ZCCM Investments Holdings Plc’s Anticipated Lower EPS in H12023: Factors Contributing to the Decrease

Published On: September 4, 2023Company: ZCCM Investments Holdings Plc (ZCCM.zm)
What factors have primarily contributed to ZCCM Investments Holdings Plc and its subsidiaries' anticipated lower EPS in H12023 compared to H12022?
The significant factors include increased losses primarily from Mopani Copper Mines Plc due to increased production cost, reduced copper production, sizeable finance cost, investment asset impairment, and fair value adjustments. For the Company, the dip in profits due to a reduced dividend payment from Kansanshi Mining PLC and escalated income taxes primarily affected the EPS.

Summary of ZCCM Investments Holdings Plc Q22023 Interim Report

  • The Earnings per Share (EPS) for ZCCM Investments Holdings Plc and its subsidiaries (the Group) for H12023 are expected to be lower by about 194.80% and 54.58%, respectively compared to H12022.
  • The Group’s EPS decrease was primarily due to a 194.80% increase in losses to ZMW2.41 billion (USD125.84 million), largely contributed by Mopani Copper Mines Plc’s loss of ZMW4.02 billion (USD209.87 million).
  • The causes of Mopani’s underperformance include increased production cost, decreased copper production, significant finance cost, investment asset impairment, and fair value adjustments.
  • The Company’s EPS decrease was caused by a reduction in profit to ZMW551.49 million (USD28.80 million) from ZMW1.21 billion (USD70.85 million) in 2022, due to lower dividend payment from Kansanshi Mining PLC and increased income taxes.
  • The Unaudited Half Year Results for H12023 are set to be released on the Securities Exchange News Services (SENS) and published in the local press around 1st September 2023. Shareholders are advised to trade carefully until the publication of the results.

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About ZCCM Investments Holdings Plc (ZCCM.zm)

ZCCM Investments Holdings Plc. is a leading Zambian investment holding company listed on the Lusaka Securities Exchange. The company is well-positioned to manage and add value to the mineral interests of the Zambian Government and to enhance national economic development. ZCCM Investments Holdings is the majority shareholder in a portfolio of companies operating in the Zambian mining sector and also operates an investment business of its own in various countries.

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