ZCCM-IH Post-Tax Losses Surge to Over K4 Billion in 2023
Zambia Consolidated Copper Mines Limited (ZCCM-IH) has reported a significant increase in post-tax losses for the 2023 financial year, reaching over K4 billion (approximately $222 million).
According to financial statements reviewed by Zambian Business Today (ZBT), the group faced notable financial challenges in 2023. Post-tax losses rose from ZMW3,786 million ($222.03 million) in 2022 to ZMW4,076 million ($198.59 million) in 2023.
The primary factor contributing to this increase was the underperformance of Mopani Copper Mines Plc, which reported a substantial loss of ZMW8.97 billion ($436.94 million).
“Mopani’s lower copper production and operational issues were key contributors to this decline,” stated the report.
Despite these losses, the Group’s total assets grew from ZMW48.92 billion ($2.81 billion) in 2022 to ZMW58.46 billion ($2.30 billion) in 2023. However, the value in US Dollars decreased due to currency depreciation.
“Liabilities also increased, primarily due to the interest accrued on Mopani’s loan from Glencore and the resulting foreign exchange losses,” the report added.
By the end of 2023, retained earnings were in deficit at ZMW16.462 billion ($639.40 million), worsening from the previous year’s deficit of ZMW11.44 billion ($561.56 million).
Mopani Copper Mines Plc (MCM) recorded a significant loss of ZMW8.97 billion ($436.94 million) in 2023, up from ZMW5.05 billion ($296.36 million) the previous year.
This increase was attributed to decreased copper production and low equipment availability.
