ZCCM-IH Reports $2.2 Billion Profit in First Half of 2024

Despite the strong profit at the group level, ZCCM-IH recorded a standalone loss of USD 185.94m this period, a reversal from the USD 28.80m profit seen in the same period last year.

Lusaka, Nov. 04 [ZBT] – ZCCM Investment Holdings (ZCCM-IH) has announced a net profit of ZMW 55.32 billion (USD 2.2 billion) for the first half of 2024, a marked improvement from the ZMW 2.41 billion (USD 126 million) loss recorded in the same period last year.

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This profit increase is largely due to a $1.1 billion capital investment by International Resources Holding RSC Ltd (IRH) in Mopani Copper Mines plc (MCM). This investment resulted in a one-time gain of ZMW 42.3 billion (USD 1.66 billion) due to asset revaluation.

The statement highlighted, “The share of profit from equity accounted investments rose to ZMW 19.2 billion (USD 744.81 million), up from ZMW 1.23 billion (USD 64.17 million) in 2023. This was primarily driven by Mopani’s recorded profit of ZMW 35.17 billion (USD 1.38 billion) this period, compared to a ZMW 4.02 billion loss (USD 209.87 million) for the six months ending June 2023. The reversal follows the settlement of Glencore/Carlisa loans totaling USD 1.7 billion under the ARCA agreement between IRH/Delta and ZCCM-IH.”

The company also reported an investment expense of ZMW 3.86 billion (USD 150 million) in 2024, absent in the prior year. This amount partly addresses the Mopani debt write-down owed to Glencore.

During this period, total assets grew by 17.6%, mainly driven by an increase in non-current assets. This growth reflects gains from Mopani’s reclassification from a subsidiary to an associate and the inclusion of the Mingomba asset.

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Despite the strong profit at the group level, ZCCM-IH recorded a standalone loss of ZMW 4.74 billion (USD 185.94 million) this period, a reversal from the ZMW 551.49 million (USD 28.80 million) profit seen in the same period last year.

“This decline results from the substantial investment expense noted earlier and reduced revenue linked to Mopani’s reclassification,” the statement explained. Total assets have nearly doubled, rising by 90.9%, largely fueled by growth in non-current assets and investments in Mopani. Total liabilities have also increased, jumping from ZMW 460.3 million (USD 26.3 million) in June 2023 to ZMW 5.3 billion (USD 216.83 million) in June 2024, due mainly to a Glencore loan of USD 150.44 million recorded in this period.

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