• ZCCM Investments Holdings PLC reported a loss of ZMW 3.82 billion in 2022 due to lower copper prices and production challenges at Mopani Copper Mines.
• ZCCM's total assets increased to ZMW 50.4 billion in 2022, largely due to foreign exchange impacts and Mopani's new long-term loan from Glencore.
• ZCCM is working to revive Mopani and pursue opportunities in gold, manganese, copper, and cobalt to improve shareholder value.

ZCCM Investments Holdings PLC recently released its 2022 financial update, reporting a loss of ZMW 3.82 billion compared to ZMW11.08 billion in 2021. The loss was primarily due to lower copper prices and production challenges at its subsidiary Mopani Copper Mines. However, ZCCM is working on reviving Mopani and pursuing new opportunities to turn around its financial performance.

ZCCM’s total assets increased to ZMW 50.4 billion in 2022 from ZMW48.3 billion in 2021, while total liabilities rose to ZMW41 billion from ZMW34 billion. The increase in assets and liabilities was largely due to foreign exchange impacts and Mopani’s new long-term loan from Glencore. ZCCM’s retained earnings remained negative at ZMW10.50 billion.

Mopani, ZCCM’s flagship copper mining operations, incurred a loss of ZMW5.08 billion in 2022 compared to ZMW 1.46 billion in 2021. Mopani’s smelter shutdown for 45 days hampered its copper production, dropping from 87,618 tonnes in 2021 to 72,694 tonnes in 2022. ZCCM engaged Rothschild & Co to review strategic options to revive Mopani and ensure its sustainability. Mopani’s expansion projects, if completed, could boost its copper cathode production to over 200,000 tonnes per year starting 2027.

On a positive note, ZCCM converted its 20% stake in Kansanshi Mining into a 3.1% life-of-mine royalty, which is expected to generate greater and more predictable revenue for ZCCM versus dividends. The Kansanshi deal aligns with ZCCM’s goals to maximize value from its investments.

Looking ahead, ZCCM aims to raise capital to support its mining operations, implement more steady income streams, continue turnaround plans for troubled subsidiaries, and divest non-core assets. ZCCM sees opportunities in gold, manganese, copper, and cobalt to improve shareholder value. The release of ZCCM’s audited 2021 and 2022 financials is expected by July 31, 2023.

-Equity Axis Zim