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ZCCM Investment Holdings PLC on Thursday said the full-benefits of its initiatives ‘will take time to realise’, as currency movements and the absence of investment gains weighed on its earnings. The Lusaka, Zambia-based mining investor reported a swing to a pretax loss of ZMW721.6 million, about $30.2 million, from ZMW56.18 billion in profit a year earlier. Revenue was down 98% at ZMW44.1 million from ZMW2.37 billion, with ZCCM stating that the appreciation of the Zambian kwacha against the US dollar had a ‘key influence’ in its financial results, leading to adverse foreign exchange losses. It add that most of its assets are denominated in USD, with the currency movements having a ‘significant accounting impact’ on its reported earnings. However, the primary contributor to the weaker bottom line was the absence of the one-off investment gain realised in 2024 from the Mopani strategic equity partner transaction. Gain on reclassification of investee companies was nil in the first six months of the year, compared to ZMW42.32 billion a year earlier. Looking ahead, ZCCM expressed confidence in the ongoing transformation of Konkola Copper Mines PLC and Mopani Copper Mines PLC, stating that ‘the groundwork being laid today will yield substantial benefits in the years ahead.’ Shares in ZCCM were flat at $1.63 on Thursday afternoon in London. ‘The first half of 2025 has been a period of sustained strategic progress for ZCCM Investments Holdings Plc, building on the solid transformation foundation established in 2024,’ said Chief Executive Kakenenwa Muyangwa. ‘While the group’s financial performance reflects current operational and market challenges, it also highlights the significant transformation journey underway to secure sustainable, long-term value for our shareholders. Mining is inherently a long-term endeavour, and the full benefits of our strategic initiatives will take time to materialise,’ continued Muyangwa Copyright 2025 Alliance News Ltd. All Rights Reserved.
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