DRC: A spectacular increase to $ 3.8 billion in Gécamines assets
The Générale des Carrières et des Mines SA (Gécamines SA) has released its consolidated financial statements for fiscal year 2020. A publication that responds to the principle of transparency and accountability of public companies in the portfolio of the Congolese State.
This detailed report shows that the state company is in good financial health these days, despite the health crisis caused by the coronavirus pandemic. Gécamines’ balance sheet of assets stood at $ 3.8 billion as at December 31, 2020, compared to $ 3.7 billion in fiscal 2019, an increase of $ 165.7 million.
This performance is justified in part by the increase in the quantity of production, after Gécamines’ recovery of the Kakanda and Shangolowe ore fill. Thus, “17,280,702 tons of minerals were stored. In 2020, copper sales reached 22,518 tonnes for $ 125.5 million, respectively, while zinc dust was sold at 0.05 million for 159.3 tonnes ”.
Positive development of equity securities
“The values of Gécamines SA equity securities have, to date, increased significantly for the following reasons: the increase in Gécamines SA’s participation in the capital of Tenke Fungurume Mining (TFM) by 17 , 5% to 20% as well as the net increase in reserves of more than one million tonnes; the entry into production of certain companies created within the framework of partnerships which were not yet created during the valuation of the assets at December 31, 2009. These include GCK, SMCO, COMILU, MKM, SICOMINES, and others ”, specifies the report which reached Tsieleka.
According to the financial statements of Gécamines, the sale of accessories products brought in $ 167.9 million in 2020, compared to $ 112.0 million in the previous fiscal year.
“The amount of USD 138.5 million collected in 2020 represents the revenue from doorsteps and royalties invoiced to mining companies under partnership contracts. These include: KAMBOVE MINING (80 million), JINCHENG MINING (5.4 million), GOLDEN AFRICAN RESSOURCES (5.5 million), COMMUS (13.4 million), SODIMEZ (11.6 million), RUASHI MINING (7.7 million) SHITURU MINING (4.6 million), COMILU (3.5 million, COMIKA (1 million) ”, specifies the same documents.
The company also has 100 Exploitation Permits (PE), 7 Exploration Permits (PR), 4 Tailings Exploitation Permits (PER), 6 Permanent Quarry Exploitation Authorizations (AECP) and 6 Exploration Authorizations. Career Products (ARPC).
In the columns of the same report, it emerges that the accounts of the public company as at December 31, 2020 experienced a loss of 160.9 million USD, against 140.2 million $ for the fiscal year 2019. “Which brings back the total uncompensated losses of 1.5 billion US dollars at the end of 2020 ”, indicates a report of the auditors on June 9, 2021. To this is added a social debt of $ 122 million.
