase)/decrease |
Investments in subsidiaries have been measured at fair value as follows:
| Company | ||
| Company investments in subsidiaries analysis | 31-Dec | 31-Dec |
| 2024 | 2023 | |
| Misenge Environmental and Technical Services | - | 33,508 |
| Kariba Minerals Limited | 97,666 | 99,624 |
| Kabundi Resources Limited | 52,455 | 64,850 |
| Limestone Resources Limited | - | - |
| Zambia Gold Company Limited | 41,380 | 84,402 |
| Total | 191,501 | 282,384 |
Fair value hierarchy
The fair value measurement for the Company’s investment in subsidiaries of ZMW192 million (2023: ZMW 282
million) has been categorised as a level 3 fair value based on the inputs to the valuation technique used. The
following table shows a reconciliation from the opening balances to the closing balances for level 2 and 3 fair
values.
| December 2024 | Level 2 | Level 3 | Total |
| Balance at 1 January | - | 282,384 | 282,384 |
| Additions | - | 116,407 | 116,407 |
| Transfer to assets held for sale | - | (33,508) | (33,508) |
| Change in fair value | - | (173,782) | (173,782) |
| Balance at 31 December | 191,501 | 191,501 |
| December 2023 | Level 2 | Level 3 | Total |
| Balance at 1 January | - | 405,051 | 405,051 |
| Additions | - | 195,840 | 195,840 |
| Change in fair value | - | (318,507) | (318,507) |
| Balance at 31 December | - | 282,384 | 282,384 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
94
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries (continued)
(c) Non-controlling interest
The Group’s material non-controlling interests (NCI) relates to Zambia Gold Company Limited as shown below:
| Name | ||||||
| Proportion of ownership | ||||||
| interests and voting | ||||||
| rights held by the NCI | ||||||
| Total comprehensive | ||||||
| income allocated to NCI | Accumulated NCI | |||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| Investrust Bank Plc | 28.6% | 28.6% | - | (216,840) | - | (252,969) |
| Zambia Gold Company | ||||||
| Limited | 49% | 49% | (41,169) | (11,439) | 37,016 | 78,185 |
| Total | (41,169) | (228,279) | 37,016 | (174,784) |
Summarised financial information for Zambia Gold Company limited, before intragroup eliminations, is set out
below:
| 2024 | |
| 31 Dec | |
| 2024 | |
| Zambia Gold Company | |
| Limited | |
| Non-current assets | 191,397 |
| Current assets | 134,942 |
| Total assets | 326,339 |
| Non-current liabilities | 212,514 |
| Current liabilities | 32,687 |
| Total liabilities | 245,201 |
| Equity attributable to owners of the parent | 41,380 |
| Equity attributable non-controlling interests | 39,758 |
| Revenue | - |
| Other income | 327 |
| Loss for the year attributable to owners of the parent | (42,850) |
| Loss for the year attributable to NCI | (41,169) |
| Loss for the year | (84,019) |
| Net cash from operating activities | (90,118) |
| Net cash used in investing activities | (36,024) |
| Net cash from financing activities | 139,068 |
| Net cash inflow | 12,926 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
95
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
22 Investment in subsidiaries (continued)
(c) Non-controlling interest (continued)
2023
| 31 Dec | ||
| 2023 | ||
| 31 Dec | ||
| 2023 | ||
| Investrust Bank Plc | ||
| Zambia Gold | ||
| Company Limited | ||
| Non-current assets | - | 211,303 |
| Current assets | 1,593,397 | 115,491 |
| Total assets | 1,593,397 | 326,794 |
| Non-current liabilities | - | 15,313 |
| Current liabilities | 2,503,825 | 146,330 |
| Total liabilities | 2,503,825 | 161,643 |
| Equity attributable to owners of the parent | (657,459) | 86,966 |
| Equity attributable non-controlling interests | (252,969) | 78,185 |
| Revenue | 188,822 | 38,524 |
| Other income | 13,977 | - |
| Loss for the year attributable to owners of the parent | (541,341) | (11,906) |
| Loss for the year attributable to NCI | (216,840) | (11,439) |
| Loss for the year | (758,181) | (23,345) |
| Net cash used in operating activities | 569,594 | 18,599 |
| Net cash used in investing activities | (9,373) | (267) |
| Net cash from financing activities | - | 95,247 |
| Net cash out flow | 560,221 | 113,579 |
(d) Derecognition of Investrust Bank Plc from the Group’s Financial Statements
During the financial year ended 31 December 2024, the Bank of Zambia (“BoZ”) exercised regulatory
authority over Investrust Bank Plc (“Investrust”). On 2 April 2024, the Lusaka Securities Exchange (“LuSE”)
issued a notice halting the trading of Investrust’s securities, and subsequently, on 24 April 2024, LuSE for-
mally suspended the listing of Investrust Bank Plc.
Further, on 8 July 2024, BOZ issued a Notice on the Resolution of Investrust, in accordance with Section 127
of the Banking and Financial Services Act, 2017. The notice confirmed that Investrust had been placed
under compulsory liquidation to address residual matters. As part of the resolution process, BOZ appoint-
ed a Liquidation Manager to oversee and administer the liquidation process. ZCCM-IH’s shareholding
was also cancelled.
The Company continues to monitor developments regarding the liquidation process and, ensuring
appropriate disclosures in line with applicable financial reporting standards.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
96
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
22 Investment in subsidiaries (continued)
(d) Derecognition of Investrust Bank Plc from the Group’s Financial Statements (continued)
| 31 Dec | ||
| 2024 | 31 Dec 2024 | |
| Investrust Bank Plc | Total | |
| Term deposits | 1,005,015 | 1,005,015 |
| Trade and other receivables | 28,161 | 28,161 |
| Cash and cash equivalents | 560,221 | 560,221 |
| Trade and other payables | (2,503,825) | (2,503,825) |
| Net liabilities derecognised | (910,428) | (910,428) |
| NCI accumulated NCI (22 (c)) | (252,969) | (252,969) |
In 2023, a wholly owned subsidiary of ZCCM-IH, Mushe Milling Limited was declared insolvent and ceased its
operations. The Board of Directors resolved that Mushe be liquidated and a notice for a meeting to wind up the
company voluntarily be issued. Following the decision by the Directors of Mushe, the remainder of the assets and
liabilities were derecognised and written off.
The table below shows the assets and liabilities derecognised in 2023.
| 31 Dec | |||
| 2023 | |||
| 31 Dec | |||
| 2023 | 31 Dec 2023 | ||
| Mushe Milling | |||
| Limited | |||
| Central African | |||
| Cement Limited | |||
| Total | |||
| Property, plant and equipment | 5,296 | - | |
| 5,296 | |||
| Inventories | 144 | - | |
| 144 | |||
| Cash and cash equivalents | 571 | - | |
| 571 | |||
| Retirement benefits | (1,932) | - | |
| (1,932) | |||
| Trade and other payables | (22,864) | - | |
| (22,864) | |||
| Provisions | (1,187) | - | |
| (1,187) | |||
| Current tax liabilities | (127) | - | |
| (127) | |||
| Non-controlling interest | - | 733 | |
| 733 | |||
| Net liabilities derecognised | (20,099) | 733 | (19,366) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
97
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
23 Investment in associates
(a) Reconciliation of carrying amounts
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Balance at 1 January | 10,090,940 | 15,174,862 | 11,240,080 | 16,256,411 |
| Share of profit/(loss) of equity | ||||
| accounted associates | 3,327,837 | 2,261,209 | - | - |
| Share of other comprehensive | ||||
| income | (1,558) | 11,529 | - | - |
| Dividend received | (750,029) | (739,836) | - | - |
| Additions | 566,340 | 540,849 | 566,340 | 540,849 |
| Transfer to intangible assets | ||||
| (Note 19) | - | (11,036,000) | - | (11,036,000) |
| Transfer from associate to | ||||
| receivable | - | (29,507) | - | (29,507) |
| Transfer from associate to assets | ||||
| held for sale (Note 21(ii)) | (39,348) | - | (39,348) | - |
| Additions | 4,750,000 | - | - | - |
| Impairment of investments in | ||||
| associates* (Note 23 (a) (i/ii)) | (4,461,755) | - | - | - |
| Change in fair value | ||||
| (unrealised) | - | - | 22,685,093 | 5,508,327 |
| Currency translation adjustment | 10,922,393 | 3,907,834 | - | - |
| Total Balance | 24,404,820 | 10,090,940 | 34,452,165 | 11,240,080 |
* Investments in associates are measured at fair value in the Company’s statement of financial position. In the
consolidated financial statements, investments in associates are equity - accounted. The increase in fair value
from ZMW 11.24 million to ZMW34.45 million is mainly due to the reclassification of Mopani from investments in
subsidiary to investment in associate coupled with unrealised capital gains from ZCCM-IH’s investment in CEC
Plc and other investee companies.
Mopani Copper Mines Plc:
During the financial year ended 31 December 2024, ZCCM Investments Holdings Plc (ZCCM-IH) entered into a
strategic equity partnership with Delta Mining Limited (Delta), a subsidiary of International Resource Holdings
(IRH). This partnership involved Delta acquiring a 51% shareholding in Mopani Copper Mines Plc (Mopani)
through an investment of up to US$1.1 billion. Consequently, ZCCM-IH's ownership stake in Mopani was adjusted
from 100% to 49%. The investment by Delta comprises US$620 million in new equity capital, up to US$100 million
for settling existing third-party letters of credit, and up to US$380 million in shareholder loans. This infusion of
capital is aimed at enhancing Mopani's operational capacity and financial stability. The Strategic Partnership
was approved by ZCCM-IH shareholders during an Extraordinary General Meeting held on 23 February 2024.
This collaboration is anticipated to unlock the long-term sustainability of Mopani's operations, contributing
significantly to the revitalization of Zambia's Copperbelt region. The investment has been reclassified from a
subsidiary to an investment in associate.
Copperbelt Energy Corporation Plc:
During the year ZCCM-IH has increased its stake in Copperbelt Energy Corporations Plc to 32.41% from the pre-
vious 31.07%
Lubambe Copper Mines Plc:
Lubambe Copper Mines Investment (2024): ZCCM-IH reached an agreement with Jinchengxin Mining Manage-
ment Company Ltd (JCHX) to acquire an additional 10% shareholding in Lubambe Copper Mines Ltd, increas-
ing its ownership from 20% to 30% in the subsequent period. There was no consideration paid for the additional
10% shareholding acquired in Lubambe.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
98
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(a) Reconciliation of carrying amounts (continued)
Impairment of investments in associates
(i) Mopani Copper Mines Plc
During the financial year ended 31 December 2024, management performed an assessment of the impairment
of ZCCM-IH’s investment in Mopani Copper Mines Plc (MCM) in accordance with IAS 36 Impairment of Assets
and IAS 28 Investments in Associates and Joint Ventures.
As at the reporting date, the carrying amount of the investment in MCM was assessed for indicators of impairment.
The assessment was triggered by an objective impairment indicator which arose from a significant decline in
recoverable amount of the investment in MCM.
ZCCM-IH’s management annually performs an assessment of the recoverable amount of its investment in
associates. The key assumptions used in the assessment and determination of the recoverable amount of the
investment in MCM are disclosed in Note 23 (c), Measurement of fair value.
Based on the assessment, an impairment loss of ZMW2.06 billion was recognised in the statement of profit or loss,
reducing the carrying amount of the investment in the MCM from ZMW10.74 billion to its recoverable amount of
ZMW8.62 million as at 31 December 2024.
(ii) Konkola Copper Mines Plc
During the financial year ended 31 December 2024, management performed an assessment of the impairment
of ZCCM-IH’s investment in Konkola Copper Mines Plc (KCM) in accordance with IAS 36 Impairment of Assets
and IAS 28 Investments in Associates and Joint Ventures.
As at the reporting date, the carrying amount of the investment in KCM was assessed for indicators of impairment.
The assessment was triggered by an objective impairment indicator which arose from a significant decline in the
recoverable amount of the investment in KCM.
ZCCM-IH’s management annually performs an assessment of the recoverable amount of its investment in
associates. They key assumptions used in the assessment and determination of the recoverable amount of the
investment in KCM are disclosed in Note 23 (c), Measurement of fair value.
Based on the assessment, an impairment loss of ZMW2.40 billion was recognised in the statement of profit or loss,
reducing the carrying amount of the investment in the KCM from ZMW4.76 billion to its recoverable amount of
ZMW2.36 million as at 31 December 2024.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
99
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(a) Reconciliation of carrying amounts (continued)
Company
| Name | ||||
| Principal place | ||||
| of business | ||||
| Ownership | ||||
| interest | ||||
| Fair value of | ||||
| ownership | ||||
| interest ZMW’ | ||||
| million | ||||
| Functional | ||||
| currency | ||||
| Konkola Copper Mines Plc | Zambia | 20.60% | 2,359 | US$ |
| Kansanshi Mining Plc | Zambia | 20.00% | - | US$ |
| Copperbelt Energy Corporation Plc | Zambia | 32.41% | 7,289 | US$ |
| Mopani Copper Mines PIc | Zambia | 49.00% | 8,682 | US$ |
| CNMC Luanshya Copper Mining limited | Zambia | 20.00% | 6,939 | US$ |
| Maamba Energy Limited | Zambia | 35.00% | 7,621 | US$ |
| Lubambe Copper Mines Limited | Zambia | 30.00% | Nil | US$ |
| Mingomba Mining Limited | Zambia | 20.00% | 1,563 | US$ |
The following are considered when determining the level of control or influence over the investee companies:
• ZCCM-IH’s representation on the Board of the investee company
• Appointment of key management staff
• Number of voting rights
Currently ZCCM-IH appoints directors in line with its percentage holding on all the Boards of its associates except
for Kansanshi Mining Plc, and as such it exercise’s significant influence over them.
Many of the investee companies have United States Dollars (US$) as their functional currency, due to the nature
of the mining industry, although all investee companies are domiciled in Zambia.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
100
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(b) Investment in associates’ analysis
Nature of business relationship and strategic impact on ZCCM-IH’s activities
| Name | ||
| Nature of business | ||
| relationship | ||
| Strategic impact on ZCCM-IH’s | ||
| activities | ||
| Konkola Copper Mines Plc | KCM is Zambia’s largest in- | |
| tegrated copper producer, | ||
| with an entire production | ||
| value chain comprising of | ||
| open pit and underground | ||
| mines, concentrators, a | ||
| state-of-the-art smelter, a | ||
| tailings leach plant and a | ||
| refinery. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. | ||
| Kansanshi Mining Plc | Kansanshi is Zambia’s | |
| largest copper producer. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. | ||
| Copperbelt Energy Corporation Plc | CEC Plc is a power | |
| generation, transmission, | ||
| distribution and supply | ||
| company. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| and energy sectors. | ||
| Mopani Copper Mines Pic | Mopani is a copper mine | |
| comprising underground | ||
| mines, a concentrator, | ||
| a smelter, a refinery, | ||
| underground mines, open | ||
| pits, a concentrator and a | ||
| cobalt plant. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. | ||
| CNMC Luanshya Copper Mining limited | CNMC is a copper | |
| producing mine. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. | ||
| Maamba Energy Limited | Maamba is largest coal | |
| mining company in | ||
| Zambia. Maamba has a | ||
| coal power plants that | ||
| contributes power to the | ||
| national grid. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s energy | ||
| sectors. | ||
| Lubambe Copper Mines Limited | Lubambe Copper Mine is | |
| an underground mining | ||
| operation. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. | ||
| Mingomba Mining Limited | Mingomba is currently | |
| undertaking an extensive | ||
| exploration programme | ||
| on its license to develop it | ||
| into a fully-fledged copper | ||
| mine. | ||
| Strategic to ZCCM-IH’s focus | ||
| on enhancing Zambia’s mining | ||
| sector. |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
101
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(b) Investment in associates’ analysis (continued)
Group
Summary of financial information for material equity accounted investees.
Where the equity accounted value is zero, no further losses are recognised by ZCCM-IH as there is no obligation to settle any liabilities. The equity accounted
value was zero for Lubambe Copper Mines Limited as at 31 December 2024. There was no profit or loss from discontinued operations.
| Dec-24 | |||||||||||||
| Investee companies | |||||||||||||
| Account- | |||||||||||||
| ing | |||||||||||||
| year end | |||||||||||||
| Country | |||||||||||||
| of incor- | |||||||||||||
| poration | |||||||||||||
| % interest | |||||||||||||
| held | |||||||||||||
| Assets | |||||||||||||
| Current | |||||||||||||
| Non- | |||||||||||||
| Current | |||||||||||||
| Assets | |||||||||||||
| Liabilities | |||||||||||||
| Current | |||||||||||||
| Liabilities | |||||||||||||
| Non-Current | |||||||||||||
| Net assets | |||||||||||||
| Value | Revenues | ||||||||||||
| Profit/ | |||||||||||||
| (Loss) | |||||||||||||
| Share of | |||||||||||||
| profit/(loss) | |||||||||||||
| Share of | |||||||||||||
| profit/(loss) | |||||||||||||
| not rec- | |||||||||||||
| ognised | |||||||||||||
| Share of net | |||||||||||||
| assets | |||||||||||||
| ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ||||
| Konkola Copper | |||||||||||||
| Mines Plc | 31-Mar | Zambia | 20.60% | 12,690,435 | 47,686,965 | (2,543,678) | (34,717,005) | 23,116,717 | 10,778,856 | 12,152,529 | 2,503,421 | - | 2,359,000 |
| Copperbelt Energy | |||||||||||||
| Corporation Plc | 31-Dec | Zambia | 32.41% | 9,653,619 | 14,313,301 | (2,971,658) | (8,283,835) | 12,711,427 | 14,322,710 | 2,534,803 | 821,530 | - | 4,119,773 |
| Mopani Copper | |||||||||||||
| Mines Plc | 31-Dec | Zambia | 49.0% | 13,944,943 | 38,092,074 | (10,003,641) | (20,113,557) | 21,919,819 | 13,145,078 | (3,489,692) | (1,709,949) | 8,682,000 | |
| CNMC Luanshya | |||||||||||||
| Copper Mine Plc | 31-Dec | Zambia | 20.0% | 10,191,482 | 4,273,210 | (4,347,145) | (509,490) | 9,608,057 | 11,758,119 | 3,916,505 | 783,301 | - | 1,921,611 |
| Maamba Energy | |||||||||||||
| Limited | 31-Mar | Zambia | 35.0% | 9,273,841 | 12,431,547 | (1,209,009) | (4,365,770) | 16,130,609 | 6,323,317 | 3,071,614 | 1,075,065 | - | 5,645,713 |
| Lubambe Copper | |||||||||||||
| Mines Limited | 31-Dec | Zambia | 30.0% | 2,012,664 | 5,458,648 | (3,349,436) | (30,430,964) | (26,309,088) | 3,896,237 | (2,706,705) | - | (812,012) | - |
| Rembrandt Proper- | |||||||||||||
| ties Limited | 31-Dec | Zambia | 49.0% | - | - | - | - | - | - | - | - | - | - |
| Mingomba Mining | |||||||||||||
| Limited | 31-Dec | Zambia | 20.0% | 632,260 | 7,885,897 | (123,091) | (11,450) | 8,383,616 | - | (727,657) | (145,531) | - | 1,676,723 |
| Total | 58,399,244 | 130,141,642 | (24,547,658) | (98,432,071) | 65,561,157 | 60,224,317 | 14,751,397 | 3,327,837 | (812,012) | 24,404,820 |
The financial statements of the Company and associates used in the preparation of the current consolidated financial statements have the same reporting date
of 31 December except for Maamba Energy Limited and Konkola Copper Mines Plc. For the two-investee companies with different reporting date from that of
the Company, their financial information has been adjusted to align to the reporting date of the consolidated financial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
102
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(b) Investment in associates’ analysis (continued)
Group
Summary of financial information for material equity accounted investees.
| Dec-23 | |||||||||||||
| Investee companies | |||||||||||||
| Account- | |||||||||||||
| ing year | |||||||||||||
| end | |||||||||||||
| Country | |||||||||||||
| of incor- | |||||||||||||
| poration | |||||||||||||
| % | |||||||||||||
| Interest | |||||||||||||
| held | |||||||||||||
| Current | |||||||||||||
| Assets | |||||||||||||
| Non-Cur- | |||||||||||||
| rent Assets | |||||||||||||
| Current | |||||||||||||
| Liabilities | |||||||||||||
| Non-Current | |||||||||||||
| Liabilities | |||||||||||||
| Net asset | |||||||||||||
| value | Revenues | Profit/(Loss) | |||||||||||
| Share of | |||||||||||||
| profit/(loss) | |||||||||||||
| Share of | |||||||||||||
| profit/(loss) | |||||||||||||
| not rec- | |||||||||||||
| ognised | |||||||||||||
| Share of net | |||||||||||||
| assets | |||||||||||||
| ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | ||||
| Copperbelt Energy | |||||||||||||
| Corporation Plc | 31-Dec | Zambia | 31.07% | 4,631,023 | 12,764,059 | (1,093,634) | (5,597,083) | 10,704,365 | 7,845,760 | 2,825,126 | 877,767 | - | 3,325,846 |
| CNMC Luanshya | |||||||||||||
| Copper Mine Plc | 31-Dec | Zambia | 20.00% | 5,418,840 | 4,345,211 | (3,234,867) | (247,733) | 6,281,451 | 8,492,866 | 2,929,081 | 585,816 | - | 1,256,290 |
| Maamba Energy | |||||||||||||
| Limited | 31-Mar | Zambia | 35.00% | 8,816,113 | 12,170,941 | (2,657,654) | (6,495,708) | 11,833,692 | 5,001,542 | 2,566,315 | 898,210 | - | 4,141,792 |
| Lubambe Copper | |||||||||||||
| Mines Limited | 31-Dec | Zambia | 20.00% | 1,782,150 | 5,683,344 | (3,563,927) | (22,544,188) | (18,642,621) | 2,516,011 | (3,055,266) | - | (611,053) | - |
| Rembrandt Proper- | |||||||||||||
| ties Limited | 31-Dec | Zambia | 49.00% | 5,774 | 156,648 | (37,643) | (44,476) | 80,303 | 14,768 | (2,468) | (1,209) | - | 39,348 |
| Mingomba Mining | |||||||||||||
| Limited | 31-Dec | Zambia | 20.00% | 5,808 | 6,652,908 | (20,396) | - | 6,638,320 | - | (496,875) | (99,375) | - | 1,327,664 |
| Totals | 20,659,708 | 41,773,111 | (10,608,121) | (34,929,188) | 16,895,510 | 23,870,947 | 4,765,913 | 2,261,209 | (611,053) | 10,090,940 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
103
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(b) Investments in associates’ analysis (continued)
Company
Summary of fair values for equity accounted investees held by the Company:
| % Interest | |||||
| 31 Dec | |||||
| 2024 | % Interest | ||||
| 31 Dec | |||||
| 2023 | |||||
| Copperbelt Energy Corporation Plc | c(i) | 32.41 | 7,288,625 | 31.07 | 3,579,268 |
| Maamba Energy Limited | c(ii) | 35 | 7,621,000 | 35 | 5,066,300 |
| CNMC Luanshya Copper Mines Plc | c(iii) | 20 | 6,939,000 | 20 | 1,227,500 |
| Mopani Copper Mines Plc | c(iv) | 49 | 8,682,000 | 100 | - |
| Konkola Copper Mines Plc | c(v) | 20.6 | 2,359,000 | 20.6 | - |
| Lubambe Copper Mine Limited | c(vi) | 30 | - | 20 | - |
| Rembrandt Properties Limited | c(vii) | 49 | - | 49 | 39,348 |
| Mingomba Mining Limited | c(viii) | 20 | 1,562,540 | 20 | 1,327,664 |
| 34,452,165 | 11,240,080 |
(c) Measurement of fair value
Fair value hierarchy
The fair values of the Company’s investment in associates were determined by Stockbrokers Zambia, an external
independent fair valuation expert, having appropriate recognised professional qualifications and experience.
The independent valuers provide the fair value of the Company’s associates annually. The fair value moved
from ZMW11.24 billion in December 2023 to ZMW34.45 billion in December 2024.
The fair value measurement for the Company’s investment in associates of ZMW27.16 billion (2023: ZMW7.66
billion) has been categorised as a level 3 fair value based on the inputs to the valuation technique used (see
Note 4 (b)).
The new Strategic Equity Partnership has increased the fair value of ZCCM-IH Plc’s shareholding in Mopani
Copper Mines Plc to ZMW8.68 billion. The increase in the fair value is because of the infusion of capital in Mopani
which is aimed at enhancing the operational capacity and financial stability of the mine.
Copperbelt Energy Corporation Plc, ZMW7.29 billion (2023: ZMW3.58 billion) has been categorised as a level 1
based on quoted market prices.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
104
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
The following table shows a reconciliation from the opening balances to the closing balances for level 1 and 3 fair
values.
| Company | |||
| Level 1 | Level 3 | Total | |
| Balance at 1 January 2024 | |||
| Copperbelt Energy Corporation Plc | 3,579,268 | - | 3,579,268 |
| CNMC Luanshya Copper Mine Plc | - | 1,227,500 | 1,227,500 |
| Maamba Energy Limited | - | 5,066,300 | 5,066,300 |
| Rembrandt Properties Ltd | - | 39,348 | 39,348 |
| Mingomba Mining Limited | - | 1,327,664 | 1,327,664 |
| 3,579,268 | 7,660,812 | 11,240,080 | |
| Fair value movement | |||
| Copperbelt Energy Corporation Plc | 3,391,983 | - | 3,391,983 |
| Konkola Copper Mines Plc | - | 2,359,000 | 2,359,000 |
| Mopani Copper Mines Plc | - | 3,932,000 | 3,932,000 |
| CNMC Luanshya Copper Mine Plc | - | 5,711,500 | 5,711,500 |
| Mingomba Mining Limited | (14,090) | (14,090) | |
| Maamba Energy Limited | - | 2,554,700 | 2,554,700 |
| 3,391,983 | 14,543,110 | 17,935,093 | |
| Additions/ Transfer | |||
| Copperbelt Energy Corporation Plc | 317,374 | - | 317,374 |
| Mopani Copper Mines Plc | - | 4,750,000 | 4,750,000 |
| Rembrandt Properties Ltd | - | (39,348) | (39,348) |
| Mingomba Mining Limited | - | 248,966 | 248,966 |
| 317,374 | 4,959,618 | 5,276,992 | |
| Balance at 31 December 2024 | |||
| Mopani Copper Mines Plc | - | 8,682,000 | 8,682,000 |
| Konkola Copper Mines Plc | - | 2,359,000 | 2,359,000 |
| Copperbelt Energy Corporation Plc | 7,288,625 | - | 7,288,625 |
| CNMC Luanshya Copper Mine Plc | - | 6,939,000 | 6,939,000 |
| Maamba Energy Limited | - | 7,621,000 | 7,621,000 |
| Mingomba Mining Limited | - | 1,562,540 | 1,562,540 |
| 7,288,625 | 27,163,540 | 34,452,165 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
105
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
| Company | |||
| Level 1 | Level 3 | Total | |
| Balance at 1 January 2023 | |||
| Kansanshi Mining Plc | - | 11,036,000 | 11,036,000 |
| Copperbelt Energy Corporation Plc | 1,480,987 | - | 1,480,987 |
| CNMC Luanshya Copper Mine Plc | - | 744,000 | 744,000 |
| Maamba Energy Limited | - | 2,965,600 | 2,965,600 |
| Rembrandt Properties Ltd | - | 20,324 | 20,324 |
| Consolidated Gold Company of Zambia Limited | - | 9,500 | 9,500 |
| 1,480,987 | 14,775,424 | 16,256,411 | |
| Fair value movement | |||
| Kansanshi Mining Plc | - | - | - |
| Copperbelt Energy Corporation Plc | 1,557,423 | - | 1,557,423 |
| CNMC Luanshya Copper Mine Plc | - | 483,500 | 483,500 |
| Rembrandt Properties Ltd | - | 19,024 | 19,024 |
| Maamba Energy Limited | - | 2,100,700 | 2,100,700 |
| 1,557,423 | 2,603,224 | 4,160,647 | |
| Additions/ Transfer | |||
| Copperbelt Energy Corporation Plc | 540,858 | - | 540,858 |
| Consolidated Gold Company of Zambia Limited | - | (9,500) | (9,500) |
| Mingomba Mining Limited | - | 1,327,664 | 1,327,664 |
| Kansanshi Mining Plc | - | (11,036,000) | (11,036,000) |
| 540,858 | (9,717,836) | (9,176,978) | |
| Balance at 31 December 2023 | |||
| Copperbelt Energy Corporation Plc | 3,579,268 | - | 3,579,268 |
| CNMC Luanshya Copper Mine Plc | - | 1,227,500 | 1,227,500 |
| Maamba Energy Limited | - | 5,066,300 | 5,066,300 |
| Rembrandt Properties Ltd | - | 39,348 | 39,348 |
| Mingomba Mining Limited | - | 1,327,664 | 1,327,664 |
| 3,579,268 | 7,660,812 | 11,240,080 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
106
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs
The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs
used.
| Associate | Valuation technique | Significant unobservable inputs and key assumptions | |
| Inter-relationship between Key | |||
| unobservable inputs and fair | |||
| value measurement | |||
| Maamba | |||
| Energy Limit- | |||
| ed (C(ii)) | |||
| Discounted cash flows: It is | |||
| an income approach to val- | |||
| uation and the most widely | |||
| used valuation methodolo- | |||
| gy. It computes the value | |||
| of a business by calculating | |||
| the present value of antici- | |||
| pated future cash flows gen- | |||
| erated by the business. The | |||
| expected net cash flows are | |||
| discounted using risk adjust- | |||
| ed discount rates. | |||
| There has been no changes | |||
| to the valuation technique | |||
| applied in the prior year. | |||
| Relative valuation: | |||
| The relative valuation meth- | |||
| odology values a company | |||
| using market-based multi- | |||
| ples, including operational | |||
| and asset-based metrics. | |||
| DCF accounts for 75% of | |||
| the fair valuation and the | |||
| relative valuation accounts | |||
| for 25%. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024: 36.7%, 2023: 36.7%) | |||
| - Equity to total capitalisation (2024:63.4%, 2023: 63.4%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 10.00%, 2023: 11.90%) | |||
| - Effective tax rate (2024:30 %, 2023: 30%) | |||
| - After tax cost of debt (2024: 7.00%, 2023: 8.34%) | |||
| • Cost of equity | |||
| - Risk free rate (2024:4.60 %, 2023: 3.88 %) | |||
| - Market risk premium (2024: 16.4 %, 2023: 19.2 %) | |||
| - Unlevered beta (2024: 0.64, 2023: 0.53) | |||
| - Cost of equity (2024: 19.3%, 2023: 18.2%) | |||
| • WACC (2024: 14.80, 2023: 13.20%) | |||
| • The assumptions considered were as follows: | |||
| - PPA is valid until 2036 | |||
| - The MRT on coal is projected at 5% throughout the forecast period | |||
| - Maamba also pays an ERB fee which is 0.07% of turnover of coal used | |||
| in the power plant and the coal that is sold to the market | |||
| - Plant Availability is assumed to be 85.78% throughout the remaining life | |||
| of PPA. Plant availability is reduced by 10.38% to allow for major rehabil- | |||
| itation works. | |||
| - Capital expenditure for the construction of new plant is assumed at | |||
| US$637 million | |||
| - Projected to produce an annual average of 1.9 million MWH | |||
| - Projected to mine an annual average of 447,000 tonnes of high-grade | |||
| coal | |||
| - Projected to mine an annual average of 1.52 million tonnes of thermal | |||
| coal | |||
| The estimated fair value would | |||
| increase /(decrease) if: | |||
| • Equity to total capitalisa- | |||
| tion were (lower)/higher | |||
| • Cost of debt were lower/ | |||
| (higher) | |||
| • The cost of equity were | |||
| lower/(higher) | |||
| • Coal sales prices increase/ | |||
| (decrease) | |||
| • Capital expenditure de- | |||
| crease/ (increase) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
107
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs (continued)
The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs
used.
| Associate | Valuation technique | Significant unobservable inputs and key assumptions | |
| Inter-relationship between Key | |||
| unobservable inputs and fair value | |||
| measurement | |||
| CNMC | |||
| Luanshya | |||
| Copper | |||
| Mines Plc | |||
| ((C(iii)) | |||
| Discounted cash flows: It | |||
| is an income approach | |||
| to valuation and the | |||
| most widely used | |||
| valuation methodology. | |||
| It computes the value of | |||
| a business by calculating | |||
| the present value of | |||
| anticipated future cash | |||
| flows generated by the | |||
| business. The expected | |||
| net cash flows are | |||
| discounted using risk | |||
| adjusted discount rates. | |||
| Relative valuation: | |||
| The relative valuation | |||
| methodology values | |||
| a company using | |||
| market-based multiples, | |||
| including operational | |||
| and asset-based metrics. | |||
| DCF accounts for 75% | |||
| of the fair valuation and | |||
| the relative valuation | |||
| accounts for 25%. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024: 38.70%, 2023: 26.00%) | |||
| - Equity to total capitalisation (2024: 61.30%, 2023: 74.00%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 7.00%, 2023: 7.00%) | |||
| - Effective tax rate (2024: 30%, 2023: 30%) | |||
| - After tax cost of debt (2024: 4.90%, 2023: 4.90%) | |||
| • Cost of equity | |||
| - Risk free rate (2024: 4.58%, 2023: 3.88%) | |||
| - Market risk premium (2024: 8.54%, 2023: 9.72%) | |||
| - Levered beta (2024: 1.95, 2023: 1.10). | |||
| - Cost of equity (2024:21.20%, 2023: 14.54%) | |||
| • WACC (2024: 14.89%, 2023: 12.03%) | |||
| • Key assumptions considered were as follows: | |||
| - Mineral Royalty tax is assumed as follows for copper (a sliding | |||
| scale – from 4% to 10%, with the higher bands being: 10% for Cu | |||
| price over US$7,000/t. Mineral royalty is treated as deductible from | |||
| income tax from 2024 onwards. | |||
| - The MRT for gold revenue is assumed at a fixed rate of 6% and is | |||
| treated as deductible from income tax from 2024 onwards. | |||
| - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 | |||
| /ton and US$10,570/ton respectively. Gold price forecasts | |||
| for 2025-2027 are US$2,793/oz, US$2,815/oz and US$2,609/oz | |||
| respectively. From 2028 onwards, a flat rate of US$9,211/ton was | |||
| used for copper and US$2,190/oz was used for gold. | |||
| - Capex expenditure has been projected at US$606 million over the | |||
| life of mine. | |||
| - Life of mine was estimated to be 25 years. | |||
| The estimated fair value would | |||
| increase/(decrease) if: | |||
| • Equity to total capitalisation were | |||
| (lower)/higher | |||
| • The cost of debt were lower/ | |||
| (higher) | |||
| • The cost of equity were lower/ | |||
| (higher). | |||
| • Copper/gold prices were higher/ | |||
| (lower) | |||
| • Capital expenditure decrease/ | |||
| (increase) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
108
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs (continued)
The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs
used.
| Associate | Valuation technique | Significant unobservable inputs and key assumptions | |
| Inter-relationship between Key | |||
| unobservable inputs and fair value | |||
| measurement | |||
| Mopani | |||
| Copper | |||
| Mines Plc | |||
| ((C(iv)) | |||
| Discounted cash flows: It | |||
| is an income approach | |||
| to valuation and the | |||
| most widely used | |||
| valuation methodology. | |||
| It computes the value of | |||
| a business by calculating | |||
| the present value of | |||
| anticipated future cash | |||
| flows generated by the | |||
| business. The expected | |||
| net cash flows are | |||
| discounted using risk | |||
| adjusted discount rates. | |||
| Relative valuation: | |||
| The relative valuation | |||
| methodology values | |||
| a company using | |||
| market-based multiples, | |||
| including operational | |||
| and asset-based metrics. | |||
| DCF accounts for 75% | |||
| of the fair valuation and | |||
| the relative valuation | |||
| accounts for 25%. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024: 36.00%, 2023: 26.2%) | |||
| - Equity to total capitalisation (2024: 64.00%, 2023: 73.80%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 10.30%, 2023: 10.30%) | |||
| - Effective tax rate (2024: 30%, 2023: 30%) | |||
| - After tax cost of debt (2024: 7.20%, 2023: 7.20%) | |||
| • Cost of equity | |||
| - Risk free rate (2024: 4.6%, 2023: 3.9%) | |||
| - Market risk premium (2024: 8.5%, 2023: 9.7%) | |||
| - Levered beta (2024: 1.88, 2023: 1.53). | |||
| - Cost of equity (2024:20.60%, 2023: 18.44%) | |||
| • WACC (2024: 15.80%, 2023: 15.50%) | |||
| • Key assumptions considered were as follows: | |||
| - Mineral Royalty tax is assumed as follows for copper (a sliding scale | |||
| – from 4% to 10%, with the higher bands being: 10% for Cu price over | |||
| US$7,000/t. Mineral royalty is treated as deductible from income tax | |||
| from 2024 onwards. | |||
| - The MRT for gold revenue is assumed at a fixed rate of 6% and is | |||
| treated as deductible from income tax from 2024 onwards. | |||
| - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 / | |||
| ton and US$10,570/ton respectively. Gold price forecasts for 2025- | |||
| 2027 are US$2,793/oz, US$2,815/oz and US$2,609/oz respectively. | |||
| From 2028 onwards, a flat rate of US$9,211/ton was used for copper | |||
| and US$2,190/oz was used for gold. | |||
| - Capex expenditure has been projected at US$1.84 billion from 2025 | |||
| to 2029 and the Life of mine was estimated to be 23 years | |||
| The estimated fair value would | |||
| increase/(decrease) if: | |||
| • Equity to total capitalisation were | |||
| (lower)/higher | |||
| • The cost of debt were lower/ | |||
| (higher) | |||
| • The cost of equity were lower/ | |||
| (higher) | |||
| • Copper/gold prices were higher/ | |||
| (lower) | |||
| • Capital expenditure decrease/ | |||
| (increase) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
109
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs (continued)
The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs
used.
| Associate | |||
| Valuation | |||
| technique | Significant unobservable inputs and key assumptions | ||
| Inter-relationship between Key | |||
| unobservable inputs and fair value | |||
| measurement | |||
| Konkola | |||
| Copper | |||
| Mines Plc | |||
| ((C(v)) | |||
| Discounted cash | |||
| flows: It is an | |||
| income approach | |||
| to valuation and | |||
| the most widely | |||
| used valuation | |||
| methodology. It | |||
| computes the | |||
| value of a business | |||
| by calculating | |||
| the present value | |||
| of anticipated | |||
| future cash flows | |||
| generated by | |||
| the business. The | |||
| expected net | |||
| cash flows are | |||
| discounted using | |||
| risk adjusted | |||
| discount rates. | |||
| DCF accounts | |||
| for 75% of the fair | |||
| valuation and the | |||
| relative valuation | |||
| accounts for 25%. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024: 39.00%) | |||
| - Equity to total capitalisation (2024: 61.00%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 10.00%) | |||
| - Effective tax rate (2024: 30%) | |||
| - After tax cost of debt (2024: 7.00%) | |||
| • Cost of equity | |||
| - Risk free rate (2024: 4.58%) | |||
| - Market risk premium (2024: 8.54%) | |||
| - Levered beta (2024: 1.72). | |||
| - Cost of equity (2024:14.50%) | |||
| • WACC (2024: 14.50%, 2023: 0.0%) | |||
| • Key assumptions considered were as follows: | |||
| - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from | |||
| 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. | |||
| Mineral royalty is treated as deductible from income tax from 2024 onwards. | |||
| - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as | |||
| deductible from income tax from 2024 onwards. | |||
| - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 /ton and | |||
| US$10,570/ton respectively. From 2028 onwards, a flat rate of US$9,211/ton | |||
| was used for copper. | |||
| - Capex expenditure has been projected at US$1 billion over the life of mine | |||
| - Life of mine was estimated to be 30 years. | |||
| The estimated fair value would | |||
| increase/(decrease) if: | |||
| • Equity to total capitalisation were | |||
| (lower)/higher | |||
| • The cost of debt were lower/ | |||
| (higher) | |||
| • The cost of equity were lower/ | |||
| (higher) | |||
| • Copper prices were higher/ (lower) | |||
| • Capital expenditure decrease/ | |||
| (increase) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
110
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
(i) Copperbelt Energy Corporation Plc (CEC)
CEC is listed on Lusaka Securities Exchange (LuSE) and consequently the valuation was based on
the spot price and has been categorised as level 1 as shown below:
| Mark to market | ||
| 31-Dec | 31-Dec | |
| 2024 | 2023 | |
| Details | ||
| Spot price per share at 31 December (ZMW) | 13.84 | 7.09 |
| Number of issued shares owned | 526,634,783 | 504,833,325 |
| Market value (ZMW’000) | 7,288,625 | 3,579,268 |
CEC is categorised as level 1 based on the quoted market price on the Lusaka Securities Exchange.
(ii) Maamba Energy Limited
A sensitivity analysis table of the equity value, which is based on the discount rate and MRT/ERB fees
over the life of power plant indicating reasonably possible changes at the reporting date to one of the
relevant valuation assumptions, holding other assumptions constant, would have affected the value of
the investment by the amounts shown below:
| 2024 | ||||||
| MRT AND ERB FEES | ||||||
| 5.1% | 5.4% | 5.7% | 6.0% | 6.3% | ||
| WACC | ||||||
| 13.3% | 8,121,000 | 8,250,000 | 8,379,000 | 8,508,000 | 8,637,000 | |
| 14.0% | 7,986,000 | 8,122,000 | 8,259,000 | 8,365,000 | 8,531,000 | |
| 14.8% | 7,352,000 | 7,486,000 | 7,621,000 | 7,755,000 | 7,890,000 | |
| 15.5% | 6,456,000 | 6,606,000 | 6,708,000 | 6,833,000 | 6,959,000 | |
| 16.3% | 6,381,000 | 6,512,000 | 6,644,000 | 6,777,000 | 6,909,000 |
The equity value ranges from ZMW6.6 billion (2023: ZMW4.9 billion) to ZMW8.4 billion (2023: ZMW5.2
billion) with the calculated equity value being ZMW7.6 billion (2023: ZMW5.1 billion).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
111
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
(ii) Maamba Energy Limited (continued)
| 2023 | ||||||
| MRT AND ERB FEES | ||||||
| 5.1% | 5.4% | 5.7% | 6.0% | 6.3% | ||
| WACC | ||||||
| 13.1% | 5,385,000 | 5,382,000 | 5,379,000 | 5,376,000 | 5,374,000 | |
| 13.9% | 5,224,000 | 5,222,000 | 5,219,000 | 5,216,000 | 5,213,000 | |
| 14.6% | 5,072,000 | 5,069,000 | 5,066,300 | 5,064,000 | 5,061,000 | |
| 15.3% | 4,927,000 | 4,924,000 | 4,922,000 | 4,919,000 | 4,916,000 | |
| 16.0% | 4,789,000 | 4,786,000 | 4,784,000 | 4,781,000 | 4,779,000 |
The equity value ranges from ZMW4.9 billion (2022: ZMW2.8 billion) to ZMW5.2 billion (2022: ZMW3.1
billion) with the calculated equity value being ZMW5.1 billion (2022: ZMW3.0 billion).
(iii) CNMC Luanshya Copper Mines Plc
A sensitivity analysis table of the equity value, which is based on the discount rate and long-term
average copper price over the life of mine indicating reasonably possible changes at the reporting
date to one of the relevant valuation assumptions, holding other assumptions constant, would
have affected the value of the investment by the amounts shown below:
| 2024 | ||||||
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Copper Price (US$/lb) | ||||||
| 3.65 | 3.85 | 4.18 | 4.39 | 4.61 | ||
| WACC | ||||||
| 11.6% | 7,409,000 | 7,896,000 | 8,402,000 | 8,908,000 | 9,433,000 | |
| 13.6% | 7,334,000 | 7,804,000 | 8,291,000 | 8,770,000 | 9,284,000 | |
| 14.89% | 6,157,000 | 6,540,000 | 6,939,000 | 7,336,000 | 7,749,000 | |
| 17.6% | 5,805,000 | 6,148,000 | 6,523,000 | 6,889,000 | 7,267,000 | |
| 19.6% | 5,765,000 | 6,107,000 | 6,460,000 | 6,814,000 | 7,179,000 |
The equity value ranges from ZMW6.1 billion (2023: ZMW0.9 billion) to ZMW8.8 billion (2023: ZMW1.5
billion) with the calculated equity value being ZMW6.9 billion (2023: ZMW1.2 billion).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
112
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
(iii) CNMC Luanshya Copper Mines Plc (continued)
| 2023 | ||||||
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Copper Price (US$/lb) | ||||||
| 3.40 | 3.58 | 3.77 | 3.95 | 4.15 | ||
| WACC | ||||||
| 13.4% | 801,000 | 1,048,000 | 1,308,000 | 1,568,000 | 1,841,000 | |
| 14.1% | 772,000 | 1,013,000 | 1,268,000 | 1,522,000 | 1,790,000 | |
| 14.9% | 743,000 | 979,000 | 1,227,500 | 1,476,000 | 1,737,000 | |
| 15.6% | 715,000 | 946,000 | 1,189,000 | 1,432,000 | 1,687,000 | |
| 16.4% | 688,000 | 913,000 | 1,151,000 | 1,388,000 | 1,637,000 |
The equity value ranges from ZMW0.9 billion (2022: ZMW0.6 billion) to ZMW1.5 billion (2022: ZMW0.9
billion) with the calculated equity value being ZMW1.2 billion (2022: ZMW0.7 billion).
(iv) Mopani Copper Mines Plc
A sensitivity analysis table of the equity value, which is based on the discount rate and long-term
average copper price over the life of mine indicating reasonably possible changes at the reporting
date to one of the relevant valuation assumptions, holding other assumptions constant, would have
affected the value of the investment by the amounts shown below:
| 2024 | ||||||
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Copper Price (US$/lb) | ||||||
| 3.65 | 3.85 | 4.18 | 4.39 | 4.61 | ||
| WACC | ||||||
| 8.7% | 4,319,000 | 8,122,000 | 12,011,000 | 15,849,000 | 19,842,000 | |
| 11.2% | 3,053,000 | 6,363,000 | 9,754,000 | 13,103,000 | 16,591,000 | |
| 13.7% | 2,437,000 | 5,520,000 | 8,682,000 | 11,807,000 | 15,062,000 | |
| 16.2% | 1,853,000 | 4,729,000 | 7,683,000 | 10,602,000 | 13,644,000 | |
| 18.7% | 726,000 | 3,224,000 | 5,794,000 | 8,337,000 | 10,988,000 |
The equity value ranges from ZMW4.7 billion to ZMW13.1 billion with the calculated equity value being
ZMW8.7 billion.
(v) Konkola Copper Mines Plc (KCM)
A sensitivity analysis table of the equity value, which is based on the discount rate and long-term aver-
age copper price over the life of mine indicating reasonably possible changes at the reporting date to
one of the relevant valuation assumptions, holding other assumptions constant, would have affected
the value of the investment by the amounts shown below:
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
113
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
(v) Konkola Copper Mines Plc (KCM) (continued)
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Copper Price (US$/lb) | ||||||
| 3.65 | 3.85 | 4.18 | 4.39 | 4.61 | ||
| WACC | ||||||
| 8.7% | 632,000 | 2,037,000 | 3,443,000 | 4,848,000 | 6,254,000 | |
| 11.2% | 232,000 | 1,555,000 | 2,878,000 | 4,202,000 | 5,525,000 | |
| 13.7% | (135,000) | 1,112,000 | 2,359,000 | 3,606,000 | 4,854,000 | |
| 16.2% | (472,000) | 705,000 | 1,881,000 | 3,057,000 | 4,234,000 | |
| 18.7% | (781,000) | 330,000 | 1,441,000 | 2,551,000 | 3,662,000 |
The equity value ranges from ZMW0.7 billion (2023: Nil) to ZMW4.2 billion (2023: Nil) with the calculated
equity value being ZMW2.4 million (2023: Nil).
(vi) Lubambe Copper Mine Limited
The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of
the investee company) (2023: nil).
(vii) Rembrandt Properties Limited
The equity value is ZMW40.30 million (2023: ZMW39.35 million)
| Associate | |||
| Valuation | |||
| technique | |||
| Significant | |||
| inputs and key | |||
| assumptions | |||
| Inter-relationship between Key | |||
| unobservable inputs and fair value | |||
| measurement | |||
| Rembrandt Proper- | |||
| ties Limited (c(vii)) | |||
| Net asset value | |||
| approach | |||
| • Average ac- | |||
| commodation | |||
| occupancy | |||
| rate | |||
| • Average | |||
| conference | |||
| occupancy | |||
| rate | |||
| • Basic room | |||
| rental rate | |||
| • Hotel land rent | |||
| The estimated fair value would in- | |||
| crease/(decrease) if: | |||
| • Average accommodation occu- | |||
| pancy rate | |||
| increase/(decrease) | |||
| • Average conference occupancy | |||
| rate | |||
| increase/(decrease) | |||
| • Basic room rental rate increase/(de- | |||
| crease) | |||
| • Hotel land rent | |||
| (Increase)/decrease |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
114
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
23 Investment in associates (continued)
(c) Measurement of fair value (continued)
(viii) Mingomba Mining Limited
The equity value is ZMW1.56 billion (2023: ZMW1.3 billion).
| Associate | |||
| Valuation tech- | |||
| nique | |||
| Significant inputs and key | |||
| assumptions | |||
| Inter-relationship between | |||
| Key unobservable inputs and | |||
| fair value measurement | |||
| Mingomba Mining | |||
| Limited (c(viii)) | |||
| Net asset value | |||
| approach | |||
| • The level of activity on drill- | |||
| ing to delineate the mineral | |||
| ore deposit | |||
| • The level on activity on min- | |||
| ing geology | |||
| The estimated fair value | |||
| would increase/(decrease) if: | |||
| • The level of activity on drill- | |||
| ing to delineate the mineral | |||
| ore deposit increase/(de- | |||
| crease) | |||
| • The level on activity on min- | |||
| ing geology | |||
| Increase/(decrease) |
24 Financial assets at fair value through profit or loss
Group and Company
(a) Reconciliation of carrying amounts
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Balance at 1 January | 3,019,500 | 1,252,400 |
| Changes in fair value (unrealised) | (278,500) | 1,767,100 |
| 2,741,000 | 3,019,500 |
Financial assets at fair value through profit or loss include the following:
| 31 Dec | |||
| 2024 | |||
| 31 Dec | |||
| 2023 | |||
| Unlisted equities – at fair value | |||
| Chibuluma Mines Plc | b(i) | - | - |
| Chambishi Metals PLC | b(ii) | - | - |
| NFC Africa Mine PLC | b(iii) | 2,741,000 | 3,019,500 |
| 2,741,000 | 3,019,500 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
115
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
24 Financial assets at fair value through profit or loss (continued)
(b) Measurement of fair value
Fair value hierarchy
The fair value for the Company’s financial investments at fair value through profit or loss was determined
by Stockbrokers Zambia ("SBZ”), an external independent valuer, having appropriate recognised profes-
sional qualifications and recent experience of the financial investments being valued. The independent
valuers provide the fair value of these investments annually.
The fair value measurement for the Company’s investments of ZMW 2.74 billion (2023: ZMW 3.02 billion) has
been categorised as a level 3 fair value based on the inputs to the valuation technique used.
Level 3 fair value
The following table shows a reconciliation from the opening balances to the closing balances for level 3 fair
values.
Group and Company
| 31 Dec 2024 | Level 3 | Total |
| Balance at 1 January | 3,019,500 | 3,019,500 |
| Net change in fair value | (278,500) | (278,500) |
| Balance at 31 December | 2,741,000 | 2,741,000 |
| 31 Dec 2023 | Level 3 | Total |
| Balance at 1 January | 1,252,400 | 1,252,400 |
| Net change in fair value | 1,767,100 | 1,767,100 |
| Balance at 31 December | 3,019,500 | 3,019,500 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
116
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
in thousands of Kwacha
24 Financial assets at fair value through profit or loss (continued)
(a) Measurement of fair value (continued)
Valuation technique and significant unobservable inputs
The following table shows the valuation technique used in measuring the fair value of investment in fair value through profit or loss (FVTPL) as well as the
significant unobservable inputs used.
| Associate | Valuation technique | Significant unobservable inputs and key assumptions | |
| Inter-relationship between Key un- | |||
| observable inputs and fair value | |||
| measurement | |||
| NFC Africa | |||
| Mine (b(iii) | |||
| Discounted cash flows: It | |||
| is an income approach to | |||
| valuation and the most widely | |||
| used valuation methodology. | |||
| It computes the value of a | |||
| business by calculating the | |||
| present value of anticipated | |||
| future cash flows generated | |||
| by the business. The expected | |||
| net cash flows are discounted | |||
| using risk adjusted discount | |||
| rates. | |||
| Relative valuation: | |||
| The relative valuation meth- | |||
| odology values a company | |||
| using market-based multiples, | |||
| including operational and | |||
| asset-based metrics. | |||
| • Target participation capital structure | |||
| - Debt to total capitalisation (2024:42.9%, 2023: 26.2%). | |||
| - Equity to total capitalisation (2024:57.1%, 2023:73.8%) | |||
| • Cost of debt | |||
| - Cost of debt (2024: 10.6%, 2023: 10.0%) | |||
| - Effective tax rate (2024: 30%, 2023: 30%) | |||
| - After tax cost of debt (2024: 7.4%, 2023: 7.0%) | |||
| • Cost of equity | |||
| - Risk free rate (2024: 4.6%, 2023: 3.9%) | |||
| - Market risk premium (2024: 8.5%, 2023: 9.72%) | |||
| - Levered beta (2024: 2.06, 2023: 1.53). | |||
| - Cost of equity (2024:22.2%, 2023: 18.7%) | |||
| • WACC (2024: 15.8%, 2023: 15.6%) | |||
| • Key assumptions considered were as follows: | |||
| - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% | |||
| to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral | |||
| royalty is treated as deductible from income tax from 2024 onwards. | |||
| - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as | |||
| deductible from income tax from 2024 onwards. | |||
| - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122/ton and | |||
| US$10,570/ton respectively. Gold price forecasts for 2025-2027 are US$2,793/ | |||
| oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate of | |||
| US$9,211/ton was used for copper and US$2,190/oz was used for gold. | |||
| - Capex expenditure has been projected at US$74.7 million, US$48.6 million and | |||
| US$50.7 million for 2025 to 2027 respectively. Thereafter, 6 % of sales has been | |||
| assumed | |||
| - Life of mine was estimated to be 10 years. | |||
| The estimated fair value would | |||
| increase/(decrease) if: | |||
| • Equity to total capitalisation | |||
| were (lower)/higher | |||
| • Cost of debt were lower/(high- | |||
| er) | |||
| • The cost of equity were lower/ | |||
| (higher) | |||
| • Copper price were higher/ | |||
| (lower) | |||
| • Capital expenditure were high- | |||
| er/(lower) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
117
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
24 Financial assets at fair value through profit or loss (continued)
(i) Chibuluma Mines Plc
The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of
the investee company) (2023: nil).
(ii) Chambishi Metals Plc
The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of
the investee company) (2023: nil).
(iii) NFC Africa Mines Plc
A sensitivity analysis table of the equity value, which is based on the discount rate and long-term average
copper price over the life of mine indicating reasonably possible changes at the reporting date to one of
the relevant valuation assumptions, holding other assumptions constant, would have affected the value
of the investment by the amounts shown below:
| 2024 | ||||||
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Average Copper Price (US$/lb) | ||||||
| 3.77 | 3.97 | 4.18 | 4.39 | 4.61 | ||
| WACC | ||||||
| 11.6% | 3,502,000 | 3,669,000 | 3,840,000 | 4,011,000 | 4,188,000 | |
| 13.6% | 3,305,000 | 3,465,000 | 3,629,000 | 3,786,000 | 3,961,000 | |
| 15.6% | 2,692,000 | 2,825,000 | 2,741,000 | 3,096,000 | 3,234,000 | |
| 17.6% | 2,027,000 | 2,124,000 | 2,232,000 | 2,336,000 | 2,441,000 | |
| 19.6% | 1,951,000 | 2,050,000 | 2,152,000 | 2,253,000 | 2,356,000 |
The equity value ranges from ZMW2.1 billion (2023: ZMW2.6 billion) to ZMW3.8 billion (2023: ZMW3.5 billion
with the calculated equity value being ZMW2.7 billion (2023: ZMW3.0 billion.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
118
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
24 Financial assets at fair value through profit or loss (continued)
(iii) NFC African Mines Plc (continued)
| 2023 | ||||||
| Equity Value Sensitivity Analysis | ||||||
| Long-Term Average Copper Price (US$/lb) | ||||||
| 3.39 | 3.58 | 3.77 | 3.95 | 4.14 | ||
| WACC | ||||||
| 11.6% | 3,378,000 | 3,557,000 | 3,736,000 | 3,915,000 | 4,094,000 | |
| 13.6% | 3,049,000 | 3,200,000 | 3,352,000 | 3,504,000 | 3,656,000 | |
| 15.6% | 2,761,000 | 2,890,000 | 3,019,500 | 3,149,000 | 3,278,000 | |
| 17.6% | 2,509,000 | 2,619,000 | 2,730,000 | 2,840,000 | 2,951,000 | |
| 19.6% | 2,286,000 | 2,381,000 | 2,476,000 | 2,571,000 | 2,665,000 |
The equity value ranges from ZMW2.6 billion (2022: ZMW1 billion) to ZMW3.5 billion (2022: ZMW1.6 bil-
lion) with the calculated equity value being ZMW3 billion (2022: ZMW1.3 billion).
25 Inventories
| Group | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Consumable stores | 19,243 | 11,686 |
| Production stock | 6,700 | 14,659 |
| Stockpiles | 4,569 | 4,440 |
| Gemstones | 2,024 | 7,514 |
| Balance at 31 December | 32,536 | 38,299 |
The cost of inventories recognised as an expense and included in the cost of sales amounted to
ZMW658 million (2023: ZMW2,145 million). The expensed amounts include ZMW nil (2023: ZMW2,072 mil-
lion) relating to Mopani.
Assets pledged as security
Refer to note 40 (iii) for information on current assets pledged as security by the Group.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
119
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
26 Trade and other receivables
| Group | |||
| December 2024 | |||
| Current | Gross | ||
| Expected | |||
| credit loss/ | |||
| Impairment | Net | ||
| Trade receivables | 32,774 | (5,233) | 27,541 |
| Dividend receivable | 78,066 | (78,066) | - |
| Amounts due from related parties (note 39b (viii)) | 1,163,894 | (316,649) | 847,245 |
| Other receivables | 138,777 | (43,855) | 94,922 |
| Total current receivables | 1,413,511 | (443,803) | 969,708 |
| Non-current | |||
| Other receivables | 11,508 | - | 11,508 |
| Amounts due from related parties (note 39b(viii)) | 4,203,859 | (1,662,316) | 2,541,543 |
| Total non-current receivables | 4,215,367 | (1,662,316) | 2,553,051 |
| Total balance | 5,628,878 | (2,106,119) | 3,522,759 |
Trade and other receivables have been further classified as financial and non-financial assets as follows:
| Group | |||
| December 2024 | |||
| Gross | |||
| Expected | |||
| credit loss/ | |||
| Impairment | Net | ||
| Financial assets | |||
| Trade receivables | 32,774 | (5,233) | 27,541 |
| Treasury interest receivable | 25,058 | (1,488) | 23,570 |
| Management fees receivable | 12,309 | (12,309) | - |
| Rental income receivable | 7,412 | (6,791) | 621 |
| Dividend receivable | 78,066 | (78,066) | - |
| Amounts due from related parties | 5,367,753 | (1,978,965) | 3,388,788 |
| Price participation receivable | 9,182 | (9,182) | - |
| Total financial assets | 5,532,554 | (2,092,034) | 3,440,520 |
| Non-financial assets | |||
| Prepayments | 31,959 | (11,483) | 20,476 |
| VAT receivable | 39,400 | (153) | 39,247 |
| Other receivables * | 24,965 | (2,449) | 22,516 |
| Total non-financial assets | 96,324 | (14,085) | 82,239 |
| Total balance | 5,628,878 | (2,106,119) | 3,522,759 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
120
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
26 Trade and other receivables (continued)
| Group | |||
| December 2023 | |||
| Current | Gross | ||
| Expected | |||
| credit loss/ | |||
| Impairment | Net | ||
| Trade receivables | 51,455 | (12,601) | 38,854 |
| Dividend receivable | 124,970 | (78,066) | 46,904 |
| Amounts due from related parties (note 39b (viii)) | 497,669 | (312,926) | 184,743 |
| Other receivables | 123,521 | (54,853) | 68,668 |
| Total current receivables | 797,615 | (458,446) | 339,169 |
| Non-current | |||
| Amounts due from related parties (note 39b (viii)) | 2,338,515 | (709,678) | 1,628,837 |
| Total non-current receivables | 2,338,515 | (709,678) | 1,628,837 |
| Total balance | 3,136,130 | (1,168,124) | 1,968,006 |
Trade and other receivables have been further classified as financial and non-financial assets as follows:
| Group | |||
| December 2023 | |||
| Gross | |||
| Expected credit | |||
| loss/Impairment | Net | ||
| Financial assets | |||
| Trade receivables | 51,455 | (12,601) | 38,854 |
| Treasury interest receivable | 20,680 | (4,311) | 16,369 |
| Management fees receivable | 12,309 | (12,309) | - |
| Rental income receivable | 6,983 | (6,614) | 369 |
| Dividend receivable | 124,970 | (78,066) | 46,904 |
| Amounts due from related parties | 2,836,184 | (1,022,604) | 1,813,580 |
| Price participation receivable | 9,182 | (9,182) | - |
| Total financial assets | 3,061,763 | (1,145,687) | 1,916,076 |
| Non-financial assets | |||
| Prepayments | 12,789 | (217) | 12,572 |
| VAT receivable | 22,614 | (655) | 21,959 |
| Other receivables * | 38,964 | (21,565) | 17,399 |
| Total non-financial assets | 74,367 | (22,437) | 51,930 |
| Total balance | 3,136,130 | (1,168,124) | 1,968,006 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
121
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
26 Trade and other receivables (continued)
| Company | |||
| December 2024 | |||
| Current | |||
| Gross | |||
| Expected credit | |||
| loss/Impairment | Net | ||
| Trade receivables | 24,951 | (1,123) | 23,828 |
| Amounts due from related parties (note 39b (viii)) | 1,216,065 | (368,123) | 847,942 |
| Dividend receivable | 78,066 | (78,066) | - |
| Price participation receivable | 9,182 | (9,182) | - |
| Other receivables | 84,579 | (34,673) | 49,906 |
| Total current assets | 1,412,843 | (491,167) | 921,676 |
| Non-current | |||
| Other receivables | 11,508 | - | 11,508 |
| Amounts due from related parties (note 39b (viii)) | 4,585,906 | (1,898,275) | 2,687,631 |
| Total non-current assets | 4,597,414 | (1,898,275) | 2,699,139 |
| Total balance | 6,010,257 | (2,389,442) | 3,620,815 |
Trade and other receivables have been further classified as financial and non-financial assets as follows:
| Company | |||
| December 2024 | |||
| Gross | |||
| Expected credit | |||
| loss/Impairment | Net | ||
| Financial assets | |||
| Trade receivables | 24,951 | (1,123) | 23,828 |
| Treasury interest receivable | 25,058 | (1,488) | 23,570 |
| Management fees receivable | 12,309 | (12,309) | - |
| Rental income receivable | 7,412 | (6,791) | 621 |
| Dividend receivable | 78,066 | (78,066) | - |
| Amounts due from related parties (note 39b (viii)) | 5,801,971 | (2,266,398) | 3,535,573 |
| Price participation receivable (note 39b (viii)) | 9,182 | (9,182) | - |
| Trade Receivables (Other) | 17,337 | (11,219) | 6,118 |
| Total financial assets | 5,976,286 | (2,386,576) | 3,589,710 |
| Non-financial assets | |||
| Prepayments | 6,486 | (264) | 6,222 |
| VAT receivable | 3,753 | (153) | 3,600 |
| Other receivables * | 23,732 | (2,449) | 21,283 |
| Total non-financial assets | 33,971 | (2,866) | 31,105 |
| Total balance | 6,010,257 | (2,389,442) | 3,620,815 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
122
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
26 Trade and other receivables (continued)
| Company | |||
| December 2023 | |||
| Current | |||
| Gross | |||
| Expected | |||
| credit loss/ | |||
| Impairment | Net | ||
| Trade receivables | 42,072 | (19,283) | 22,789 |
| Other receivables | 60,341 | (26,554) | 33,787 |
| Price participation receivable (note 39b (viii)) | 9,182 | (9,182) | - |
| Amounts due from related parties (note 39b (viii)) | 549,188 | (364,400) | 184,788 |
| Dividend receivable | 124,970 | (78,066) | 46,904 |
| Total current assets | 785,753 | (497,485) | 288,268 |
| Non-current | |||
| Amounts due from related parties (note 39b (viii)) | 5,311,011 | (724,540) | 4,586,471 |
| Total non-current assets | 5,311,011 | (724,540) | 4,586,471 |
| Total assets balance | 6,096,764 | (1,222,025) | 4,874,739 |
Trade and other receivables have been further classified as financial and non-financial assets as follows:
| Company | |||
| December 2023 | |||
| Gross | |||
| Expected | |||
| credit loss/ | |||
| Impairment | Net | ||
| Financial assets | |||
| Trade receivables | 42,072 | (19,283) | 22,789 |
| Treasury interest receivable | 20,680 | (4,311) | 16,369 |
| Management fees receivable | 12,309 | (12,309) | - |
| Rental income receivable | 6,983 | (6,614) | 369 |
| Price participation receivable | 9,182 | (9,182) | - |
| Dividend receivable | 124,970 | (78,066) | 46,904 |
| Amounts due from related parties (note 39b (vii)) | 5,860,199 | (1,088,940) | 4,771,259 |
| Total financial assets | 6,076,395 | (1,218,705) | 4,857,690 |
| Non-financial assets | |||
| Prepayments | 942 | (217) | 725 |
| VAT receivable | 2,848 | (655) | 2,193 |
| Other receivables * | 16,579 | (2,448) | 14,131 |
| Total non-financial assets | 20,369 | (3,320) | 17,049 |
| Total assets balance | 6,096,764 | (1,222,025) | 4,874,739 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
123
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
26 Trade and other receivables (continued)
* Other receivables analysis
| Group | ||||||
| 31 Dec 24 | 31 Dec 23 | |||||
| Gross | Impairment | Net | Gross | Impairment | Net | |
| Staff receivables | 22,751 | (235) | 22,516 | 14,365 | (234) | 14,131 |
| Other sundry debtors | 2,214 | (2,214) | - | 24,599 | (21,331) | 3,268 |
| 24,965 | (2,449) | 22,516 | 38,964 | (21,565) | 17,399 |
| Company | 31 Dec 24 | 31 Dec 23 | ||||
| Gross | Impairment | Net | Gross | Impairment | Net | |
| Staff receivables | 21,518 | (235) | 21,283 | 14,365 | (234) | 14,131 |
| Other sundry debtors | 2,214 | (2,214) | - | 2,214 | (2,214) | - |
| 23,732 | (2,449) | 21,283 | 16,579 | (2,448) | 14,131 |
27 Environmental Protection Fund
| Group | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Environmental protection fund deposit | 369 | 7,060 |
| 369 | 7,060 |
For the financial year ended 31 December 2024 the Environmental Protection Fund deposit relates to the
subsidiaries Limestone Resources Limited, Zambia Gold Company Limited and Kabundi Resources Limited. This
is recoverable from Government or can be offset against future liabilities as assessed by the Government. The
Environmental Protection Fund deposit is an advance payment for the estimated future decommissioning and
closure costs to be incurred at the closure of the mine sites. The Mines and Minerals Regulations, 1998 (Statutory
Instrument No.102 of 1998) provide for the payment of contributions by mine owners into the Environmental
Protection Fund designed to provide for environmental restoration of defunct sites. The Group contributes into
the Environmental Protection Fund and the contributions paid into the Fund are based on the environmental
assessment carried out by environmental experts. The funds are not accessible and are only available at the
time of restoration. The contributions are only due based on further assessment made by the Government in
line with the Act.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
124
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
28 Burden of costs for mining
| Group | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Burden of costs for mining | 6,599 | - |
| 6,599 | - |
In the mining industry, the burden of costs is a significant factor influencing financial performance and reporting.
The matching concept, a core accounting principle, requires that expenses be recorded in the same period
as the revenues they help generate. For a mining company, this ensures that costs are aligned with the income
derived from mineral extraction and sales, providing a clearer picture of profitability.
For Zambia Gold Company Limited and other ZCCM-IH’s mining investee companies, adhering to the matching
concept helps balance the burden of costs across the operational timeline. By aligning expenditures with
the revenue they support, financial statements present a more realistic view of profitability and operational
performance. This approach not only aids in regulatory compliance but also supports better decision-making
by management and investors.
The burden costs for mining amounted to ZMW6.6 million (2023: ZMW Nil) relates to direct cost of sales expenses
incurred to which there were no sales made. The costs comprise of ZMW1.9 million Kasenseli labour costs, ZMW3
million cost of mining and ZMW1.7 million fuel for mining activities. These amounts have been capitalised and will
be depreciated over the life of the mining licence.
29 Long term bonds and short-term deposits
Term deposits relate to fixed deposits placed in various banks and long-term bonds.
The movement in term deposits is as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | 31 Dec 2023 | |||
| 31 Dec | ||||
| 2024 | 31 Dec 2023 | |||
| Current | ||||
| Balance at 1January | ||||
| 4,450,451 | 5,340,202 | 4,411,330 | 5,340,202 | |
| Matured during the period | (4,450,451) | (5,340,202) | (4,411,330) | (5,340,202) |
| Additions | 5,015,626 | 4,450,451 | 5,015,626 | 4,411,330 |
| 5,015,626 | 4,450,451 | 5,015,626 | 4,411,330 | |
| Non-current | ||||
| Balance at 1January | - | - | - | - |
| Matured during the period | - | - | - | - |
| Additions * | 329,525 | - | 329,525 | - |
| 329,525 | - | 329,525 | - | |
| Total | 5,345,151 | 4,450,451 | 5,345,151 | 4,411,330 |
*As at 31 December 2024, ZCCM-IH held investments in government bonds with a total carrying value of ZMW50
million. The tenure of the government bonds is 3 years. The bonds carry yields of 21.5% and 20% per annum.
* As at 31 December 2024, ZCCM-IH held investments in the CEC renewable bond with a total carry value of
ZMW279.53 million. The tenure of the bond is 15 years. The bond carries an interest rate of 8.23%.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
125
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
30 Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise the following:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Cash and bank | 525,663 | 360,204 | 221,719 | 61,119 |
| Cash in hand | 22 | 152 | 17 | 18 |
| Cash and cash equivalents in the statement of financial | ||||
| position | 525,685 | 360,356 | 221,736 | 61,137 |
| Under assets held for sale (Note 21) | - | (476,874) | - | - |
| Cash and cash equivalents at 31 Dec | 525,685 | (116,518) | 221,736 | 61,137 |
Assets pledged as security
Refer to note 39 (iii) for information on current assets pledged as security by the Group.
31 Trade and other payables
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Current | ||||
| Trade payables | 43,371 | 220,715 | 7,804 | 43,639 |
| Other payables | 136,231 | 92,041 | 95,329 | 34,649 |
| Total current liabilities | 179,602 | 312,756 | 103,133 | 78,288 |
Trade and other payables have been further classified as financial and non-financial liabilities as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Financial liabilities | ||||
| Trade payables | 43,371 | 220,715 | 7,804 | 43,639 |
| Other payables: | ||||
| Treasury security deposits | 52,994 | 2,949 | 52,994 | 2,949 |
| Accrued expenses | 18,591 | 5,026 | 18,591 | 5,026 |
| Rental payables | 1,625 | 1,278 | 1,625 | 1,278 |
| IDC - Intercompany | 245 | 931 | 245 | 931 |
| Other environmental payables | 489 | 464 | 489 | 489 |
| Total financial liabilities | 117,315 | 231,363 | 81,748 | 54,312 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
126
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
31 Trade and other payables (continued)
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Non-financial Liabilities | ||||
| Other payables: | ||||
| Statutory liabilities | 1,695 | 1,283 | 1,695 | 1,283 |
| Staff payables | 5,858 | 9,193 | 5,858 | 9,193 |
| Dividends received in advance* | 10,724 | 10,724 | 10,724 | 10,724 |
| Dividend payable | 3,108 | 2,776 | 3,108 | 2,776 |
| Other payables | 40,902 | 57,417 | - | - |
| Total non-financial liabilities | 62,287 | 81,393 | 21,385 | 23,976 |
| Total liabilities balance | 179,602 | 312,756 | 103,133 | 78,288 |
(i) The carrying amount of the current payables and accrued expenses approximate their fair values due to
the short-term nature and low impact of discounting.
(ii) Statutory liabilities relate to Pay As You Earn (PAYE), National Pension Scheme Authority (NAPSA), Mineral
Royalty Tax and Value Added Tax (VAT).
*Dividends received in advance relates to dividends received from investee companies which are not
payable but will be offset against future dividends
32 Provisions
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec 2023 | ||||
| Legal provisions (i) | 3,625 | 5,036 | 3,625 | 5,036 |
| Provisions – others (ii) | 46,046 | 39,207 | 21,926 | 36,425 |
| 49,671 | 44,243 | 25,551 | 41,461 | |
| i) Legal provision | ||||
| Opening balance | 5,036 | 85,332 | 5,036 | 85,332 |
| Addition | - | - | - | - |
| Payments/reversal | (1,411) | (80,296) | (1,411) | (80,296) |
| Closing balance | 3,625 | 5,036 | 3,625 | 5,036 |
| ii) Provisions other | ||||
| Opening balance | 39,207 | 402,357 | 36,425 | 23,354 |
| Addition/(reduction) | 81,897 | 38,501 | 58,226 | 35,719 |
| Amounts used during the period | (72,725) | (25,220) | (72,725) | (22,648) |
| Translation (Note 34) | - | 160,435 | - | - |
| Reclassified to held for sale (Note 21) | (2,333) | (536,866) | - | - |
| Closing balance | 46,046 | 39,207 | 21,926 | 36,425 |
| Total provision closing balance | 49,671 | 44,243 | 25,551 | 41,461 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
127
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
32 Provisions (continued)
Legal provision
i) The legal provision arises mainly from several legal cases involving the Group. These cases relate to various
legacy matters of the old ZCCM Limited, mostly relating to employee cases and sale of houses. The legal
provisions amount is premised on claims against the Company before the courts of law and the likelihood
of a matter going in favour of the claimant as determined by the legal team. Legal provisions are payable
within 12 months.
Other provisions
ii) Other provisions comprise of consultancy fees regarding various investments projects, as well as staff related
provisions which includes gratuity and leave pay. Provisions other are payable within 12 months. Gratuity
disclosed as part of provisions is based on the employee contracts and is fixed per contract as a rate of the
total salary (known percentage of the agreed basic salary in the contract).
iii) The makeup of provisions other balances are:
Provisions other
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Staff costs provision | 37,076 | 14,697 | 12,956 | 11,915 |
| Consultancy fees provision | 8,970 | 24,510 | 8,970 | 24,510 |
| Total | 46,046 | 39,207 | 21,926 | 36,425 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
128
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
33 Share capital and premium
(i) Ordinary shares
| Group and Company | ||||||
| Class A shares | Class B shares | Total | ||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| Balance at 31 Dec | 969 | 969 | 639 | 639 | 1,608 | 1,608 |
Class “A” Ordinary Shares and Class “B” Ordinary Shares all rank pari passu in all respects.
Holders of these shares are entitled to dividends as declared from time to time and are entitled to one
vote per share.
The Company has authorised class A and B shares of 96,976,669 and 63,873,617 respectively of ZMW0.01
each. Both class A and B shareholders have a right to vote, appoint directors, chairperson and receive a
dividend.
(ii) Number of shares
| In thousands of shares | Class A shares | Class B shares | Total | |||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| In issue at 31 December – | ||||||
| fully paid | 96,927 | 96,927 | 63,873 | 63,873 | 160,800 | 160,800 |
| Authorised – par value | ||||||
| ZMW0.01 | 120,000 | 120,000 | 80,000 | 80,000 | 200,000 | 200,000 |
(iii) Share premium
| Class A shares | Class B shares | Total | ||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| 31 Dec | ||||||
| 2024 | ||||||
| 31 Dec | ||||||
| 2023 | ||||||
| Ordinary shares | 1,259,407 | 1,259,407 | 829,936 | 829,936 | 2,089,343 | 2,089,343 |
| 1,259,407 | 1,259,407 | 829,936 | 829,936 | 2,089,343 | 2,089,343 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
129
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
34 Other reserves
(i) Revaluation reserve
The revaluation reserve arises from the periodic revaluation of items of property, plant and equipment,
and represents the excess of the revalued amount over the carrying value of the property, plant and
equipment at the date of revaluation. The reserves are non-distributable to the shareholders and are
recognised net of deferred income tax. Deferred tax arising in respect of the revaluation of property,
plant and equipment has been charged directly against revaluation reserves in accordance with IAS 12:
Income Taxes.
(ii) Translation reserves of foreign denominated subsidiaries
The translation reserve arises from the translation of the results of the investments in subsidiaries and equity
accounted investees whose functional and presentation currency is the US Dollar. The 2024 and prior year
translation reserves relate solely to Mopani Copper Mines Plc (Mopani) whose functional and presentation
currency is the United States Dollar. Following the reclassification of Mopani from subsidiary to associate,
no translation reserve balance is included in the consolidated assets and liabilities as at 31 December
2024. Subsidiary translation reserve movement for the year were as follows:
| ZMW’000 | ZMW’000 | |
| 20 Mar | ||
| 2024* | ||
| 31 Dec | ||
| 2023 | ||
| Trade and other receivables | (1,078) | 904,155 |
| Environmental protection fund | 175 | 42,858 |
| Cash and cash equivalents | 26,047 | (281,464) |
| Borrowings | 432,871 | (12,707,437) |
| Retirement benefits | (154) | (69,146) |
| Provisions for environmental rehabilitation | 35,243 | (815,048) |
| Trade and other payables | (44,945) | (3,350,997) |
| Current tax liabilities | - | - |
| Provisions | (3,494) | (160,435) |
| Total | 444,665 | (16,437,514) |
*For the year ended 31 December 2024, foreign exchange translations related to Mopani were calculated
using the prevailing exchange rates at the cut-off date of 20 March 2024. 20 March 2024 is the cut-off
date for the finalisation of the transaction between ZCCM-IH and International Resource Holdings RSC
Limited. Subsequent to 20
th
March 2024, Mopani was reclassified from subsidiary to associate and its assets
and liabilities reported as a single line item in the balance sheet as at 31 December 2024.
(iii) Fair value reserve
Fair value reserve comprises the cumulative net change in the fair value through other comprehensive
income financial assets until the assets are derecognised or impaired. The reserves are distributable upon
realisation. Where a revalued financial asset is sold, the portion of the reserve that relates to that financial
asset, which is effectively realised, is reduced from the investment revaluation reserve and is recognised
in profit or loss. Where a revalued financial asset is impaired, the portion of the reserve that relates to that
financial asset is recognised in retained earnings. (See note 45 (d (ii)).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
130
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
35 Borrowings
| Group | Company | |||
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| 2024 | 2023 | 2024 | 2023 | |
| Current | ||||
| Borrowings | 538,449 | - | 538,449 | - |
| Non-current | ||||
| Borrowings | 2,808,418 | - | 2,808,418 | - |
| Total borrowings | 3,346,867 | - | ||
| 3,346,867 | ||||
| - |
| Group | Company | |||
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| 2024 | 2023 | 2024 | 2023 | |
| Additions (GRZ Loan) | 1,162,139 | 128,733 | 1,162,139 | - |
| Fair value change on other shareholders | ||||
| equity | ||||
| (714,181) | - | (714,181) | - | |
| Mopani investment expense (Note 9) | 3,859,125 | - | 3,859,125 | - |
| Repayments | (1,282,155) | (436,036) | (1,282,155) | - |
| Interest on borrowing (Note 13) | 340,457 | 2,776,751 | 340,457 | - |
| Interest paid | (318,038) | - | (318,038) | - |
| Exchange difference due to translation (in- | ||||
| cluded in reserves) (note 34 (ii)) | - | 12,707,438 | - | - |
| Exchange difference recognised in the P&L | 299,520 | - | 299,520 | - |
| Reclassified to held for sale (Note 21) | - | (43,518,156) | - | - |
| Closing balance | 3,346,867 | - | 3,346,867 | - |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
131
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
35 Borrowings (continued)
The Table below provides further information on the borrowings of ZCCM-IH Plc.
| Glencore | |||
| Loan | |||
| MOF | |||
| Loan | |||
| Total | |||
| 31 Dec | |||
| 2024 | |||
| 31 Dec | |||
| 2024 | |||
| 31 Dec | |||
| 2024 | |||
| Additions (GRZ Loan) | - | 1,162,139 | 1,162,139 |
| Fair value change on other shareholders equity | - | (714,181) | (714,181) |
| Mopani investment expense (Note 35 (ii)) | 3,859,125 | - | 3,859,125 |
| Repayments | (1,282,155) | - | (1,282,155) |
| Interest on borrowing (Note 13) | 318,038 | 22,419 | 340,457 |
| Interest paid | (318,038) | - | (318,038) |
| Exchange difference due to translation (included in | |||
| reserves) (note 33 (ii)) | 234,232 | 65,288 | 299,520 |
| Closing balance | 2,811,202 | 535,665 | 3,346,867 |
(i) US$150 Million Glencore Payment Covenant Between GRZ and ZCCM-IH
During the financial year ended 31 December 2024, ZCCM Investments Holdings Plc (“ZCCM-IH” or “the
Company”) entered into a Loan Facility Agreement with the Government of the Republic of Zambia
(GRZ) through the Ministry of Finance and National Planning, in which GRZ provided an interest-free loan
of US$172 million to ZCCM-IH. The purpose of this loan is to facilitate the repayment of ZCCM-IH’s liability
to Glencore under the Tripartite Agreement involving ZCCM-IH, Glencore and Standard Chartered Bank
Zambia Limited.
The key terms of the GRZ Loan Facility are as follows:
■ The loan facility is designated solely for the repayment of the outstanding loan and accrued
interest owed to Glencore.
■ GRZ made an initial disbursement covering four months of repayments, with subsequent monthly
drawdowns available to ZCCM-IH.
■ The loan is incrementally recognized in ZCCM-IH’s financial position over five years, based on
disbursements made by GRZ to settle Glencore’s liability.
■ The loan is interest-free and carries no finance charges.
■ ZCCM-IH shall repay the loan from dividends earned from Mopani Copper Mines Plc (“MCM”) over
a period of ten (10) years, following a five (5)-year grace period.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
132
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
35 Borrowings (continued)
(i) Tripartite Agreement – US$135 Million Payment to Glencore
On 20 March 2024, ZCCM-IH executed a Tripartite Agreement with Glencore and Standard Chartered Bank
to facilitate structured repayments to Glencore. Tripartite agreement outlines the terms of the repayment
of $150million by ZCCM IH to Glencore. This agreement was entered into per the specific condition that
was included in the Investment agreement referred to as the “Glencore Payment Covenant.”
ZCCM-IH made a payment of $15 million on 19 March 2024 towards the $150million liability and on this
date, the liability was recognised in the financial records of ZCCM-IH. The US$135 million loan obligation to
Glencore is governed by the terms and conditions outlined in the Tripartite Agreement, which include the
following provisions:
■ Royalty Payment Allocation:
ZCCM-IH is required to deposit quarterly royalty payments received from Kansanshi Mining
Plc (“KMP”) into a designated account held at Standard Chartered Bank. The royalty
payment period is from 31 March 2024 to 30 June 2028.
Quarterly Payments to Glencore: Standard Chartered Bank is mandated to disburse
payments to Glencore on a quarterly basis from the designated account.
The agreed amount payable to Glencore is US$7.5 million per quarter, plus accrued interest
as per the Agreement.
ZCCM-IH is required to top up the designated account if the funds available are insufficient
to meet the quarterly payment obligations to Glencore.
Grace Period for Default: In the event of non-payment, a 90-day grace period is provided
before an event of default is formally declared.
| Interest Type | Rate |
| Normal Interest Rate | |
| 7.5% margin plus the Central Bank | |
| benchmark rate (90-day tenor) | |
| Default Interest (If Default is Not Waived) | 12.5% (7.5% + 5.0%) |
| Default Interest (If Default is Waived or Remediated) | 10% (7.5% + 2.5%) |
The Tripartite Agreement includes security conditions that govern the repayment process are as follows
■ ZCCM-IH Royalty Account:
ZCCM-IH holds a designated account at Standard Chartered Bank, where all royalty
payments from Kansanshi Mining Plc are deposited.
In the event that ZCCM-IH is unable to secure sufficient funds for its quarterly payments,
Standard Chartered Bank will directly transfer royalties due to ZCCM-IH to Glencore as a
settlement mechanism.
As of 31 December 2024, ZCCM-HI’s financial statements reflect the ongoing financial obligations arising
from the Tripartite Agreement and GRZ Loan Facility Agreement. These commitments are aligned with
the Company’s strategic financial restructuring objectives and are expected to contribute to long-term
financial stability while fulfilling its obligations to Glencore, GRZ, and other stakeholders.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
133
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
36 Deferred tax
Group
Deferred tax arises as a result of differences between the carrying amounts of assets and liabilities presented in the statement of financial position determined
in accordance with the International Financial Reporting Standards (IFRSs), and their carrying amounts determined in accordance with the Income Tax Act.
Deferred tax is regarded as an obligation/asset that will be payable or recoverable at a future date when the carrying amount of the asset/liability is recov-
ered/settled.
Deferred income tax was calculated using the enacted income tax rate of 30% (2023: 30%).
| Group | |||||||
| Balance 1 | |||||||
| Jan 2023 | |||||||
| Recognised | |||||||
| in profit or | |||||||
| loss | |||||||
| Recognised | |||||||
| OCI | |||||||
| Balance 31 | |||||||
| Dec 2023 | |||||||
| Recognised | |||||||
| in profit or | |||||||
| loss | |||||||
| Recognised | |||||||
| in OCI | |||||||
| Balance 31 | |||||||
| Dec 2024 | |||||||
| Movement in temporary differences during the year | |||||||
| Deferred tax asset | |||||||
| Provision for gratuity and leave pay | (2,900) | (890) | - | (3,790) | (499) | - | (4,289) |
| Other provisions | (12,838) | (11,171) | - | (24,009) | (9,857) | - | (33,866) |
| Bad debt provision | (259,550) | (25,088) | - | (284,638) | (76,763) | - | (361,401) |
| Legal Provision | (25,528) | 24,017 | - | (1,511) | 423 | - | (1,088) |
| Environmental provision | (11,807) | (4,204) | - | (16,011) | (5,037) | - | (21,048) |
| Unrealised exchange losses | (87,625) | (1,981) | - | (89,606) | (29,015) | - | (118,621) |
| Supply chain tax losses | (405) | - | - | (405) | - | - | (405) |
| Mopani Investment Expense - Provision | - | - | - | - | - | - | - |
| Tax losses | (136,331) | 136,331 | - | - | 6,601 | - | 6,601 |
| (536,984) | 117,014 | - | (419,970) | (114,147) | - | (534,117) | |
| Deferred tax liability | |||||||
| Property, plant, and equipment | 35,723 | 6,344 | - | 42,067 | (5,768) | - | 36,299 |
| Property, plant, and equipment – Revaluation | 1,236 | - | (221) | 1,015 | - | (221) | 794 |
| Unrealised exchange gains | 362,684 | 753,980 | - | 1,116,664 | (335,565) | - | 781,099 |
| Employee provision | 14,489 | 512 | (2,944) | 12,057 | 694 | (692) | 12,059 |
| 414,132 | 760,836 | (3,165) | 1,171,803 | (340,639) | (913) | 830,251 | |
| Deferred tax (asset)/liability | (122,852) | 877,850 | (3,165) | 751,833 | (454,786) | (913) | 296,134 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
134
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
36 Deferred tax (continued)
Deferred tax on foreign currency reserve
The translation reserves which arise from consolidation (reporting) are not recognised. There is no group tax registration in Zambia, hence translation reserves
will not result in any tax obligations at any time. All taxes recognised at group level are a summation of individual entity’s tax obligations/claims.
Deferred income tax assets are recognised for provisions to the extent that the future related tax benefits will be realised. There were no unrecognised
deferred tax assets during the period.
Company
Deferred income tax assets are recognised for provisions to the extent that the future related tax benefits will be realised. There were no unrecognised
deferred tax assets during the period. Deferred income tax assets and liabilities are attributable to the following items:
| Company | |||||||
| Balance 1 | |||||||
| Jan 2023 | |||||||
| Recognised in | |||||||
| profit or loss | |||||||
| Recognised | |||||||
| OCI | |||||||
| Balance 31 | |||||||
| Dec 2023 | |||||||
| Recognised | |||||||
| in profit or | |||||||
| loss | |||||||
| Recognised | |||||||
| OCI | |||||||
| Balance 31 | |||||||
| Dec 2024 | |||||||
| Movement in temporary differences during the | |||||||
| year | |||||||
| Deferred tax asset | |||||||
| Property, plant and equipment | (6,110) | 3,735 | - | (2,375) | 365 | - | (2,010) |
| Provision for gratuity and leave pay | (2,933) | (444) | - | (3,377) | (295) | - | (3,672) |
| Other provisions | (396) | 396 | - | - | (2,685) | - | (2,685) |
| Bad debt Provision | (363,880) | (24,917) | - | (388,797) | (79,538) | - | (468,335) |
| Legal provision | (25,528) | 24,017 | - | (1,511) | 423 | - | (1,088) |
| Employee provision | (2,783) | 512 | (2,944) | (5,215) | 694 | (692) | (5,213) |
| Environmental provision | (11,807) | (4,542) | - | (16,349) | (5,037) | - | (21,386) |
| Tax losses | (140,391) | 139,986 | - | (405) | - | - | (405) |
| (553,828) | 138,743 | (2,944) | (418,029) | (86,073) | (692) | (504,794) | |
| Deferred tax liability | |||||||
| Property, plant and equipment – revaluation | 9,755 | - | (221) | 9,534 | - | (221) | 9,313 |
| Unrealised exchange gains | 361,514 | 753,179 | - | 1,114,693 | (335,566) | - | 779,127 |
| Unrealised exchange losses | (76,407) | (11,732) | - | (88,139) | (19,697) | - | (107,836) |
| Change in investment property | - | - | - | - | - | - | - |
| (294,862) | 741,447 | (221) | 1,036,088 | (355,263) | (221) | 680,604 | |
| Deferred tax (asset)/liability | (258,966) | 880,190 | (3,165) | 618,059 | (441,336) | (913) | 175,810 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
135
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
36 Deferred tax (continued)
(i) Group defined contribution plan
A defined contribution plan is a pension plan under which the Group pays fixed contributions into the
fund. The Group has no legal or constructive obligations to pay further contributions if the fund does not
hold sufficient assets to pay all employees the benefits relating to employee service in the current and
prior years. The Company’s contributions to the defined contribution schemes are charged to profit or loss
in the year to which they relate. The Group has no further obligation once contributions have been paid.
(ii) Group defined benefit obligation
Under the terms of employment, permanent employees of the Group are entitled to post employment
gratuity benefits. The benefits are defined benefit in nature based on the members’ length of service and
their salary at the earlier of retirement or death or termination from employment. This scheme is unfunded,
and the Group only pays a benefit upon retirement of an individual qualifying for the benefit.
The regulator, Pensions and Insurance Authority, does not regulate gratuity schemes such as this one.
However, companies that opt to provide an additional and separate unfunded gratuity benefit for
their employees are required to operate within the governing covenants and agreements with their
employees. Taxation of this scheme falls under the framework and administration of this arrangement,
including decisions as to whether to prefund the benefit costs or amend the arrangement design.
The Group’s accrued liability in respect of each employee is the present value of the benefits in respect
of service completed to the valuation date but based on projected earnings to retirement or date of
payment. The total accrued liability (or the required provision) at the valuation date is a summation of the
accrued liability in respect of each employee.
Key risks
The plan typically exposes the Group to actuarial risks such as: interest rate risk, salary risk and liquidity
risk.
| Interest rate risk | The plan liabilities are calculated using a discount rate set with |
| reference to Zambian government bond yields. A decrease in | |
| government bonds will increase the plan liabilities. | |
| Salary risk | The present value of the defined benefit plan liability is calcu- |
| lated by reference to the future salaries of plan participants. | |
| As such, an increase in the salary of the plan participants will | |
| increase the plan’s liability. | |
| Liquidity risk | The plan is unfunded. There is a risk that resources might not be |
| available when needed to pay the benefits that have become | |
| due. |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
136
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
37 Retirement benefits (continued)
(a) The amounts recognised in the statement of financial position are determined as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Present value of unfunded obligations | 17,373 | 17,381 | 17,373 | 17,381 |
(b) Movement in the defined benefit obligation over the year is as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Balance at 1 January | 17,381 | 322,071 | 17,381 | 9,275 |
| Charge for the period – expense | 4,861 | 36,853 | 4,861 | 2,619 |
| Charge for the period – other comprehensive in- | ||||
| come | 2,305 | (24,134) | 2,305 | 9,813 |
| Benefits paid during the year | (7,174) | (11,078) | (7,174) | (4,326) |
| Reclassified to trade and other payables | - | (245,715) | - | - |
| Foreign currency translation | - | 69,146 | - | - |
| Reclassified as held for sale | - | (129,762) | - | - |
| Closing balance – 31 December | 17,373 | 17,381 | 17,373 | 17,381 |
| Non-current liability | 17,373 | 17,381 | 17,373 | 17,381 |
| 17,373 | 17,381 | 17,373 | 17,381 |
(c) Recognised in profit or loss
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Current service cost | 1,373 | 13,414 | 1,373 | 648 |
| Interest cost | 3,488 | 23,439 | 3,488 | 1,971 |
| Personnel expenses (Note 12) | 4,861 | 36,853 | 4,861 | 2,619 |
(d) Recognised in equity
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Experience adjustment | 409 | (27,510) | 409 | 6,437 |
| Demographic assumptions | 7,208 | 7,208 | 7,208 | 7,208 |
| Financial assumptions | (5,312) | (3,832) | (5,312) | (3,832) |
| Total | 2,305 | (24,134) | 2,305 | 9,813 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
137
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
37 Retirement benefits (continued)
Group defined benefit plans
(e) Actuarial assumptions
Critical assumptions are made by the actuary in determining the present value of retirement benefit obligation
including the discount rate. The carrying amount of the provision and the key assumptions made in estimating
the provision were as follows:
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Discount rate | 22.00% | 26.95% | 22.00% | 23.00% |
| Benefit increase rate | - | 16.59% | - | 16.59% |
| Future salary increases | 9.5% | 10.0% | 9.5% | 11% |
The liability and actuarial assumptions are based on the actuarial valuation report as at 31 December 2024.
(f) Sensitivity analysis
The results of the actuarial valuation are sensitive to changes in the financial assumptions than changes in
the demographic assumptions. In preparing the sensitivity analysis of the results to the discount rate used, the
actuary relied on calculations of the duration of the liability. Based on this methodology, the results of the
sensitivity analysis are summarized in the table below:
| Group | Company | |||
| 31 Dec 2024 | 31 Dec 2023 | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Present value | ||||
| of obligation | ||||
| Present value | ||||
| of obligation | ||||
| Present value | ||||
| of obligation | ||||
| Present value | ||||
| of obligation | ||||
| ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | |
| 1% increase in discount rate | ||||
| (1,179) | (4,660) | (1,178) | (1,221) | |
| 1% decrease in discount rate | 1,312 | 5,095 | 1,313 | 1,359 |
| 1% increase in salary rate | 1,444 | 5,876 | 1,445 | 1,494 |
| 1% decrease in salary rate | (1,304) | (5,398) | (1,303) | (1,352) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
138
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
37 Retirement benefits (continued)
(f) Sensitivity analysis (continued)
Since all the benefits payable under the plan are salary related, the sensitivity of the liability to a change
in the salary escalation assumption is not expected to be materially different.
Effect on Company cash flows
The arrangement is unfunded and the Company pays benefits from general revenues as and when they
arise. The timing of the benefit payments from the plan will be influenced by the age at which employees
retire from the Company.
38 Provisions for environmental rehabilitation
| Group | Company | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Balance at 1 January | 112,751 | 1,221,068 | 54,498 | 39,357 |
| Charge for the year | 25,599 | (471) | 12,121 | (1,632) |
| Increase/(decrease) in environmental provision | ||||
| charged to environmental assets | 93,739 | 1,299,950 | - | - |
| Exchange movement | 10,205 | 16,773 | 4,670 | 16,773 |
| Unwinding of discount | 3,516 | 23,520 | - | - |
| Amount paid | - | - | - | - |
| Translation - included in reserves | - | 815,048 | - | - |
| Reclassified to held for sale (Note 21) | - | (3,263,137) | - | - |
| Balance at 31 December | 245,810 | 112,751 | 71,289 | 54,498 |
The year-end balance represents restoration, rehabilitation and environmental provisions for the Company
and its subsidiaries; Limestone Company Limited (“Limestone”), Kabundi Resources Limited (“Kabundi”) and
Kariba Minerals Limited (“Kariba”). The Company’s provision is as a result of inherited environmental obligations
from the old ZCCM Limited combined with environmental disturbances from mining operations at Limestone,
Kabundi and Kariba.
The provisions have been assessed to cost ZMW245.81 million as at 31 December 2024 as compared to
ZMW112.75 million as at 31 December 2023. The increase in the provision for environmental rehabilitation in
2024 as compared to 2023 was mainly resulting from the updated risk assessment from Kariba, Kabundi and
Limestone.
The provision represents the best estimate of the expenditure required to settle the obligations to rehabilitate
environmental disturbances caused by mining operations. Mining companies are expected to make contributions
to the Environmental Protection Fund, controlled by the Department of Mines and Mineral Development.
Contributions made towards the fund reduces the environmental provision obligation. At the end of useful life
of the mine, mining companies are obligated to rehabilitate the damage to the environment and all payments
made to the Environmental Protection Fund will be reimbursed towards this rehabilitation.
The valuation for the environmental restoration provision at 31 December 2024 for the Company and subsidiaries
were performed by independent consultants.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
139
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
38 Provisions for environmental rehabilitation (continued)
Assumptions
The following assumptions were consindered: Inflation rate of 10% (2023: 7%), Discount rate of 4.38% (2023: 3.84%)
and time to settle of 5 to 25 years when cashflows are expected to be incurred.
Based on this assessment, there was an increase in the liability for the Asset Retirement Obligation (ARO) after
an inflation factor of 10% (2023: 7%) of approximately ZMW18.6 million (US$0.46 million) (2023:ZMW118 million
(US$4.38 million)). The discount factor of 4.38% was applied in 2024 (2023: 3.84%). The increase in the restoration
provision in the current year is principally attributable to exchange movements.
An impact of a 10% movement in the inflation rate results into ZMW0.194 million (2023: ZMW0.12 million) change
in the retirement and remediation liability while a 10% movement in the discount rate results into a ZMW0.002
million (2023: ZMW0.02 million) change in the liability and corresponding mineral properties asset. For each
mining area, the ARO cash outflows have been estimated to occur after the end of the mining over a period
which is between 5 to 25 years.
39 Related party transactions
a) Parent and ultimate controlling party
The Group is controlled by the Government of the Republic of Zambia through the Zambian Industrial
Development Corporation (IDC) (60.3%) and Ministry of Finance (17.2%) which owns a total of 77.5% of the
Company’s shares.
b) Related party transactions
(i) Dividend paid to parent company
| Name | Type | ||||
| Ownership | |||||
| interest | |||||
| Place of | |||||
| incorporation | |||||
| 31 Dec | |||||
| 2024 | |||||
| 31 Dec | |||||
| 2023 | |||||
| ZMW | |||||
| million | |||||
| ZMW | |||||
| million | |||||
| Industrial | |||||
| Development | |||||
| Corporation | |||||
| Ultimate parent entity and | |||||
| controlling party | 60.3% | Zambia | 146 | 436 |
(ii) Loan amount payable to Ministry of Finance
| Name | Type | ||||
| Ownership | |||||
| interest | |||||
| Place of | |||||
| incorporation | |||||
| 31 Dec | |||||
| 2024 | |||||
| 31 Dec | |||||
| 2023 | |||||
| ZMW | |||||
| million | |||||
| ZMW | |||||
| million | |||||
| Ministry of Finance | Shareholder | 17.3% | N/a | 1,226 | - |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
140
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(iii) Key management personnel compensation
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| Item | ||||
| Executive Director’s fees and Emoluments | 6,901 | 10,605 | 6,901 | 4,694 |
| Non-executive Director’s Fees | 26,726 | 26,477 | 13,499 | 10,465 |
| Total | 33,627 | 37,082 | 20,400 | 15,159 |
Key management compensation relates to Director’s in the Company and its subsidiaries. Directors’ emoluments
include sitting allowances and salaries.
(iv) Dividend income from related parties
Company
| Relationship | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Kansanshi Mining Plc (Associate) | - | 170,745 |
| CNMC Luanshya Copper Mines Plc (Associate) | 266,560 | 233,568 |
| Copperbelt Energy Corporation Plc (Associate) | 483,469 | 335,523 |
| NFC Africa Mining Plc – (Other investee) | 36,623 | - |
| Total dividends (Note 8) | 786,652 | 739,836 |
(v) Interest income from related parties
Company
| Relationship | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Maamba Energy Limited (Associate) | 62,369 | 56,504 |
| Konkola Copper Mines Plc (Associate) | 607 | 832 |
| Limestone Resources Limited (Subsidiary) | 21,239 | 14,070 |
| Rembrandt Properties Limited (Associate) | 5,509 | 5,501 |
| Zambia Gold Company Limited (Subsidiary) | 6,631 | - |
| Mingomba Mining Limited (Associate) | 9,920 | - |
| Mopani Copper Mines Plc (Associate) | 196,668 | 168,728 |
| Total interest income | 302,943 | 245,635 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
141
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(vi) Management fees income from related parties
Company
| Relationship | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Lubambe Copper Mines (Associate) | - | 5,072 |
| Kariba Minerals Limited (Subsidiary) | - | 11 |
| Zambia Gold Company Limited (Subsidiary) | - | 295 |
| Total management fees (note 9) | - | 5,378 |
(vii) Royalty income from related parties
Company
| Relationship | ||
| 31 Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Kansanshi Mining Plc (Associate) | 1,425,969 | 1,201,395 |
(viii) Amounts due from related parties
Group 2024
| Relationship | Gross | Impairment | ||
| Carrying | ||||
| amount | ||||
| Konkola Copper Mines Plc (iv) | ||||
| Associate | 310,916 | (310,916) | - | |
| Mingomba Mining Limited | Associate | 464,148 | (1,573) | 462,575 |
| Royalty receivable (Kansanshi Mining Plc) | Associate | 388,830 | (4,160) | 384,670 |
| Sub total | 1,163,894 | (316,649) | 847,245 | |
| Maamba Energy Limited (i) | Associate | |||
| 612,307 | (2,075) | 610,232 | ||
| Lubambe Copper Mines Limited (ii) | Associate | 701,493 | (701,493) | - |
| Mopani Copper Mines Plc (viii) | Associate | 2,843,235 | (911,924) | 1,931,311 |
| Rembrandt Properties Limited | Associate | 46,824 | (46,824) | - |
| Sub total | 4,203,859 | (1,662,316) | 2,541,543 | |
| Price participation receivable (KCM) | Associate | 9,182 | (9,182) | - |
| Dividends receivable (KCM) | Associate | 78,066 | (78,066) | - |
| Sub total | 87,248 | (87,248) | - | |
| Total amounts due from related parties | 5,455,001 | (2,066,213) | 3,388,788 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
142
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(viii) Amounts due from related parties (continued)
Group 2023
| Relationship | Gross | Impairment | ||
| Carrying | ||||
| amount | ||||
| Konkola Copper Mines Plc (iv) | Associate | |||
| 309,420 | (309,420) | - | ||
| Royalty receivable (Kansanshi Mining Plc) | Associate | 185,397 | (3,506) | 181,891 |
| Royalty receivable (Consolidated Gold | ||||
| Company Limited) | Associate | 2,852 | - | 2,852 |
| Sub total | 497,669 | (312,926) | 184,743 | |
| Maamba Energy Limited (i) | Associate | 1,595,707 | (7,978) | 1,587,729 |
| Lubambe Copper Mines Limited (ii) | Associate | 701,493 | (701,493) | - |
| Rembrandt Properties Limited | Associate | 41,315 | (207) | 41,108 |
| Sub total | 2,338,515 | (709,678) | 1,628,837 | |
| Price participation receivable (KCM) | Associate | 9,182 | (9,182) | - |
| Dividends receivable from Kansanshi | Associate | 124,970 | (78,066) | 46,904 |
| Sub total | 134,152 | (87,248) | 46,904 | |
| Total amounts due from related parties | 2,970,336 | (1,109,852) | 1,860,484 |
Company
December 2024
| Relationship | Gross | Impairment | ||
| Carrying | ||||
| amount | ||||
| Misenge Environmental and Technical Ser- | ||||
| vices Limited (iii) | Subsidiary | 5,321 | (4,624) | 697 |
| Konkola Copper Mine Plc (iv) | Associate | 310,916 | (310,916) | - |
| Limestone resources limited (vii) | Subsidiary | 46,850 | (46,850) | - |
| Mingomba Mining Limited | Associate | 464,148 | (1,573) | 462,575 |
| Royalty receivable (Kansanshi) | Associate | 388,830 | (4,160) | 384,670 |
| Sub total | 1,216,065 | (368,123) | 847,942 | |
| Maamba Energy Limited (i) | Associate | 612,307 | (2,075) | 610,232 |
| Lubambe Copper Mine Limited (ii) | Associate | 701,493 | (701,493) | - |
| Mopani Copper Mines Plc (viii) | Associate | 2,843,235 | (911,924) | 1,931,311 |
| Rembrandt Properties Limited (vi) | Associate | 46,824 | (46,824) | - |
| Zambia Gold Limited | Subsidiary | 146,585 | (497) | 146,088 |
| Limestone Resources Limited (vii) | Subsidiary | 235,462 | (235,462) | - |
| Sub total | 4,585,906 | (1,898,275) | 2,687,631 | |
| Mushe Milling Company Limited (v) | Subsidiary | 73,965 | (73,965) | - |
| Price participation receivable (KCM) | Associate | 9,182 | (9,182) | - |
| Dividends receivable (KCM) | Associate | 78,066 | (78,066) | - |
| Sub total | 161,213 | (161,213) | - | |
| Total amounts due from related parties | 5,963,184 | (2,427,611) | 3,535,573 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
143
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(viii) Amounts due from related parties (continued)
Company
December 2023
| Relationship | Gross | Impairment | ||
| Carrying | ||||
| amount | ||||
| Misenge Environmental and Technical Services | ||||
| Limited (iii) | Subsidiary | 4,669 | (4,624) | 45 |
| Konkola Copper Mine Plc (iv) | Associate | 309,420 | (309,420) | - |
| Limestone Resources Limited (vii) | Subsidiary | 46,850 | (46,850) | - |
| Royalty receivable (Kansanshi) | Associate | 188,249 | (3,506) | 184,743 |
| Sub total | 549,188 | (364,400) | 184,788 | |
| Maamba Energy Limited (i) | Associate | 1,595,707 | (7,978) | 1,587,729 |
| Lubambe Copper Mine Limited (ii) | Associate | 701,493 | (701,493) | - |
| Mopani Copper Mines Plc (viii) | Subsidiary | 2,776,497 | (13,882) | 2,762,615 |
| Rembrandt (vi) | Associate | 41,315 | (207) | 41,108 |
| Limestone Resources Limited (vii) | Associate | 195,999 | (980) | 195,019 |
| Sub total | 5,311,011 | (724,540) | 4,586,471 | |
| Mushe Milling Company Limited (v) | Subsidiary | 73,965 | (73,965) | - |
| Price participation receivable (KCM) | Associate | 9,182 | (9,182) | - |
| Dividends receivable (Kansanshi) | Associate | 124,970 | (78,066) | 46,904 |
| Sub total | 208,117 | (161,213) | 46,904 | |
| Total amounts due from related parties | 6,068,316 | (1,250,153) | 4,818,163 |
(i) Maamba Energy Limited (MEL)
On 17 June 2015, ZCCM-IH advanced an inter-company loan of ZMW 321.15 million (US$26.345 million) to
Maamba Collieries Limited (MCL) as part of its equity contribution towards the implementation of the Integrated
Mining Project and the development of a 300MW Thermal Power Plant. The loan carries an annual interest rate of
6% and is repayable in five equal annual instalments, commencing one year after the commercial operational
date of 27 July 2017. The loan is subordinated to third-party lenders who financed the Maamba Project. During
the year, the full project finance facility owed to commercial lenders was settled, and MCL continued to make
repayments towards the ZCCM-IH shareholder loan.
In addition, on 25 March 2019, ZCCM-IH extended a short-term liquidity support facility of ZMW 220.5 million
(US$10 million) to MCL. The facility was repayable within 60 days from the date of disbursement or upon receipt
of payment from ZESCO for power sales. This shareholder loan was also subordinated to the project finance
loans, unsecured, and carried an interest rate of 6% per annum. As at 31 December 2024, MEL had fully repaid
the US$10 million shareholder loan along with the accrued interest of US$2.68 million to ZCCM-IH.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
144
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(viii) Amounts due from related parties (continued)
(ii) Lubambe Copper Mines Limited
On 9 November 2023, ZCCM-IH amended the inter-company loan agreement with Lubambe Copper
Mines Limited. The principal amount outstanding for the loan is ZMW701 million (US$103.7 million). The loan
is fully impaired by ZCCM-IH Plc.
(iii) Misenge Environmental and Technical Services Limited
The loan amount outstanding from Misenge Environmental and Technical Services Limited is totalling
ZMW4.25 million. The loan is fully impaired by ZCCM-IH Plc.
(iv) Konkola Copper Mine Plc (KCM)
ZCCM Investments Holdings Plc (“ZCCM-IH”) has provided significant financial support to Konkola Copper
Mines Plc (“KCM”) through a combination of loan facilities and guarantees.
Following the appointment of a Provisional Liquidator for KCM by the High Court, ZCCM-IH advanced
ZMW166.57 million (US$10 million) to KCM through the office of the Provisional Liquidator. Subsequently,
on 23 August 2019, an additional loan amounting to ZMW208.21 million (US$12.5 million) was extended to
KCM. The latter facility carries an annual interest rate of 6% and total outstanding balance at year end is
ZMW64.81 million (US$2.66 million).
In addition to the above loans, ZCCM-IH also issued a corporate guarantee of ZMW220 million (US$10
million) to Zambia National Commercial Bank Plc (“ZANACO”) to secure a working capital facility for
KCM. The guarantee remained in effect until 30 November 2023. Due to KCM’s financial constraints, it
was unable to meet its repayment obligations, prompting ZANACO to call on the guarantee. ZCCM-
IH honoured the guarantee and settled the full amount of US$10 million. This corporate guarantee was
backed by a Promissory Note issued by the Ministry of Finance in favour of ZCCM-IH, and ZCCM-IH has
formally requested reimbursement of the guaranteed amount.
On 28 June 2024, the High Court of Lusaka, under Cause No. 2019/HP/0761, approved and sanctioned
a Scheme of Arrangement between KCM and its Scheme Creditors. The repayment of the outstanding
loans to ZCCM-IH now falls under the terms of this Court-Sanctioned Scheme. As at 31 December 2024,
the total outstanding balance from these loan facilities stood at ZMW310.92 million (US$12.66 million).
(v) Mushe Milling Company
On 12 December 2019, ZCCM-IH and Mushe Milling Company Limited entered into a loan facility
agreement amounting to ZMW20.48 million. The facility was attracting interest computed as the Bank of
Zambia average commercial lending rate plus 2% per annum. Payment of interest was to commence six
months from the date of the facility. The principal repayment of the loan had a moratorium of 12 months,
thereafter, the principal was to be paid in 24 equal monthly instalments. The loan is fully impaired and
written off.
On 7th September 2021, ZCCM-IH and Mushe Milling Company Limited entered into a loan facility
agreement amounting to ZMW6.29 million. The facility was attracting interest computed as the Bank of
Zambia average commercial lending rate plus 2% per annum. Payment of interest was to commence six
months from the date of the facility. The principal repayment of the loan had a moratorium of 12 months,
thereafter, the principal to be paid in 24 equal monthly instalments. The loan is fully impaired and written
off. The liquidation of Mushe Milling Company Limited began in 2023 and is still in progress.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
145
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
39 b) Related party transactions (continued)
(viii) Amounts due from related parties (continued)
(vi) Rembrandt Properties Limited
On 1 September 2022, ZCCM-IH extended a term loan facility of ZMW29.5 million to support the
company’s working capital requirements, with a repayment due date of 20 August 2023. Subsequently,
on 29 December 2022, an additional shareholder loan of ZMW4.84 million was granted, repayable by 30
November 2023. Both facilities accrue interest at the 364-day Bank of Zambia treasury bill yield rate as of 1
September 2022, plus a margin of 1%. The loans are secured by a combined 25.5% shareholding—equally
pledged by the other shareholders of Rembrandt, Urban Brands and Sims Capital.
As at 31 December 2024, Rembrandt had not fulfilled its repayment obligations on either facility.
Consequently, ZCCM-IH is actively pursuing appropriate measures to enforce its rights over the pledged
security in accordance with the shareholder loan agreement.
(vii) Limestone Resources Limited
On 7 July 2022, ZCCM-IH entered a Preference Share Subscription Agreement with Limestone Resources
Limited (LRL), under which ZCCM-IH subscribed to Redeemable Preference Shares (RPS) valued at
ZMW174.86 million (US$6.79 million). The RPS carry a fixed interest rate of 10% per annum and were initially
set to mature in July 2024, with the maturity date subsequently extended to July 2025.
As at 31 December 2024, the total amount receivable from LRL stood at ZMW235.46 million and has been
fully impaired.
(viii) Mopani Copper Mines Plc
On 19 January 2023, ZCCM Investments Holdings Plc (“ZCCM-IH”) entered into a Bridge Facility Agreement
with Mopani Copper Mines Plc (“Mopani”) amounting to ZMW2.45 billion (US$100.35 million) to provide
immediate working capital support during the process of engaging a Strategic Equity Partner. The facility
was intended as a short-term recapitalisation measure to sustain Mopani’s operations.
On 20 March 2024, the terms of the loan were modified in response to developments under the SEP
transaction. The modification included:
■ A reduction in the interest rate from SOFR + 8% to SOFR + 1%; and
■ An extension of the maturity date from 31 December 2035 to 31 December 2036.
This change was accounted for under IFRS 9 as an extinguishment of the original financial liability.
Consequently:
■ The original loan was derecognised;
■ A new liability was recognised at its fair value of US$97 million; and
■ A resulting loss of US$32.0 million (being the difference between the carrying amount of the old
loan and the fair value of the new loan) has been recognised in profit and loss (note 10). Following
the successful completion of the SEP process, ZCCM-IH received a partial repayment of US$14
million.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
146
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
40 Contingent liabilities
(i) Maamba contingent liabilities
ZCCM-IH, being a co-owner of Maamba Energy Limited (MEL) with Nava Bharat (Singapore) PTE Ltd (NBS),
was in 2017 required to contribute ZMW 162 million (US$9.75 million) in form of a shareholder loan towards
Maamba’s Base Project Equity according to its shareholding ratio of 35%. However, NBS contributed the
whole amount including the US$9.75million share for ZCCM-IH.
As a result, it was resolved that ZCCM-IH refunds NBS, interest free, the excess contribution through offset
of ZMW 27.1 million (US$1.23 million) interest payment which was due to ZCCM-IH from Maamba on the
initial outstanding shareholder loan of 31 May 2015. The balance of ZMW 141.68 million (US$8.52 million)
was to be paid by Maamba to NBS from future dividends of Maamba, payable to ZCCM-IH.
ZMW 27.1 million (US$1.23 million) was paid to NBS in 2017, however, no dividends have been received
from Maamba since 2017 to settle the balance. ZCCM-IH has determined that in the absence of dividends
from Maamba it has no present obligation to settle the outstanding balance.
For this reason, ZMW 187.9million (US$8.52 million) due to NBS has not been recognised in these financial
statements.
(ii) Trafigura Legal Claim
ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) is currently involved in arbitration
proceedings initiated by Trafigura Pte Ltd (“Trafigura”) before the London Court of International Arbitration
(LCIA). The claim arises from an alleged obligation under an on-demand guarantee (the “Guarantee”)
provided by ZCCM-IH in connection with prepayment agreements between Trafigura and
Konkola Copper Mines Plc (“KCM”) for the supply of copper concentrates.
Trafigura is seeking the following reliefs from ZCCM-IH:
i. Payment of US$82,81 million plus late payment interest or, alternatively, damages;
ii. Any pre-award interest accrued by the date of the arbitration award;
iii. Reimbursement of legal and arbitration costs; and
iv. Any further relief as deemed appropriate by the Tribunal.
ZCCM-IH has vigorously disputed the claim and filed a comprehensive defence against this clam. As of 31
December 2024, the arbitration proceedings are ongoing, and the ultimate outcome remains uncertain.
While ZCCM-IH considers the claim to be without merit and continues to robustly defend its position, there
is a possibility that an adverse ruling could expose the Company to material financial liabilities.
Given the complexities and uncertainties associated with arbitration, no provision has been recognized in
these financial statements, as the probability and quantum of any potential obligation cannot be reliably
estimated at this stage. The Board of Directors continues to closely monitor the developments of the case.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
147
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
40 Contingent liabilities (continued)
(iii) Assets pledged as security
For the year ending 31 December 2024, there were no assets pledged as security (2023: ZMW 22.48 billion)
relates to Mopani. The assets pledged as security were specifically for Mopani’s liabilities. The carrying amounts
of assets pledged as security for the borrowings and included assets held for sale were:
| 31 Dec | |||
| 2024 | |||
| 31 Dec | |||
| 2023 | |||
| Assets | |||
| Notes | |||
| Property, plant, and equipment | |||
| 17 | |||
| - | 12,525,429 | ||
| Intangible assets | |||
| 19 | |||
| - | 3,121,181 | ||
| Trade and other receivables | |||
| 26 | |||
| - | 3,137,572 | ||
| Environmental protection fund | |||
| 27 | - | 147,553 | |
| Inventories | |||
| 25 | - | 3,489,128 | |
| Term deposits | |||
| 29 | - | - | |
| Cash and cash equivalents | |||
| 30 | |||
| - | 58,367 | ||
| Total assets | |||
| - | 22,479,230 |
41 Commitments
(i) Capital expenditure authorised by the Board of directors at the reporting date but not yet contracted for
is as follows:
| Group | Company | |||
| 31Dec | ||||
| 2024 | ||||
| 31Dec | ||||
| 2023 | ||||
| 31Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Property, plant and equipment* | 47,834 | 5,113,296 | 47,834 | 43,835 |
| 47,834 | 5,113,296 | 47,834 | 43,835 |
* The 2024 financial year capital commitments relate to ZCCM-IH. For the 2023 financial year, included in
capital commitments is a balance of ZMW5.07 billion (US$247 million) relating to Mopani authorised by the
Board but not yet contracted as at 31 December 2023.
(ii) Maamba Energy Limited Commitments
Shareholders are referred to the announcement dated 10th July 2024, in which the Board of ZCCM Investments
Holdings Plc (“ZCCM-IH” or the “Company”) informed shareholders and the market that Maamba Energy
Limited (“MEL”), formerly Maamba Energies Limited, had reached an agreement with anchor lenders to finance
the construction and installation of an additional 300-megawatt power plant at MEL (“the Project”).
The total estimated cost of the Project is US$ 400 million, of which approximately US$ 300 million will be financed
through a consortium of lenders. ZCCM-IH is expected to contribute USD 15 million toward the debt portion in
the form of a loan, with a tenor of 10.25 years from the start of construction, including a 3.25-year moratorium.
The loan will bear interest at a rate of 9% per annum. As of 31 December 2024, ZCCM-IH has advanced a total
of US$ 5 million.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
148
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
41 Commitments (continued)
(ii) Maamba Energy Limited Commitments (continued)
Additionally, US$ 100 million will be provided as equity by the shareholders, Nava Bharat Singapore Pte
Limited (“NBS”) and ZCCM-IH, in proportion to their respective shareholding in MEL, which stands at 65%
and 35%, respectively. This translates to an equity contribution of US$ 65 million from NBS and US$ 35 million
from ZCCM-IH. As of 31 December 2024, no equity contributions have been advanced.
The disbursements towards the equity contribution will commence in June 2025.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
149
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management
The Group has exposure to the following risks arising from financial instruments:
■ Market risk (see (a))
■ Credit risk (see (b))
■ Liquidity risk (see (c))
(i) Risk management framework
The Company’s Board of directors has overall responsibility for the establishment and oversight of the
Group’s risk management framework. The Board of directors has established the audit and risk committee,
which is responsible for developing and monitoring the Group’s risk management policies. The committee
reports quarterly to the Board of directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities. The Group, through its training and management standards and procedures, aims to maintain
a disciplined and constructive control environment in which all employees understand their roles and
obligations.
The Group audit committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group. The Group audit committee is assisted in its oversight role by
internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls
and procedures, the results of which are reported to the audit committee.
(a) Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
equity prices – will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
(i) Exposure to currency risk
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily
with respect to the US dollar. The Group is affected by foreign exchange movements because it
has assets and income which are denominated in currencies other than the Company’s functional
currency, which is the Zambian Kwacha.
Management’s policy to manage foreign currency risk is to hold both functional and foreign
currency fixed deposits with various banks which act as a natural hedge for foreign currency
obligations. Hedging techniques such as currency swap are also used to manage currency risk.
The Group did not enter into any transactions that required currency swap technique during the
year and the prior year.
Comparative amounts have been reclassified for consistency with the current year’s presentation.
These reclassifications had no effect on previously reported net income or equity.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
150
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(i) Exposure to currency risk (continued)
The summary quantitative data about the Group’s exposure to foreign currency risk at the end of the
reporting period, expressed in Zambian Kwacha is detailed in the table below.
Group
2024
| ZMW equivalent | ||
| of US$ and | ||
| other foreign | ||
| currencies | US$'000 | |
| Cash and cash equivalents | 101,731 | 3,639 |
| Trade and other receivables | 1,603,565 | 57,367 |
| Short term deposits | 5,090,150 | 182,100 |
| Long term bonds | 329,525 | 11,789 |
| Borrowings | (3,346,867) | (119,734) |
| Net exposure | 3,778,104 | 135,161 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
151
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(i) Exposure to currency risk (continued)
The summary quantitative data about the Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Zambian Kwacha is
detailed in the table below.
Group
| 2023 | ||||||||||
| ZMW | ||||||||||
| equivalent | ||||||||||
| of US$ and | ||||||||||
| other foreign | ||||||||||
| currencies | ||||||||||
| US$ | ||||||||||
| Amounts | ||||||||||
| ZMW | ||||||||||
| equivalent | ||||||||||
| of EUR and | ||||||||||
| other foreign | ||||||||||
| currencies | EUR Amount | |||||||||
| ZMW | ||||||||||
| equivalent | ||||||||||
| of GBP and | ||||||||||
| other foreign | ||||||||||
| currencies | GBP Amount | |||||||||
| ZMW | ||||||||||
| equivalent | ||||||||||
| of RAND and | ||||||||||
| other foreign | ||||||||||
| currencies | ||||||||||
| RAND | ||||||||||
| Amount | ||||||||||
| ZMW | ||||||||||
| equivalent | ||||||||||
| of PULA and | ||||||||||
| other foreign | ||||||||||
| currencies | ||||||||||
| PULA | ||||||||||
| Amount | ||||||||||
| Cash and cash | ||||||||||
| equivalents | ||||||||||
| 180,414 | 7,007 | |||||||||
| - | - | - | - | |||||||
| 12 | 9 | - | - | |||||||
| Trade and other | ||||||||||
| receivables | ||||||||||
| 1,831,666 | 71,142 | |||||||||
| - | - | - | - | |||||||
| 35 | 25 | - | - | |||||||
| Term deposits | 4,023,712 | 156,282 | - | - | - | - | - | - | - | - |
| Assets held for sale | 157,163 | 6,104 | 11,302 | 397 | 6,117 | 186 | 64 | 46 | 83 | 60 |
| Borrowings | - | - | - | - | - | - | - | - | - | - |
| Bank overdraft | - | - | - | - | - | - | - | - | ||
| Trade and other | ||||||||||
| payables | ||||||||||
| (108,524) | (4,215) | |||||||||
| - | - | - | - | - | - | |||||
| - | - | |||||||||
| Liabilities directly as- | ||||||||||
| sociated with assets | ||||||||||
| classified as held for | ||||||||||
| sale | ||||||||||
| (54,506,470) | (2,117,044) | |||||||||
| (11,968) | (420) | (5,892) | (180) | (452) | (326) | |||||
| - | - | |||||||||
| Net exposure | (48,422,039) | (1,880,724) | (666) | (23) | 225 | 6 | (341) | (246) | 83 | 60 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
152
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(i) Exposure to currency risk (continued)
The summary quantitative data about the Company’s exposure to foreign currency risk at the end of the re-
porting period, expressed in Zambian Kwacha is detailed in the table below.
| Dec 2024 | ||
| ZMW equivalent of | ||
| US$ and other foreign | ||
| currencies | US$'000 | |
| Cash and cash equivalents | 101,731 | 3,639 |
| Trade and other receivables | 3,534,876 | 126,460 |
| Short term deposits | 5,090,150 | 182,100 |
| Long term bonds | 329,525 | 11,789 |
| Borrowings | (3,346,867) | (119,734) |
| Trade and other payables | - | - |
| Net exposure | 5,709,415 | 204,254 |
| Dec 2023 | ||
| ZMW equivalent of | ||
| US$ and other foreign | ||
| currencies | US$'000 | |
| Cash and cash equivalents | 49,574 | 1,925 |
| Trade and other receivables | 4,777,010 | 185,540 |
| Term deposits | 4,023,712 | 156,282 |
| Trade and other payables | (32,128) | (1,248) |
| Net exposure | 8,818,168 | 342,499 |
*Comparative amounts have been reclassified for consistency with the current year’s presentation. These
reclassifications had no effect on previous reported net income or equity
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
153
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(i) Exposure to currency risk (continued)
The following significant exchange rates have been applied during the year:
| Average rate | Reporting date spot rate | |||
| 31 Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| 31 Dec | ||||
| 2024 | 31 Dec 2023 | |||
| Kwacha | ||||
| US$ 1 | 26.1528 | 20.52413 | 27.9525 | 25.7465 |
Sensitivity analysis
A 10 percent strengthening of the Kwacha against the US Dollar at 31 December 2024 would have increased
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The analysis
is performed on the same basis for 31 December 2023.
| Equity and profit or loss | ||
| Group | Company | |
| 31 Dec 2024 | ||
| ZMW | 344,858 | 2,879,105 |
| 31 Dec 2023 | ||
| ZMW | (4,842,274) | 2,001,890 |
A 10 percent weakening of the Kwacha against the US Dollar at 31 December 2024 would have had the equal
but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables
remain constant.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
154
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(ii) Exposure to interest rate risk
The Group’s operations are subject to cash flow variability due to the risk of interest rate fluctuations to the extent that interest-earning assets (including
investments) and interest-bearing liabilities mature or reprice at different times and/or in differing amounts. In the case of floating rate assets and liabilities the
Group is also exposed to basis risk, which is the difference in repricing characteristics of the various floating rate indices. Asset-liability risk management activities
are conducted in the context of the Group’s sensitivity to cash flow variability attributable to interest rate changes.
| Group | 31 December 2024 | 31 December 2023 | ||||||
| Total | ||||||||
| Zero rate | ||||||||
| instruments | ||||||||
| Floating rate | ||||||||
| instruments | ||||||||
| Fixed rate | ||||||||
| instruments | Total | |||||||
| Zero rate | ||||||||
| instruments | ||||||||
| Floating rate | ||||||||
| instruments | ||||||||
| Fixed rate | ||||||||
| instruments | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | ||||||||
| 525,685 | 525,685 | - | - | 360,356 | 360,356 | - | - | |
| Trade and other receivables* | ||||||||
| 3,440,520 | 1,363,121 | - | 2,077,399 | 1,899,338 | 270,501 | - | 1,628,837 | |
| Assets held for sale | - | |||||||
| - | ||||||||
| - | 1,661,908 | |||||||
| 656,893 | ||||||||
| - | 1,005,015 | |||||||
| Long term bonds | 329,525 | - | - | 329,525 | - | - | - | - |
| Short term deposits | 5,015,626 | - | - | 5,015,626 | 4,450,451 | - | - | 4,450,451 |
| Total assets | ||||||||
| 9,311,356 | 1,888,806 | - | 7,422,550 | 8,372,053 | 1,287,750 | - | 7,084,303 | |
| Liabilities | ||||||||
| Borrowings | (3,346,867) | - | (3,346,867) | - | - | - | - | - |
| Trade and other payables* | (117,315) | (117,315) | - | - | (177,076) | (177,076) | - | - |
| Liabilities directly associated | ||||||||
| with assets classified as held for | ||||||||
| sale | - | |||||||
| - | ||||||||
| - | ||||||||
| - | (56,466,686) | (11,354,896) | ||||||
| (43,518,155) | ||||||||
| (1,593,635) | ||||||||
| Total liabilities | ||||||||
| (3,464,182) | (117,315) | (3,346,867) | - | (56,643,762) | (11,531,972) | (43,518,155) | (1,593,635) | |
| Gap | ||||||||
| 5,847,174 | 1,771,491 | (3,346,867) | 7,422,550 | (48,271,709) | (10,244,222) | (43,518,155) | 5,490,668 |
The interest rate gap is measured on an ongoing basis to assess the impact of the exposure after which corrective measures are deliberated. These may include
contract renegotiation and use of money market options to hedge against significant change in variable interest rates.
*Trade and other receivables/payables, excludes prepayments and statutory obligations and contract liabilities respectively. Statutory liabilities are imposed by
law while contract liabilities represent an obligation to deliver a good or service rather than cash or other assets in settlement. Therefore, these do not meet the
definition of financial instruments and have been excluded from the table above.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
155
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(ii) Exposure to interest rate risk (continued)
Company
| 31 December 2024 | 31 December 2023 | |||||||
| Total | ||||||||
| Zero rate | ||||||||
| instruments | ||||||||
| Floating rate | ||||||||
| instruments | ||||||||
| Fixed rate | ||||||||
| instruments | Total | |||||||
| Zero rate | ||||||||
| instruments | ||||||||
| Floating rate | ||||||||
| instruments | ||||||||
| Fixed rate | ||||||||
| instruments | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | 221,736 | 221,736 | - | - | 61,137 | 61,137 | - | - |
| Trade and other receivables* | 3,589,710 | 438,181 | 1,931,311 | 1,220,218 | 4,581,312 | 243,605 | 2,762,615 | 1,575,092 |
| Long term bonds | 329,525 | - | - | 329,525 | - | - | - | - |
| Short term deposits | 5,015,626 | - | ||||||
| - | 5,015,626 | |||||||
| 4,411,330 | - | - | ||||||
| 4,411,330 | ||||||||
| Total assets | ||||||||
| 9,156,597 | ||||||||
| 659,917 | 1,931,311 | 6,565,369 | 9,053,779 | 304,742 | 2,762,615 | |||
| 5,986,422 | ||||||||
| Liabilities | ||||||||
| Borrowings | (3,346,867) | - | (3,346,867) | - | - | - | - | - |
| Trade and other payables* | (81,748) | (81,748) | - | - | (25,643) | (25,643) | - | - |
| Total liabilities | ||||||||
| (3,428,615) | ||||||||
| (81,748) | ||||||||
| (3,346,867) | ||||||||
| - | ||||||||
| (25,643) | ||||||||
| (25,643) | - | |||||||
| - | ||||||||
| Gap | ||||||||
| 5,727,982 | 578,169 | |||||||
| (1,415,556) | 6,565,369 | |||||||
| 9,028,136 | ||||||||
| 279,099 | 2,762,615 | 5,986,422 |
*Trade and other receivables/payables, excludes prepayments and statutory obligations and contract liabilities respectively. Statutory liabilities are imposed
by law while contract liabilities represent an obligation to deliver a good or service rather than cash or other assets in settlement. Therefore, these do not
meet the definition of financial instruments and have been excluded from the table above.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
156
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(ii) Exposure to interest rate risk (continued)
Risks arising from the interest rate benchmark reform
The key risks for the Group arising from the transition are:
■ Interest rate basis risk: There are two elements to this risk as outlined below:
If the bilateral negotiations with the Group’s counterparties are not successfully concluded before the
cessation of IBORs, there are significant uncertainties with regard to the interest rate that would apply. This
gives rise to additional interest rate risk that was not anticipated when the contracts were entered into
and is not captured by our interest rate risk management strategy. For example, in some cases the fall-
back clauses in IBOR loan contracts may result in the interest rate becoming fixed for the remaining term
at the last IBOR quote. The Group is working closely with all counterparties to avoid this from occurring,
however if this does arise, the Group’s interest rate risk management policy will apply as normal and may
result in closing out or entering into new interest rate swaps to maintain the mix of floating rate and fixed
rate debt.
■ Interest rate risk basis may arise if a non-derivative instrument held to manage the interest risk on the
non-derivative instrument transition to alternative benchmark rates at different times. The Group will mon-
itor this risk against its risk management policy which has been updated to allow for temporary mismatch-
es of up to 12 months and transact additional basis interest rate swaps if required.
■ Liquidity risk: There are fundamental differences between IBORs and the various alternative benchmark
rates which the Company will be adopting. IBORs are forward looking term rates published for a period
(e.g. 3 months) at the beginning of that period and include an inter-bank credit spread, whereas alter-
native benchmark rates are typically risk-free overnight rates published at the end of the overnight period
with no embedded credit spread. These differences will result in additional uncertainty regarding floating
rate interest payments which will require additional liquidity management. The Group’s liquidity risk man-
agement policy has been updated to ensure sufficient liquid resources to accommodate unexpected
increases in overnight rates.
■ Accounting: If transition to alternative benchmark rates for certain contracts is finalised in a manner that
does not permit the application of the reliefs introduced in the Phase 2 amendments, this could lead to
volatility in the profit or loss if nonderivative financial instruments are modified or derecognised. The Group
is aiming to agree changes to contracts that would allow IFRS 9 reliefs to apply.
■ Litigation risk: If no agreement is reached to implement the interest rate benchmark reform on existing
contracts, (e.g., arising from differing interpretation of existing fallback terms), there is a risk of prolonged
disputes with counterparties which could give rise to additional legal and other costs. The Group is work-
ing closely with all counterparties to avoid this from occurring.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
157
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(ii) Exposure to interest rate risk (continued)
Interest rate risk
The Group’s interest rate risk arises primarily from the interest received on short term deposits and variable
interest long term borrowings. This exposes the Group to cash flow interest risk.
Cash flow sensitivity analysis of variable rate instrument
A reasonable possible change of 100 basis points in interest rates at the reporting date would have in-
creased /(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular foreign currency exchange, remain constant.
Group
| Effect in thousands of Kwacha | Profit or loss | |
| Increase | ||
| Decrease | ||
| 31 Dec 2024 | ||
| Variable rate instruments | 3,347 | (3,347) |
| 31 Dec 2023 | ||
| Variable rate instruments | 43,518 | (43,518) |
Company
| 31 Dec 2024 | ||
| Variable rate instruments | 1,416 | (1,416) |
| 31 Dec 2023 | ||
| Variable rate instruments | (2,763) | 2,763 |
The Group’s investments in corporate term deposits, all of which are fixed rate and are measured at am-
ortised cost exposes the Group to cash flow interest rate risk. The tenure of the investments is mostly less
than 1 year. At 31 December 2024, an increase/decrease of 100 basis points would not have resulted in
a decrease/increase in the Consolidated and company post tax profit and equity of ZMW534.81 million
(December 2023: ZMW483.5 million).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
158
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(a) Market risk (continued)
(iii) Price risk
The Group is exposed to equity securities price risk because of investments in quoted and
unquoted shares classified as financial assets at fair value through profit or loss. To manage its
price risk arising from investments in equity and debt securities, the Group diversifies its portfolio,
in accordance with limits set by the Group. All quoted shares held by the Group are traded on
the Lusaka Securities Exchange. Further, management of the Group monitors the proportion of
equity securities in its investment portfolio based on market indices. Material investments within
the portfolio are managed on an individual basis and all buy and sell decisions are approved
by the Investment Committee of the Board.
The primary goal of the Group’s investment strategy is to maximise investment returns and to
improve its returns in general. Management is assisted by external advisers in this regard.
At 31 December 2024, if the LuSE Index had increased/decreased by five percent with all other
variables held constant and all the Group’s equity instruments moved according to the historical
correlation to the index, consolidated equity and profit or loss would have been ZMW364.43
million (2023: ZMW178.96 million) higher/lower.
Commodity price risk
General corporate hedging unrelated to any specific project is not undertaken by the Group.
The Group also does not issue or acquire derivative instruments for trading purposes.
The Group is subject to price risk from fluctuations in the market prices of copper and gold.
The impact of a 10% movement on commodity prices with all other variables held constant,
consolidated equity and profit or loss would have been ZMW0.81 billion higher/lower (2023:
ZMW1.16 billion higher/lower)
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
159
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(b) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the Group’s from cash and cash
equivalents, term deposits with banks, as well as trade and other receivables. Credit risk is managed on
a Group basis.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each coun-
terparty. However, management also considers the factors that may influence the credit risk of its coun-
terparty base, including the default risk associated with the industry.
(i) Risk management
The Group through risk and audit committee has established a credit procedure under which each
new customer or counterparty is analysed individually for creditworthiness before the Group’s standard
payment and delivery terms and conditions are offered. The Group’s review includes external ratings,
if they are available, financial statements, credit agency information, industry information and in some
cases bank references. Sale limits are established for each customer and monitored regularly by line
management.
(ii) Security
To limit the amount of credit exposure to financial institution for term deposits, the Group obtains col-
lateral from financial institutions which are rated “B” and below. As at 31 December 2024, ZMM507.25
million (December 2023: ZMW680.77 million) of term deposits, collateral was held in the form of treasury
bills and government bonds. Due to the short-term nature of collateral held for term deposits, their car-
rying amounts approximates their fair values. No collateral is obtained as security for trade and other
receivables. Instead, the Group requests for advance payments where necessary to reduce credit risk
on some customers.
The amount that best represents the Group’s and Company’s maximum exposure to credit risk at 31
December 2024 is made up as follows:
| Group | Company | |||
| 31-Dec | 31-Dec | 31-Dec | 31-Dec | |
| 2024 | 2023 | 2024 | 2023 | |
| Cash and cash equivalents | 525,685 | 360,356 | 221,736 | 61,137 |
| Trade and other receivables | 3,440,520 | 1,899,338 | 3,589,710 | 4,581,312 |
| Long term bonds | 329,525 | - | 329,525 | - |
| Term deposits and other finan- | ||||
| cial assets at amortised costs | ||||
| 5,015,626 | 4,450,451 | 5,015,626 | 4,411,330 | |
| 9,311,356 | 6,710,145 | 9,156,597 | 9,053,779 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
160
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(b) Credit risk (continued)
(iii) Impairment of financial assets
The Group applies the Simplified Approach to assess and measure expected credit losses (ECLs) for cash
and cash equivalents, financial instruments at amortised costs and contract assets. The simplified approach
entails recognising the ECL on the lifetime of the balance due to the Group. It involves the calculation of the
loss rates to categories of the third parties that is then applied to the balance. The categorization is done
both per unique characteristics and time the balances are outstanding.
The loss rates are derived using the Group’s own historical credit loss experience and adjust for both current
and forward-looking information. The information is evaluated for its appropriateness in light of market
changes so as to remain relevant and provide valid assessment results. To calculate ECL, trade and other
receivables are grouped based on shared credit risk characteristics and the days past due.
The Group’s historical credit loss experience does not indicate significant different loss patterns for the various
customer segments. In calculating the expected credit loss rates, the Group considers historical loss rates
for each category of customers. Historical loss rates are adjusted to reflect current and forward-looking
information on macroeconomic factors affecting the ability of the customers to settle the receivables.
The Group has identified long term consensus copper price of $3/lb or 6,615/MT, gross domestic product
projected growth of 4% for Zambia, inflation rate for Zambia projected to trend around 8% and 10%, The
group considers these factors in which it sells its goods and services to be the most relevant and, accordingly,
adjusts the historical loss rates based on expected changes in these factors.
The Group’s historical credit loss experience does not show significantly different loss patterns for the various
customer segments. Therefore, the grouping of trade receivables is not disaggregated into further risk profiles
other than days past due.
There were no changes in the estimating techniques or significant assumptions made as at the reporting
period.
The loss allowance as at reporting date was determined as follows:
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
161
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(b) Credit risk (continued)
(iii) Impairment of financial assets (continued)
Trade and other receivables (Excludes prepayments and statutory receivables)
| Group | ||||
| 31 December 2024 | ||||
| Gross | ||||
| Lifetime | ||||
| expected | ||||
| credit loss | Net | |||
| Estimated rate | ||||
| of Default (%) | ||||
| Not due | 4,142,127 | (709,512) | 3,432,615 | 17.13 |
| Past due 30 - 60 days | 2,753 | (1,231) | 1,522 | 44.72 |
| Past due 61 – 90 days | 5,237 | (2,283) | 2,954 | 43.59 |
| Past due 91 - 120 days | 6,521 | (4,983) | 1,538 | 76.42 |
| Over 121 days | 1,375,916 | (1,374,025) | 1,891 | 99.86 |
| 5,532,554 | (2,092,034) | 3,440,520 |
| 31 December 2023 | ||||
| Gross | ||||
| Lifetime | ||||
| expected | ||||
| credit loss | Net | |||
| Estimated rate | ||||
| of Default (%) | ||||
| Not due | 1,935,205 | (14,090) | 1,921,115 | 0.73 |
| Past due 30 - 60 days | 2,657 | (1,231) | 1,426 | 46.33 |
| Past due 61 – 90 days | 5,237 | (2,283) | 2,954 | 43.59 |
| Past due 91 - 120 days | 6,006 | (4,983) | 1,023 | 82.97 |
| Over 121 days | 1,147,202 | (1,144,659) | 2,543 | 99.78 |
| 3,096,307 | (1,167,246) | 1,929,061 |
| Company | ||||
| 31 December 2024 | ||||
| Gross | ||||
| Lifetime | ||||
| expected credit | ||||
| loss | Net | |||
| Estimated rate | ||||
| of Default (%) | ||||
| Not due | ||||
| 4,553,748 | (964,649) | 3,589,099 | ||
| 21.18 | ||||
| Past due 30 - 60 days | ||||
| 1,140 | (1,044) | 96 | ||
| 91.58 | ||||
| Past due 61 - 90 days | ||||
| 841 | (841) | - | ||
| 100.00 | ||||
| Past due 91 - 120 days | ||||
| 736 | (221) | 515 | ||
| 30.03 | ||||
| Over 121days | 1,419,821 | (1,419,821) | - | 100.00 |
| 5,976,286 | (2,386,576) | 3,589,710 |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
162
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(b) Credit risk (continued)
(iii) Impairment of financial assets (continued)
| Company | ||||
| 31 December 2023 | ||||
| Gross | ||||
| Lifetime | ||||
| expected credit | ||||
| loss | Net | |||
| Estimated rate | ||||
| of Default | ||||
| (%) | ||||
| Not due | 4,782,194 | (28,592) | 4,753,602 | 0.58 |
| Past due 30 - 60 days | 1,044 | (1,044) | - | 100.00 |
| Past due 61 - 90 days | 841 | (841) | - | 100.00 |
| Past due 91 - 120 days | 221 | (221) | - | 100.00 |
| Over 121days | 1,190,455 | (1,190,455) | - | 100.00 |
| 5,974,755 | (1,221,153) | 4,753,602 |
No trade receivables have been written off during the year.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
The loss allowance recognised is categorised as follows:
| Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| ZMW’000 | ZMW’000 | ZMW’000 | ZMW’000 | |
| Performing debtors | 29,614 | 23,144 | 27,282 | 22,267 |
| Non-performing debtors | 310,607 | 318,046 | 284,756 | 318,923 |
| 340,221 | 341,190 | 312,038 | 341,190 |
Cash and cash equivalents
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified
impairment loss was immaterial. To limit the amount of credit exposure to financial institution for cash and cash
equivalent, cash and cash equivalents are held with banks which are rated A.
Term deposits and other financial assets
Term deposits and other financial assets at amortised cost relate to staff debtors which are considered to have a
low risk of default and the counterparts have a strong capacity to meet their contractual cash flow obligations
in the near term.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
163
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(c) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
Management monitors rolling forecasts of the Group’s liquidity reserve on the basis of expected cash
flows. The Group maintains the level of its cash flow and cash equivalents and other highly marketable
debt investments at an amount in excess of expected cash outflows on financial liabilities through cash
flow forecasts.
(i) Financing arrangements
The Group had no undrawn borrowing facilities at the end of the reporting period (2023: Nil).
(ii) Maturities of financial liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted and include estimated interest payments and exclude the impact
of netting agreements. Balances due within 12 months equal their carrying balances as the impact of
discounting is not significant.
| Group | ||||
| Carrying | ||||
| amount | ||||
| Contractual | ||||
| amount | Within 1 year | 2 -5 years | ||
| At 31 December 2024 | ||||
| Financial liabilities | ||||
| Borrowings | 3,346,867 | 4,858,848 | 538,449 | 2,808,418 |
| Trade and other payables | 117,315 | 117,315 | 117,315 | - |
| Liabilities directly associated | ||||
| with assets classified as held for | ||||
| sale | ||||
| - | - | - | - | |
| 3,464,182 | 4,976,163 | 655,764 | 2,808,418 | |
| At 31 December 2023 | ||||
| Financial liabilities | ||||
| Borrowings | - | - | - | - |
| Overdraft | - | - | - | - |
| Trade and other payables | 177,076 | 177,076 | 177,076 | - |
| Liabilities directly associated | ||||
| with assets classified as held for | ||||
| sale | ||||
| 56,466,686 | ||||
| 57,294,412 | 57,294,412 | - | ||
| 56,643,762 | 57,471,488 | 57,471,488 | - |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
164
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(c) Liquidity risk (continued)
(ii) Maturities of financial liabilities (continued)
| Company | ||||
| Carrying | ||||
| amount | ||||
| Contractual | ||||
| amount | ||||
| Within 1 | ||||
| year | 2 - 5 years | |||
| At 31 December 2024 | ||||
| Financial liabilities | ||||
| Borrowings | 3,346,867 | 4,858,848 | 538,449 | 2,808,418 |
| Trade and other payables | 81,748 | 81,748 | 81,748 | - |
| 3,428,615 | 4,940,596 | 620,197 | 2,808,418 | |
| At 31 December 2023 | ||||
| Financial liabilities | ||||
| Borrowings | - | - | - | - |
| Trade and other payables | 25,643 | 25,643 | 25,643 | - |
| 25,643 | 25,643 | 25,643 | - |
(i) Capital management
The scope of the Group management framework covers the Group’s total equity reported in its financial
statements.
The Group’s and Company objectives when managing capital are to safeguard their ability to continue
as a going concern in order to provide returns for shareholders and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may
adjust the number of dividends paid to shareholders, issue new capital or sell assets to reduce debt.
The Board’s policy is to implement a sound financial strategy that ensures financial independence and
maintains adequate capital to sustain the long terms objectives of the Group and to meet its operational
and capital budget.
The Group monitors capital on the basis of the average gearing ratio in the industry, in Zambia which
currently stands at below 50% of equity. This ratio is calculated as net debt divided by total capital. Net
debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as equity
plus net debt. The gearing ratios at 31 Dec 2024 and 31 Dec 2023 were as follows:
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
165
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(c) Liquidity risk (continued)
(i) Capital management (continued)
| Group | Company | |||
| 31Dec | ||||
| 2024 | ||||
| 31Dec | ||||
| 2023 | ||||
| 31Dec | ||||
| 2024 | ||||
| 31 Dec | ||||
| 2023 | ||||
| Borrowings | 3,346,867 | - | 3,346,867 | - |
| Bank overdraft | - | - | - | - |
| Less: cash and cash equivalents | (525,685) | (360,356) | (221,736) | (61,137) |
| Net debt | 2,821,182 | (360,356) | ||
| 3,125,131 | ||||
| (61,137) | ||||
| Total equity | 52,263,711 | (5,690,633) | 62,292,543 | 37,422,019 |
| Total capital | 55,084,893 | (6,050,989) | 65,417,674 | 37,360,882 |
| Gearing ratio | 5.12% | 5.96% | 4.78% | 0% |
The interest rates used to discount estimated cash flows when applicable are based on the government yield
curve at the reporting date plus an appropriate credit spread, and are as follows:
| 31Dec | ||
| 2024 | ||
| 31 Dec | ||
| 2023 | ||
| Loans and borrowings | 16.5% | 14.21% |
There has been no change in management of capital during the year.
(ii) Fair value estimation
The Group classifies its financial assets in the following measurement categories:
(i) those to be measured subsequently at fair value (either through OCI or through profit or loss): and
(ii) those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss
or OCI. Financial liabilities are recorded initially at fair value and subsequently measured at amortised cost using
the effective interest rate method except for derivative instruments that continue to be measured at fair value.
Comparative amounts have been reclassified for consistency with the current year’s presentation. These reclas-
sifications had no effect on previously reported net income or equity.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
166
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(c) Liquidity risk (continued)
(ii) Fair value estimation (continued)
The fair value of the financial assets and liabilities carried at amortised cost including cash and cash equivalents,
trade and other receivables, term deposits, borrowings and trade and other payables are considered to ap-
proximate their respective carrying values due to their short-term nature and negligible credit losses.
| Group – 2024 | |||
| Financial assets | |||
| at FVTPL | |||
| Financial assets | |||
| at amortised cost | |||
| Financial liabilities | |||
| at amortised cost | |||
| Financial assets at fair value through profit or loss | 2,741,000 | - | - |
| Cash and cash equivalents | - | 525,685 | - |
| Trade and other receivables -current | - | 887,469 | - |
| Trade and other receivables non - current | - | 2,505,570 | - |
| Long term bonds | - | 304,799 | - |
| Short term deposits | - | 5,015,626 | - |
| Assets classified as held for sale | 73,588 | (73,588) | - |
| Financial liabilities | |||
| Borrowings | - | - | (3,569,621) |
| Trade and other payables | - | - | (117,315) |
| 2,814,588 | 9,165,561 | (3,686,936) |
| Group – 2023 | |||
| Financial assets | |||
| at FVTPL | |||
| Financial assets | |||
| at amortised cost | |||
| Financial liabilities | |||
| at amortised cost | |||
| Financial assets at fair value through profit or loss | 3,019,500 | - | - |
| Cash and cash equivalents | - | 360,356 | - |
| Trade and other receivables -current | - | 287,239 | - |
| Trade and other receivables non - current | - | 1,152,561 | - |
| Term deposits | - | 4,411,330 | - |
| Assets classified as held for sale | 584 | 1,661,324 | - |
| Financial liabilities | |||
| Bank overdraft | - | - | - |
| Trade and other payables | - | - | (177,076) |
| Liabilities directly associated with assets classified | |||
| as held for sale | - | - | (56,466,686) |
| 3,020,084 | 7,872,810 | (56,643,762) |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
167
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
42 Financial risk management (continued)
(c) Liquidity risk (continued)
(ii) Fair value estimation (continued)
| Company – 2024 | ||||
| Financial | ||||
| assets at | ||||
| FVTPL | ||||
| Financial | ||||
| assets at | ||||
| FVTOCI | ||||
| Financial | ||||
| assets at | ||||
| amortised | ||||
| cost | ||||
| Financial | ||||
| liabilities at | ||||
| amortised | ||||
| cost | ||||
| Financial assets at fair value through profit | ||||
| or loss | 2,741,000 | - | - | - |
| Investments in associates | - | 34,452,165 | - | - |
| Investments in subsidiaries | - | 191,501 | - | - |
| Cash and cash equivalents | - | - | 221,736 | - |
| Trade and other receivables -current | - | - | 890,571 | - |
| Trade and other receivables non - current | - | - | 2,640,150 | - |
| Assets classified as held for sale | 73,588 | - | - | - |
| Long term bonds | - | - | 304,799 | - |
| Short term deposits | - | - | 5,015,626 | - |
| Financial liabilities | ||||
| Borrowings* | - | - | - | (3,569,621) |
| Trade and other payables | - | - | - | (81,748) |
| 2,814,588 | 34,643,666 | 9,072,882 | (3,651,369) |
| Company – 2023 | ||||
| Financial | ||||
| assets at | ||||
| FVTPL | ||||
| Financial | ||||
| assets at | ||||
| FVTOCI | ||||
| Financial | ||||
| assets at | ||||
| amortised | ||||
| cost | ||||
| Financial | ||||
| liabilities at | ||||
| amortised | ||||
| cost | ||||
| Financial assets at fair value through profit | ||||
| or loss | ||||
| 3,019,500 | - | - | ||
| Investments in associates | - | 11,240,080 | - | - |
| Investments in subsidiaries | - | 282,384 | - | - |
| Cash and cash equivalents | - | 61,137 | - | |
| Trade and other receivables -current | - | 271,219 | - | |
| Trade and other receivables non - current | 3,932,391 | |||
| Term deposits | - | 4,411,330 | - | |
| Financial liabilities | ||||
| Trade and other payables | - | - | - | (25,643) |
| 3,019,500 | 11,522,464 | 8,676,077 | (25,643) |
Valuation techniques and sensitivity analysis are included in note 23 and 24.
The fair value of the financial assets and liabilities carried at amortised cost including cash and cash equivalents,
trade and other receivables, term deposits, borrowings and trade and other payables are considered to ap-
proximate their respective carrying values due to their short-term nature and negligible credit losses.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
168
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
43 Subsequent events
(i) Additional Purchase of Shares in CEC Plc
Subsequent to the year end, ZCCM-IH Plc purchased additional shares in CEC Plc which increased
the shareholding from 32.41% to 32.64%. This reinforces ZCCM-IH’s commitment to powering Zambia’s
industrial and mining sectors.
(ii) Disbursement of US$5 million to Maamba Energy Limited
On 2 April 2025, an amount of US$ 5 million was disbursed to Maamba Energy Limited by ZCCM-IH in
accordance with the approval granted by the Board of Directors. The disbursement of the US$ 5 million
is the second tranche for ZCCM-IH to invest US$ 15 million in debt financing for the Maamba Phase II
expansion project. The disbursement is consistent with ZCCM-IH’s strategic focus which revolves around
Zambia’s mining and energy sectors.
(iii) ZCCM-IH Board approval of shareholder loan to Limestone Resources Limited
On 28 March 2025, the Board of Directors of ZCCM-IH approved the short-term funding request from
Limestone Resources Limited. ZCCM-IH will extend a shareholder loan of US$ 2.96 million to Limestone
repayable one year after disbursement at an interest rate of 9.0%. ZCCM-IH’s Management has
committed to have the shareholder loan disbursed to Limestone.
(iv) Sino Great Co. Ltd.
On 19 May 2025, ZCCM Investments Holdings Plc (“ZCCM-IH”) entered a strategic partnership with Jiangsu
Sino Great Co. Ltd. and Wonderful Group of Companies Limited to co-invest in the development of an
integrated phosphate fertiliser project in Zambia.
The total investment commitment by ZCCM-IH amounts to US$ 50 million, comprising:
• US$ 37.8 million for a 30% equity stake in the project company; and
• US$ 12.2 million in project debt financing.
The integrated project will include a phosphate mine, a 300,000 tonnes per annum Monoammonium
Phosphate (MAP) plant, and a 40 MW thermal power plant.
The transaction is subject to fulfilment of standard conditions precedent, including regulatory approvals,
execution of definitive agreements, transfer of funds, issuance of shares, and the provision of a corporate
guarantee by the Wonderful Group. The debt facility carries a 12-month moratorium on interest and
principal repayments, followed by equal quarterly instalments over four years, with interest accruing
quarterly on a 360-day year basis.
(v) Funding Commitment to Mingomba Mining Limited
On 19 May 2025, the Board of Directors of ZCCM Investments Holdings Plc (“ZCCM-IH”) approved a
funding commitment of up to USD 10 million for the 2025 financial year towards Mingomba Mining Limited,
in line with the approved 2025 Annual Work Program and Exploration Budget.
The above transactions have been classified as a non-adjusting event after the reporting period under
IAS 10 and is disclosed for its strategic and financial significance.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
169
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
44 Basis of measurement
The consolidated and company financial statements have been prepared on the historical cost basis except for
the following items which are measured on an alternative basis on each reporting date.
| Items | Measurement basis |
| Financial assets at fair value through profit or loss | |
| Fair value | |
| Investments in associates (Company) | |
| Fair value | |
| Retirement benefits | |
| Present value of the defined obligation | |
| Investment property | |
| Fair value | |
| Investment in subsidiary (Company) | |
| Fair value | |
| Royalty right | |
| Fair value |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
170
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies
The Group has consistently applied the following accounting policies to all periods presented in these
financial statements. Certain comparative amounts in the statement of profit or loss and OCI have been
re-presented, to ensure consistency (see Note 7,8 and 13).
Set out below is an index of the significant/material accounting policies, the details of which are available
on the pages that follow:
| (a) | Basis of consolidation |
| (b) | Foreign currency |
| (c) | Discontinued operation |
| (d) | Financial instruments |
| (e) | Property, plant and equipment |
| (f) | Investment property |
| (g) | Intangible assets |
| (h) | Assets held for sale |
| (i) | Inventories |
| (j) | Impairment |
| (k) | Employee benefits |
| (l) | Provisions and contingent liabilities |
| (m) | Revenue from contracts with customers |
| (n) | Investments income and expenses |
| (o) | Finance income and costs |
| (p) | Exploration costs |
| (q) | Income tax |
| (r) | Earnings per share |
| (s) | Segment reporting |
| (t) | Share capital |
| (u) | Dividend |
| (v) | Mine Developments |
| (w) | Environmental restoration |
(a) Basis of consolidation
(i) Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred
to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are
the identifiable net assets acquired. Any goodwill that arises are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Any gain on a
bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred,
except if they are related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration
payable is measured at fair value at the acquisition date. If the contingent consideration is classified as
equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
171
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(a) Basis of consolidation (continued)
(i) Business combinations (continued)
If share-based payment awards (replacement awards) are required to be exchanged for awards held
by the acquiree’s employees (acquiree’s awards) and relate to past services, then all or a portion of the
amount of the acquirer’s replacement awards is included in measuring the consideration transferred in
the business combination. This determination is based on the market-based value of the replacement
awards compared with the market-based value of the acquiree’s awards and the extent to which the
replacement awards relate to pre-combination service.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date on which control commences until the date when control ceases.
In the company financial statements, investments in subsidiaries are classified as fair value through other
comprehensive income (OCI).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
172
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(a) Basis of consolidation (continued)
(iii) Non-controlling interests (NCI)
The group recognises non-controlling interests in an acquired entity either at fair value or at the non-con-
trolling interest’s proportionate share of the acquired entity’s net identifiable assets. This decision is made
on an acquisition-by-acquisition basis.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions.
The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent
and the non-controlling interests based on their respective ownership interests.
(iv) Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary,
and any related Non-controlling interests (NCI) and other components of equity. Any resulting gain or loss
is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when
control is lost.
(v) Interest in equity accounted investees
The Group’s interest in equity accounted investees comprise interests in associates.
Associates are those entities in which the Group has significant influence, but not control or joint control
over the financial and operating policies. Interests in associates are accounted for using the equity
method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial
recognition, the consolidated financial statements include the Group’s share of the profit or loss and
other comprehensive income, after adjustments to align the accounting policies with those of the Group,
from the date that significant influence commences until the date that significant influence ceases.
In the company financial statements investments in associates is subsequently measured at fair value.
These are classified as fair value through other comprehensive income.
When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount
of the investment, including any long-term interests that form part thereof is reduced to zero, and the rec-
ognition of further losses is discontinued except to the extent that the Group has an obligation or has made
payments on behalf of the investee.
(vi) Transactions eliminated on consolidation
Intra-group balances and transactions, fair value changes recognised in respect of its investment in sub-
sidiaries and associates, and any unrealised income and expenses arising from intra group transactions,
are eliminated. Unrealised gains arising from transactions with equity-accounted investees are eliminated
against the investment to the extent of the Group’s interest in the investee. Unrealised
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
173
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(a) Basis of consolidation (continued)
(vi) Transactions eliminated on consolidation (continued)
losses are eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
(vii) Remeasurement of previously held equity interest – Step up Acquisition
A step acquisition occurs when a shareholder obtains control over an entity by acquiring an
additional interest in that entity. If that entity is a business, the group’s previously held equity interest
is remeasured to fair value at the date the controlling interest is acquired. The remeasurement of the
previously held equity interest is recognized in Profit or loss. Any amounts previously recorded in other
comprehensive income relating to the investee is reclassified and included in the calculation of the
gain or loss as of the acquisition date.
(viii) Reporting date
The financial statements of the Company and subsidiaries used in the preparation of the current
consolidated financial statements have the same reporting date of 31 December. When the end
of the reporting date of the Company is different from that of the subsidiary or associates, the
Company consolidates the financial information of the subsidiaries or associates using the most
recent financial statements of the subsidiaries or associates adjusted for the effects of significant
transactions or events that occur between the date of those financial statements and the date of
the consolidated financial statements.
(ix) Price Participation Fee
Price Participation fees are variable amount, if any, to be credited to the seller as an additional
income based on variations in the Payable Copper Price, if, as and when reflected in Benchmark
Reference Terms from time to time. The price participation fees are recognised once conditions
indicate that additional income is to be received, based on prevailing prices over the agreed
period, and that its been agreed with other parties involved, in this case the buyer.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of
Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated to the functional currency at the exchange rate
at the reporting date. Non-monetary assets and liabilities that are measured at fair value in foreign
currency are translated to the functional currency at the exchange rate when the fair value was
determined. Non-monetary items that are measured based on historical cost in a foreign currency
are translated at the exchange rate at the date of the transaction. Foreign currency differences
are generally recognised in profit or loss and presented within finance costs.
However, foreign currency differences arising from the translation of the following items are
recognised in other comprehensive income:
• An investment in equity securities designated as at FVOCI (except on impairment, in which
case foreign currency differences that have been recognised in other comprehensive
income are reclassified to profit or loss).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
174
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(b) Foreign currency (continued)
(i) Foreign currency transactions (continued)
• Foreign currency differences which arise on the translation of investee companies (which have a
different functional currency) are recognised in other comprehensive income and accumulated
in the foreign currency translation reserve.
(c) Discontinued operation
A discontinued operation is a component of the Group’s business, the operations and cash flows of which
can be clearly distinguished from the rest of the Group and which:
• represents a separate major line of business or geographic area of operations;
• is part of a single co-ordinated plan to dispose of a separate major line of business or geographic
area of operations; or
• is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets
the criteria to be classified as held-for-sale. When an operation is classified as a discontinued operation,
the comparative statement of profit or loss and OCI is re-presented as if the operation had been
discontinued from the start of the comparative year.
(d) Financial instruments
(i) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All
other financial assets and financial liabilities are initially recognised when the Group becomes a
party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or fi-
nancial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that
are directly attributable to its acquisition or issue. A trade receivable without a significant financing
component is initially measured at the transaction price.
(ii) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt
investment; FVOCI – equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group chang-
es its business model for managing financial assets, in which case all affected financial assets are
reclassified on the first day of the first reporting period following the change in the business model.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
175
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(d) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
Financial assets (continued)
Financial assets are measured at amortised cost if the assets meet the following conditions (and
are not designated as FVTPL):
• they are held within a business model whose objective is to hold the financial assets and
collect its contractual cash flows;
• its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
• it is held within a business model whose objective is achieved by both collecting contractu-
al.
cash flows and selling financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably
elect to present subsequent changes in the investment’s fair value in OCI. This election is made on
an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are
measured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset
that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL
if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
176
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(d) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
Financial assets – Business model assessment
The Group assesses the objective of the business model in which a financial asset is held at a
portfolio level because this best reflects the way the business is managed and information is
provided to management. The information considered includes:
• the stated policies and objectives for the portfolio and the operation of those policies in
practice. These include whether management’s strategy focuses on earning contractual
interest income, maintaining a particular interest rate profile, matching the duration of the
financial assets to the duration of any related liabilities or expected cash outflows or realising
cash flows through the sale of the assets;
• how the performance of the portfolio is evaluated and reported to the Group’s management.
• the risks that affect the performance of the business model (and the financial assets held
within that business model) and how those risks are managed.
• how managers of the business are compensated – e.g. whether compensation is based on
the fair value of the assets managed or the contractual cash flows collected; and
• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for
such sales and expectations about future sales activity
Financial assets that are held for trading or are managed and whose performance is evaluated on
a fair value basis are measured at FVTPL.
Financial assets – Assessment whether contractual cash flows are solely payments of principal and
interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on
initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the
credit risk associated with the principal amount outstanding during a particular period of time and
for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit
margin
In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. This includes assessing whether the
financial asset contains a contractual term that could change the timing or amount of contractual
cash flows such that it would not meet this condition. In making this assessment, the Group
considers:
• contingent events that would change the amount or timing of cash flows;
• terms that may adjust the contractual coupon rate, including variable-rate features;
• prepayment and extension features; and
• terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse
features).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
177
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(d) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
Financial assets – Subsequent measurement and gains and losses
| Financial assets at FVTPL | These assets are subsequently measured at fair |
| value. Net gains and losses, including any interest | |
| or dividend income, are recognised in profit or loss. | |
| Financial assets at amortised cost | These assets are subsequently measured at |
| amortised cost using the effective interest method. | |
| The amortised cost is reduced by impairment losses. | |
| Interest income, foreign exchange gains and losses | |
| and impairment are recognised in profit or loss. Any | |
| gain or loss on derecognition is recognised in profit | |
| or loss. | |
| Debt investments at FVOCI | These assets are subsequently measured at fair |
| value. Interest income calculated using the | |
| effective interest method, foreign exchange gains | |
| and losses and impairment are recognised in profit | |
| or loss. Other net gains and losses are recognised | |
| in OCI. On derecognition, gains and losses | |
| accumulated in OCI are reclassified to profit or loss. | |
| Equity investments at FVOCI | These assets are subsequently measured at fair |
| value. Dividends are recognised as income in | |
| profit or loss unless the dividend clearly represents | |
| a recovery of part of the cost of the investment. | |
| Other net gains and losses are recognised in OCI | |
| and are never reclassified to profit or loss. |
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
178
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(d) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are
subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition
is also recognised in profit or loss.
(iii) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards of ownership of the financial asset are transferred or
in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset
The Group enters into transactions whereby it transfers assets recognised in its statement of financial
position, but retains either all or substantially all of the risks and rewards of the transferred assets. In
these cases, the transferred assets are not derecognised.
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expire. The Group also derecognises a financial liability when its terms are modified
and the cash flows of the modified liability are substantially different, in which case a new financial
liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished
and the consideration paid (including any non-cash assets transferred or liabilities assumed) is
recognised in profit or loss.
(iv) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Group currently has a legally enforceable right to set
off the amounts and it intends either to settle them on a net basis or to realise the asset and settle
the liability simultaneously. No set offs have been effected in these financial statements.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
179
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(e) Property, plant and equipment
(i) Recognition and measurement
All items of property, plant and equipment are measured at cost save for land and buildings are
which are measured at revalued amounts for the Company. For subsidiaries, property plant and
equipment are measured at cost less accumulated depreciation and others at revalued amounts as
applicable (see note 17 for full disclosure). Cost includes capitalised borrowing costs, less accumulated
depreciation, and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or
loss.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable
to bringing the assets to a working condition for their intended use, the costs of dismantling and
removing the items and restoring the site on which they are located and capitalised borrowing costs.
Capital work in progress relates to items of property, plant and equipment that are under construction
and are yet to be commissioned for use. Work in progress is measured at the costs incurred in relation
to the construction up to the reporting date. Capital work in progress is not depreciated.
The Group’s policy is to revalue regularly to ensure that the carrying amount does not differ materially
from the fair value. The revaluation differences are recognised in other comprehensive income and
accumulated in equity "revaluation reserve" unless the revaluation difference represents the reversal
of a revaluation decrease previously recognised as an expense, in which case the revaluation
difference is recognised in profit or loss. A decrease arising as a result of a revaluation is recognised
as an expense to the extent that it exceeds any amount previously credited to the revaluation
surplus relating to the same asset. The revaluation surplus included in equity is transferred directly
to retained earnings when the asset is used by the Group. The amount of the surplus transferred is
the difference between depreciation charge based on the revalued carrying amount of the assets
and the depreciation charge based on the original cost.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing
the proceeds from disposal with the carrying amount of the property, plant and equipment, and is
recognised net within other income/other expenses in profit or loss. When revalued assets are sold,
any related amount included in the revaluation reserve is transferred to retained earnings.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
180
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(e) Property, plant and equipment (continued)
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with
the expenditure will flow to the Group and its cost can be measured reliably. The costs of the day-to-day
servicing of property, plant and equipment are recognised in profit or loss as incurred.
(ii) Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their
estimated residual values using the straight-line method over their estimated useful lives, and is
generally recognised in profit or loss.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is
reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not
depreciated.
The estimated useful lives for the current and comparative years are as follows:
| • | Property | 20 years |
| • | Leasehold land and buildings | Life of mine |
| • | Motor vehicles | 3 - 5 years |
| • | Plant and equipment | 3 - 7 years |
| • | Vertical and rotary kiln | 15 years |
| • | Rotary kiln | 12 years |
| • | Mineral properties | Unit of production method |
| • | Mine Development | Unitof production method |
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(iii) Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property
is remeasured to fair value and reclassified accordingly. Any gain arising on this remeasurement is
recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific
property, with any remaining gain recognised in other Comprehensive Income (OCI) and presented
in the revaluation reserve. Any loss is recognised in profit or loss. However, to the extent that an amount
is included in the revaluation surplus for that property, the loss is recognised in other comprehensive
income and reduces the revaluation surplus within equity.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
181
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(f) Investment property
Investment property is property held to earn rental income or capital appreciation or for both, but not for sale
in the ordinary course of business, use for the production or supply of goods or services or for administrative
purposes. Investment property is initially measured at cost and subsequently at fair value with any change
therein recognised in the profit or loss.
Any gain or loss on the disposal of investment property (calculated as the difference between the net
proceeds and the carrying amount of the item) is recognised in profit or loss. When investment property that
was previously classified as property, plant and equipment is sold, any related amount that is included in the
revaluation reserve is transferred to retained earnings.
(g) Intangible assets
(i) Recognition and measurement
Intangible assets
Intangible assets that are acquired by the Group and have finite useful lives are measured at cost
less any accumulated amortisation. The group’s intangible assets comprises of acquired computer
software programmes. Costs associated with maintaining software programmes are recognised as
an expense as incurred.
Royalty right
Royalty rights have finite useful lives and are measured at fair value less any accumulated amortisation.
The group’s Royalty right comprises the converted dividend right in Kansanshi Mining Plc to a right to
receive 3.1% life of mine royalty.
(ii) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure, including expenditure on internally
generated goodwill are recognised in profit or loss as incurred.
(iii) Amortisation and impairment
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values
using the straight-line method over their estimated useful lives and is recognised in profit or loss.
The estimated useful lives of the Group’s computer software are three to five years.
The estimated useful life of the royalty right interest is over the life of the mine.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(iv) Derecognition
Intangible assets are derecognised when an asset is sold, exchanged or abandoned and therefore,
removed from the statement of financial position.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
182
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(h) Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for
sale if it is highly probable that they will be recovered primarily through sale rather than through
continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and
fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and
then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to
inventories, financial assets, deferred tax assets, employee benefit assets or investment property,
which continue to be measured in accordance with the Group’s other accounting policies.
Impairment losses on initial classification as held-for-sale or held-for distribution and subsequent
gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer
amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
(i) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
based on the first-in, first-out principle. In the case of manufactured inventories, cost includes an
appropriate share of production overheads based on normal operating capacity.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
183
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(j) Impairment
(i) Non-derivative financial assets
Financial instruments and contract assets
The Group recognises loss allowances for ECLs on:
• financial assets measured at amortised cost;
• debt investments measured at FVOCI; and
• contract assets.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which
are measured at 12-month ECLs:
• debt securities that are determined to have low credit risk at the reporting date; and
• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over
the expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to
lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial rec-
ognition and when estimating ECLs, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative in-
formation and analysis, based on the Group’s historical experience and informed credit assessment and
including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30
days past due.
The Group considers a financial asset to be in default when: the debtor is unlikely to pay its credit obliga-
tions to the Group in full, without recourse by the Group to actions such as realising security (if any is held);
or the financial asset is more than 90 days past due.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial
instrument.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
184
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(j) Impairment (continued)
(i) Non-derivative financial assets (continued)
Financial instruments and contract assets (continued)
12-month ECLs are the portion of ECLs that result from default events that are possible within the.
12 months after the reporting date (or a shorter period if the expected life of the instrument is less
than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over
which the Group is exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in
accordance with the contract and the cash flows that the Group expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost
and debt securities at FVOCI are credit impaired. A financial asset is ‘credit-impaired’ when one
or more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
• significant financial difficulty of the borrower or issuer;
• a breach of contract such as a default or being more than 90 days past due;
• the restructuring of a loan or advance by the Group on terms that the Group would not
consider otherwise;
• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
• the disappearance of an active market for a security because of financial difficulties.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
185
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(j) Impairment (continued)
(i) Non-derivative financial assets (continued)
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit
or loss and is recognised in OCI
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof.
(ii) Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other
than, investment property, inventories and deferred tax assets) to determine whether there is
any indication of impairment. Non-financial assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. If any such
indication exists, then the asset’s recoverable amount is estimated.
For impairment testing, assets are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or
CGUs.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable
amount.
Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the
other assets in the CGU on a pro rata basis.
Determining whether goodwill is impaired requires an estimation of the present value of future
cash flows generated from the cash generating units to which the goodwill has been allocated.
The present value calculation requires an estimation of the future cash flows expected to arise and
a suitable discount rate in order to calculate present value.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is re-
versed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
186
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(j) Impairment (continued)
(iii) Exploration and evaluation assets
Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess
the technical feasibility and commercial viability of resources found.
Exploration and evaluation expenditure is charged to the income statement as incurred, except in
the following circumstances in which case the expenditure may be capitalised:
• the existence of a commercially viable mineral deposit has been established
• the exploration and evaluation activity is within an area of interest that was previously
acquired.
A regular review of each area of interest is undertaken to determine the appropriateness of
continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward
to the extent that they are expected to be recovered through successful exploration of the area
of interest.
Impairment tests for all non-financial assets (including exploration and evaluation assets) are
performed when there is an indication of impairment. Tests of impairment are performed in line
with what has been stated in Note 45 j (ii).
(iv) Environmental protection fund assets
The environmental protection fund asset, recognised within property, plant and equipment is
depreciated over the life of mine.
Impairment tests for all non-financial assets (including environmental protection fund assets) are
performed when there is an indication of impairment. Tests of impairment are performed in line
with what has been stated in Note 45 j (ii).
(v) Burden costs of mining
Burden costs of mining refer to the costs incurred for removing overburden or waste material to
access mineral ore, which are capitalized when they provide probable future economic benefits.
Impairment tests for all non-financial assets (including burden costs of mining) are performed when
there is an indication of impairment. Tests of impairment are performed in line with what has been
stated in Note 45 j (ii).
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
187
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(k) Employee benefits
(i) Short -term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised
for the amount expected to be paid if the Group has a present legal or constructive obligation to
pay this amount as a result of past service provided by the employee, and the obligation can be
estimated reliably.
(ii) Defined contribution plans
Obligations for contribution to defined contribution plans are expensed in the profit or loss as the
related service is provided. Prepaid contributions are recognised as an asset to the extent that
a cash refund or reduction in future payments is available. The Group and all its employees also
contribute to the National Pension Scheme Authority, which is a defined contribution scheme.
(iii) Defined benefit plans
The Group provides for retirement benefits (i.e. a defined benefit plan) for all permanent employees
in accordance with established pension scheme rules as well as the provisions of Statutory Instrument
No. 119 of the Laws of Zambia. A defined benefit plan is a post-employment benefit plan other than
a defined contribution plan. The cost of providing the defined benefit plan is determined annually
using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of
each reporting period.
The discount rate is required to be determined with reference to the corporate bond yield.
However, due to the non-availability of an active developed market for corporate bonds the
discount rate applicable is the yield at the reporting date on the Government of the Republic of
Zambia’s bonds that have maturity dates approximating the terms of the Group's obligations and
that are denominated in the same currency in which the benefits are expected to be paid.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
188
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(k) Employee benefits (continued)
(iii) Defined benefit plans (continued)
The defined benefit obligation recognised by the Group, in respect of its defined benefit pension
plan, is calculated by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods and discounting that benefit to determine
its present value, then deducting the fair value of any plan assets. When the calculations above
result in a benefit to the Group, the recognised asset is limited to the net total of any cumulative
unrecognised actuarial losses and past service costs and the present value of any economic
benefits available in the form of any refunds from the plan or reductions in future contributions to
the plan. An economic benefit is available to the Group if it is realisable during the life of the plan
or on settlement of the plan liabilities.
Actuarial gains and losses arising from changes in actuarial assumptions are charged or credited
to other comprehensive income when they arise. These gains or losses are recognised in full in the
year they occur.
Past service costs are recognised immediately in the profit or loss, unless the changes to the pension
plan are conditional on the employees remaining in service for a specified period (the vesting
period). In this case, the past-service costs are amortised on a straight-line basis over the vesting
period.
(iv) Other entitlements
Some employees are on fixed term contracts and are entitled to gratuity. These are recognised
when they accrue to employees. An estimate is made for the liability for such entitlements as a
result of services rendered by employees up to the reporting date.
The estimated monetary liability for employees’ accrued annual leave entitlement at the reporting
date is recognised as an expense accrual.
(l) Provisions and contingent liabilities
Provisions are determined by discounting the expected future cash flows at a pre – tax rate that
reflects current market assessment of the time value of money and the risks specific to the liability.
The unwinding of the discount is recognised as finance cost.
(i) Environmental rehabilitation and restoration
In accordance with applicable legal requirements, a provision for site restoration in respect of
contaminated land, and the related expense, is recognised when the land is contaminated.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
189
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(l) Provisions and contingent liabilities (continued)
(i). Environmental rehabilitation and restoration (continued)
Changes in the measurement of an existing decommissioning, restoration and similar liability that
result from changes in the estimated timing or amount of the outflow of resources embodying
economic benefits required to settle the obligation, or a change in the discount rate, is accounted
for in accordance with:
i. changes in the liability alter the revaluation surplus or deficit previously recognised on that
asset, so that:
1. a decrease in the liability is (subject to (b)) be recognised in other comprehensive
income and increase the revaluation surplus within equity, except that it is recognised
in profit or loss to the extent that it reverses a revaluation deficit on the asset that was
previously recognised in profit or loss;
2. an increase in the liability is recognised in profit or loss, except that it shall be recognised
in other comprehensive income and reduce the revaluation surplus within equity to
the extent of any credit balance existing in the revaluation surplus in respect of that
asset.
ii. in the event that a decrease in the liability exceeds the carrying amount that would have
been recognised had the asset been carried under the cost model, the excess is recognised
immediately in profit or loss.
iii. a change in the liability is an indication that the asset may have to be revalued in order
to ensure that the carrying amount does not differ materially from that which would be
determined using fair value at the end of the reporting period. Any such revaluation is
taken into consideration in determining the amounts to be recognised in profit or loss or in
other comprehensive income under If a revaluation is necessary, all assets of that class are
revalued.
The adjusted depreciable amount of the asset is depreciated over its useful life. Therefore, once
the related asset has reached the end of its useful life, all subsequent changes in the liability shall
be recognised in profit or loss as they occur. This applies under both the cost model and the reval-
uation model.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
190
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(l) Provisions and contingent liabilities (continued)
1. Financial guarantee contracts
Financial guarantee contracts are recognised as a financial liability at the time the guarantee is
issued. The liability is initially measured at fair value and subsequently at the higher of:
the amount determined in accordance with the expected credit loss model under IFRS 9 Financial
Instruments, and
the amount initially recognised less, where appropriate, the cumulative amount of income rec-
ognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers.
The fair value of financial guarantees is determined based on the present value of the difference
in cash flows between the contractual payments required under the debt instrument and the
payments that would be required without the guarantee, or the estimated amount that would be
payable to a third party for assuming the obligations.
Where guarantees in relation to loans or other payables of associates are provided for no
compensation, the fair values are accounted for as contributions and recognised as part of the
cost of the investment.
2. Contingent liabilities
All possible obligations whose outcomes are dependent on whether some uncertain future event
occurs, or a present obligation but payment is not probable, or the amount cannot be measured
reliably are considered as Contingent liabilities. These contingent liabilities are reviewed on a regu-
lar basis and were appropriate an estimate is made of the potential financial impact on the Group.
As at 31 December 2023 and 2024, no potential liability was recognised.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
191
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(m) Revenue from contracts with customers
Revenue is measured based on the consideration specified in a contract with a customer. The Group
recognises revenue when it transfers control over a good or service to a customer.
The following provides information about the nature and timing of the satisfaction of performance
obligations in contracts with customers, including significant payment terms, and the related revenue
recognition policies.
| Type of product/ | ||
| service | ||
| Nature and timing of satisfaction of | ||
| performance obligations, including | ||
| significant payment terms | Revenue recognition policies | |
| Sale of goods | Customers obtain control of the products | |
| when the goods are delivered. Invoices | ||
| are generated and revenue is recognised | ||
| at that point in time. Invoices are payable | ||
| within 30 days. | ||
| Revenue is recognised in the period | ||
| in which the Group has delivered | ||
| products to the customer, the | ||
| customer has full discretion over | ||
| the channel and price to sell | ||
| the products, and there are no | ||
| unfulfilled obligations that could | ||
| affect the customers’ acceptance | ||
| of the products. Delivery does not | ||
| occur until the products have been | ||
| accepted by the customers. | ||
| Services | ||
| rendered | ||
| The Group is involved in provision of | ||
| environmental consultancy services, | ||
| analytical services, surveying services and | ||
| radiation safety. Revenue from providing | ||
| services is recognised in the accounting | ||
| period in which the services are rendered. | ||
| Revenue from providing services is | ||
| recognised in the accounting | ||
| period in which the services are | ||
| rendered. For fixed-price contracts, | ||
| revenue is recognised based on | ||
| the actual service provided to | ||
| the end of the reporting period as | ||
| a proportion of the total services | ||
| to be provided, because the | ||
| customer receives and uses the | ||
| benefits simultaneously. |
Contract assets primarily relate to the Group’s right to consideration for the work completed but not
billed at the reporting date on the customer contracts. The Group had no contract assets as at year end.
Contract liabilities primarily relate to the advance consideration received from the customer for which
revenue is recognised when the goods and services are provided. The Group had no contract liabilities
as at year end.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
192
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(n) Investment income and expenses
The Group’s investments income and expenses costs include:
Dividends receivables;
Royalty receivables;
Interest income; and
Interest expense.
Dividends are recognised as revenue in the period in which the right to receive payment is established,
which in the case of quoted securities is usually the ex-dividend date.
Royalty income is recognised as revenue in the period in which it is earned.
Interest income or expense is recognised using the effective interest method.
(o) Finance income and finance costs
The Group’s finance income and finance costs include
Gain or loss on financial assets at fair value through profit or loss;
The foreign currency gain or loss on financial assets and financial liabilities;
Unwinding income or expense on price participation fees;
Unwinding expense on environmental provision; and
Borrowing costs.
All borrowing costs are recognised in the profit or loss using the effective interest method.
Borrowing costs attributable to fixed assets during construction are capitalised
(p) Exploration costs
The Group is involved in exploration and evaluation of mineral resources including, oil and gas and other
similar non – regenerative resources in specific licence areas where the Group has legal rights. This process
also involves the determination of both the technical feasibility and commercial viability of extracting the
mineral resource.
General exploration and associated costs incurred in connection with exploration and evaluation of
mineral resources before the technical feasibility and commercial viability of extracting a mineral resource
is demonstratable, are expensed in the period in which they are incurred. Exploration and associated
costs for projects which are commercially viable, and it is considered that future economic benefits will
flow to the Company are capitalised.
Accounting for exploration and evaluation expenditures
Exploration and evaluation expenditures are measured at cost on initial recognition. Costs directly
associated with commercially viable exploration project are capitalised until the determination of
reserves is evaluated. If it is determined that commercial discovery has not been achieved, these costs
are charged to expenses.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
193
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(p) Exploration costs (continued)
Depreciation of exploration and evaluation assets
Exploration and evaluation asset are depreciated using a straight-line method over a period of five years.
After recognition, the exploration and evaluation assets are measured using the cost model in IAS 16
Property, plant and equipment.
(q) Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to
the extent that it relates to a business combination, or items recognised directly in equity or in OCI.
(i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax payable or receivable is the best estimate of the tax amount expected to
be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates
enacted or substantively enacted at the reporting date. Current tax also includes any tax arising
from dividends.
(ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable profit or loss;`
• temporary differences related to investments in subsidiaries and associates to the extent
that the Group is able to control the timing of the reversal of the temporary differences and
it is probable that they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible tem-
porary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised; such
reductions are reversed when probability of future taxable profit improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the
extent that it has become probable that future taxable profits will be available against which they
can be used
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
194
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(q) Income tax (continued)
(ii) Deferred tax (continued)
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow the manner in
which the Company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities. For this purpose, the carrying amount of investment property measured at fair
value is presumed to be recovered through sale, and the Group has not rebutted this presumption.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net
basis or their tax assets and liabilities will be realised simultaneously.
(iii) Tax exposures
In determining the amount of current and deferred tax, the Group considers the impact of tax
exposures, including whether additional taxes and interest may be due. This assessment relies on
estimates and assumptions and may involve a series of judgements about future events. New in-
formation may become available that causes the Group to change its judgement regarding the
adequacy of existing tax liabilities; such changes to tax liabilities would impact tax expense in the
period in which such a determination is made.
(r) Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per
share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the
weighted average number of ordinary shares outstanding during the year, adjusted for own shares held.
Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary sharehold-
ers and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for
the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options.
(s) Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components and for which discrete financial information is available. All operating
segments’ operating results are reviewed regularly by the Group’s Chief Executive Officer to make deci-
sions about resources to be allocated to the segment and to assess its performance.
(t) Share capital
(i) Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are
recognised as a deduction from equity.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
195
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
In thousands of Kwacha
45 Material accounting policies (continued)
(u) Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial
statements in the period in which the dividends are approved by the Company’s shareholders. When
dividends are proposed they are presented in a separate column in the statement of changes in equity.
(v) Mine development costs
Exploration and associated costs relating to non-specific projects or properties are expensed in the
period in which they are incurred. Significant property acquisition costs and development costs relating
to specific properties for which economically recoverable reserves are believed to exist are deferred until
the project to which they relate is sold, abandoned, or placed into production. No costs are deferred on
a property believed to be impaired in value. Mine development and property acquisition costs, including
costs incurred during production to expand ore reserves within existing mine operations, are deferred,
and amortised over the life of the mines. Reviews are undertaken regularly to evaluate the carrying values
of operating mines and development properties. If it is determined that the net recoverable amount is
significantly lower than the carrying value, and the impairment in value is likely to be permanent, a write-
down to the net recoverable amount is made by a charge to profit or loss.
(w) Environmental restoration
Provision is made for costs associated with the restoration and rehabilitation of mining sites as soon as the
obligation to incur such costs arises. Such restoration and closure costs are typical of the extractive industry
and are normally accrued to reflect the Company's obligations at that time. Additional disturbances that
arise due to further development/construction at the mine are recognised as additions or charges to the
corresponding assets and rehabilitation liability when they occur.
Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with
prospectively by recognising an adjustment to the rehabilitation liability and a corresponding adjustment
to the asset to which it relates, if the initial estimate was originally recognised as part of an asset measured
in accordance with IAS 16. If the related asset is measured using the revaluation model, a decrease
in the liability shall be recognised in other comprehensive income and an increase in the liability shall
be recognised in profit or loss, except that it shall be recognised in other comprehensive income. Any
reduction in the rehabilitation liability and, therefore, any deduction from the asset to which it relates,
may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken
immediately to the statement of profit or loss and other comprehensive income.
Over time, the discounted liability is increased for the change in present value based on the discount
rates that reflect current market assessments and the risks specific to the liability. The periodic unwinding
of the discount is recognised in the statement of profit or loss and other comprehensive income as part of
finance costs. For closed sites, changes to estimated costs are recognised immediately in the statement
of profit or loss and other comprehensive income. The Company is required to make contributions to
the government for future rehabilitation work relating to its production activities. The contributions are
based on an environmental assessment that is performed by environmental auditors. The Company
records a liability for the future contributions to be made to the government based on the environmental
disturbances incurred to date per the environmental auditor’s assessment with a corresponding charge
to profit or loss.
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
196
Registered and Corporate Ofce
Stand No. 16806
Alick Nkhata Road
Mass Media Complex Area
P O Box 30048
Lusaka 10101, Zambia
UK Registrars
Link Asset Service
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
United Kingdom
Brokers for Lusaka Securities Exchange
Listing
Stockbrokers Zambia Limited
32 Lubu Road
Longacres
P O Box 38956
Lusaka, Zambia
Auditors
KPMG Chartered Accountants
6th Floor Sunshare Towers
Cnr Lubansenshi/Katima Mulilo Roads
Olympia Park
PO Box 31282
Lusaka, Zambia
Principal Bankers:
Barclays Bank (Zambia) Plc
Standard Chartered Bank (Zambia) Plc
Zambia National Commercial Bank Plc
Transfer Secretaries
Corpserve Transfer Agents Limited
Mwaleshi Road, Olympia Park
P O Box 37522
Lusaka 10101, Zambia
Phone: + 260 211 256969/70
Fax : +260 211 256975
Email: info@corpservezambia.com.zm
Shareholder Contact
Charles Mjumphi
Company Secretary
Monica Mwananshiku Chikonde
Board Affairs Manager
Loisa Mbatha Kakoma
Corporate Affairs Manager
Phone : +260 211 221023/228833
Fax : +260 211 220727
E-mail : corporate@zccm-ih.com.zm
Website: www.zccm-ih.com.zm
CORPORATE INFORMATION
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
197
Appendix
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
(Unaudited)
31-Dec 31-Dec
2024 2023
US$’000 US$’000
Assets
Property, plant and equipment 14,529 9,666
Exploration and evaluation asset 552 1,998
Intangible assets 715,061 559,064
Investment property 7,366 8,102
Investment in associates 873,082 391,934
Financial assets at fair value through prot or loss 98,059 117,278
Trade and other receivables 91,335 63,264
Environmental Protection Fund 13 274
Term deposits 11,789 -
Non-current assets 1,811,786 1,151,580
Inventories 1,164 1,488
Trade and other receivables 34,691 13,173
Assets held for sale 3,296 917,654
Term deposits 179,434 172,857
Burden costs for mining 236 -
Cash and cash equivalents 18,806 13,996
Current assets 237,627 1,119,168
Total assets 2,049,413 2,270,748
Equity
Share capital 58 62
Share premium 74,746 81,151
Other reserves 973,607 343,949
Retained earnings 819,998 (639,401)
Equity attributable to shareholders 1,868,409 (214,239)
Non-controlling interest 1,324 (6,789)
Total Equity 1,869,733 (221,028)
Liabilities
Borrowings 100,471 -
Deferred tax liability 10,594 29,201
Retirement benets 622 675
Provisions for environmental rehabilitation 8,794 4,379
Non-current liabilities 120,481 34,255
Borrowings 19,263 -
Trade and other payables 6,425 12,148
Liabilities associated with assets classied as held for sale 512 2,434,387
Provisions 1,776 1,721
Current tax liabilities 31,223 9,265
Current liabilities 59,199 2,457,521
Total liabilities 179,680 2,491,776
Total equity and liabilities 2,049,413 2,270,748
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
198
Appendix
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
(Unaudited)
31-Dec 31-Dec
2024 2023
US$’000 US$’000
Assets
Property, plant and equipment 5,138 4,297
Intangible assets 712,257 553,888
Investment property 7,366 8,102
Investments in subsidiaries 6,851 10,968
Investment in associates 1,232,525 436,567
Term deposits 11,789 -
Financial assets at fair value through P&L 98,059 117,278
Trade and other receivables 96,562 178,140
Non-current assets 2,170,547 1,309,240
Trade and other receivables 32,972 11,196
Assets held for sale 2,633 -
Term deposits 179,434 171,337
Cash and cash equivalents 7,933 2,375
Current assets 222,972 184,908
Total assets 2,393,519 1,494,148
Equity
Share capital 58 62
Share premium 74,746 81,151
Other reserves 1,907,529 925,297
Retained earnings 246,182 446,969
Equity attributable to shareholders 2,228,515 1,453,479
Liabilities
Borrowings 100,471 -
Deferred tax liability 6,290 24,006
Retirement benets 622 675
Provisions for environmental rehabilitation 2,550 2,117
Non-current liabilities 109,933 26,798
Borrowings 19,263 -
Trade and other payables 3,690 3,041
Provisions 913 1,610
Current tax liabilities 31,205 9,220
Current liabilities 55,071 13,871
Total liabilities 165,004 40,669
Total equity and liabilities 2,393,519 1,494,148
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
199
Appendix
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
(Unaudited)
31-Dec 31-Dec
2024 2023
US$’000 US$’000
Revenue from customer with contracts 122,701 572,356
Cost of sales (141,305) (745,772)
Gross loss (18,604) (173,416)
Investment income 63,786 67,670
Net investment income 63,786 67,670
Other income 1,308,978 11,875
Fair value adjustment nancial asset at fair value through prot or
loss (10,649) 86,099
Gain on reclassication of investee company 363,228 -
Net impairment losses on nancial assets (1,030) (3,906)
Administration expenses (262,320) (90,881)
Operating prot/(loss) 1,443,389 (102,559)
Finance income 41,750 107,809
Finance costs (66,929) (218,306)
Net nance income (25,179) (110,497)
Share of prot of equity-accounted investees, net of tax 127,246 110,173
Prot/(loss) before tax 1,545,456 (102,883)
Income tax (expense)/credit (21,699) (58,762)
Prot/(loss) from continuing operations 1,523,757 (161,645)
Loss from discontinued operations (145) (36,941)
Prot/(loss) for the year 1,523,612 (198,586)
Other comprehensive income
Items that will never be reclassied to prot or loss
Revaluation on property, plant and equipment - 185
Deferred tax on revaluation reserve 8 11
Actuarial gain on dened benet pension plans (88) 1,176
Deferred tax on dened benet actuarial loss 26 143
Royalty right fair valuation 239,851 174,761
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
200
Appendix
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)
Equity-accounted investees- share of other comprehensive
income
(60) 562
Fair value change on Other Shareholders Equity 27,308 -
267,045 176,838
Items that are or may be reclassied to prot or loss
Foreign currency translation differences - equity - accounted
investees 417,638 190,402
Foreign currency translation differences - Subsidiaries investees 17,003 (800,887)
434,641 (610,485)
Other comprehensive income, net of tax 701,686 (433,647)
Total comprehensive income 2,225,298 (632,233)
ZCCM INVESTMENTS HOLDINGS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
201
Appendix
COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
(Unaudited)
31-Dec 31-Dec
2024 2023
US$’000 US$’000
Investment income 92,465 103,717
Revenue from contracts with customers - 1,129
Cost of sales - (822)
Other (expenses)/income (177,873) 2,061
Fair value adjustment nancial asset at fair value
through prot or loss (10,649) 86,099
Net impairment losses on nancial assets (10,138) (4,047)
Administration expenses (53,069) (38,693)
Operating (loss)/prot (159,264) 149,444
Finance income 39,106 145,216
Finance costs (25,278) (54)
Net nance income/(cost) 13,828 145,162
(Loss)/prot before tax (145,436) 294,606
Income tax expense (22,185) (58,713)
(Loss)/prot for the year (167,621) 235,893
Other comprehensive income
Items that will never be reclassied to prot or loss
Deferred tax on amortisation of revaluation reserve 8 11
Actuarial (loss)/gain on dened benet pension plans (88) (478)
Deferred tax on dened benet actuarial/(loss) gain 26 143
Fair value change in Investments in subsidiaries (6,645) (22,618)
Fair value change in Investments in associates 867,408 268,383
Fair value change in investments in assets held 28 -
Fair value change on other shareholders equity 27,308 -
Royalty right fair valuation 239,851 174,761
Other comprehensive income, net of tax 1,127,896 420,202
Total comprehensive (loss)/income 960,275 656,095
ZCCM INVESTMENTS HOLDINGS PLC
INTEGRATED ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
202