Annual Report (ESEF) • Jul 11, 2025
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Download Source File1 FOR THE YEAR ENDED 31 DECEMBER 2024 INTEGRATED ANNUAL REPORT Investing SMARTLY www.zccm-ih.com.zm ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Contents Page About this report 1 About Us 2 § Our investments 3 – 4 § Our strategy and KPI’s 5 § FY 2024 Group performance highlight 6 – 7 Chairperson’s statement 8 – 10 Report of the directors 11 – 22 Chief executive ofcer’s statement 23 – 25 Executive management team 26 Operation’s report § Subsidiary companies’ performance 27 – 30 § Associate companies’ performance 31 – 38 § Other investments performance 39 - 40 Directors’ responsibilities in respect of the preparation of the consolidated and company nancial statements 41 2024 ZCCM-IH Plc Management report on internal controls over nancial reporting 42 Independent auditor’s report 44 – 49 Financial statements Consolidated and company statements of nancial position 50 – 51 Consolidated and company statements of prot or loss and other comprehensive income 52 – 53 Consolidated and company statements of changes in equity 54 – 55 Consolidated and company statements of cash ows 56 – 57 Notes to the nancial statements 58 – 195 Corporate information 196 Appendix 197 – 201 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 1 About this Report The Integrated Annual Report for the year ended 31 December 2024 provides a holistic view of ZCCM Investments Holdings Plc (“the Company or ZCCM-IH”) and its subsidiaries (“the Group”) business model, how the Company is managed and how it manages its investment portfolio. This report therefore provides a complete analysis of our business to satisfy the information needs of key stakeholders that will use the Integrated Report. The information presented aims to provide our various stakeholders with a good understanding of the nancial, human, social, environmental and economic impacts of ZCCM-IH to enable them to evaluate our ability to create sustainable value for our stakeholders. Framework The Financial Statements set out on Pages 50 to 195 have been prepared in accordance with and IFRS® Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS Accounting Standards). Our Integrated Report is prepared in compliance with the Companies Act of Zambia and the listing requirements of the three stock markets on which ZCCM-IH is listed namely: Primary market – Lusaka Securities Exchange, and Secondary markets – Paris Euronext Access and London Stock Exchanges. Scope And Boundary This report outlines who we are, what we do and how we create value, providing insights into our structure, strategy, objectives, performance, governance, and future viability. The report provides an overview of the operations and performance of all businesses in which ZCCM-IH is invested. The scope of this report relates to ZCCM-IH as an investment holding company and as a group encompassing its subsidiary and associate investee companies’ activities and material matters arising from its investment activities. Material developments beyond the reporting period up to the date of publishing of this report have been included. Materiality This report provides information on all those matters that we believe could substantively affect value creation at ZCCM-IH. Written primarily for current and prospective investors, the report is of interest to any stakeholder who wishes to make an informed assessment of ZCCM-IH’s ability to create value over time. This report presents the identied material information through a clearly structured narrative. Additional information not material for this report, but of interest for other purposes, are provided on our website. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 2 ABOUT US ZCCM Investments Holdings Plc (ZCCM-IH) is a premier diversied mining investment and operations company, with signicant and focused interests in Zambia’s mining and energy sectors. The Group’s portfolio commodity mix includes copper, gold, amethyst, manganese, limestone, coal and electric power energy. The shareholding structure is as follows: the Industrial Development Corporation Ltd (IDC) holds 60.3%, Government of the Republic of Zambia (GRZ) holds 17.3%, National Pension Scheme Authority (NAPSA) holds 15% and the remaining 7.4% is held by private investors. The geographical spread of the minority shareholders, who number over 4000, cover countries in Europe, Africa, the Caribbean, Australia, Asia and North America. The Company has a primary listing on the Lusaka Securities Exchange, and secondary listings on the – Euronext Access Paris and London Stock Exchanges under ISIN number ZM0000000037 on all listings. Vision: “To be a world-class mining and energy investment company that benets the people of Zambia” This vision’s underlining aspiration of being world class entails that: • Our global competitiveness edge is driven by our value propositions, extensive and deep industry knowledge and technical expertise in mining, nancial and investment management; • We uphold the highest institutional standards in Environmental, Social and Governance principles and Transparency; and that, • We have a resilient organisational structure that thrives on a high-performance culture that has exceptional employee skill sets and talent management practices. Mission: “To create tangible wealth sustainably for the benet of the Zambian people and all our stakeholders”. • The underlying and fundamental aspect of our mission is creation of wealth in a sustainable manner. This entails that: Our strategy is informed by ambition that is focused, innovative, agile and adaptable to the changing environment; • We are driven by creating and maximising value through value addition and beneciation of commodities within our portfolio; and, • We build sustainability in all aspects through commodity diversication that will lead to sustained business growth. Our vision and mission are espoused and supported by our core values that are deeply ingrained principles guiding all of our Company's actions. The following values serve as our corporate cultural cornerstones: • Integrity: We resolve to always act and operate ethically, in dealing with one’s colleagues and for one’s stakeholders even when no one is looking. • Teamwork: We will always strive to work together as a team. • Respect: We give respect to ourselves, our peers, our stakeholders, subordinates, our superiors and our business partners • Transparency and accountability: We respect processes and procedures in an open manner in all our dealings and take ownership of our actions. • Efciency: We will achieve more with less and apply all our resources optimally. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 3 ABOUT US (continued) Our investments S/N Asset Name % Interest Product/Service Status as at date of this report. 01 Limestone Resources Limited 100.00 Supplier of limestone products Operational 02 Ndola Lime Company 100.00 Supplier of limestone products Winding up 03 Nkandabwe Coal Mine Limited 100.00 Coal mining Winding up 04 Misenge Environmental and Technical Services Limited 100.00 Services to the mining sector Discontinued operations 05 Kariba Minerals Limited 100.00 Amethyst mine Operational 06 Mushe Milling Limited 100.00 Milling In liquidation 07 Kabundi Resources Limited 100.00 Manganese mining Development 08 Investrust Bank Plc 71.40 Commercial bank Placed under compulsory liquidation 09 Zambia Gold Company Limited 51.00 Gold mining, exploration and trading Development/Exploration 10 Mopani Copper Mines Plc 49.00 Copper cathode and anode slimes Operational 11 Central African Cement Limited 49.00 Cement and thermal power energy Winding up 12 Rembrandt Properties Limited 49.00 Real estate Divestment 13 Maamba Energy Limited 35.00 Supplier of coal and generator of 300Mw thermal power Operational 14 Copperbelt Energy Corporation Plc 32.41 Distribution network to large- scale copper mines on the Copperbelt in Zambia Operational 15 Konkola Copper Mines Plc 20.60 Copper cathode, copper- cobalt alloys and anode slimes Operational 16 Lubambe Copper Mine Plc 20.00 Copper concentrates Operational 17 CNMC Luanshya Copper Mines Plc 20.00 Copper concentrates and copper cathode Operational 18 Kansanshi Mine Plc 20.00 Copper concentrate, smelter, Copper anode, copper cathode and Gold Dore Operational 19 Mingomba Mining Limited 20.00 Copper concentrates Exploration 20 Copper Tree Minerals Limited 15.60 Copper cathode Divestment 21 NFCA Africa Mining Plc 15.00 Copper concentrates Operational 22 Chibuluma Mines Plc 15.00 Copper concentrates Operational/Further Exploration 23 Nkana Alloy 15.00 Copper concentrates Inactive 24 Chambishi Metals Plc 10.00 Copper cathode and cobalt metal processing Care and maintenance ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 4 ABOUT US (continued) Our investments (continued) The current portfolio as per sectoral investment value contribution is illustrated in the gure below. The pie chart further shows the direction the Company intends to take in line with the 2023-2026 strategic plan, realigning its portfolio to focus on Mining, Energy and Beneciation/Value Addition. ZCCM-IH PORTIFOLIO SNAPSHOT SECTOR VALUE (ZMW'MILLION) CONCENTRATION (%) Copper, Gold and Cobalt 42,242 73.6% Energy 14,910 26.0% Others 236 0.4% Total 57,388 100.0% Copper, Gold and Cobalt Energy Others ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 5 OUR STRATEGY AND KPIS The year ended 31 December 2024 marked the second year of our revised four-year (2023 – 2026) strategy period (SP). The key pillars underpinning ZCCM-IH SP and performance progress as at 31 December 2024 are set out below: No. STRATEGIC GOAL/ PILLAR KEY TARGETS PERFORMANCE PROGRESS 1 Achieve nancial excellence and sustainability • Increase in investment income target 8% • Prot growth target 5% • Ensure consistency in dividend pay-outs to shareholders with a dividend pay-out ratio of 35% • Portfolio return (NAV growth) above the higher benchmark or 40%. • Recorded an increase in investment income of 13.6% • Achieved a decrease in prot after tax of 190.6% • Achieved a dividend payout ratio of 35% • NAV per share increased by 66% 2 Strengthen stakeholder relationships and improve stakeholder satisfaction. • Stakeholder satisfaction index target 80% • Brand Recognition index target 70% • Compliance rate target 100% • Increased stakeholder satisfaction index to 83%. • Increased brand recognition to 72%. • Compliance at 100%. 3 Achieve operational excellence and business focus. • Improve Corporate Governance index target 80% • Project Management Index target 72% • Index of subsidiary oversight target 80% • Corporate Governance index at 88%. • Project management index at 83% • Index of subsidiary oversight at 100% 4 Invest in our people. • % of Information Communication Technology productivity tools used by staff - target 75% • % of staff trained - target 75% • % of ICT productivity tools used at 89%. • 76% of staff trained The achieved performance targets are based on surveys conducted among stakeholders. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 6 FY 2024 Group Performance Highlights Five-Year Group Performance Highlights 2020 31 Dec 2021 31 Dec 2022 31 Dec 2023 31 Dec 2024 RETURNS Total Returns (ZMW Mn) 8,428 -8,144 -4,815 -12,976 58,198 Return on Opening Equity (%) 67.00% -38.80% -37.61% -164.07% 1,022.69% Earnings per share (ZMW) 13.91 -78.19 -23.54 -25.35 247.80 FINANCIAL POSITION Total Assets (ZMW Mn) 23,296 46,818 48,919 58,464 57,286 Net Asset Value (ZMW Mn) 21,004 12,809 7,909 -5,691 52,264 NAV Per Share ZMW 130.62 79.66 49.18 -35.39 325.02 Current ratio 1.17 1.25 1.11 0.46 4.01 Cash and cash equivalents (ZMW Mn) 181 185 329 360 526 GEARING Debt (ZMW Mn) 171 25,414 29,029 - 3,347 Debt to equity % 0.81% 66.49% 78.59% 0.00% 6.02% Net Cash (Debt) to Equity % 0.00% 66.33% 78.40% 5.96% 5.12% ROA: Return on Assets, is computed as prot for the year expressed as a percentage of closing total assets for the year EPS: Earning Per Share, is computed as prot for the year divided by total number of issued shares ZMW 3.21 billion ZMW247.80 ZMW 39.85 billion 101.59% Revenue EPS Prot for the year ROA ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 7 FY 2024 Group Performance Highlights (continued) Dividend Policy The ZCCM-IH dividend policy provides that the Company may pay a minimum of 35% of the unconsolidated realised net prot after tax for a particular nancial year, when conditions for declaring a dividend are met after considering the Company’s free cash ows and investment needs. The following table shows the Company’s historical dividend declaration: Mar-15 251 Mar-17 135 Mar-18 98 Mar-19 53 Dec-19 53 Dec-20 85 Dec-21 336 Dec-22 387 Dec-23 243 Dec-24 529 251 135 98 53 53 85 336 387 243 529 0 100 200 300 400 500 600 ZMW'Million Total Dividend (ZMW'Million) TOTAL DIVIDEND DECLARED ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 8 CHAIRPERSON’S STATEMENT Mr. Phesto Musonda STRATEGIC INVESTMENTS DRIVING GROWTH ZCCM-IH remains steadfast in its commitment to long- term value creation and sustainable investments. Our strategic focus continues to revolve around enhancing Zambia’s mining and energy sectors, optimizing operational efciency, and forging strategic partnerships that drive growth. In 2024, we took signicant steps in advancing our investment portfolio, re-positioning the company as a key enabler of Zambia’s economic transformation 1. Mopani Copper Mines Plc – A Transformational Partnership The transformational partnership between ZCCM-IH and International Resources Holding (IRH) through its wholly owned subsidiary, Delta has redened the future of Mopani Copper Mines Plc (MCM). With a landmark investment of US$1.1 billion, Mopani’s operations have been stabilized, setting the foundation for long-term production growth. Copper output is projected to increase by over 60% within the next ve years, driven by strategic capital injections, operational improvements, and an optimized mining plan. This investment has signicantly strengthened Mopani’s balance sheet, alleviated legacy debt constraints and ensured nancial sustainability. In 2024, Mopani reported net revenue of ZMW 16.36 billion (US$625.44 million), while net prot rose to ZMW 34.19 billion (US$1.31 billion), marking a major recovery from previous losses. At Group level, ZCCM-IH delivered a record-breaking nancial turnaround, achieving a net prot of ZMW 39.85 billion (US$1.52 billion) a sharp reversal from the post-tax loss of ZMW 4.08 billion (US$199 million) in 2023. This performance was largely driven by the successful completion of the Mopani Strategic Equity Transaction, which repositioned Mopani as a nancially viable operation, and the settlement of US$1.71 billion in Glencore/Carlisa debt through the Amendment, Restatement, and Consolidation (ARCA) Agreement executed with IRH/Delta. Looking ahead, continued capital investment in underground mine development, infrastructure modernisation, and ore recovery enhancements will unlock Mopani’s full potential. This strategic partnership marks a new chapter for Zambia’s mining sector, fostering job security, economic growth, and sustainable value creation for all stakeholders 2. Konkola Copper Mines Plc (KCM) – Revitalization and Growth The resolution of the long-standing KCM dispute and the return of Vedanta Resources as the majority shareholder represents a signicant milestone for ZCCM-IH and Zambia’s copper industry. The US$1.2 billion investment committed by Vedanta will expand operations, develop the Konkola Deep Mining Project, and strengthen KCM’s nancial standing. The removal of KCM from liquidation proceedings has restored operational condence, ensuring increased copper production and nancial stability. I am honoured to present ZCCM Investments Holdings Plc’s (ZCCM-IH) Chairperson’s Statement for 2024. This has been a year of bold transformation, strategic realignment, and reafrming ZCCM-IH’s role as a cornerstone of Zambia’s mining and energy sectors. Our commitment to operational excellence, value creation, and sustainability continues to drive our agenda, ensuring long-term prosperity for all stakeholders. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 9 3. Mingomba Mining Limited – Unlocking Zambia’s Copper Potential Mingomba Mining Limited, a world-class exploration project, has made substantial progress in geological studies, positioning it as one of Zambia’s most promising high-grade copper deposits. While the project did not generate revenue in 2024 due to ongoing exploration activities, ZCCM-IH remains fully committed, investing US$9.7 million towards exploration and feasibility studies. A resource statement has been completed, with pre-feasibility studies set for completion in 2025. The application of AI-driven mineral exploration techniques at Mingomba sets a new standard for innovation in Zambia’s mining sector. 4. Lubambe Copper Mine Limited – A Strengthened Position Lubambe Copper Mine is undergoing a major operational restructuring, following the entry of JCHX Mining Management Company as a new strategic partner. JCHX has committed US$300 million in investment, aimed at stabilizing operations, expanding production, and extending the mine’s life. ZCCM-IH is expected to increase its equity stake from 20% to 30% in 2025. Lubambe is expected to improve its production efciencies and maximize shareholder value in the coming years. 5. Maamba Energies Limited (MEL) – Expansion into the Energy Sector Maamba Energies Limited continues to be a cornerstone of Zambia’s power generation sector, with its 300MW thermal power plant operating at near-perfect efciency (99.95% Plant Load Factor). The successful arbitration settlement with ZESCO has provided nancial relief, though some outstanding receivables remain a challenge. To further solidify its energy portfolio, ZCCM-IH has committed US$50 million to Maamba’s Phase II expansion project, which will add an additional 300MW of generation capacity. The total project cost is estimated at US$400 million, with the expansion set to double Maamba’s output to 600MW, reinforcing Zambia’s energy security and industrialization agenda. 6. CNMC Luanshya Copper Mines (CNMC) – Unlocking New Production Potential Despite industry challenges, CNMC Luanshya Copper Mines has maintained revenue growth, driven by higher global copper prices. A key highlight in 2024 was the decision to reopen Shaft 28, a major development project backed by a US$500 million investment. This initiative is expected to signicantly boost CNMC’s production capacity, securing long- term sustainability and economic contributions. 7. Zambia Gold Company Limited (ZGCL) – Repositioning for Growth After resolving outstanding legal and regulatory issues, remedial works at Kasenseli Gold Mine resumed in 2024, paving the way for full-scale mining operations in 2025. While ZGCL did not record gold production in 2024, the company has redened its long-term strategy, focusing on exploring alternative gold license areas. These developments will position ZGCL as a major contributor to Zambia’s gold industry, aligning with the government’s diversication agenda in the mining sector. 8. Kansanshi Mining Plc – Sustaining Production and Expansion Kansanshi Mining Plc, operated by First Quantum Minerals (FQM), continues to be a key revenue generator for ZCCM-IH through the Kansanshi Royalty Model, which delivered ZMW 1.43 billion (US$54 million) in 2024. Kansanshi’s S3 Expansion Project, currently under accelerated implementation, with commissioning now envisaged for the second half of 2025. The S3 plant now has a projected operational life of at least 25 years and will extend Kansanshi’s mine processing output by at least three years. Despite the drought-induced power constraints in Zambia, FQM has successfully secured alternative power sources, ensuring operational stability at Kansanshi. STRATEGIC VISION FOR 2025 AND BEYOND Looking ahead, ZCCM-IH remains committed to delivering sustainable value creation, portfolio optimization, and nancial resilience. Our strategic focus will revolve around among others: Working with our subsidiaries to turn them around and make them sustainably protable. Strengthening our energy investments, including Maamba’s expansion and increased participation in the development of new renewable energy sources. Enhancing beneciation and downstream value addition, ensuring that Zambia captures more value from its natural resources. Developing a pipeline of new investments, including critical minerals and exploration to position ZCCM-IH for future growth. Divestment from non-mining, non-energy-related, and non-viable investments to streamline the portfolio and align with ZCCM-IH’s strategic focus. With Zambia targeting 3 million tonnes of copper production annually by 2031, ZCCM-IH is well- positioned to play a leading role in this vision, driving economic transformation while delivering strong returns to our shareholders. CHAIRPERSON’S STATEMENT (continued) ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 10 ACKNOWLEDGMENT Directorate Changes During the year, the Company had two (2) changes in terms of non-executive directors. I wish to thank you Directors Bishop John Hardy Maambo and Moses Smart Nyirenda, who retired from the Board for their invaluable service and dedication to ZCCM-IH. At the same time, I am condent that the newly appointed Director Anthony Chilengi, will meet the expectations of our shareholders and stakeholders, contributing to the continued success and strategic vision of the Company. I extend my deepest appreciation to our employees, CHAIRPERSON’S STATEMENT (continued) partners, shareholders, and stakeholders for their unwavering support and commitment. Your contributions have been instrumental in ZCCM-IH’s remarkable transformation and continued success. As we move forward, we do so with condence, purpose, and a shared vision for a future of sustained growth, strategic leadership, and responsible mining and energy investment. Mr. Phesto Musonda Board Chairperson ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 11 REPORT OF THE DIRECTORS The Directors submit their report together with the audited nancial statements for the year ended 31 December 2024, which disclose the state of affairs of ZCCM Investments Holdings Plc (‘the Company’) and its subsidiaries (together “the Group”). BOARD OF DIRECTORS Mr. Phesto Musonda Board Chairperson (Non - Executive Director) Mr. Mubita Akapelwa Vice Board Chairperson (Non - Executive Director) Mr. Philippe G. Taussac (Non - Executive Director) Mr. Anthony Chilengi (Non - Executive Director) Mr. Muyangwa Muyangwa (Non - Executive Director) Mr. Kakenenwa Muyangwa Chief Executive Ofcer ( Executive Director) Ms. Masitala Nanyangwe Mushinga (Non - Executive Director Bishop John Mambo (Non - Executive Director) ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 12 REPORT OF THE DIRECTORS (continued) SHARE CAPITAL The authorised share capital of the Company remained unchanged at ZMW2,000,000 divided as follows: 120,000,000 “A” Ordinary Shares of ZMW 0.01 each; and 80,000,000 “B” Ordinary Shares of ZMW 0.01 each. Class “A” Ordinary Shares and Class “B” Ordinary Shares all rank pari passu in all respects. During the year, the issued share capital remained unchanged at 160,800,286 shares with a nominal value of ZMW1, 608,003 as detailed below: Number of shares Amount ZMW At beginning and end of year 160,800,286 1,608,003 SHAREHOLDING BY DIRECTORS As at 31 December 2024, Mr Philippe G. Taussac (Non-Executive Director and Chairperson of the Investments Committee of the Board) had 158,563 shares. CHANGES TO SENIOR MANAGEMENT During the year 2024, there were changes in the Company’s Senior Management. Mr Lombe Mbalashi who was Chief Legal Ofcer and Mr Brian Musonda who was Chief Investments Ofcer, separated from ZCCM-IH Plc effective 2nd December 2024. Subsequent to the year end, the Chief Executive Ofcer, Dr Ndoba J. Vibetti, separated from ZCCM-IH Plc effective 30th April 2025. Effective 6 June 2025, Mr Kakenewa Muyangwa was appointed Chief Executive Ofcer of ZCCM-IH Plc. PRINCIPAL ACTIVITIES ZCCM-IH (“the Company’’) is an investments holdings company which has a primary listing on the Lusaka Securities Exchange and secondary listings on the London and Euronext Paris Stock Exchanges. The Company has the majority of its investments held in the copper mining sector of Zambia. The Company’s focus going forward will include the following: Developing and implementing investments strategies and aligning Company operations towards maximizing of shareholder value in the mining sector; Monitoring the performance of investee companies to ensure they consistently declare reasonable dividends and ensure Company growth; Ensuring effective representation on the Boards of the investee companies; Establishing and securing joint venture partnerships for projects assessed to be viable; Establishing metal streaming arrangements; Establishing a royalty model to maximize shareholder value; and DIVIDENDS During the year, the Company declared a dividend of ZMW529 million (2023: ZMW 243 million). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 13 REPORT OF THE DIRECTORS (continued) DIRECTORATE CHANGE During the year and up to signing date of this report, the following were changes in the directorate: Name Position Date of Appointment/Retirement Mr Anthony Chilengi Non-Executive Director Appointed on 21 November 2024 Mr Kakenenwa Muyangwa Chief Executive Ofcer Appointed on 6 June 2025 Mr Phesto Musonda Non-Executive Director Appointed on 9 June 2025 Dr Ndoba J. Vibetti Executive Director Appointed 1 February 2023 and retired 30 April 2025 Bishop John H Mambo Non-Executive Director Retired on 12 December 2024 and reappointed on 17 April 2025 Mr Tisa Chama Executive Director Appointed on 30th April 2025 and retired on 5th June 2025 Mr Moses Nyirenda Non-Executive Director Appointed on 13 December 2021 and retired on 17 July 2024 AUDIT COMMITTEE Name Position Date of Appointment/Retirement Ms. Masitala Mushinga Chairperson Active Mr Philippe G Taussac Non-Executive Director Active Mr Mubita Akapelwa (Non-Executive Director/Vice Board Chairperson) Active Mr Vincent Nyambe Co-opted member Active Bishop John H Mambo Non-Executive Director Retired on 12 December 2024 and reappointed on 17 April 2025 Dr Ndoba J. Vibetti Chief Executive Ofcer Retired on 30 April 2025 Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025 REMUNERATION COMMITTEE Name Position Date of Appointment/Retirement Mr Anthony Chilengi Chairperson Appointed on 5th June 2025 Mr Mubita Akapelwa Non-Executive Director Active Mr Muyangwa Muyangwa Non-Executive Director Active Ms Masitala Mushinga Non-Executive Director Active Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025 Mr Bishop H Mambo Non-Executive Director Retired on 12 December 2024 and reappointed on 17 April 2025 Mr Moses Nyirenda Non-Executive Director Retired on 17 July 2024 Dr Ndoba J Vibetti Chief Executive Ofcer Retired on 30 April 2025 INVESTMENT COMMITTEE Name Position Date of Appointment/Retirement Mr Mubita Akapelwa Chairperson Appointed on 5th June 2025 Mr Philippe G Taussac Non-Executive Member Active Mr Muyangwa Muyangwa Non-Executive Member Active Mr Anthony Chilengi Non-Executive Member Active Mr Albert Halwampa Co-opted Member Active Mr Basil Nundwe Co-opted Member Active Mr Kakenewa Muyangwa Chief Executive Ofcer Appointed on 6th June 2025 Mr Moses S Nyirenda Non-Executive Member Retired on 17 July 2024 Dr Ndoba J. Vibetti Chief Executive Ofcer Retired on 30 April 2025 Mr Brian Musonda Chief Investments Ofcer Retired on 2 December 2024 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 14 REPORT OF THE DIRECTORS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) DIRECTORS’ PARTICIPATION IN MEETINGS Record of attendance of Board and Committee meetings held during the period to 31 December 2024. Board Meetings: Name of Director 11/01/24 26/01/24 08/02/24 20/02/24 13/03/24 19/03/24 26/03/24 10/04/24 23/05/24 31/05/24 12/06/24 20/06/24 25/06/24 26/07/24 25/09/24 22/10/24 29/11/24 04/12/24 10/12/24 18/12/24 Mr Kakenenwa Muyangwa (Chairperson) √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mr Mubita Akapelwa (Vice Chairperson) √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mr Moses Nyirenda (Re- tired) √ √ √ √ √ √ √ √ √ √ √ √ √ £ £ £ £ £ £ £ Ms Masitala Mushinga √ X √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mr Bishop John Mambo √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ ¨ ¨ Dr Ndoba J Vibetti √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mr Philippe G Taussac √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mr Muyangwa Muyangwa X X √ X √ X X √ X X X X √ X X √ √ √ √ √ Mr Anthony Chilengi £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ √ √ √ √ * Mr Anthony Chilengi was appointed Director on 21 st November 2024. Key √ - In attendance X – Not in attendance £ - Not a member on a stated date of meeting ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 15 REPORT OF THE DIRECTORS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) DIRECTORS’ PARTICIPATION IN MEETINGS (continued) Record of attendance of Board and Committee meetings held during the period to 31 December 2024. Audit Committee The committee provides oversight on the effectiveness of the Group’s operational and nancial reporting sys- tems and accuracy of information, and that the Group’s published Financial Statements represent a true and fair reection. The specic terms of reference include: § Reviewing and appraising the soundness of risk management, internal controls, and the reliability and integrity of nancial, managerial, and operating data. § Ascertaining compliance with the ZCCM-IH Group policies and procedures. § Evaluating asset safeguards and accountability. § Evaluating the economy and efciency with which resources are employed. § Reviewing operations or programs to assess whether they are being carried out as planned and whether results are consistent with established objectives. § Providing advice to management regarding the adequacy and effectiveness of controls regarding major decisions. Meeting Attendance: Name Of Director 13/4/24 29/2/24 20/3/24 22/5/24 4/9/24 13/11/24 06/12/24 Ms Masitala Mushinga (chairperson) √ √ √ √ √ √ √ Mr Philippe G Taussac √ √ √ √ √ √ √ Mr Mubita Akapelwa √ √ √ √ √ √ √ Mr Vincent Nyambe √ √ X √ √ √ X Mr Bishop John Mambo √ √ √ √ √ √ √ Dr Ndoba J Vibetti √ √ √ √ √ √ √ Key √ - In attendance X - Not in attendance £ - Not a member on a stated date of meeting ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 16 REPORT OF THE DIRECTORS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) DIRECTORS’ PARTICIPATION IN MEETINGS (continued) Investments Committee To adequately supervise and monitor the investment function of the Company, the Investments Committee of the Board’s duties and responsibilities shall be: § To evaluate and approve or disapprove and refer all approved investments to the full Board. § To evaluate and recommend to the Board on the disinvestments. § To periodically review each investment in terms of performance against benchmark returns for the Company. § To guide management on the activities of the Management Investment Committee and ensure they comply with the laid down procedures. § To advise the Board and guide management on investment-related issues. § To circulate for information, quarterly reports to the Board and through the Chairman present on matters therein, if necessary; and, § To determine the amount to be invested in a period. Meeting Attendance Name of Director 28/03/24 24/05/24 17/06/24 13/09/24 19/11/24 Mr Philippe G Taussac (Chairman) √ √ √ √ √ Mr. Moses Nyirenda √ √ √ √ √ Mr. Albert Halwampa X √ √ √ √ Mr Basil Nundwe X √ √ √ √ Mr Muyangwa Muyangwa X X X √ √ Dr Ndoba J Vibetti √ √ X √ √ Mr Mubita Akapelwa √ √ √ √ √ Key √ - In attendance X – Not in attendance £ - Not a member on a stated date of meeting Remuneration Committee The committee is responsible for formulating remuneration policies and principles that promote the success of the Company. More specically, the Remuneration Committee’s terms of reference include: § Determine and agree with the Board the framework or broad policy for the remuneration of the Chief Executive and such other members of the executive management as it is designated to consider. § Determine targets for any performance-related pay schemes operated by the Company. § In determining such remuneration packages, give due regard to the prevailing compensation levels in comparable commercial organizations. § Agree the policy for authorising claims for expenses from the Chief Executive and Chairman. § Be exclusively responsible for establishing the selection criteria, selecting, appointing, and setting the terms of reference for any remuneration consultants who advise the committee. § Report the frequency of, and attendance by members at, remuneration committee meetings in the annual report. § Make the committee’s terms of reference publicly available. These should set out the committee’s delegated responsibilities and be reviewed and, where necessary, update annually. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 17 REPORT OF THE DIRECTORS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) DIRECTORS’ PARTICIPATION IN MEETINGS (continued) Remuneration Committee (continued) Meeting Attendance: Name of Director 24/1/24 18/3/24 11/4/24 16/5/24 18/6/24 12/9/24 11/11/24 6/12/24 Mr Moses Nyirenda (Chairman) √ √ √ √ √ £ £ £ Dr Ndoba J Vibetti √ √ √ √ X √ √ √ Mr Bishop John Mambo (Retired) √ √ √ √ √ √ √ √ Mr Muyangwa Muyangwa √ X √ X X √ √ X Mr Mubita Akapelwa £ £ £ £ £ √ √ √ Ms Masitala Mushinga X √ √ √ √ √ √ √ Mr Anthony Chilengi £ £ £ £ £ £ £ √ Key X – Not in attendance √ - In attendance £ - Not a member on a stated date of meeting ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 18 REPORT OF THE DIRECTORS (continued) Remuneration Policies Board of Directors fees and emoluments Group Company 2024 2023 2024 2023 Item ZMW’000 ZMW’000 ZMW’000 ZMW’000 Executive Director’s fees and Emoluments 6,901 10,605 6,901 4,694 Non-executive Directors’ Fees 26,726 26,477 13,499 10,465 Total 33,627 37,082 20,400 15,159 Average number and remuneration of employees The total amount paid as remuneration to employees during the year amounted to ZMW394.39 million (2023: ZMW2.17 billion) for the Group and ZMW195.98 million (2023: ZMW157.32 million) for the Company. The average number of employees was as follows: Month Company Subsidiaries Group Month Company Subsidiaries Group January 2024 110 495 605 July 2024 110 493 603 February 2024 110 503 613 August 2024 108 493 601 March 2024 110 496 606 September 2024 107 491 598 April 2024 110 496 606 October 2024 105 508 613 May 2024 110 499 609 November 2024 105 508 613 June 2024 110 502 612 December 2024 103 543 646 Staff expenses Group Company 2024 2023 2024 2023 ZMW’000 ZMW’000 ZMW’000 ZMW’000 Staff remuneration 394,387 2,167,145 195,976 157,323 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 19 REPORT OF THE DIRECTORS (continued) BOARD COMMITTEE’S FUNCTIONS (continued) Health and safety employee environment Health and safety are a top priority in the Group. To maintain productivity, the Group ensured a healthy environment by providing the following to employees: Periodic health talks to educate and sensitise employees on various health issues. Medical services with some medical facilities; Subscription to the gym to ensure wellness; Work-Life Balance by ensuring that employees took annual leave to refreshen their minds; Hand sanitisers, fumigation of ofces buildings and generally a clean environment to prevent contraction and spread of the Covid-19 virus. The Group maintained a safe working environment by implementing the following measures: Compliance with workplace safety laws and regulations, including ensuring the presence of trained rst aiders and re marshals to respond to emergencies effectively; Regular inspection and maintenance of re safety equipment, ensuring that re extinguishers remain serviceable and readily available in case of re incidents. Risk Management Framework ZCCM IH has adopted an Enterprise-wide approach to risk management. The Enterprise-wide Risk Management (ERM) approach can be dened as a process that enables organizations to effectively deal with varied types of risks and opportunities, thus increasing stakeholder value. ZCCM-IH has a comprehensive risk management framework that addresses nancial, operational, environmental, and social risks. The framework includes: i. Risk Identication: Risks are identied through a combination of top-down and bottom-up approaches, including risk assessments, audits, and reviews. ii. Risk Assessment: Risks are assessed using a risk matrix that considers the likelihood and potential impact of each risk. iii. Risk Mitigation: Risk mitigation strategies are developed and implemented to address identied risks. iv. Risk Monitoring and Review: Risks are continuously monitored and reviewed to ensure that risk mitigation strategies are effective and that new risks are identied and addressed. v. Risk Reporting: The reporting structure ensures that risk response gaps are addressed, escalated to Management and the risk responses are operating effectively under changing conditions. In its normal operations, the Group is exposed to several risks including liquidity, market and credit risks. These are described and explained in note 42 to the nancial statements. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 20 REPORT OF THE DIRECTORS (continued) ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) 1. ESG Governance and Commitment ZCCM Investments Holdings Plc (ZCCM-IH) is rmly committed to integrating Environmental, Social, and Governance (ESG) principles across its investment portfolio, ensuring that sustainability and responsible business practices remain central to its long-term strategy. Recognizing the increasing global focus on sustainability, decarbonization, and social responsibility, ZCCM-IH is actively aligning its operations with international best practices, regulatory standards, and stakeholder expectations. To enhance ESG oversight and compliance, ZCCM-IH has established dedicated governance structures, ensuring that all investments and operations adhere to responsible mining and energy practices, strong corporate governance principles, and social impact initiatives. These structures are designed to: Strengthen ESG implementation across the Group; Ensure compliance with local and international ESG regulations; Promote sustainable mining, energy transition, and climate resilience; Enhance engagement with communities, investors, and regulators. 2. Environmental Management and Climate Strategy ZCCM-IH recognizes its role in supporting Zambia’s transition to a low-carbon economy and mitigating environmental risks associated with mining and energy investments. The Board of Directors remains committed to global decarbonization efforts, ensuring that the Company’s mining, energy, and infrastructure investments prioritize sustainability and environmental stewardship. 2.1 Climate and Renewable Energy Initiatives Key highlights of ZCCM-IH’s climate and sustainability strategy include: Investment in Renewable Energy – Through its increased stake in Copperbelt Energy Corporation Plc CEC) from 24.1% to 32.41%, ZCCM-IH has reinforced its commitment to energy transition investments. This includes CEC Renewables’ successful commissioning of the 60MW Itimpi One Solar Project in April 2024, signicantly enhancing Zambia’s renewable energy capacity. Kariba Minerals’ Solar Transition – ZCCM-IH’s subsidiary, Kariba Minerals Ltd, has transitioned from diesel to solar energy with a 250KVA solar captive power plant, reducing carbon emissions and operational costs. Sustainable Mining Practices – Mopani Copper Mines Plc is enhancing energy efciency, optimizing waste management, and introducing emissions-reduction programs, ensuring responsible environmental management. 2.2 Environmental Liability Management ZCCM-IH, through Misenge Environmental and Technical Services (METS), remains proactive in environmental monitoring and remediation efforts. During 2024, METS conducted routine environmental assessments across several legacy mining sites: Kitwe: Area E Overburden Dump (OB 53) Chingola: Mimbula Open Pit (OB 5), Luano Open Pit (OB18), and Chingola B & C Overburden Dumps (OB19 & OB4) Kabwe: Open Pit 5 and 6 Key mitigation actions included: Soil stabilization and site rehabilitation through reforestation and erosion control measures. Enhanced security measures to prevent unauthorized mining activities. Collaboration with regulatory authorities to address outstanding environmental liabilities. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 21 REPORT OF THE DIRECTORS (continued) ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) (continued) 2.3 Water and Radiation Monitoring ZCCM-IH has maintained its commitment to protecting water resources by conducting continuous monitoring of high-risk environmental sites. Key developments in 2024: Water quality monitoring at Kabwe Mine conrmed compliance with Zambia Environmental Management Agency (ZEMA) standards, with no material contamination reported. Radiation surveillance at the Radioactive Waste Storage Building (RWSB) in Kalulushi was conducted in collaboration with the Radiation Protection Authority (RPA). Security enhancements were implemented at sensitive sites, with the support of the U.S. Department of Energy’s Ofce of Radiological Security (ORS) 3. Social Impact and Community Development ZCCM-IH is deeply committed to community engagement, social responsibility, and improving the livelihoods of people in areas where it operates. 3.1 Health and Social Initiatives In 2024, ZCCM-IH continued its Integrated Case Management (ICM) program in Kabwe, which focuses on lead exposure reduction and health education. Key achievements: ICM clinic attendance rates of 58%–93%. Home visitations covering an average of 73 households per month. Community health education programs to reduce exposure to lead-contaminated environments. 3.2 Resettlement and Compensation ZCCM-IH successfully resettled 11 households under its ZEMA-approved Resettlement Action Plan (RAP), ensuring fair compensation and livelihood restoration. One outstanding case remains under review, with stakeholder engagements ongoing. 4. Corporate Strategy and the Energy Transition As the global energy landscape shifts towards decarbonization and sustainability, ZCCM-IH has taken strategic steps to align its investment portfolio with the energy transition. Key strategic initiatives: Expanding exploration activities in critical minerals such as manganese (Kabundi Exploration Licence) and lithium (Kariba Mineral Licence area). Increasing investment in Zambia’s energy infrastructure, including the US$50 million commitment towards the 300MW Phase II expansion of Maamba Energy Limited. Strengthening partnerships with renewable energy players, such as CEC Renewables, to promote solar and hydroelectric power generation. These initiatives position ZCCM-IH to capitalize on the rising global demand for copper and other critical minerals while ensuring long-term value creation for shareholders. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 22 REPORT OF THE DIRECTORS (continued) ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) (continued) 5. Community Investment and Philanthropy ZCCM-IH recognizes the importance of social responsibility and remains committed to giving back to communities through Corporate Social Responsibility (CSR) initiatives. Key CSR Projects in 2024 Donation of ZMW1 million to the Ministry of Health to support cholera outbreak response efforts. Solar-powered water borehole installation at Mapatizya Clinic in Kalomo District, improving clean water access. Solar Power Solutions for health clinics, schools, police stations, and market centers in Mapatizya, enhancing community services and security. Tree Planting for Climate Resilience over 4,000 trees planned to be planted in 2025 across public health institutions in Lusaka, Ndola, and Kitwe as part of Zambia’s climate adaptation strategy. 6. Strengthening Organizational Culture and Workforce Development ZCCM-IH’s long-term success is built on its people. In 2024, the Company implemented a high-performance culture strategy aimed at enhancing employee engagement, skills development, and innovation. Key workforce initiatives: Upskilling employees through targeted training and leadership development programs. Establishing a performance-based culture, rewarding innovation and operational excellence. Implementing a revised organogram, incentive structure, and performance reward mechanisms to drive employee motivation and retention. These initiatives ensure that ZCCM-IH remains competitive, agile, and well-positioned for sustainable growth 7. Commitment to ESG and Sustainable Investments ZCCM-IH remains fully committed to integrating Environmental, Social, and Governance (ESG) principles across its investment strategy and operational framework. ESG Commitment at a glance: Environmental Stewardship – Supporting climate action, renewable energy, and responsible mining practices. Social Responsibility – Enhancing community engagement, workforce development, and stakeholder relations. Governance Excellence – Reinforcing ethical leadership, transparency, and accountability. As the demand for sustainable investments rises, ZCCM-IH remains well-positioned to support Zambia’s economic growth, deliver value to stakeholders, and drive the transition towards a responsible and sustainable mining and energy sector ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 23 CHIEF EXECUTIVE OFFICER’S STATEMENT Mr Kakenewa Muyangwa I am honoured to present ZCCM Investments Holdings Plc’s (ZCCM-IH) Chief Executive Ofcer Statement for 2024. This has been a year of bold transformation, strategic realignment, and reafrming ZCCM-IH’s role as a cornerstone of Zambia’s mining and energy sectors. Our commitment to operational excellence, value creation, and sustainability continues to drive our agenda, ensuring long-term prosperity for all stakeholders. Executing Strategy, Driving Operational Excellence, and Building a Resilient Future Introduction The 2024 nancial year was a dening period for ZCCM Investments Holdings Plc (ZCCM-IH) one in which we executed transformative investment strategies, navigated complex operational landscapes, and strengthened our position as a key driver of Zambia’s mining and energy sectors. Our commitment to operational efciency, capital discipline, and long- term sustainability has enabled us to deliver strong results despite global market uncertainties. The successful restructuring of Mopani Copper Mines Plc (MCM), the resolution of Konkola Copper Mines Plc (KCM), and signicant expansion in the energy sector are clear markers of our strategic intent to create long-term value for our shareholders and stakeholders. Operational Performance and Financial Strength Our Group net prot rose to ZMW 39.85 billion (US$ 1.52 billion), reversing the post-tax loss of ZMW 4.08 billion (US$ 198.59 million) recorded in 2023. This record- breaking turnaround was largely driven by: The Mopani Strategic Equity Transaction, which provided nancial stability and restructured Mopani’s balance sheet. Settlement of the US$1.7 billion Glencore/ Carlisa legacy debt through the Amendment, Restatement, and Consolidation (ARCA) Agreement, executed with IRH/Delta. An increase in prot from equity-accounted investees of ZMW 3.33 billion (US$ 127.25 million), up from ZMW 2.26 billion (US$ 110.17 million) in 2023. Despite the Group’s strong nancial performance, at the Company level, ZCCM-IH reported a loss of ZMW 4,383 million (US$ 167.62 million), driven by a one-off investment expense of ZMW 3,860 million (US$ 150 million) related to the restructuring of Mopani Copper Mine Plc. However, total assets increased by 74% to ZMW 66.90 billion (US$2.39 billion), up from ZMW 38.47 billion (US$1.49 billion) in 2023, reinforcing our nancial resilience and growth trajectory. Additionally, we transitioned our strategic ethos from “Mining SMARTLY” to “Investing SMARTLY”, emphasizing: Sustainability Proactive investment management Timely decision-making Long-term value creation ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 24 CHIEF EXECUTIVE OFFICER’S STATEMENT (continued) Looking Ahead – Growth, Innovation, and Value Creation As we enter 2025, our focus will remain on: Maximizing production efciency in Mopani, Kansanshi, Konkola, and Lubambe. Expanding critical mineral exploration and beneciation projects. Strengthening our energy investments to support Zambia’s industrialization agenda. Driving ESG leadership, embedding sustainability into our operations. With Zambia targeting 3 million tonnes of copper production annually by 2031, ZCCM-IH is positioned as a key enabler of this vision. Strategic Investments – Strengthening Our Portfolio 1. Mopani Copper Mines Plc – Transformational Growth In 2024, we completed a landmark transaction with International Resources Holding (IRH), securing US$1.1 billion in capital investment for Mopani. This will increase production by over 60% in the next ve years and enable Mopani to achieve nancial independence. Mopani’s nancial performance in 2024 was exceptional, reporting: Net revenue of ZMW 16.36 billion (US$625.44 million). Net prot of ZMW 34.19 billion (US$1.31 billion). The restructuring has positioned Mopani for long-term success, ensuring it remains one of Zambia’s leading copper producers. 2. Konkola Copper Mines Plc – Rebuilding for the Future After years of legal and operational uncertainty, KCM has successfully transitioned back under Vedanta Resources, following the resolution of ownership matters. With US$1.2 billion earmarked for operational revitalization, KCM’s future is now anchored on: Development of the Konkola Deep Mining Project. Infrastructure modernization to improve efciencies. Financial stabilization to sustain operations and unlock long-term value. 3. Expanding Our Copper Footprint – Mingomba and Lubambe Mingomba Mining Limited: With ZCCM-IH’s US$21.22 million investment, we have made signicant progress in geological exploration and feasibility studies to unlock one of Zambia’s highest-grade copper deposits. Lubambe Copper Mine: The US$300 million investment by JCHX Mining has stabilized operations, allowing ZCCM-IH to increase our stake to 30% and secure marketing rights for copper concentrate sales. These investments are critical to Zambia’s long- term copper production expansion goals. 4. Expanding Our Role in Zambia’s Energy Sector Maamba Energy Limited – Strengthening Power Security: ZCCM-IH committed US$50 million towards Maamba’s Phase II expansion, a US$400 million project that will double power generation to 600MW. MEL achieved a 99.95% Plant Load Factor, demonstrating operational excellence and efciency. The arbitration settlement with ZESCO helped ease nancial challenges, improving Maamba’s nancial position. Copperbelt Energy Corporation (CEC) – Strengthening Market Presence: increased stake in CEC from 31.07% to 32.41% reinforces our commitment to powering Zambia’s industrial and mining sectors. We continue to explore renewable energy investments, ensuring long-term sustainability and diversied power sources. 5. Our ESG Commitment – Embedding Sustainability in Our Strategy As Zambia’s leading mining and energy investment rm, we are fully committed to responsible and sustainable business practices. Our ESG priorities in 2024 included: Decarbonization: Kariba Minerals Ltd is transitioning to solar power (250KVA system), reducing diesel dependency. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 25 Director Masitala Mushinga CEO Kakenenwa Muyangwa Jason Kazilimani, Jr CHIEF EXECUTIVE OFFICER’S STATEMENT (continued) Community Investment: Infrastructure, education, and healthcare initiatives continue to be a priority in our host communities. Governance Strengthening: Enhanced risk management and transparency measures have been implemented to align with global best practices. ZCCM-IH is integrating ESG across all subsidiaries and investments, ensuring long- term environmental, social, and governance sustainability. Reshaping Our Business for Operational Excellence As part of our strategic review in 2024, we realigned our focus towards four key priorities: 1. Financial Excellence and Sustainability – Ensuring strong returns and disciplined capital allocation. 2. Operational Excellence and Business Focus – Optimizing efciencies in mining and energy investments. 3. Strengthening Stakeholder Relationships – Enhancing partnerships with government, communities, and investors. 4. Investing in Our People – Developing talent, fostering innovation, and embedding a high-performance culture. Additionally, we transitioned our strategic ethos from “Mining SMARTLY” to “Investing SMARTLY”, emphasizing: Sustainability; Proactive investment management; Timely decision-making; Long-term value creation. Looking Ahead – Growth, Innovation, and Value Creation As we enter 2025, our focus will remain on: Restructuring our subsidiaries to ensure sustainable protability. Expanding critical mineral exploration and beneciation projects. Strengthening our energy investments to support Zambia’s industrialization agenda. Driving ESG leadership, embedding sustainability into our operations. With Zambia targeting 3 million tonnes of copper production annually by 2031, ZCCM-IH is positioned as a key enabler of this vision. Acknowledgment I extend my gratitude to our employees, management team, partners, and shareholders for their unwavering commitment and dedication. As we move forward, we will continue driving ZCCM-IH’s transformation, unlocking long-term value, and ensuring sustainable growth for future generations. ZCCM Investments Holdings Plc Mr Kakenewa Muyangwa Chief Executive Ofcer ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 26 EXECUTIVE MANAGEMENT TEAM Mr. Kakenenwa Muyangwa Chief Executive Ofcer Ms Chilandu Sakala Chief Financial Ofcer Mr Shepherd Mwanza Chief Internal Audit Ofcer Mr Situmbeko Mubano Acting Chief Investments Ofcer Mr Charles Mjumphi Company Secretary Ms Mwaka Mwamulima Risk Manager Mr Gift Zulu Procurement Manager Mr Kalembo Tito Strategy Manager Ms Betty Meleki Chief Human Resource and Administration Ofcer Ms Loisa Mbatha Corporate Affairs Manager Mr Tisa Chama Chief Technical Ofcer Mr Mukuka Kangwa Chief Information and Communications Technology Ofcer ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 27 OPERATIONS REPORT Portfolio Performance Review PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW A Subsidiary Companies Zambia Gold Company Limited (ZGCL) Zambia Gold Company Limited (ZGCL) plays a pivotal role in the formalization and expansion of Zambia’s gold sub-sector. The company is engaged in gold exploration, mine development, production, processing, and marketing both domestically and in- ternationally aiming to enhance the sector’s contribution to the national economy. For the year ended 31 December 2024, no gold production was recorded due to the continued suspension of mining activities at Kasenseli by the Mines Safety Department since 2021. During the year 2024 the mine resumed its operations, following the completion of remedial works mandated by the regulator. During the year, the Board of ZCCM-IH approved a US$5 million facility for ZGCL to fund remedial works, including mine planning, security enhancements, among others. Financial Performance: Revenue: ZMW Nil (2023: ZMW 38.52 million) previous year revenue was derived from a 34kg gold sale. Net Loss: ZMW 84.02 million (2023: ZMW 23.35 million loss). Strategic Outlook: Exploring alternative license areas in Rufunsa and Luano. Establishing a gold trading centre in Mumbwa (launch expected in 2026). Plans to purchase gold from local miners and rene it into bullion for offtake by the Bank of Zambia (BoZ). Dividends: No dividend declared for the year (2023: Nil) ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 28 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW A Subsidiary Companies Limestone Resources Limited (LRL) Limestone Resources Limited, formerly Ndola Lime Company, is engaged in the production and supply of quicklime, hydrated lime, and other specialized limestone products. During 2024, LRL faced operational challenges, including: Frequent plant failures and a lack of mobile mining equipment, severely impacting production. Shutdown of the sole operational kiln in May 2024 due to high material losses and declining product quality resulting to sourcing products from external suppliers to meet customer demand. To address these challenges, a Techno-Economic Feasibility Study, Market Analysis, and Business Plan were completed in 2024. A long-term strategy has been developed and is pending approval in Q2 2025. Financial Performance: Revenue: ZMW 72.32 million (2023: ZMW 96.7 4million). Net loss: ZMW 133.63 million (2023: ZMW 180.74 million). Strategic Initiatives: A working capital funding facility of US$4.4 million was provided on 12 th August, 2024, to support ongoing operational and nancial requirements. Implementation of a comprehensive restructuring plan to improve operational and nancial performance. Dividends: No dividend declared for the year (2023: Nil) ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 29 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW A Subsidiary Companies Misenge Environmental and Technical Services Limited (METS) Misenge Environmental and Technical Services Ltd (METS), a wholly owned subsidiary of ZCCM-IH, provides environmental, analytical, radiation safety, and engineering services to the mining and industrial sectors. Financial Performance: Revenue: ZMW 13.36 million (2023: ZMW 5.28 million). Net loss: ZMW 3.78 million (2023: ZMW 0.93 million). Strategy outlook: The ZCCM-IH Board, in conjunction with the Misenge Board, has resolved to dissolve Misenge Environmental and Technical Services Limited (METS) and explore the integration of its key functions into ZCCM-IH to enhance operational efciency and streamline service delivery. Dividends: No dividend declared for the year (2023: Nil). Kariba Minerals Limited (KML) Kariba Minerals Limited (KML), a subsidiary of ZCCM-IH, is a leading producer of high-quality amethyst with a primary market in China and India. Operational Performance: Amethyst production of 149.41 tonnes, exceeding budget by 10%. High-grade amethyst output was 32% above budget. Financial Performance: Revenue: ZMW 49.86 million (2023: ZMW 29.87 million). Net prot: ZMW 1.35 million (2023: ZMW 0.55 million). Investment & Expansion: The ZCCM-IH Board approved US$4.08 million for the Turnaround Plan, funding among others: Acquisition of mining equipment and vehicles. Value addition, marketing, and geological exploration. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 30 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW A Subsidiary Companies Kariba Minerals Limited (KML) Renewable Energy Initiative: 200KW solar plant commissioned in Mapatizya, reducing diesel generator dependence. Expansion to 400KW planned for 2025 to sustain wash plant operations. Dividends: No dividend declared for the year (2023: Nil) Investrust Bank PLC On April 2, 2024 the Lusaka Securities Exchange (LuSE) and the Bank of Zambia (BoZ) announced the suspension of trading of Investrust Bank Plc and its takeover by BoZ due to insolvency. As part of this process, BoZ terminated all shareholder interests in the bank, leading to the subsequent delisting of Investrust from LuSE. Consequently, ZCCM-IH no longer holds any shareholding or nancial interest in Investrust Bank Plc. Mushe Milling Company Limited Strategic Liquidation: Mushe was deemed a non-strategic t under ZCCM-IH’s 2020-2026 strategic plan. Liquidation proceedings commenced in July 2023. Liquidation process is ongoing. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 31 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Maamba Energy Limited (MEL) Maamba Energy Limited (MEL) continued to demonstrate strong nancial and operational performance in 2024. Financial Performance: Revenue for the year increased by 26% to ZMW6.32 billion (US$241.78 million), compared to ZMW5.00 billion (US$243.69 million) in 2023. Prot after tax stood at ZMW3.07 billion (US$117.45 million), reecting an increase from ZMW2.57 billion (US$125.04 million) in 2023. The plant achieved record-high efciency, maintaining 100% availability and a Plant Load Factor (PLF) of 99.95%. Key Developments: ZESCO, Zambia’s state-owned power utility, reached a landmark settlement with Maamba Energy in 2022 to clear outstanding arrears for power supplied. As of 31 December 2024, the outstanding balance from ZESCO was reduced to US$210.02 million from US$323.18 million in 2023. Maamba Energy Limited (MEL) successfully repaid the outstanding project nance facility for the development of the Phase 1 coal-red power plant, amounting to US$314.4 million. The repayment was completed during MEL’s nancial year ending 31 March 2024, marking a notable milestone in nancial restructuring. On 14 August 2024, Maamba Energy Limited (MEL) ofcially commenced construction of its 300 MW Phase II Power Plant expansion project at a total cost of US$400 million. The Phase II expansion will add 300 MW to MEL’s current capacity, effec- tively doubling its total generation to 600 MW. This expansion is critical to bolstering Zambia’s energy supply, supporting industrial growth, and reducing reliance on energy imports. The project is scheduled for completion by mid-2026, reinforc- ing MEL’s commitment to sustainable power generation and enhancing grid stability for the nation. ZCCM-IH has committed US$50 million towards the Maamba Energy Limited 300MW Phase II Project as part of its strategic expansion plan. The nancing structure includes US$35 million in equity and US$15 million in debt. During the year ZCCM-IH disbursed US$5 million towards the project with the balance to be disbursed in 2025. The debt portion has a tenor of 8.25 years, including a 1.25-year moratorium during construction, with an interest rate of 9% per annum. Dividends: No dividends were declared for the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 32 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Mopani Copper Mines Plc Mopani Copper Mines continued its turnaround efforts under a new strategic equity partnership, driving operational stability and long-term investment. Financial Performance: Revenue for 2024 stood at ZMW16.36 billion (US$625.44 million), compared to ZMW11.55 billion (US$562.87 million) in 2023. Net prot increased to ZMW34.19 billion (US$1.31 billion), up from ZMW8.97 billion (US$435.29 million) in 2023. Copper production for the year was 63,610 tonnes, a decrease from 65,602 tonnes in 2023, attributed to equipment availability challenges and delayed mine development. Key Developments, Strategic Partnership with IRH: In March 2024, ZCCM-IH entered an equity partnership with International Resources Holdings (IRH), a subsidiary of International Holdings Company (IHC). IRH, through Delta Mining Limited (Delta), acquired a 51% stake in Mopani, while ZCCM-IH retained 49% ownership. The agreement involved: US$220 million equity injection into Mopani’s working capital. US$400 million additional investment over the next three years under the Project Development Plan (PDP). US$1.1 billion total investment, including a US$400 million payment to Glencore to restructure Mopani’s US$1.71 billion historical debt. Transformation Initiative: A company-wide culture transformation initiative, “TukaChimfya Pamo”, was introduced to promote collaborative leadership and operational excellence. Future Growth: The PDP is expected to drive Mopani’s copper production beyond 200,000 tonnes per year over the next 4–5 years. Dividends: No dividends were declared for the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 33 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Konkola Copper Mines Plc (KCM) KCM successfully navigated a major legal and structural resolution in 2024, paving the way for investment and operational recovery. Key Developments: On 25 July 2024, the Lusaka High Court vacated the winding-up petition, reinstating KCM’s Board of Directors and restoring full management control to Vedanta Resources. Investment Commitments: Vedanta Resources pledged to invest US$1.2 billion over the next ve years for: Revamping mining operations Expanding the Konkola Deep Mining Project (KDMP) Enhancing copper production capacity Vedanta provided US$250 million in working capital to clear local supplier debts and stabilize operations. A scheme of arrangement was implemented to restructure liabilities and improve operational liquidity. Financial Performance: Recorded revenue of ZMW10.78 billion (US$412,15 million) Re- corded prot for the year of ZMW12.15 billion (US$464.68 million) Copper production for the period was 12,703 tonnes, a signi- cant increase from 6,244 tonnes in 2023 attributed to improved availability of equipment. Dividends: No dividends were declared for the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 34 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Copperbelt Energy Corporation Plc (CEC) CEC Plc continued its strong nancial growth, driven by strategic expansion in renewable energy and a successful Green Bond program. Financial Performance: Revenue grew 43% to ZMW14.32 billion (US$547.65 million), compared to ZMW7.85 billion (US$382.27 million) in 2023. Prot after tax stood at ZMW2.53 billion (US$96.92 million) (2023: ZMW2.83 billion (US$137.65 million)). The CEC share price increased from ZMW7.09 to ZMW13.84 by year-end. Key Developments: Expansion in Renewable Energy: In 2024, CEC successfully commissioned the 60MWp Itimpi I Solar PV Plant, which generated 95.3 GWh of renewable energy during the year marking a key milestone in the Company’s clean energy journey. The CEC Board of Directors approved the development of the 136MWp Itimpi II Solar PV Plant, with commissioning anticipated in early 2026. Upon completion, this will increase CEC Renewables’ total generation capacity to 230MWp, further advancing the Company’s renewable energy targets. During the year, CEC made its rst Green Bond coupon payment of US$2.4 million and, in December 2024, issued the second tranche of the Green Bond programme, raising US$96.7 million to nance the development of the Itimpi II project. With this second issuance, the total capital raised under the Green Bond Medium Term Note Programme has reached US$150.27 million, Green Bond Program: Raised US$454 million in oversubscribed rst tranche of a US$200 million Green Bond Term Note Program. The rst Green Bond coupon payment of US$2.4 million was made in 2024. Dividends: Declared US$60.12 million in dividends, with ZCCM-IH receiving US$18.68 million (2023: US$14.59 million). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 35 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Mingomba Mining Limited (MML) Mingomba Mining Limited (MML) continued its exploration activi- ties throughout 2024, with a focus on resource denition and feasi- bility studies. Financial Performance: The company did not generate revenue during the year due to its ongoing exploration phase. Year-to-date expenditure stood at US$23.50 million, against a budget of US$28.67 million. The lower expenditure was primarily due to a slowdown in camp construction, with most costs incurred related to architectural design and early-stage infrastructure planning. Exploration Progress: Drilling Activities: 19 drill holes completed, covering a total of 55 km as of mid- 2024. Geological assessments remained on track. Resource Evaluation: MML completed its rst resource statement in 2024, marking a key milestone in dening the economic potential of the deposit. Pre-feasibility studies are expected to conclude in 2025, further informing development plans. ZCCM-IH Investment Commitment: ZCCM-IH contributed US$9.7 million in cash calls for the nancial year 2024, in line with its shareholding obligations. The Company will continue to participate in additional capital contributions as per the approved Annual Budget for MML. Dividends: No dividends were declared for the year (2023: Nil) ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 36 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies Rembrandt Properties Limited Rembrandt Properties Limited (Rembrandt) is a Special Purpose Vehicle (SPV) established for the development and operation of the Leopard’s Square Hotel. Ownership Structure: ZCCM-IH holds a 49% stake, alongside Urban Brands Asset Management (25.5%) and Sims Capital Ltd (25.5%). Financial Performance: Revenue for 2024: ZMW18.79 million, up from ZMW14.77 million in 2023. Net prot: ZMW3.69 million, compared to a net loss of ZMW2.47 million in 2023. The positive nancial turnaround was driven by increased operational efciency and service demand. Construction Status and Developments: The hotel project is 95% complete. Operational Activities: Despite the delay, Leopard’s Square Hotel has been operational since Q2 2022, offering accommodation, conferencing, and dining services. Strategic Realignment: On 10 September 2024, ZCCM-IH announced a call for expressions of interest (EOI) to sell its 49% stake in Rembrandt. The divestment is part of ZCCM-IH’s strategic refocus, which prioritizes investments in mining, energy, and beneciation sectors. Dividends: No dividends were declared during the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 37 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANYPORTFOLIO COMPANY 2024 PERFORMANCE REVIEW2024 PERFORMANCE REVIEW B Associate Companies Lubambe Copper Mine Limited Lubambe Copper Mine Limited reported total revenue of ZMW3.90 billion (US$148.98 million) for the year ended 31 De- cember 2024, representing a 78.1% increase from ZMW2.19 billion (US$106.59 million) in 2023. Despite the revenue growth, the company recorded a net loss of ZMW2.71 billion (US$103.5 million), an improvement from the ZMW2.98 billion (US$144.94 million) loss in 2023. Production Performance: Lubambe produced 8,745 tonnes of payable copper in 2024, a signicant decline from 14,984 tonnes in 2023. The lower output was attributed to operational challenges, delayed mine development, and equipment availability is- sues. Production Performance: Revenue for 2024 ZMW3.90 billion (148.98$ million) up from ZMW2.52 billion (US$122.59 million). Net loss in 2024 of ZMW2.71 billion (US$103.50 million) com- pared to ZMW3.06 billion (US$148.86 million). Strategic Ownership Changes & Investment: On 10 July 2024, EMR Capital sold its 80% stake in Lubam- be to JCHX Mining Management Company Limited (JCHX). JCHX acquired this stake through its wholly owned subsidi- ary, Sundimo Mining Investments Limited. This change necessitated the renegotiation of the Share- holders’ Agreement and commercial terms between ZC- CM-IH and Sundimo. JCHX announced a US$300 million investment commitment aimed at improving operational efciency and extending the mine’s life. With JCHX now in control, Lubambe is undergoing a turn- around strategy aimed at stabilizing production, optimizing operations, and extending the mine life. The company ex- pects further investment in mine development and infra- structure to unlock its long-term value. ZCCM-IH Increases Stake in Lubambe: On 28 August 2024, ZCCM-IH acquired an additional 10% shareholding for US$1, increasing its stake from 20% to 30%. JCHX’s stake reduced from 80% to 70% following the trans- action. Dividends: No dividends were declared during the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 38 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW B Associate Companies CNMC Luanshya Copper Mines Plc (CLM) CNMC Luanshya Copper Mines Plc continued its core operations in copper mining and exploration, with improved nancial and production performance in 2024. Financial Performance: Total revenue: ZMW11.76 billion (US$449.59 million), reecting a 38.4% increase from ZMW8.49 billion (US$414.51 million) in 2023. Net prot: ZMW3.92 billion (US$149.76 million), up from ZMW2.93 billion (US$142.71 million) in 2023. The revenue increase was mainly driven by strong copper prices and operational efciencies. Production Performance: Copper output in 2024: 25,293 tonnes, signicantly lower than 48,904 tonnes in 2023. The decline was attributed to temporary operational constraints and equipment maintenance. Key Developments: CLM announced a US$500 million investment to re-open the old Luanshya Mine (“Shaft 28”), a key asset that has been non- operational for over 22 years. The re-opening of Old Luanshya Mine (“28 Shaft”) is expected to extend the LoM from 6 years to 25 years. 28 Shaft will ofcially be called Luanshya New Mine. Luanshya New Mine has an estimated total life of 20 years The mine dewatering process commenced, with a budget of US$100 million allocated for this exercise. As of 30 June 2024, 9 million cubic meters of water had been pumped out into the Kafue River. The dewatering process is expected to take between 18 to 24 months, paving the way for full-scale mining operations to resume. Dividends: Declared dividends of US$50 million, with US$10 million paid to ZCCM-IH (2023: US$30 million was declared). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 39 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW C Other Investments NFC Africa Mining Plc (NFCA) NFC Africa Mining Plc (NFCA) delivered a strong nancial performance, driven by cost-cutting initiatives and favourable copper prices. Financial Performance: Total revenue: ZMW15.87 billion (US$606.98 million), up from ZMW12.8 billion (US$619.82 million) in 2023. Net prot: ZMW3.25 billion (US$124.41 million), a 116.7% increase from ZMW1.5 billion (US$76 million) in 2023. Production Performance: Copper production: 34,427 tonnes, down from 68,757 tonnes in 2023. Despite lower production, protability improved due to higher copper prices and cost optimization measures. Debt Management: NFCA continues to operate under a high debt burden, and the increase in US$-denominated lending rates has signicantly raised interest costs. Dividends: Declared dividends of US$10 million, with ZMW36.62 million (US$1.5 million) paid to ZCCM-IH (2023: Nil). Chibuluma Mines Plc Chibuluma Mines Plc remained on lease to LC & Y as the mine’s operational life has been depleted. Financial Performance: Royalty revenue: US$0.95 million, down from US$2.58 million in 2023. Net prot: US$0.34 million, a decline from US$1.87 million in 2023. Exploration Activities: Chibuluma is exploring potential new mining areas and has partnered with Kobold Metals (USA) to leverage Articial In- telligence (AI) for enhanced mineral exploration. Dividends: No dividends were declared during the year (2023: Nil) Chambishi Metals Plc Chambishi Metals remained under care and maintenance, primarily due to a lack of feedstock and strategic operational limitations. Dividends: No dividends were declared during the year (2023: Nil). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 40 OPERATIONS REPORT (continued) Portfolio Performance Review (continued) PORTFOLIO COMPANY 2024 PERFORMANCE REVIEW C Other Investments Kansanshi Mining Plc (Kansanshi) Kansanshi Mining Plc continued its core operations in mining, processing, and exploration of copper and gold in North Western Province. Key Developments: The S3 Expansion Project is First Quantum Minerals (FQM)’s primary focus. Completion of the S3 expansion is scheduled for mid-2025, extending the mine’s life by ve years to 2029. ZESCO implemented 8-hour daily load shedding starting March 11, 2024, affecting Kansanshi’s power supply. FQM received a force majeure notice from ZESCO, allowing it to source alternative power solutions. Financial Performance: Total revenue: ZMW53.61 billion (US$2.05 billion), which is signicantly higher than ZMW32.30 billion (US$1.57 billion) in 2023. Net prot: ZMW9.5 billion (US$362.23), which is signicantly higher than ZMW343.83 million (US$16.75 million) in 2023. Production Performance: Copper production: 170,929 tonnes, 27% higher than 2023, marking the highest production since 2021. Gold production: 105,103 ounces, up 52% from 2023, driven by selective mining of high-grade veins. Royalty & Dividend Income: Royalties received: ZMW1,425.67 million (US$54.51 million) (2023: ZMW1,200 million (US$56.13 million)). No dividends declared for 2024 (2023: US$9.05 million). ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 41 Directors’ responsibilities in respect of the preparation of consolidated and separate annual nancial statements The Companies Act, 2017 of Zambia requires the Directors to prepare the consolidated and company nancial statements for each nancial year that give a true and fair view of the state of affairs of the Group and Company as at the end of the nancial year and of its nancial performance. It also requires the Directors to ensure that the Group and Company keeps proper accounting records that disclose, with reasonable accuracy, the nancial position of the Group and Company. They are also responsible for safeguarding the assets of the Group and Company. The Directors are further required to ensure the Group and Company adheres to the corporate governance principles or practices contained in Sections 82 to 122 of Part VII of the Companies Act, 2017 of Zambia. The Directors accept responsibility for the consolidated and company nancial statements, which have been prepared using appropriate accounting policies supported by reasonable estimates, in conformity with IFRS® Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS Accounting Standards), the requirements of the Companies Act 2017 of Zambia and the Securities Act of Zambia. The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of consolidated and company nancial statements, and for such internal controls as the Directors determine necessary to enable the preparation of the consolidated and company nancial statements that are free from material misstatement whether due to fraud or error. The Directors are of the opinion that the consolidated and company nancial statements set out on pages 50 to 195 give a true and fair view of the state of the nancial affairs of the Group and Company and of its nancial performance in compliance with IFRS® Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS Accounting Standards) and in compliance with the requirements of the Companies Act of Zambia and the Securities Act of Zambia. The Directors further report that they have implemented and further adhered to the corporate governance principles or practices contained in Sections 82 to 122 of Part VII of the Companies Act, 2017 of Zambia. Nothing has come to the attention of the Directors to indicate that the Group and Company will not remain a going concern for at least twelve months from the date of these nancial statements. Signed on behalf of the Board of Directors, ___ ___ Mr Phesto Musonda Ms Masitala N Mushinga Director Director Date: 18 June 2025 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 42 Director Masitala Mushinga CEO Kakenenwa Muyangwa Jason Kazilimani, Jr ZCCM-IH PLC MANAGEMENT REPORT ON INTERNAL CONTROLS OVER REPORTING Internal Controls over Financial Reporting and Accountability Compliance The Securities Act requires SEC registrants to publish in the annual report the assessment of the Companies’ internal controls over nancial reporting (ICOFR). In pursuant of this requirement, the Company continues to strengthen its internal control environment to ensure the reliability and integrity of its nancial reporting. In line with ongoing engagements with the Securities and Exchange Commission, the Company has not included the ICOFR reporting in the 2024 Annual Report. Instead, a comprehensive Gap Analysis Report will be submitted by 30th June 2025, detailing identied deciencies within the current internal control framework and setting out targeted remedial actions to strengthen control effectiveness across key nancial reporting processes. Furthermore, the Company will continue to provide quarterly progress updates to the Commission on the implementation status of the ICOFR framework, including the design, documentation, and operationalisation of entity-level, IT general, and business process controls, consistent with the COSO 2013 principles. These actions demonstrate the Company’s ongoing commitment to regulatory compliance, transparency, and strong corporate governance. Signed by Chief Executive Ofcer Chief Financial Ofcer ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 43 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 44 INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF ZCCM INVESTMENTS HOLDINGS PLC Report on the audit of the consolidated and separate nancial statements Opinion We have audited the consolidated and separate nancial statements of ZCCM Investments Holdings Plc ("the Group and Company") set out on pages 50 to 195, which comprise the consolidated and company statement of nancial position as at 31 December 2024, and the consolidated and company statements of prot or loss and other comprehensive income, consolidated and company changes in equity and consolidated and company statements of cash ows for the year then ended, the notes to the nancial statements, and a summary of material accounting policy information. In our opinion, the accompanying consolidated and separate nancial statements give a true and fair view of the consolidated and separate nancial position of ZCCM Investments Holdings Plc as at 31 December 2024, and of its consolidated and company nancial performance and consolidated and separate cash ows for the year then ended in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and in compliance with the requirements of the Companies Act of Zambia and the Securities Act of Zambia. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the Audit of the consolidated and separate nancial statements section of our report. We are independent of the Group and Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated and separate nancial statements in Zambia, and we have fullled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most signicance in our audit of the consolidated and separate nancial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 45 Valuation of investments in subsidiaries and associates Only applicable to the separate nancial statements. Refer to note 4: Use of estimates and judgments, note 22: Investment in subsidiaries, note 23 (c): Investment in associates and note 45(a)(ii): Subsidiaries and note 45(a)(v) : Interest in equity accounted investees. Key audit matter How the matter was addressed in our audit The Company recognises its investments in subsidiaries and associates at fair value through other comprehensive income (FVTOCI). As at 31 December 2024 these balances amounted to ZMW 191,501,000 and ZMW 34,452,165,000 respectively. Management utilised a valuation expert to determine the fair value of its investments. Management exercises signicant judgement when determining the valuation inputs utilised to value its level 3 investments. The approach could either be the discounted cash ows, relative valuation or net asset values depending on the industry, life cycle and comparability of the investee’s business to other similar listed companies. The key inputs and assumptions involving signicant estimation judgement and having the most signicant impact on the fair value of the investments is the: • Valuation technique used - Discounted cash ow/or relative valuation • Weighted average cost of capital (WACC) • Market risk premium • Future cash ows This was an area of focus and considered a key audit matter due to the signicant complexity, estimation and judgement applied by management in the valuation of investments in subsidiaries and associates. The following procedures were performed: • We assessed the competence, independence and experience of management’s expert by inspecting their qualications and experience obtained in performing valuations of a similar nature. • We evaluated the reasonableness of the future cash ows used in the computation by comparing the values used to actual results. • We evaluated the design, implementation and operating effectiveness of relevant key controls relating to management’s review of the valuation expert’s fair valuation report. • With the assistance of our internal valuation specialists: We challenged the approach employed by management’s appointed expert for the discounted cash ow, including assessing the reasonableness of the weighted average cost of capital and market risk premiums used by comparing it to external data; We assessed comparability of companies used where the relative valuation technique was utilised for reasonableness by evaluating whether industry and risk proles were similar; We recalculated the fair value of investments in subsidiaries and associates and compared it to management’s valuation expert’s calculation. • We assessed the adequacy of the disclosures in the separate nancial statements, related to the valuation of investments in subsidiaries and associates by comparing the notes to the separate nancial statements to the valuation reports and assessing against the requirements of IFRS 13. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 46 Valuation of nancial assets at fair value through prot or loss Applicable to both consolidated and separate nancial statements. Refer to note 4: use of estimates and judgement, note 24: Financial assets at fair value through prot and loss and note 45(d) : Financial instruments. Key audit matter How the matter was addressed in our audit The Group and Company recognises its nancial assets at fair value through prot or loss (FVTPL). As at December 2024 these balances amounted to ZMW 2,741,000,000 for the consolidated and separate nancial statements. Management utilised a valuation expert to determine the fair value of its nancial assets. Management exercises signicant judgement when determining the valuation inputs utilised to value its level 3 investments. The approach used can either be the discounted cash ows, relative valuation or net asset values depending on the industry, life cycle and comparability of the investee’s business to other similar listed companies. The key inputs and assumptions involving signicant estimation judgement and having the most signicant impact on the fair value of the investments is the: • Valuation technique used: Discounted cash ow and relative valuation • Weighted average cost of capital (WACC) • Market risk premium • Future cash ows This was an area of focus and considered a key audit matter due to the signicant complexity, estimation and judgement applied by management in the valuation of nancial assets at fair valuation through prot or loss. The following procedures were performed: We assessed the competence, independence and experience of management’s expert by inspecting their qualications and experience obtained in performing valuations of a similar nature. We evaluated the reasonableness of the future cash ows used in the computation by comparing the values used to actual results. We evaluated the design, implementation and operating effectiveness of relevant key controls relating to management’s review of the valuation expert’s fair valuation report. We evaluated the arithmetic accuracy of the data used in the valuation calculations by performing a roll forward reconciliation. With the assistance of our internal valuation specialists: • We challenged the approach employed by management’s appointed expert, including assessing the reasonableness of the weighted average cost of capital and market risk premiums used by comparing it to external data; • We recalculated the fair value of nancial assets at fair value through prot or loss by establishing a company’s relative positioning among peer companies through the relative valuation approach for associates and compared the results to management’s valuation expert’s calculation. We assessed the adequacy of the disclosures in the consolidated and separate nancial statements related to the valuation of the investments in accordance with IFRS 13 by comparing the notes to the nancial statements to the valuation reports. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 47 Valuation of the royalty right interest Applicable to both consolidated and separate nancial statements. Refer to note 4:use of estimates and judgement, note 19 Intangible assets and 45(g) Intangible assets. Key audit matter How the matter was addressed in our audit The Group and Company recognised its royalty right as ZMW 19,909,353,000. Management utilised a valuation expert to determine the fair value of its royalty right. Management exercises signicant judgement when determining the valuation inputs utilised to value its level 3 investments. The approach used is the discounted cash ows (DCF). The key inputs and assumptions involving signicant estimation judgement and having the most signicant impact on the fair value of the royalty right interest is the: - Valuation technique used being the DCF - Weighted average cost of capital (WACC) - Future cash ows This was an area of focus and considered a key audit matter due to the signicant complexity, estimation and judgement applied by management in the valuation of the royalty right. The following procedures were performed: We assessed the competence, independence and experience of management’s expert by inspecting their qualications and experience obtained in performing valuations of a similar nature. We evaluated the reasonableness of the future cash ows used in the computation by comparing the values used to actual results. We evaluated the design, implementation and operating effectiveness of relevant key controls relating to management’s review of the valuation expert’s fair valuation report. With the assistance of our internal valuation specialists: • We challenged the approach employed by management’s appointed expert, including assessing the reasonableness of the WACC used by comparing it to external data; • We recalculated the fair value of royalty right interest and compared it to management’s valuation expert’s calculation. We assessed the adequacy of the disclosures in the consolidated and separate nancial statements related to the valuation of investments in accordance with IFRS 13, Fair value measurement by comparing the notes to the nancial statements to the valuation reports. Other information The directors are responsible for the other information. The other information comprises the information included in the document titled “ZCCM Investments Holdings Plc Integrated Annual Report for the year ended 31 December 2024” which includes the Report of the Directors of the consolidated and separate nancial statements as required by the Companies Act of Zambia. The other information does not include the consolidated and separate nancial statements and our auditor's report thereon. Our opinion on the consolidated and separate nancial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate nancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate nancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 48 Responsibilities of the directors for the consolidated and separate nancial statements The directors are responsible for the preparation of consolidated and separate nancial statements that give a true and fair view in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and in compliance with the requirements of the Companies Act of Zambia and the Securities Act of Zambia, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate nancial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated and separate nancial statements, the directors are responsible for assessing the Group's and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and/or Company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the consolidated and separate nancial statements Our objectives are to obtain reasonable assurance about whether the consolidated and separate nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inuence the economic decisions of users taken on the basis of these consolidated and separate nancial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated and separate nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufcient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and Company's internal controls. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signicant doubt on the Group and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and separate nancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and/or Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated and separate nancial statements, including the disclosures, and whether the consolidated and separate nancial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufcient appropriate audit evidence, regarding the nancial information of the entities or business units within the group, as a basis for forming an opinion on the group nancial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the group audit. We remain solely responsible for our audit opinion. ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 49 We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and signicant audit ndings, including any signicant deciencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most signicance in the audit of the consolidated and separate nancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benets of such communication. Report on other legal and regulatory requirements Companies Act of Zambia In accordance with Section 259 (3) (a) of the Companies Act of Zambia (the Act), we consider and report that: • there is no relationship, interest or debt we have with the Company; and • there were no serious breaches of corporate governance principles or practices by the directors as dened by the guidelines on serious breaches of corporate governance issued by the Zambia Institute of Chartered Accountants. Securities Act of Zambia In accordance with Rule 18 of the Securities (Accounting and Financial Reporting Requirements) Rules (SEC Rules), Statutory Instrument No.163 of 1993, we consider and report that: • The consolidated and separate statements of nancial position and consolidated and separate statements of prot or loss and other comprehensive income were in agreement with the accounting records; and • We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. KPMG Chartered Accountants 20 June 2025 Jason Kazilimani, Jr AUD/F000336 Partner signing on behalf of the rm ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 50 Director Masitala Mushinga CEO Kakenenwa Muyangwa Jason Kazilimani, Jr CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 31 December 31 December 2024 2023 Note ZMW’000 ZMW’000 Assets Property, plant and equipment 17 406,123 248,857 Exploration and evaluation asset 18 15,431 51,437 Intangible assets 19 19,987,739 14,393,945 Investment property 20 205,891 208,598 Investment in associates 23 24,404,820 10,090,940 Financial assets at fair value through prot or loss 24 2,741,000 3,019,500 Trade and other receivables 26 2,553,051 1,628,837 Environmental protection fund 27 369 7,060 Long term bonds 29 329,525 - Total non-current assets 50,643,949 29,649,174 Inventories 25 32,536 38,299 Trade and other receivables 26 969,708 339,169 Short term deposits 29 5,015,626 4,450,451 Burden costs for mining 28 6,599 - Cash and cash equivalents 30 525,685 360,356 6,550,154 5,188,275 Assets classied as held for sale 21(ii) 92,140 23,626,388 Total current assets 6,642,294 28,814,663 Total assets 57,286,243 58,463,837 Equity Share capital 33(i) 1,608 1,608 Share premium 33(iii) 2,089,343 2,089,343 Other reserves 27,214,750 8,861,258 Retained earnings 22,920,994 (16,468,059) Equity attributable to shareholders 52,226,695 (5,515,850) Non-controlling interest 22(c) 37,016 (174,784) Total equity 52,263,711 (5,690,634) Liabilities Borrowings 35 2,808,418 - Deferred tax liability 36 296,134 751,833 Retirement benets 37 17,373 17,381 Provisions for environmental rehabilitation 38 245,810 112,751 Total non-current liabilities 3,367,735 881,965 Borrowings 35 538,449 - Trade and other payables 31 179,602 312,756 Provisions 32 49,671 44,243 Current income tax liabilities 14 872,770 238,553 1,640,492 595,552 Liabilities directly associated with assets classied as held for sale 21(ii) 14,305 62,676,954 Total current liabilities 1,654,797 63,272,506 Total liabilities 5,022,532 64,154,471 Total equity and liabilities 57,286,243 58,463,837 The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements. he consolidated nancial statements were approved and authorised for issue by the Board of Directors on 18 June 2025 and signed on its behalf by: ………………………........……. ……………………….......… Mr Kakenenwa Muyangwa Ms Masitala N Mushinga Director Director ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 51 Director Masitala Mushinga CEO Kakenenwa Muyangwa Jason Kazilimani, Jr COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 31 December 2024 31 December 2023 Note ZMW’000 ZMW’000 Assets Property, plant and equipment 17 143,625 110,624 Intangible assets 19 19,909,353 14,260,690 Investment property 20 205,891 208,598 Investments in subsidiaries 22 191,501 282,384 Investment in associates 23 34,452,165 11,240,080 Financial assets at fair value through prot or loss 24 2,741,000 3,019,500 Long term bonds 29 329,525 - Trade and other receivables 26 2,699,139 4,586,471 Total non-current assets 60,672,199 33,708,347 Trade and other receivables 26 921,676 288,268 Short term deposits 29 5,015,626 4,411,330 Cash and cash equivalents 30 221,736 61,137 6,159,038 4,760,735 Assets classied as held for sale 73,588 - Total current assets 6,232,626 4,760,735 Total assets 66,904,825 38,469,082 Equity Share capital 35 1,608 1,608 Share premium 36 2,089,343 2,089,343 Other reserves 37 53,320,199 23,821,722 Retained earnings 38 6,881,393 11,509,346 Equity attributable to shareholders 62,292,543 37,422,019 Liabilities Borrowings 35 2,808,418 - Deferred income tax liability 36 175,810 618,059 Retirement benet obligations 37 17,373 17,381 Provisions for environmental rehabilitation 38 71,289 54,498 Total Non-current liabilities 3,072,890 689,938R Borrowings 35 538,449 - Trade and other payables 31 103,133 78,288 Provisions 32 25,551 41,461 Current income tax liabilities 14 872,259 237,376 Total Current liabilities 1,539,392 357,125 Total liabilities 4,612,282 1,047,063 Total equity and liabilities 66,904,825 38,469,082 The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements. The Company nancial statements were approved and authorised for issue by the Board of Directors on 18 June 2025 and signed on its behalf by: ……………………………........ ……………….........……… Mr Kakenenwa Muyangwa Ms Masitala N Mushinga Director Director ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 52 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 31 December 2024 31 December 2023 Note ZMW’000 ZMW’000 Continuing operations Revenue from contracts with customers 7 3,208,963 11,747,105 Cost of sales 11 (3,695,521) (15,306,333) Gross loss (486,558) (3,559,228) Net investment income 8 1,668,192 1,388,863 Other income 9 34,233,364 243,727 Fair value adjustment on nancial assets at fair value through prot or loss 24 (278,500) 1,767,100 Net impairment losses on nancial assets 10 (26,949) (80,165) Administration expenses 11 (6,860,387 (1,865,261) Operating prot/(loss) 28,249,162 (2,104,964) Finance income 13 1,091,873 2,212,694 Finance costs 13 (1,750,369) (4,480,532) Net nance costs 13 (658,496) (2,267,838) Gain on reclassication of investee company 21(iv) 8,588,986 - Gain on derecognition of subsidiary 21(iii)/22(d) 910,428 - Share of prot or loss of equity-accounted investees, net of tax 23(a) 3,327,837 2,261,209 Prot/(loss) before income tax 40,417,917 (2,111,593) Income tax expense 14 (567,486) (1,206,049) Prot/(loss) for the year from continuous operations 39,850,431 (3,317,642) Loss from discontinued operations 21(iii)/22(c) (3,780) (758,181) Prot/(loss) for the year 39,846,651 (4,075,823) Other comprehensive income Items that will never be reclassied to prot or loss Revaluation surplus on transfer of property, plant and equipment 17 - 3,794 Deferred income tax on revaluation reserve 36 221 221 Remeasurements of post-employment benet obligations 37 (2,305) 24,134 Deferred income tax on remeasurements of post-employment benet obligations 36 692 2,944 Equity-accounted investees- share of other comprehensive income 23 (1,558) 11,529 Fair value change in equity 35 714,181 - Fair value change on royalty right 19 6,272,769 3,586,824 6,984,000 3,629,446 Items that are or may be reclassied to prot or loss Foreign currency translation differences - equity - accounted investees 23(a) 10,922,393 3,907,834 Foreign currency translation differences- subsidiaries 34 444,665 (16,437,514) 11,367,058 (12,529,680) Other comprehensive income, net of tax 18,351,058 (8,900,234) Total comprehensive income 58,197,709 (12,976,057) Prot/(loss) attributable to: Owners of the Company 39,887,820 (3,847,544) Non-controlling interests 22(c) (41,169) (228,279) 39,846,651 (4,075,823) Total comprehensive income attributable to: Owners of the Company 58,238,878 (12,747,778) Non-controlling interests 22(c) (41,169) (228,279) 58,197,709 (12,976,057) Earnings per share Basic and diluted earnings per share (ZMW) 15 247.80 (25.35) Earnings per share- continuing operations Basic and diluted earnings per share (ZMW) 15 247.83 (20.63) Earnings per share- discontinuing operations Basic and diluted earnings per share (ZMW) 15 (0.02) (4.72) The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 53 COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 31 December 2024 31 December 2023 Note ZMW’000 ZMW’000 Investment income 8 2,418,221 2,128,699 Revenue from contracts with customers 7 - 23,180 Cost of sales related to revenue from contracts with customer 11 - (16,878) Other (expenses)/ income 9 (4,651,873) 42,300 Fair value adjustment on nancial asset at fair value through prot or loss 24 (278,500) 1,767,100 Net impairment losses on nancial assets 10 (265,126) (83,055) Administration expenses 11 (1,387,894) (794,148) Operating (loss)/ prot (4,165,172) 3,067,198 Finance income 13 1,022,734 2,980,430 Finance costs 13 (661,087) (1,115) Net nance income 13 361,647 2,979,315 (Loss)/prot before tax (3,803,525) 6,046,513 Income tax expense 14 (580,188) (1,205,034) (Loss)/prot for the year (4,383,713) 4,841,479 Other comprehensive income Items that will never be reclassied to prot or loss Deferred income tax on revaluation reserve 36 221 221 Remeasurements of post-employment benet obligations 37 (2,305) (9,813) Deferred income tax on remeasurements of post-employment benet obligations 36 692 2,944 Fair value change in investments in subsidiaries 22 (173,782) (464,207) Fair value change in investments in associates 23 22,685,093 5,508,327 Fair value change in assets held for sale 732 - Fair value change in equity 35 714,181 - Fair value change on royalty right 19 6,272,769 3,586,824 Other comprehensive income, net of tax 29,497,601 8,624,296 Total comprehensive income 25,113,888 13,465,775 Earnings per share Basic and diluted earnings per share (ZMW) (27.26) 30.11 The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 54 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024 Other reserves ZMW’000 Note Share capital Share premium Revaluation reserve Translation/ fair value reserve Non- controlling interests Retained earnings Total Balance at 1 January 2023 1,608 2,089,343 278,698 17,522,138 (46,729) (11,936,251) 7,908,807 Loss for the year - - - - (228,279) (3,847,544) (4,075,823) Other comprehensive income Currency translation – equity accounted investees 23(a) - - - 3,907,834 - - 3,907,834 Currency translation of foreign denominated subsidiaries 34(ii) - - - (16,437,514) - - (16,437,514) Revaluation surplus - - 3,794 - - - 3,794 Transfer of excess depreciation - - (737) - - 737 - Deferred tax on transfer of excess depreciation 36 - - 221 - - - 221 Fair value change on royalty right 19 - - - 3,586,824 - - 3,586,824 Remeasurements of post-employment benet obligations 37 - - - - - 24,134 24,134 Share of associates other comprehensive income 23(a) - - - - - 11,529 11,529 Deferred tax on remeasurements of post-employment benet obligations 36 - - - - - 2,944 2,944 Total comprehensive income - - 3,278 (8,942,856) (228,279) (3,808,200) (12,976,057) Transaction with owners of the Company – Distributions Dividends - - - - - (723,608) (723,608) Derecognition - - - - 733 - 733 - - - - 99,491 - 99,491 Balance at 31 December 2023 1,608 2,089,343 281,976 8,579,282 (174,784) (16,468,059) (5,690,634) Balance at 1 January 2024 1,608 2,089,343 281,976 8,579,282 (174,784) (16,468,059) (5,690,634) (Loss)/prot for the year - - - - (41,169) 39,887,820 39,846,651 Other comprehensive income Currency translation – equity accounted investees 23(a) - - - 10,922,393 - - 10,922,393 Currency translation of foreign denominated subsidiaries 34(ii) - - - 444,665 - - 444,665 Transfer of excess depreciation - - (737) - - 737 - Fair value change on royalty right 19 - - - 6,272,769 - - 6,272,769 Remeasurements of post-employment benet obligations 37 - - - - - (2,305) (2,305) Deferred tax on transfer of excess depreciation 36 - - 221 - - - 221 Fair value change in equity 35 - - 714,181 - - - 714,181 Share of associates other comprehensive income 23(a) - - - - - (1,558) (1,558) Deferred tax on remeasurements of post-employment benet obligations 36 - - - - - 692 692 Total comprehensive income - - 713,665 17,639,827 (41,169) 39,885,386 58,197,709 Transaction with owners of the Company – Distributions Dividends - - - - - (243,364) (243,364) Derecognition of NCI In Investrust Bank Plc 22(c) - - - - 252,969 (252,969) - Balance at 31 December 2024 1,608 2,089,343 995,641 26,219,109 37,016 22,920,994 52,263,711 Retained earnings are the brought forward recognised income, net of expenses, of the Group plus current period prot or loss attributable to shareholders. The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 55 COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024 Other Reserves Note Share capital Share Premium Revaluation reserve Fair value reserve Retained earnings Total ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 Balance at 1 January 2023 1,608 2,089,343 29,484 15,161,810 7,397,607 24,679,852 Prot for the year - - - - 4,841,479 4,841,479 Other comprehensive income Transfer of excess depreciation - - (737) - 737 - Deferred tax on transfer of excess depreciation 36 - - 221 - - 221 Change in fair value of investments in subsidiaries 21/22 - - - (464,207) - (464,207) Change in fair value of investments in associates 23 - - - 5,508,327 - 5,508,327 Remeasurements of post-employment benet obligations 37 - - - - (9,813) (9,813) Fair value change on royalty right 19 - - - 3,586,824 - 3,586,824 Deferred income tax on remeasurements of post-employment benet obligations 36 - - - - 2,944 2,944 Total comprehensive income - - (516) 8,630,944 4,835,347 13,465,775 Transactions with owners of the Company – distributions Dividends - - - - (723,608) (723,608) Balance at 31 December 2023 1,608 2,089,343 28,968 23,792,754 11,509,346 37,422,019 Balance at 1 January 2024 1,608 2,089,343 28,968 23,792,754 11,509,346 37,422,019 Loss for the year - - - - (4,383,713) (4,383,713) Other comprehensive income Transfer of excess depreciation - - (737) - 737 - Deferred tax on transfer of excess depreciation 36 - - 221 - - 221 Change in fair value of investments in subsidiaries 21/22 - - - (173,782) - (173,782) Change in fair value of investments in associates 23 - - - 22,685,093 - 22,685,093 Remeasurements of post-employment benet obligations 37 - - - - (2,305) (2,305) Fair value change on royalty right 19 - - - 6,272,769 - 6,272,769 Fair value change in equity - - 714,181 - - 714,181 Fair value change in assets held for sale 21 - - - 732 - 732 Deferred income tax on remeasurements of post-employment benet obligations 36 - - - - 692 692 Total comprehensive income - - 713,665 28,784,812 (4,384,589) 25,113,888 Transactions with owners of the Company – distributions Dividends - - - - (243,364) (243,364) Balance at 31 December 2024 1,608 2,089,343 742,633 52,577,566 6,881,393 62,292,543 Retained earnings are the carried forward recognised income, net of expenses, of the Company plus current period prot or loss attributable to shareholders. The notes on pages 58 to 195 are an integral part of these consolidated and company nancial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 56 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 Notes 31 December 2024 ZMW’000 31 December 2023 ZMW’000 Cash ows from operating activities Prot/(loss) before tax from continuing operations 40,417,917 (2,111,593) Loss before tax from discontinued operations 21(iii) (3,780) (758,181) Adjustments for: Depreciation 17 52,702 1,783,108 Amortisation of intangible assets 19 628,841 389,366 Gain on disposal of property, plant and equipment 9 (644) (233) Interest income from related parties and term deposits 8,13 (456,276) (211,452) Interest expense 13 1,288,381 4,037,815 Impairment of assets – PPE 17/18 37,171 44 Impairment of Intangible assets 66,561 - Net impairment losses on nancial assets 10 26,949 80,165 Impairment of investment in associates 23 4,461,755 - Mopani investment expense 35 3,859,125 - Exchange difference on borrowings 35 299,520 - Other Income from Mopani loan modication 9 (38,881,600) - Gain on derecognition of subsidiaries net liabilities 21/22 (9,499,414) (19,366) Change in fair value on nancial assets at fair value through prot or loss 24 278,500 (1,767,100) Fair value change on investment property 20 (16,654) (22,521) Dened benets expense 37 4,861 36,853 Movement in provision for environmental rehabilitation 38 39,320 39,822 Other provisions charged to income statement 32 7,761 (67,015) Share of prot of equity – accounted investees, net of tax 23 (3,327,837) (2,261,209) Unrealised foreign currency gain on cash held (15,303) (4,271) (732,144) (855,768) Change in: Inventories 5,763 1,393,938 Trade and other receivables (1,265,079) (98,657) Trade and other payables (133,486) (414,818) Assets and liabilities held for sale 4,531,119 1,008,129 Burden costs for mining (6,599) - Environmental Protection Fund 6,691 (17,322) Cash generated from operating activities 2,406,265 1,015,502 Interest paid 35 (318,038) - Tax paid 14 (389,277) (279,789) Retirement benets paid 37 (7,174) (11,078) Dividends paid (243,032) (808,362) Net cash inow/(outow) from operating activities 1,448,744 (83,727) Cash ows from investing activities Interest received 8,13 139,653 198,637 Dividend received 23 750,029 739,836 Acquisition of property and equipment 17 (113,895) (754,113) Acquisition of intangible assets 19 (16,455) (221) Proceeds on disposal of property, plant and equipment 729 233 Acquisition of investment property 20 (849) - Acquisition of investments in associates 23(a) (566,340) (540,849) Proceeds from term deposits 29 4,450,451 5,340,202 Investments in term deposits 29 (5,345,151) (4,450,451) Net cash (used in)/generated from investing activities (701,828) 533,274 Cash ows from nancing activities Minority equity nance 22 - 99,491 Proceeds from borrowings 35 1,162,139 128,733 Repayment of borrowings 35 (1,282,155) (436,036) Net cash used in nancing activities (120,016) (207,812) Net increase in cash and cash equivalents 626,900 241,735 Effects of translation of cash and cash equivalents (1,220) (281,464) Effect of movement in exchange rates on cash held 16,523 4,271 Cash and cash equivalents at 1 January (116,518) (81,060) Cash and cash equivalents at 31 December 30 525,685 (116,518) Included in the statement of nancial position 506,028 360,356 Included in assets held for sale 21 19,657 (476,874) Cash and cash equivalent at 31 December 525,685 (116,518) The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 57 COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 Note 31 December 2024 ZMW’000 31 December 2023 ZMW’000 Cash ows from operating activities (Loss)/prot before tax (3,803,525) 6,046,513 Adjustments for: Depreciation 17 12,867 11,276 Amortisation of intangible assets 19 628,765 365,658 Gain on disposal of property, plant and equipment 9 (644) (233) Fair value changes of nancial assets at fair value through prot or loss 24 278,500 (1,767,100) Net impairment losses on nancial assets 10 265,126 83,055 Dened benets expense 37 4,861 2,619 Fair value change on investment property 20 (16,654) (22,521) Mopani investment expense 35 3,859,125 - Interest expense 35 340,457 - Exchange difference on borrowings 35 299,520 - Interest receivable on loan and held to maturity investments 13,8 (510,201) (434,433) Dividend income 8 (786,652) (739,836) Royalty income 8 (1,425,969) (1,201,395) Provision for environmental rehabilitation charged to the income statement 38 16,791 15,141 Other provisions charged to income statement 32 (15,910) (67,225) Unrealised foreign currency gain on cash held (16,523) (4,271) (870,066) 2,287,248 Change in: Inventory - 16,427 Trade and other receivables 1,837,444 (3,440,758) Trade and other payables 24,513 42,037 Assets held for sale (39,348) - Cash used in operating activities 234,410 (1,095,046) Interest paid 35 (318,038) - Tax paid 14 (386,641) (276,626) Dividends received 833,556 801,139 Dividends paid (243,032) (808,362) Royalty received 1,221,882 1,014,511 Retirement benet paid 37 (7,174) (4,326) Net cash generated/(used in) from operating activities 1,334,963 (368,710) Cash ows from investing activities Interest received 536,871 198,637 Acquisition of property, plant and equipment 17 (25,743) (16,755) Acquisition of intangible assets 19 (4,659) (147) Acquisition of investment property 20 (849) - Proceeds on disposal of property, plant and equipment 729 233 Proceeds from term deposits 29 4,411,330 5,340,202 Acquisition of investments in subsidiaries 22 (116,407) (190,001) Acquisition of investments in associates 23(a) (566,340) (540,849) Acquisition of assets held for sale 39,348 - Investments in term deposits 29 (5,345,151) (4,411,330) Net cash ows (used in)/generated from investing activities (1,070,871) 379,990 Cash ows from nancing activities Borrowings 35 1,162,139 - Repayment of borrowings 35 (1,282,155) - Net cash used in nancing activities (120,016) - Increase in cash and cash equivalents 144,076 11,280 Effect of movement in exchange rates on cash held 16,523 4,271 Cash and cash equivalents at 1 January 61,137 45,586 Cash and cash equivalents at 31 December 30 221,736 61,137 The notes on pages 58 to 195 are an integral part of these consolidated and separate nancial statements ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 58 NOTES TO THE FINANCIAL STATEMENTS in thousands of Kwacha 1 Reporting entity ZCCM Investments Holdings Plc (the “Company” or “ZCCM – IH”) is domiciled in Zambia. The Company’s registered office is at Stand No. 16806, Alick Nkhata Road, Mass Media Complex Area, P.O Box 30048, Lusaka. These consolidated financial statements comprise the Company, its subsidiaries and investments in associates (together referred to as the ‘Group’). The principal activity of the Company is to manage the Zambian Government’s stake in the mining sector, as the Zambian Government through the Industrial Development Corporation (IDC), is the principal shareholder of the Company. The Company’s shares are listed on the Lusaka Securities Exchange (LuSE), the London Stock Exchange and Euronext. 2 Basis of preparation TThe consolidated and company financial statements are prepared in compliance with IFRS® Accounting Standards and its interpretations as issued by the International Accounting Standards Board (IFRS Accounting Standards). The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting policies below. The Consolidated and company financial statements are presented in Zambian Kwacha (ZMW), rounded to the nearest thousand. In accordance with the Company’s Act. 2017 of Zambia and Securities’ Act of Zambia, the financial statements for the year ended 31 December 2024 have been approved for issue by the Directors. Reference to “financial statements” in this report refers to the Consolidated financial statements. The preparation of annual consolidated and company financial statements in conformity with IFRS Accounting Standards requires the use of estimates and assumptions. It also requires the Directors to exercise judgement in the process of applying the Group’s accounting policies. The areas involving higher degree of judgement or complexity, or where assumptions and estimates are significant to the consolidated and company financial statements are disclosed in Note 4. Certain comparative information has been reclassified to conform to the current year's presentation. Going concern assumption These financial statements have been prepared on a going concern basis. The Directors have considered the Group and Company’s financial position, cash flow forecasts, and available financing facilities, and are satisfied that the Group and Company have adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis. In forming their view, the Directors have assumed that operations will continue in the normal course of business, and that the Group and Company will be able to realise their assets and discharge their liabilities, including contractual obligations, as they fall due. 3 Functional and presentation currency These Group and Company financial statements are presented in Zambian Kwacha. The functional currency for the Company is Zambian Kwacha. All amounts presented in Kwacha have been rounded to the nearest thousand, unless otherwise indicated. Several of the Company’s equity investments prepare financial statements in US Dollars, which is their functional currency, due to the nature of the industry in which they operate. This has resulted in a foreign currency translation reserve at the Group level. More detail is included in notes 22 and 23. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 59 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 4 Use of estimates and judgements In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Group’s and Company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. (a) Judgements Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the consolidated and company financial statements are included in: Note 19, 22, 23 and 24 – Determining the fair values of investment in subsidiaries, associates, royalty right and financial assets at fair value through profit or loss based on of significant unobservable inputs. Valuation of the Group and Company’s unquoted investments is an area of judgement which involves the use of significant estimates and assumptions. Management uses various valuation techniques when determining the fair values of unquoted investee companies whose outcome is dependent on several significant unobservable inputs and assumptions as disclosed under Note 19, 22, 23 and 24. Note 45 (a) v – consolidation: whether the Company has significant influence over an investee or de facto control over an investee. Management has reassessed its involvement in Rembrandt Properties Limited (49%) in accordance with IFRS 10’s control definition and guidance. It has concluded that the Company has significant influence but not outright control. In making its judgement, management considered the following: • Company’s voting rights – the Company’s voting rights are limited to 49% but in relation to the dispersion of the voting rights held by other shareholders the Company has a significant right; and • Relative size – in relation to the extent of recent participation by those shareholders in general meetings, the Company is deemed to have significant influence over the investees. Further, management has reassessed its involvement in Mopani Copper Mine Plc (49%) in accordance with IFRS 10’s control definition and guidance. It has concluded that the Company has significant influence but not outright control, In making its judgement, management considered the following: • ZCCM-IH’s representation on the board of the investee Company • Appointment of key management staff • Number of voting rights. Following the above assessment, management has determined that the Company’s involvement in all its investee companies in accordance with IFRS 10’s control definition and guidance has changed from prior year. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 60 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 4 Use of estimates and judgements (continued) (a) Judgements (continued) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ended 31 December 2024 is included in the following notes: • Notes 22, 23 and 24 – measurement of fair value of investee companies; key assumptions about discounted cash flow assumptions; • Note 32 and 40 – recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources; • Note 42 – measurement of ECL allowance for trade receivables and contract assets: key assumptions in determining the weighted-average loss rate. (b) Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. Significant valuation issues are reported to the Group Audit Committee. This includes the Group finance team that has overall responsibilities for overseeing all significant fair value measurement including level 3 fair values and reports directly to the Chief Financial Officer (CFO). The finance team regularly reviews significant unobservable inputs and valuation adjustments. If third party information arises such as broker quotes or pricing services, used to measure fair values, then the finance team assesses the evidence obtained from third parties to support the conclusion that such valuations meet the requirement of IFRS Accounting Standard, including the level in the fair value hierarchy in which such valuations should be classified. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 61 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 4. Use of estimates and judgements (continued) (c) Determination of ore reserves and life of mine plan Reserves are estimates of the amount of product that can be economically and legally extracted from the group’s properties. Estimating the quantity and/or grade of reserves requires the size, shape and depth of ore bodies or fields to be determined by analysing geological data such as drilling samples. Following this, the quantity of ore that can be extracted in an economical manner is calculated using data regarding the life of mine plans and forecast sales prices (based on current and long-term historical average price trends). A majority of the groups’ property, plant and equipment associated with its mining subsidiaries are depreciated over the estimated lives of the assets on a units-of-production basis. This also includes the timing of repayments of life of mine linked borrowings. The calculation of the units-of- production rate, and therefore the annual depreciation expense could be materially affected by changes in the underlying estimates which are driven by the life of mine plans. Changes in estimates can be the result of actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in the commodity prices used in the estimation of mineral reserves. Changes in the proven and probable reserves estimates may impact the carrying value of property, plant and equipment, asset retirement obligation provision, recognition of deferred income tax amounts and depreciation expense amount. Further information about the assumptions made in measuring fair values is included in the following notes: • Note 42 – Financial instruments • Note 20 – Investment property • Note 22 – Investment in subsidiaries • Note 23 – Investment in associates; and • Note 24 – Financial assets at fair value through profit or loss. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 62 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 5 New or revised Standards or Interpretations 5.1 New and amended standards adopted by the Company and Group The Group has adopted the applicable new, revised or amended accounting pronouncements as issued by the International and Accounting Standards Board (IASB), which were effective for the Group from 1 January 2024. The amendments to accounting standards below, effective for the reporting period 1 January 2024 did not have any material impact on the Group’s accounting policies and required no retrospective adjustments to the financial statements of the Group. Amendments to IAS 1 – Non-current liabilities with covenants. These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions. These amendments are applicable for annual periods beginning on or after 1January 2024. Amendment to IFRS 16 – Leases on sale and leaseback. These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted. These amendments are applicable for annual periods beginning on or after 1 January 2024. Amendments to Supplier Finance Arrangements (IAS 7 and IFRS 7). These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB’s response to investors’ concerns that some companies’ supplier finance arrangements are not sufficiently visible, hindering investors’ analysis. These amendments are applicable for annual periods beginning on or after 1 January 2024. 5.2 New and amended standards not yet adopted by the Group Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Amendments to IAS 21 Lack of Exchangeability (Amendments to IAS 21). An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations. These amendments are applicable for annual periods beginning on or after 1 January 2025. Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures) clarify financial assets and financial liabilities are recognized and derecognized at settlement date except for regular way purchases or sales of financial assets and financial liabilities meeting conditions for new exception. The new exception permits companies to elect to derecognize certain financial liabilities settled via electronic payment systems earlier than the settlement date. They also provide guidelines to assess contractual cash flow characteristics of financial assets, which apply to all contingent cash flows, including those arising from environmental, social, and governance (ESG)-linked features. These amendments are applicable for annual periods beginning on or after 1 January 2026. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 63 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 5 New or revised Standards or Interpretations (continued) 5.2 New and amended standards not yet adopted by the Group (continued) IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024 to replace IAS 1 Presentation of Financial Statements. IFRS 18 aims to improve financial reporting by: requiring additional defined subtotals in the statement of profit or loss; requiring disclosures about management-defined performance measures; and adding new principles for the aggregation and disaggregation of items. The IASB did not reconsider all aspects of IAS 1 when developing IFRS 18 but instead focused on the statement of profit or loss. The IASB retained some paragraphs from IAS 1 in IFRS 18 and moved some paragraphs from IAS 1 to IAS 8 Basis of Preparation of Financial Statements and IFRS 7 Financial Instruments: Disclosures. These amendments are applicable for annual periods beginning on or after 1 January 2027. Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7. Companies face challenges in applying IFRS 9 Financial Instruments to contracts referencing nature-dependent electricity – sometimes referred to as renewable power purchase agreements (PPAs). The International Accounting Standards Board (IASB) has now amended IFRS 9 to address these challenges. The amendments include guidance on: • the ‘own use’ exemption for purchasers of electricity under such PPAs; • and hedge accounting requirements for companies that hedge their purchases or sales of electricity using PPAs. IFRS 19 Subsidiaries without Public Accountability: Disclosures Subsidiaries of companies using IFRS® Accounting Standards can substantially reduce their disclosures and focus more on users’ needs following the release of IFRS 19 Subsidiaries without Public Accountability: Disclosures, from the International Accounting Standards Board (IASB). A subsidiary that does not have public accountability, and has a parent that produces consolidated accounts under IFRS Accounting Standards, is permitted to apply IFRS 19. The IASB has also added new disclosure requirements for certain PPAs to IFRS 7 Financial Instruments: Disclosures Annual Improvements to IFRS Accounting Standards – Amendments to: IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7; - IFRS 9 Financial Instruments; - IFRS 10 Consolidated Financial Statements; and - IAS 7 Statement of Cash flows. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 64 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (a) Basis for segmentation The Group has two operational reportable segments, as described below, which are the Group’s strategic operations. The strategic operation offers different products and services and are managed separately because they require different technology and marketing strategies. The group’s management committee, consisting of the Chief Executive Officer, the Chief Financial Officer, Chief Investment Officer, Chief Legal Officer, Chief Internal Audit Officer, Chief ICT Officer, Chief Human Resource and Administration Officer, Chief Technical Officer, and Company Secretary, examines the group’s performance from an operations perspective and has identified two reportable segments of its business: 1. Investments – This comprises of only ZCCM-IH. This is a premiere diversified mining investments and operations Company whose majority owner is Industrial Development Corporation (IDC). The Company’s focused interests are investments in Zambia’s mining and energy sectors. 2. Mining and processing – This comprise of entities actively in the exploration activities, mining of minerals and processing to finished products. The minerals mined include copper, gold, amethyst, manganese, and limestone. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 65 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (a) Basis for segmentation (continued) The Group’s Chief Executive Officer and the management committee reviews internal reports of each division at least quarterly. The following summary describes the operations of each reportable segment. 2024 Segment Entity Country of operations Total revenue Revenue from Zambia Revenue from foreign countries Total segment assets Non-current assets Current assets Investments ZCCM-IH Plc Zambia - - - 20,258,869 20,258,869 - Mining and processing Mopani Copper Mine Plc Zambia 3,086,791 1,218,257 1,868,534 18,132,025 14,598,625 3,533,400 Mining and processing Limestone Resources Limited Zambia 72,315 51,358 20,957 118,142 98,885 19,257 Mining and processing Kabundi Resources Limited Zambia - - - 22,733 21,754 979 Mining and processing Zambia Gold Company Limited Zambia - - - 191,397 191,397 - Mining and processing Kariba Minerals Limited Zambia 49,857 - 49,857 58,681 46,381 12,300 Technical services Misenge Environmental and Technical Services Limited (Discontinued operation) Zambia 13,361 13,361 - 16,654 16,654 - Total from segments 3,222,324 1,282,976 1,939,348 38,798,501 35,232,565 3,565,936 (Less)/add consolida- tion adjustments (13,361) (13,361) - 17,841 17,841 - Consolidated balance 3,208,963 1,269,615 1,939,348 38,816,342 35,250,406 3,565,936 Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets Revenue from foreign countries is distributed as follows: Country Foreign revenue - ZMW Switzerland 1,868,534 Malawi 20,830 Zimbabwe 127 India 49,857 Total 1,939,348 Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets * Revenues relating to Mopani Copper Mine Plc have been included in the Segment Report for the period up to 20th March 2024 before it was reclassified as an Associate Company. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 66 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (a) Basis for segmentation (continued) The Group’s Chief Executive Officer and the management committee reviews internal reports of each division at least quarterly. The following summary describes the operations of each reportable segment. 2023 Segment Entity Country of operations Total revenue Revenue from Zambia Revenue from foreign countries Total segment assets Non-current assets Current assets Investments ZCCM-IH Plc Zambia 23,180 23,180 - 14,579,912 14,579,912 - Mining and processing Mopani Copper Mine Plc Zambia 11,552,419 2,173,264 9,379,155 19,135,738 15,646,610 3,489,128 Mining and processing Limestone Resources Limited Zambia 96,741 75,058 21,683 85,317 57,013 28,304 Mining and processing Kabundi Resources Limited Zambia 1,095 1,095 - 13,858 13,008 850 Mining and processing Zambia Gold Company Limited Zambia 38,524 38,524 - 211,303 211,303 - Mining and processing Kariba Minerals Limited Zambia 29,868 - 29,868 37,442 28,297 9,145 Technical services Misenge Environmental and Technical Services Limited (Discontinued operation) Zambia 20,308 20,308 - 14,095 14,095 - Total from segments 11,762,135 2,331,429 9,430,706 34,077,665 30,550,238 3,527,427 Less consolidation adjustments (15,030) (15,030) - - - - Consolidated balance 11,747,105 2,316,399 9,430,706 34,077,665 30,550,238 3,527,427 Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets Revenue from foreign countries is distributed as follows: Country Foreign revenue - ZMW Switzerland 9,379,155 Malawi 6,687 Zimbabwe 14,996 India 29,868 Total 9,430,706 Note: Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 67 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (b) Information about reportable segments Information recorded on each reportable segment is set out below. Segment profit before tax, as included in internal management reports reviewed by the Group’s Chief Executive Officer is used to measure performance because management believes that such information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries. Only one segment meets the 10% reportable segment criteria per IFRS 8 - Segment Reporting. The segment results for the Group were as follows: The segment results for the Group were as follows: December 2024 Investments Mining and processing Discontinued Operations ZCCM-IH ZMW’000 Mopani Copper Mine Plc (Held for sale) ZMW’000 Limestone Resources Limited ZMW’000 Zambia Gold Company Limited ZMW’000 Kabundi Resources Limited ZMW’000 Kariba minerals Limited ZMW’000 Misenge Environmental and Technical Services Limited ZMW’000 Consolidation Adjustments ZMW’000 Consolidated ZMW’000 Revenue from external customers: Sales - 3,086,791 72,315 - - 49,857 - - 3,208,963 Services - - - - - - 13,361 (13,361) - Total revenue from external customers - 3,086,791 72,315 - - 49,857 13,361 (13,361) 3,208,963 Inter-segment revenue - - - - - - - Total segment revenue - 3,086,791 72,315 - - 49,857 13,361 (13,361) 3,208,963 Consolidated revenue - 3,086,791 72,315 - - 49,857 13,361 (13,361) 3,208,963 Cost of sales - (3,541,986) (117,820) - (250) (35,465) (11,615) 11,615 (3,695,521) Interest income 205,600 - - - - - - - 205,600 Finance income 1,022,734 - - - - - - 69,139 1,091,873 Interest expense (661,087) (25,479) (21,270) - - - - (1,042,533) (1,750,369) Net (impairment)/recovery of financial assets (265,126) - 3,199 - - - 1,633 233,345 (26,949) Personnel expenses (195,976) (111,707) (48,187) (12,784) (3,137) (22,596) (10,007) 10,007 (394,387) Depreciation and amortisation expense (641,632) (426,003) (9,242) (12,693) (8,219) (6,144) (4,407) 17,841 (1,090,499) Loan modification income - 35,916,739 - - - - - - 35,916,739 Transitional tax offsets income - 2,964,861 - - - - - - 2,964,861 Impairment on investments in associates - - - - - - - 4,461,755 4,461,755 Consultancy and legal expenses (200,641) - - - - - - - (200,641) Mopani investment expense (3,859,125) - - - - - - - (3,859,125) Other income/(expenses) 791,728 (1,250,956) (12,343) (73,772) (186) 15,563 7,665 780,081 257,780 Total profit/ (loss) before tax for reported segments (3,803,525) 36,612,260 (133,348) (99,249) (11,792) 1,215 (3,370) 4,527,889 37,090,080 Income tax credit/(expense) (580,188) - (278) 15,230 (2,381) 131 (410) 410 (567,486) Share of profit of equity accounted investees - - - - - - - 3,327,837 3,327,837 Loss from discontinued operations - - - - - - - (3,780) (3,780) Consolidated profit for the year (4,383,713) 36,612,260 (133,626) (84,019) (14,173) 1,346 (3,780) 7,852,356 39,846,651 * Revenues relating to Mopani Copper Mine Plc have been included in the Segment Report for the period up to 20th March 2024 before it was reclassified as an Associate Company. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 68 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (b) Information about reportable segment (continued) December 2024 Investments Mining and processing Discontinued Operations ZCCM-IH ZMW’000 Mopani Copper Mine Plc (held for sale) ZMW’000 Limestone Resources Limited ZMW’000 Zambia Gold Company Limited ZMW’000 Kariba minerals Limited ZMW’000 Kabundi Resources Limited ZMW’000 Misenge Environmental and Technical Services Limited ZMW’000 Consolidation Adjustments ZMW’000 Consolidated ZMW’000 Segment assets Opening balance 14,579,912 19,135,768 85,317 211,303 37,442 13,858 14,095 - 34,077,695 Additions 31,251 158,064 51,114 95,354 24,228 16,965 8,131 - 385,107 Mineral royalty/right - - - - - - - - - Movement in inventory - 44,272 (9,047) - 3,155 129 - - 38,509 Property plant and equipment Revaluation - - - - - - - - - Increase/(Decrease) in environ- mental asset - (780,076) - - - - - - (780,076) Disposal (85) - - - - - - - (85) Depreciation and amortisation (641,632) (426,003) (9,242) (12,693) (6,144) (8,219) (4,407) 17,841 (1,090,499) Fair value change 6,289,423 - - - - - - - 6,289,423 Transfer - - - - - - - - - Impairment of PPE - - - (102,567) - - (1,165) - (103,732) Closing balance 20,258,869 18,132,025 118,142 191,397 58,681 22,733 16,654 17,841 38,816,342 Equity accounted investees 34,452,165 - - - - - - (10,047,345) 24,404,820 Other assets 12,193,791 4,162,547 122,104 134,942 61,182 47,882 31,626 (22,688,993) (5,934,919) Total assets 66,904,825 22,294,572 240,246 326,339 119,863 70,615 48,280 (32,718,497) 57,286,243 Segment liabilities 114,213 2,485,985 - - - - 3,005 - 2,603,203 Other liabilities 4,498,069 24,475,881 422,254 245,201 22,197 18,160 15,547 (27,277,980) 2,419,329 Total liabilities 4,612,282 26,961,866 422,254 245,201 22,197 18,160 18,552 (27,277,980) 5,022,532 Cashflows from operating activities 1,334,963 (7,263,688) (86,927) (90,118) (4,117) (6,484) (2,696) 7,567,811 1,448,744 Cashflows from investing activities (1,070,871) (3,413,413) (7,366) (36,024) (24,228) (2,618) (8,131) 3,860,823 (701,828) Cashflows from financing activities (120,016) 10,874,976 116,125 139,068 - - - (11,130,169) (120,016) * Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 69 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (b) Information about reportable segment (continued) December 2023 Investments Mining and processing Technical services ZCCM-IH ZMW’000 Mopani Copper Mine Plc ZMW’000 Limestone Resources Limited ZMW’000 Zambia Gold Company Limited ZMW’000 Kabundi Resources Limited ZMW’000 Kariba minerals Limited ZMW’000 Misenge Environmental and Technical Services Limited ZMW’000 Others (Discontinued operations) Consolidation Adjustments ZMW’000 Consolidated ZMW’000 Revenue from external customers: Sales * 23,180 11,552,419 96,741 38,524 1,095 29,868 - - - 11,741,827 Services - - - - - - 5,278 - - 5,278 Total revenue from external customers 23,180 11,552,419 96,741 38,524 1,095 29,868 5,278 - - 11,747,105 Inter-segment revenue - - - - - 15,030 - (15,030) - Total segment revenue 23,180 11,552,419 96,741 38,524 1,095 29,868 20,308 - (15,030) 11,747,105 - Consolidated revenue 23,180 11,552,419 96,741 38,524 1,095 29,868 20,308 - (15,030) 11,747,105 Cost of sales (16,878) (15,084,827) (139,146) (28,518) (1,746) (22,014) (13,204) (15,306,333) Interest income 434,433 - - - - - - 206,224 (206,224) 434,433 Interest expense - (2,971,812) (13,995) - - (1,240) - (95,445) 305,741 (2,776,751) Net (impairment)/recovery of financial assets (83,055) - (2,607) - - - (3,986) 545,886 (536,403) (80,165) Personnel expenses (157,323) (1,925,389) (48,022) (10,047) (2,283) (15,950) (8,131) (104,647) 104,647 (2,167,145) Depreciation and amortisation expense (13,110) (1,765,630) (10,913) (13,043) (2,397) (2,770) (1,546) (8,180) 1,421,076 (396,513) Other income/(expenses) 5,859,266 1,227,364 (62,645) (11,203) 12,400 10,837 6,040 (1,302,019) (1,567,473) 4,172,567 Total profit/ (loss) before tax for reported segments 6,046,513 (8,967,875) (180,587) (24,287) 7,069 (1,269) (519) (758,181) (493,666) (4,372,802) Income tax credit/(expense) (1,205,034) - (149) 942 (3,217) 1,817 (408) - - (1,206,049) Share of profit of equity accounted investees - - - - - - - - 2,261,209 2,261,209 Loss from discontinued operations - - - - - - - - (758,181) (758,181) Consolidated profit for the year 4,841,479 (8,967,875) (180,736) (23,345) 3,852 548 (927) (758,181) 1,009,362 (4,075,823) The Group’s main customer, Glencore International AG of Switzerland, accounts for 79% of the Group’s total revenue. Following the IFRS Interpretations Committee’s final agenda decision on operating segments regarding the disclosure of material items of income and expenses in terms of IFRS 8.23(f) and IAS 1.97 during the financial year, the Group updated its disclosure of items included in operating profit per segment. The prior year information was updated to align to the current year disclosures. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 70 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 6 Operating segments (continued) (b) Information about reportable segment (continued) December 2023 Investments Mining and processing Technical services ZCCM-IH ZMW’000 Mopani Copper Mine Plc ZMW’000 Limestone Resources Limited ZMW’000 Zambia Gold Company Limited ZMW’000 Kariba minerals Limited ZMW’000 Kabundi Resources Limited ZMW’000 Misenge Environmental and Technical Services Limited ZMW’000 Others (Discontinued operations) Consolidation Adjustments ZMW’000 Consolidated Segment assets Opening balance 311,026 20,221,177 103,943 118,459 39,639 8,872 5,220 109,447 - 20,917,783 Additions 16,902 718,550 1,382 266 161 6,647 10,426 9,373 - 763,707 Mineral royalty/right 14,259,000 - - 133,122 - - - - - 14,392,122 Movement in inventory (16,427) (1,347,552) 187 (27,501) (3,382) 736 - (10,933) - (1,404,872) Property plant and equipment Revaluation - - - - 3,794 - - - - 3,794 Increase/(Decrease) in environmental asset - 1,309,193 (9,243) - - - - - - 1,299,950 Disposal - - - - - - - (5,440) - (5,440) Depreciation and amortisation (13,110) (1,765,630) (10,913) (13,043) (2,770) (2,397) (1,546) (8,180) 8,939 (1,808,650) Fair value change 22,521 - - - - - - - - 22,521 Transfer - - - - - - - (94,267) - (94,267) Impairment of PPE - - (39) - - - (5) - - (44) Closing balance 14,579,912 19,135,738 85,317 211,303 37,442 13,858 14,095 - 8,939 34,086,604 Equity accounted investees 11,240,080 - - - - - - - (1,149,140) 10,090,940 Other assets 12,649,090 2,897,253 104,245 115,491 90,274 55,662 38,886 1,593,397 (3,258,005) 14,286,293 Total assets 38,469,082 22,032,991 189,562 326,794 127,716 69,520 52,981 1,593,397 (4,398,206) 58,463,837 - Segment liabilities 113,340 4,488,361 - - - - 2,333 - - 4,604,034 Other liabilities 933,723 58,461,265 103,165 161,643 30,093 5,569 17,140 2,606,990 (2,769,151) 59,550,437 Total liabilities 1,047,063 62,949,626 103,165 161,643 30,093 5,569 19,473 2,606,990 (2,769,151) 64,154,471 - Cashflows from operating activities (368,710) (1,662,537) (93,682) 18,599 (4,394) 7,440 (1,323) 4,167 2,016,713 (83,727) Cashflows from investing activities 379,990 (728,812) (1,383) (267) (146) (7,488) (10,427) (9,373) 911,180 533,274 Cashflows from financing activities - 2,155,034 132,767 95,247 90,417 - - - (2,681,277) (207,812) * Segment assets exclude financial instruments, deferred tax assets/liabilities and employee benefit assets. Group reconciliation of reported assets and liabilities (i) Other assets consist of trade and other receivables, term deposits, cash and cash equivalents. (ii) Other liability includes tax liabilities, retirement benefits, environmental liability and legal provision. Elimination adjustments relate to intersegment transactions. The adjustment to other liabilities relates to the elimination of shareholder loans and the reclassification of deferred tax ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 71 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 7 Revenue from contracts with customers Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Sales of goods transferred at a point in time 3,274,950 12,176,323 - 23,180 Realisation charges (i) (65,987) (434,496) - - Services transferred over time - 5,278 - - 3,208,963 11,747,105 - 23,180 (i) Realisation charges Realisation charges relate to deductions from the purchase price in line with the sales agreement which includes freight and transportation costs. Disaggregation of revenue by product line: Revenue by product line: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Copper cathodes 2,946,044 11,068,316 - - Sulphuric acid 58,969 352,050 - - Slimes 52,001 114,997 - - Limestone 72,315 96,741 - - Gold - 61,461 - 23,180 Amythest 49,857 29,868 - - Copper concentrates - 10,262 - - Copper anodes - 6,793 - - Technical services - 5,278 - - Manganese - 1,095 - - Other Goods (Value addition sales) 29,777 244 - - Total 3,208,963 11,747,105 - 23,180 The amounts were restated as a result of a prior period error. Refer to note 45 for impact on restatement. 8 Investment income Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Investment income Dividends income 36,623 - 786,652 739,836 Interest income 205,600 187,468 205,600 187,468 Royalty income 1,425,969 1,201,395 1,425,969 1,201,395 Total Investment income 1,668,192 1,388,863 2,418,221 2,128,699 During the year, ZCCM-IH (the Company) recorded total royalty and dividend income of ZMW1,426 million (US$54.51 million),(2023: ZMW1,201 million (US$58.48 million)) and ZMW787 million (US$30.27 million), (2023: ZMW740 million (US$36.05 million)) respectively. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 72 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 9 Other (expenses)/income Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Management fees and commissions - 5,083 - 5,378 Fair value adjustment- investment property (Note 20) 16,654 22,521 16,654 22,521 Rental income 10,232 9,955 11,650 10,097 Gain/(loss) on disposal of property, plant and equipment 644 233 644 233 Derecognition of subsidiaries’ net liabilities (Note 22(d)) - 19,366 - - Derecognition of loan due to modification (826,279) - (826,279) - Loan modification income 35,916,739 - - - Tax obligations write back 2,964,861 - - - Mopani investment expenses (Note 35) (3,859,125) - (3,859,125) - Sundry income 9,638 186,569 4,583 4,071 Total balance 34,233,364 243,727 (4,651,873) 42,300 * Mopani loan modification income For 2024, the amount includes a one-off income arising from the write-down of the loans from Glencore and from Carlisa of ZMW44.72 billion (US$1.71 billion) to ZMW7.85 billion (US$300 million). This write-down resulted in a loan restructuring adjustment of ZMW35.92 billion (US$1.41 billion). The loan modification was part of the finalisation of the transaction agreement. ** Tax obligations write back The tax obligations write back recognised during the year relates to a combined tax payable position amounting to ZMW2.96 billion (US$117 million) that was written back as part of the finalisation process of the transaction agreement. The combined net tax payable arose from the netting off of withholding tax payable, VAT receivable, income tax payable and mineral royalty tax payable by Mopani. The combined net payable position of Mopani was written off because it is no longer expected to be paid. 10 Net impairment losses on financial assets Movements on the provision for impairment of loans and receivables are as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Balance at 1 Jan 1,168,124 1,087,959 1,222,025 1,168,203 Impairment recognised 54,978 325,595 289,956 341,190 Impairment recoveries (28,029) (245,430) (24,830) (258,135) Net impairment (release)/expense recognised 26,949 80,165 265,126 83,055 Reclassification from assets held for sale 13,881 - - - Derecognition of loan due to modification (Note: 39 b(viii) 902,291 - 902,291 - Included in assets held under discontinued operations (5,126) - - (29,233) Balance at 31 Dec (Note 26) 2,106,119 1,168,124 2,389,442 1,222,025 The following significant changes in the gross carrying amounts of trade receivables contributed to the changes in the impairment loss allowance during 2024: • The repayment of contractual obligations from the financial assets which resulted in a decrease in the trade receivables. As at 31 December 2024, Maamba Energy Limited had fully repaid US$10 million shareholder loan along with the accrued interest of US$2.68 million. • The modification of contractual cash flows on financial assets which resulted in a decrease in the trade receivables. On 20 March 2024, the terms of the Mopani loan were modified in response to developments under the Strategic Equity Partnership transaction. The modification resulted in a reduction in the interest rate from SOFR + 8% to SOFR + 1%. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 73 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 10 Net impairment losses on trade and other receivables (continued) • A resulting loss of ZMW902 million (being the difference between the carrying amount of the old loan and the fair value of the new loan) has been recognised in profit and loss. 11 Expenses by nature Profit/(loss) before income tax is stated after charging: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Cost of sales Inventories valuation write (down)/up 1,624,722 1,337,198 - (5,729) Mining and mineral processing costs 1,656,533 10,148,519 - - Employee costs 152,663 1,373,457 - - Depreciation and amortisation 12,639 1,773,107 - - Other cost of sales 248,964 674,052 - 22,607 3,695,521 15,306,333 - 16,878 Administration expenses Depreciation and amortisation 1,090,499 396,513 641,632 376,934 Auditors’ remuneration: - Audit fees of financial statements 4,233 6,506 1,980 1,285 - Taxation services 870 306 178 117 Employee costs 241,724 793,688 195,976 157,323 Impairment of property, plant and equipment and other assets 102,567 40 - - Impairment of investment in associates 4,461,755 - - - Environmental consultancy expenses 8,588 - 8,048 15,030 Provision for environmental rehabilitation 25,599 (1,632) 12,121 (1,632) Corporate and administration expenses (i) 924,552 669,840 527,959 245,091 6,860,387 1,865,261 1,387,894 794,148 (i) Corporate and administration expenses include Mopani’s administration cost of ZMW268 million (2023: ZMW377 million) 12 Personnel expenses Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Salaries and wages 324,948 2,120,337 184,883 149,831 Retirement benefit costs: Defined benefit scheme (Note 37) 4,861 36,853 4,861 2,619 Other Pension Scheme (Note 37) 57,932 - - - Mukuba Pension Scheme (Note 37) 4,325 4,967 4,325 3,210 National Social Security Funds (Note 37) 2,321 4,988 1,907 1,663 394,387 2,167,145 195,976 157,323 The pension schemes operate as defined contribution plans. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 74 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 13 Finance income and finance costs Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Interest on borrowings (Note 35) (340,457) (2,776,751) (340,457) - Interest on letter of credit and withholding tax (947,924) (1,261,064) - - Exchange differences (457,818) (419,197) (320,630) (1,115) Unwinding of discount on site restoration (4,170) (23,520) - - Finance costs (1,750,369) (4,480,532) (661,087) (1,115) Interest income from associate companies 256,447 24,707 304,601 246,965 Exchange differences 835,426 2,187,987 718,133 2,733,465 Finance income 1,091,873 2,212,694 1,022,734 2,980,430 Net finance income recognised in profit or loss (658,496) (2,267,838) 361,647 2,979,315 14 Income tax expense Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Amounts recognised in profit or loss: Current income tax (1,022,272) (328,199) (1,021,524) (324,844) Deferred income tax credit/(charge) (note 36) 454,786 (877,850) 441,336 (880,190) Income tax expense (567,486) (1,206,049) (580,188) (1,205,034) The tax on the Group and Company profit before income tax differs from the theoretical amount that would arise using the statutory income tax rate as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Profit/(loss) before income tax from continuing operations 40,417,917 (2,111,593) (3,803,525) 6,046,513 Total amount 40,417,917 (2,111,593) (3,803,525) 6,046,513 Tax calculated at rates applicable to profits @ 30% (2023: 30%) Tax effect of: 12,125,375 (633,478) (1,141,058) 1,813,954 Non-deductible expenses 2,316,807 2,636,975 1,886,927 (439,349) Non-taxable income (10,988,507) - - - Income taxed at a lower rate (1,498,141) (173,475) (165,582) (173,458) Non-taxable income from share of profits from associates (1,426,216) (678,363) Unrecognised deferred tax 38,168 54,390 (99) 3,887 Total income tax expense 567,486 1,206,049 580,188 1,205,034 * Included in the Non-deductible are expenses that are not allowable for deduction for tax purposes such as Mopani investment expense and the loan modification expense. ** Included in the Non-taxable income is income that is not subjected to tax such as Mopani’s loan modification income. *** Income taxes at lower rate relates to rental income and dividends taxed at 15% and 0% respectively. Dividend income received from Zambian mines is subject to zero tax. Dividend taxed at 0% tax rate amounted to ZMW303 million (2023: ZMW404 million). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 75 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 14 Income tax expense (Continued) Current income tax movement in the statement of financial position Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Opening balance 1 Jan 238,553 190,143 237,376 189,158 Charge for the year 1,022,272 328,199 1,021,524 324,844 Tax paid (389,277) (279,789) (386,641) (276,626) Included in assets held for sale 1,222 - - - Closing balance 872,770 238,553 872,259 237,376 15 Earnings per share (a) Basic earnings per share The calculation of basic earnings per share has been calculated based on profit or loss attributable to ordinary shareholders and weighted average number of ordinary shares outstanding. i) Profit/(loss) attributable to ordinary shareholders (basic) Group 31 Dec 2024 31 Dec 2023 Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total Loss for the year, attributable to ordinary shareholders 39,850,431 (3,780) 39,846,651 (3,317,642) (758,181) (4,075,823) Company 31 Dec 2024 31 Dec 2023 Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total Profit for the year, attributable to ordinary shareholders (4,383,713) - (4,383,713) 4,841,479 - 4,841,479 The amounts were restated as a result of a prior period error. Refer to note 45 for impact on restatement. ii) Weighted average number of shares (basic) 31 Dec 2024 31 Dec 2023 Opening balance at 1 January 160,800,286 160,800,286 Closing balance 160,800,286 160,800,286 The weighted average number of shares is determined by taking the number of additional shares issued and multiplying by the number of days the new shares were in issue over the reporting period. (b) Diluted earnings per share There were no potentially dilutive shares outstanding at 31 December 2024 (2023: nil). Diluted earnings per share are therefore the same as basic earnings per share. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 76 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 15 Earnings per share (continued) (b) Diluted earnings per share (continued) Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Basic and diluted earnings per share 247.80 (25.35) (27.26) 30.11 16 Dividends per share A dividend of ZMW 3.29 per share was declared for the year ended 31 December 2024 results. (2023: ZMW 1.51 per share). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 77 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 17 Property, plant and equipment Reconciliation of carrying amount Group Land and buildings Plant and equipment Vertical and rotary kilns Mine Development Motor vehicles Work in progress Total Cost or revaluation Balance at 1 January 2023 738,885 10,138,722 101,015 2,916,355 594,107 1,286,811 15,775,895 Additions 1,253 8,473 - - 536 743,851 754,113 Transfers 13,205 13,265 - - - (26,470) - Transfer from investment property (Note 20) 16,790 - - - - - 16,790 Transfer to investment property (Note 20) (2,116) - - - - - (2,116) Revaluation 1,081 (7,083) - - (1,971) - (7,973) Increase in environmental asset - 1,309,193 - - - - 1,309,193 Disposal - (5,107) - - (2,333) - (7,440) Reclassified to assets held for sale (Note 21) (620,012) (11,331,194) - (2,916,355) (471,903) (1,886,625) (17,226,089) Balance at 31 December 2023 149,086 126,269 101,015 - 118,436 117,567 612,373 Balance at 1 January 2024 149,086 126,269 101,015 - 118,436 117,567 612,373 Additions 9,038 23,174 30,767 - 10,467 40,449 113,875 Transfers 845 11,588 - - 22,200 (34,633) - Transfer from investment property (Note 20) 20,210 - - - - - 20,210 Impairment - - - - - (1,165) (1,165) Increase in environmental asset - 93,739 - - - - 93,739 Disposal - - - - (7,290) - (7,290) Reclassified to assets held for sale (Note 21) (372) (16,484) - - (7,121) (1,091) (25,068) Balance at 31 December 2024 178,807 238,286 131,782 - 136,692 121,127 806,694 Accumulated depreciation and impairment losses Balance at 1 January 2023 246,551 1,913,613 50,968 809,339 159,134 111,383 3,290,988 Charge for the year 123,233 1,052,636 4,352 349,341 253,546 - 1,783,108 Impairment 39 5 - - - - 44 Revaluation (1,372) (6,840) - - (3,555) - (11,767) Decrease in environmental asset - - 9,243 - - - 93,243 Disposal - (5,107) - - (2,333) - (7,440) Reclassified to assets held for sale (Note 21) (351,578) (2,886,441) - (1,158,680) (303,961) - (4,700,660) Balance at 31 December 2023 16,873 67,866 64,563 - 102,831 111,383 363,516 Balance at 1 January 2024 16,873 67,866 64,563 - 102,831 111,383 363,516 Charge for the year 10,949 23,022 4,234 - 14,497 - 52,702 Disposal - - - - (7,205) - (7,205) Reclassified to assets held for sale (Note 21) (676) (5,741) - - (2,025) - (8,442) Balance at 31 December 2024 27,146 85,147 68,797 - 108,098 111,383 400,571 Carrying amounts Balance at 31 December 2023 132,213 58,403 36,452 - 15,605 6,184 248,857 Balance at 31 December 2024 167,187 137,613 62,985 - 28,594 9,744 406,123 (i) Impairment Property, plant and equipment are reviewed for impairment in accordance with note 45 (j)(ii) ZMW1.17 thousand worth of assets were impaired during the year (2023: ZMW44 thousand) ii. Assets pledged as security Refer to note 40 (iii) for information on non-current assets pledged as security by the Group. iii. Leased plant and equipment The Group did not have any assets under lease as at 31 December 2024 (2023: nil). iv. Work in progress Work in progress relates to the Group’s property plant and equipment in transit and under construction. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 78 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 17 Property, plant, and equipment (continued) Reconciliation of carrying amount Company Land and buildings Plant and equipment Motor vehicles Work in progress Total Cost or revaluation Balance at 1 January 2023 67,706 29,197 36,362 6,541 139,806 Additions 240 1,922 - 14,593 16,755 Transfers 13,205 6,377 - (19,582) - Disposal - (5,107) (2,333) - (7,440) Transfer from investment property (Note 20) 16,790 - - - 16,790 Transfer to investment property (Note 20) (2,116) - - - (2,116) Balance at 31 December 2023 95,825 32,389 34,029 1,552 163,795 Balance at 1 January 2024 95,825 32,389 34,029 1,552 163,795 Additions 1,775 2,200 - 21,768 25,743 Transfers 845 4,508 16,216 (21,569) - Disposal - - (7,290) - (7,290) Transfer from investment property (Note 20) 20,210 - - - 20,210 Balance at 31 December 2024 118,655 39,097 42,955 1,751 202,458 Accumulated depreciation and impairment losses Balance at 1 January 2023 723 22,526 25,099 987 49,335 Charge for the year 1,704 4,108 5,464 - 11,276 Disposal - (5,107) (2,333) - (7,440) Balance at 31 December 2023 2,427 21,527 28,230 987 53,171 Balance at 1 January 2024 2,427 21,527 28,230 987 53,171 Charge for the year 2,443 4,905 5,519 - 12,867 Disposal - - (7,205) - (7,205) Balance at 31 December 2024 4,870 26,432 26,544 987 58,833 Carrying amount Balance at 31 December 2023 93,398 10,862 5,799 565 110,624 Balance at 31 December 2024 113,785 12,665 16,411 764 143,625 Revaluation The buildings were last revalued on 31 December 2022, by independent registered valuers, Sherwood Greene. Valuations were made based on the Open Market Value. The Company revalues land and buildings every three years. The carrying values of the properties were adjusted to their revalued amounts and the resultant surplus net of deferred income tax was credited to the revaluation surplus in shareholders’ equity. Revaluations are done with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value. The register showing the details of property, as required by section 30 of the Companies Act, 2017 of Zambia, is available for inspection during business hours at the registered office of the Company. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 79 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 17 Property, plant and equipment (continued) Revaluation (Continued) The carrying amounts of revalued land and buildings were stated on the historical cost basis, the amounts would be as follows: 31 Dec 2024 31 Dec 2023 ZMW,000 ZMW,000 Land and buildings Cost 38,489 38,489 Accumulated depreciation (16,693) (11,110) Net book amount 21,796 27,379 18 Exploration and evaluation asset Reconciliation of carrying amount Group Cost ZMW’000 Balance at 1 January 2023 53,161 Additions - Balance at 31 December 2023 53,161 Balance at 1 January 2023 53,161 Additions (36,006) Balance at 31 December 2024 17,155 Accumulated depreciation and impairment losses Balance at 1 January 2023 1,724 Depreciation adjustment - Balance at 31 December 2023 1,724 Balance at 1 January 2024 1,724 Charge for the year - Balance at 31 December 2024 1,724 Carrying amount Balance at 31 December 2023 51,437 Balance at 31 December 2024 15,431 Exploration and evaluation assets represent costs capitalized by the Group in relation to diamond drilling, laboratory analysis of drilling core samples, geochemical and geophysical studies as well as costs incurred in acquisition of rights to explore the license area in Kasenseli, Mwinilunga district. The site has been deemed to possess commercial reserves. During the financial year ended 31 December 2024, part of the mining licence area for Zambia Gold Company Limited was handed back to PCB. Therefore, the carrying value of ZMW51.44 million represented costs incurred on the entire mining licence area. 70% of this cost is attributed to the costs incurred in the mining licence area under PCB valued at ZMW36.01 million. Management determined that the carrying amount of ZMW51.44 million is higher than the recoverable amount of ZMW15.53 million, therefore an impairment amount of ZMW36.01 million was recognised. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 80 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 19 Intangible assets The Group’s intangible assets relate to mineral rights and acquired computer software programmes while the company’s intangible assets relate to computer software. Reconciliation of carrying amount: Group Mineral rights Group Computer software Group /Company Royalty right Total Group intangible assets Company Computer software Total Company intangible assets Cost Balance as at 1 January 2023 3,281,457 9,507 - 3,290,964 8,969 8,969 Additions 133,122 221 - 133,343 147 147 Disposals - (1,841) - (1,841) (1,841) (1,841) Transfer from Associates (Note 23 (c)) - - 11,036,000 11,036,000 - 11,036,000 Fair valuation - - 3,586,824 3,586,824 - 3,586,824 Classified to assets held for sale (3,281,457) - - (3,281,457) - - Balance at 31 December 2023 133,122 7,887 14,622,824 14,763,833 7,275 14,630,099 Balance at 1 January 2024 133,122 7,887 14,622,824 14,763,833 7,275 14,630,099 Additions 11,796 4,659 - 16,455 4,659 4,659 Fair valuation - - 6,272,769 6,272,769 - 6,272,769 Impairment (66,561) - - (66,561) - - Classified to assets held for sale - (254) - (254) - - Balance at 31 December 2024 78,357 12,292 20,895,593 20,986,242 11,934 20,907,527 Amortisation Balance as at 1 January 2023 136,653 5,986 - 142,639 5,592 5,592 Disposals - (1,841) - (1,841) (1,841) (1,841) Amortisation charge 23,623 1,919 363,824 389,366 1,834 365,658 Classified to assets held for sale (160,276) - - (160,276) - - Balance at 31 December 2023 - 6,064 363,824 369,888 5,585 369,409 Balance as at 1 January 2024 - 6,064 363,824 369,888 5,585 369,409 Amortisation charge - 2,072 626,769 628,841 1,996 628,765 Classified to assets held for sale - (226) - (226) - - Balance at 31 December 2024 - 7,910 990,593 998,503 7,581 998,174 Carrying amount Balance at 31 December 2023 133,122 1,823 14,259,000 14,393,945 1,690 14,260,690 Balance at 31 December 2024 78,357 4,382 19,905,000 19,987,739 4,353 19,909,353 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 81 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 19 Intangible assets (continued) Royalty right interest The following table shows the valuation technique used in measuring the fair value of royalty right in Kansanshi Mining Plc as well as the significant unobserv- able inputs used. Royalty right Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between key unobservable inputs and fair value measurement Kansanshi Mining Plc Discounted cash flows: It is an income approach to val- uation and the most widely used valuation methodolo- gy. It computes the value of a business by calculating the present value of anticipated future cash flows generated by the business. The expect- ed net cash flows are dis- counted using risk adjusted discount rates. • Target participation capital structure - Debt to total capitalisation (2024:11.0%, 2023: 11.0%). - Equity to total capitalisation (2024:89.0%, 2023:89.0%) • Cost of debt - Cost of debt (2024: 4.5%, 2023: 4.5%) - Effective tax rate (2024: 30%, 2023: 30%) - After tax cost of debt (2024: 3.2%, 2023: 3.2%) • Cost of equity - Risk free rate (2024: 4.58%, 2023: 3.88%) - Market risk premium (2024: 8.54%, 2023: 9.7%) - Levered beta (2024: 0.56, 2023: 0.7). - Cost of equity (2024:9.3%, 2023: 10.7%) • WACC (2024: 8.65%, 2023: 9.88%) • Key assumptions considered were as follows: - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral royalty is treated as deductible from income tax from 2024 onwards. - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as deductible from income tax from 2024 onwards. - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 /ton and US$10,570/ton respectively. Gold price forecasts for 2025-2027 are US$2,793/ oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate of US$9,211/ton was used for copper and US$2,190/oz was used for gold. * - Capex expenditure has been projected at US$1.1 billion to be invested by 2029. This excludes sustaining capex which is expected to account for an additional US$900 million over 2025-2029. - Life of mine was estimated to be 22 years with a further 3-year processing. The estimated fair value would increase/(decrease) if: • Equity to total capitalisation were (lower)/higher • The cost of debt were (higher)/lower • The cost of equity were (higher) /lower. • The copper price increased / (reduced). • WACC lower/(higher) Gold only contributed 12% to the revenues of Kansanshi for the year ended 31 December 2024. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 82 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 19 Intangible assets (continued) Royalty right interest (continued) A sensitivity analysis table of the equity value, which is based on the discount rate and long-term copper price over the life of mine indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: Equity Value Sensitivity Analysis Long-Term Copper Price (US$ /lb) 3.76 3.97 4.18 4.39 4.61 Long-Term Gold Price (US$/oz) 1,971 2,081 2,190 2,300 2,409 WACC 6.9% 20,953,000 21,707,000 22,462,000 23,216,000 23,971,000 7.8% 19,725,000 20,422,000 21,120,000 21,818,000 22,516,000 8.7% 18,612,000 19,258,000 19,905,000 20,551,000 21,198,000 9.5% 17,600,000 18,200,000 18,800,000 19,401,000 20,001,000 10.4% 16,678,000 17,237,000 17,795,000 18,353,000 18,911,000 The fair value ranges from ZMW18.2 billion (2023: ZMW13.7 billion) to ZMW21.8 billion (2023: ZMW15.7 billion) with the calculated equity value being ZMW19.9 billion (2023: ZMW14.3 billion). The fair value of the Company’s investment in Kansanshi of ZMW19.9 billion (2023: ZMW14.3 billion) has been categorised as a level 3 fair value based on the inputs to the valuation technique used. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 83 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 20 Investment property (i) Reconciliation of carrying amounts Group & Company 31 Dec 2024 31 Dec 2023 Balance at 1 January 208,598 200,751 Additions 849 - Transfer from property, plant and equipment (Note 17) - 2,116 Transfer to property, plant and equipment (Note 17) (20,210) (16,790) Change in fair value (Note 9) 16,654 22,521 Closing balance 205,891 208,598 (ii) Amounts recognised in profit or loss for investment properties. Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Rental income from operating leases (note 9) 10,221 9,955 11,650 10,097 Direct operating expenses from property that generated rental income (2,198) (3,466) (2,918) (3,466) Net rental Income 8,023 6,489 8,732 6,631 (iii) Leasing arrangements The investment properties are leased to tenants under operating leases with rentals payable quarterly. Lease income from operating leases where the group is a lessor is recognised in income on a straight-line basis over the lease term. There are no variable lease payments that depend on an index or rate. Where considered necessary to reduce credit risk, the Group may obtain three months rental deposit for the term of the lease. Minimum lease payments receivable on leases of investment properties are as follows: Group and Company 31 Dec 2024 31 Dec 2023 Within 1 year 8,366 7,405 (iv) Measurement of fair value Investment properties, principally office buildings and residential apartments, are held for long-term rental yields. They are carried at fair value. Changes in fair values are presented in profit or loss as part of other income. Fair value hierarchy The fair value of investment property for the Company was determined, as at 31 December 2024 by Sherwood Green Property Consultants, who are independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 84 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 20 Investment property (continued) (iv) Measurement of fair value (continued) Fair value hierarchy (continued) The fair value measurement for investment property of ZMW206 million (2023: ZMW209 million) has been cate- gorised as a Level 3 fair value based on the inputs to the valuation technique used. Valuation techniques and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used: Valuation technique Significant unobservable inputs Inter-relationships between Key unobservable inputs and fair value measurement The investment method of valuation was applied for valuation of the investment properties. In the Investment Method, the annual rental income presently received or expected over a period of time for the lease of the property is estimated and deducted there from the expenses or outgoings incidental to the ownership of the property to obtain the net annual rental value. This net annual income is then capitalised by an appropriate capitalisation rate or years’ purchase figure to arrive at the present capital value of the property. In addition, the direct comparison method of valuation was also applied for residential properties. In the direct comparison method, a number of similar properties called comparable are assembled and analysed preferably within the vicinity. The analysis involves comparing relevant aspects of the subject property with the comparable such as the condition, location, design, accessibility and amenities in the area among others. Weights in terms of figures or percentages are assigned to determine a fair rate to be applied to the subject property. • Expected market rental growth (3 - 5%. Weighted average 4%) (2024: 4%, 2023: 4%) • Void periods (average 6 months after the end of each lease) (2024: 6 months, 2023: 6 months) • Occupancy rate (90-95%, weighted average 90%) (2024: 90%, 2023: 90%) • Rent-free periods (1-month period on new leases) (2024: 1 month, 2023: 1 month) • Risk-adjusted discount rates (9% - 10.5%. weighted average 10%) (2024: 10% 2023: 10%). • Land value assessment, a rate per acre of K1,000,000 was adopted. • Capitalization rate ranging 9% - 12% has been applied. • Costs associated with managing and maintaining a property or building range from 15% -20%. • The estimated fair value would increase or (decrease) if: • expected market rental growth were higher (lower); • void periods were shorter (longer); • the occupancy rate were higher (lower): • Rent-free periods were shorter (longer); or • The risk-adjusted discount rate were lower (higher). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 85 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 21 Assets classified as held for sale (i) Description Reconciliation of carrying amount for the Company; Company 31 Dec 2024 31 Dec 2023 Balance at 1 Jan - 145,700 Additions 72,856 - Impairment - - Change in fair value 732 (145,700) Balance at 31 Dec 73,588 - Investrust Bank Plc Rembrandt Properties Limited (“Rembrandt”), a Special Purpose vehicle (SPV), was established through a partnership involving ZCCM-IH (49% stake), Urban Brands Asset Management (25.5%), and Sims Capital Limited (25.5%). The entity was specifically created for the development of the Leopards Square Hotel, a boutique hotel featuring 74 rooms in Woodlands, Lusaka. On 4th September 2024, ZCCM-IH issued a public call for Expressions of Interest (EOI) through national newspapers and social media, announcing its intention to divest from Rembrandt as part of its strategic realignment towards core investments in mining, energy, and mineral beneficiation. Subsequently, on 4th December 2024, the Board of ZCCM-IH approved Management’s proposal to exit from its investment in Rembrandt. The results of Rembrandt are presented separately in the financial statements as a discontinued operation in line with IFRS 5 – Non-current Assets Held for Sale and Discontinued operations. Misenge Environmental and Technical Services Limited As part of ZCCM-IH Plc’s strategic review and performance assessment, Misenge Environmental and Technical Services Limited (METs) has been classified as a discontinued operation in the consolidated financial statements for the year ended 31 December 2024. The results of METs are presented separately in the financial statements as a discontinued operation in line with IFRS 5 – Non-current Assets Held for Sale and Discontinued operations. Suspension and Liquidation of Investrust Bank Plc During the financial year ended 31 December 2024, the Bank of Zambia (“BoZ”) exercised regulatory authority over Investrust Bank Plc (“Investrust”). On 2 April 2024, the Lusaka Securities Exchange (“LuSE”) issued a notice halting the trading of Investrust’s securities, and subsequently, on 24 April 2024, LuSE formally suspended the listing of Investrust Bank Plc. Further, on 8 July 2024, BOZ issued a Notice on the Resolution of Investrust, in accordance with Section 127 of the Banking and Financial Services Act, 2017. The notice confirmed that Investrust had been placed under compulsory liquidation to address residual matters. As part of the resolution process, BOZ appointed a Liquidation Manager to oversee and administer the liquidation process. The Company continues to monitor developments regarding the liquidation process and, ensuring appropriate disclosures in line with applicable financial reporting standards. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 86 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 21 Assets classified as held for sale (continued) (ii) The assets and liabilities of the investments classified as held for sale are as follows: 31 Dec 2024 Group Company Assets Liabilities Fair value Rembrandt Properties Limited 43,860 - 43,860 Misenge Environmental and Technical Services Ltd 48,280 (14,305) 29,728 Total 92,140 (14,305) 73,588 31 Dec 2023 Group Company Assets Liabilities Fair value Mopani Copper Mines Plc 22,032,991 (60,173,129) - Investrust Bank Plc 1,593,397 (2,503,825) - Total 23,626,388 (62,676,954) - (iii) Financial performance and cash flow information The financial performance and cashflow information presented for the year ended 31 December 2024: Misenge Environmental and Technical Services Limited 31 Dec 2024 Revenue 13,361 Cost of sales and expenses (16,731) Profit/(loss) before income tax (3,370) Income tax expense (410) Profit/(loss) after income tax (3,780) Net cash inflow/(outflow) from operating activities (2,696) Net cash (outflow) from investing activities (8,131) Net cash (outflow) from financing activities - Net cash inflow/(outflow) (10,827) Misenge Environmental and Technical Services Limited Group 31 Dec 2024 Assets classified as held for sale Property, plant, and equipment 16,626 16,626 Trade and other receivables 10,731 10,731 Other assets 1,266 1,266 Cash and cash equivalents 19,657 19,657 Total assets of disposal group held for sale 48,280 48,280 Liabilities directly associated with assets classified as held for sale Trade and other payables (18,552) (18,552) Less intercompany eliminations on consolidation - 4,247 Total liabilities directly associated with assets classified as held for sale (18,552) (14,305) Net assets held for sale 29,728 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 87 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 21 Assets classified as held for sale (continued) (iii) Financial performance and cash flow information (continued) The financial performance and cashflow information presented for the year ended 31 December 2023: Investrust Bank Plc Total 31 Dec 2023 31 Dec 2023 Revenue 188,822 188,822 Other income 13,977 13,977 Cost of sales and expenses (960,980) (960,980) Loss before income tax (758,181) (758,181) Income tax expense - - Loss for the year (758,181) (758,181) Loss attributable to non-controlling interest (216,840) (216,840) Net cash inflow from operating activities 569,594 569,594 Net cash (outflow) from investing activities (9,373) (9,373) Net cash inflow/(outflow) from financing activities - - Net cash in flow 560,221 560,221 The following assets and liabilities were reclassified as discontinued operations as at 31 December 2024: Misenge Environmental and Technical Services Ltd Total Assets classified as held for sale Property, plant, and equipment 16,626 16,626 Intangible assets 28 28 Trade and other receivables 10,731 10,731 Other assets 1,238 1,238 Cash and cash equivalents 19,657 19,657 Total assets of disposal group held for sale 48,280 48,280 Liabilities directly associated with assets classified as held for sale Equity - - Provisions (3,005) (3,005) Trade and other payables (15,547) (15,547) Total liabilities directly associated with assets classified as held for sale (18,552) (18,552) For segment reporting purposes, Misenge Environmental and Technical Services Limited has been classified under assets held for sale and discontinued operations. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 88 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 21 Assets classified as held for sale (continued) (iii) Financial performance and cash flow information (continued) The following assets and liabilities were reclassified as held for sale as at 31 December 2023; Mopani Copper Mines Plc Investrust Bank Plc Total Assets classified as held for sale Property, plant, and equipment 12,525,429 - 12,525,429 Intangible assets 3,121,181 - 3,121,181 Trade and other receivables 2,691,333 28,161 2,719,494 Term deposits - 1,005,015 1,005,015 Inventories 3,489,128 - 3,489,128 Other assets 147,553 - 147,553 Cash and cash equivalents 58,367 560,221 618,588 Total assets of disposal group held for sale 22,032,991 1,593,397 23,626,388 Liabilities directly associated with assets classified as held for sale Borrowings (43,518,156) - (43,518,156) Provisions for environmental rehabilitation (3,263,137) - (3,263,137) Bank Overdraft (1,095,462) - (1,095,462) Trade and other payables (12,296,374) (2,503,825) (14,800,199) Total liabilities directly associated with assets classified as held for sale (60,173,129) (2,503,825) (62,676,954) Net liabilities held for sale (38,140,138) (910,428) (39,050,566) Accumulated non-controlling Interest - (252,969) (252,969) For segment reporting purposes, Investrust Bank Plc included in the assets held for sale above, was classified under investments segment as part of other assets in 2023. Mopani Copper Mines Plc has been classified under the mining and processing segment. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 89 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 21 Assets classified as held for sale (continued) (iv) Reclassification of asset from held for sale to investments in associates ZCCM-IH Plc held a controlling interest in Mopani until the shareholders approved the Strategic Equity Transaction at an Extraordinary Meeting held on Friday 23 February 2024. This new partnership resulted in International Resources Holdings RSC Limited (“IRH”), through its wholly owned subsidiary, Delta Mining Limited (“Delta”) acquiring a 51% stake in Mopani which diluted ZCCM-IH’s stake from 100% to 49%. As a result, Mopani was reclassified as an associate in accordance with IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. Upon the reclassification, Mopani was derecognised from the Group’s Statement of Financial Position as a subsidiary and recognised as part of the Group’s investment in associates on 20th March 2024. Mopani Copper Mines Plc 20 Mar 2024 Total 20 Mar 2024 Property, plant, and equipment 14,598,625 14,598,625 Environmental protection fund 147,728 147,728 Inventories 3,533,399 3,533,399 Receivables 2,378,985 2,378,985 Cash and Bank 1,635,834 1,635,834 Total assets on reclassification 22,294,571 22,294,571 Borrowings (7,738,900) (7,738,900) Mopani Intercompany Loan (2,452,218) (2,452,218) Rehabilitation and restoration provisions (2,356,069) (2,356,069) Retirement Benefits Provision (129,916) (129,916) Taxation and other payables (13,456,454) (13,456,454) Total Liabilities (26,133,557) (26,133,557) Gain on disposal 3,838,986 3,838,986 Investments in associates @49% 4,750,000 4,750,000 Gain on reclassification 8,588,986 8,588,986 Mopani Copper Mines Plc Investrust Bank Plc Total Gain on derecognition 8,588,986 910,428 9,499,414 Total gain on derecognition 8,588,986 910,428 9,499,414 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 90 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries The following are considered when determining whether the Company has control over the investee compa- nies: • ZCCM-IH’s representation on the board of the investee company • Appointment of key management staff • Number of voting rights. Currently all subsidiaries are wholly owned by ZCCM-IH except for Zambia Gold Company Limited which is in its development stage. During the year, ZCCM-IH appointed key management personnel for the investee company, funds and exercised control over its operations and activities. ZCCM-IH is deemed to exercise con- trol over the entity. Set out below is a list of subsidiaries: December 2024 Company Country of incorpora- tion Principal place of business Held % Interest Opening carrying amount Addition Conver- sion of loan Change in fair value Closing carrying amount Misenge Environmental and Technical Services Zambia Kalulushi 100 33,508 - (33,508) - - Kariba Minerals Limited Zambia Mapatizya 100 99,624 - - (1,958) 97,666 Kabundi Resources Limited Zambia Serenje 100 64,850 - - (12,395) 52,455 Limestone Resources Limited Zambia Ndola 100 - 116,326 - (116,326) - Zambia Gold Company limited Zambia Lusaka 51 84,402 81 - (43,103) 41,380 Central African Cement Company limited Zambia Lusaka 49 - - - - - 282,384 116,407 (33,508) (173,782) 191,501 December 2023 Company Country of incorpora- tion Principal place of business Held % Interest Opening carrying amount Addition Impair- ment Change in fair value Closing carrying amount Mopani Copper Mine Plc Zambia Kitwe 100 - - - - - Misenge Environmental and Technical Services Zambia Kalulushi 100 45,323 - - (11,815) 33,508 Kariba Minerals Limited Zambia Mapatizya 100 - 93,568 5,839 217 99,624 Kabundi Resources Limited Zambia Serenje 100 85,927 - - (21,077) 64,850 Limestone Resources Limited Zambia Ndola 100 172,553 94,521 - (267,074) - Zambia Gold Company Limited Zambia Lusaka 51 99,811 1,912 - (17,321) 84,402 Central African Cement Company Limited Zambia Lusaka 49 1,437 - - (1,437) - 405,051 190,001 5,839 (318,507) 282,384 Capital Contributions • During the year 2024, ZCCM-IH Plc made equity contributions to Limestone Resources Limited amounting to ZMW116 million. • In 2023, ZCCM-IH Plc made equity contributions to Kariba Minerals Limited, Limestone Resources Limited and Zambia Gold Company Limited amounting to ZMW93.57 million, ZMW94.52 million and ZMW1.91 million re- spectively. The capital contribution was aimed at strengthening balance sheets and improve the operations of the respec- tive companies. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 91 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries (continued) (a) Reconciliation of carrying amounts Company 31 Dec 2024 31 Dec 2023 Balance at 1 January 282,384 405,051 Additions 116,407 190,001 Change in fair through other comprehensive income (173,782) (318,507) Transfer to assets held for sale (33,508) - Conversion of loan to equity - 5,839 Closing Balance 191,501 282,384 In line with the accounting policy for investments in subsidiaries, to carry all its investments at fair value, the Company performs annual fair valuation of its investments in subsidiaries and fair value gain/(loss) is recognised. The fair value gain/(loss) is recognised in the other comprehensive income (OCI). During the year, a fair value movement of ZMW173.78 million was recognised (2023: ZMW318.51 million). Valuation techniques used are disclosed in note 22 (b). (b) Measurement of fair value During the year ZCCM – IH Plc engaged an independent expert Stockbrokers Zambia (“SBZ”) to perform the valuation of the investments held at the year end. SBZ performed a full valuation and provided an independent valuation opinion in accordance with IFRS 13: “Fair Value Measurement” and IFRS 9: “Financial Instruments”. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 92 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries (continued) (b) Measurement of fair value (continued) Valuation technique and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of investment in subsidiaries as well as the significant unobservable inputs used. Subsidiary Valuation technique Significant inputs and key assumptions Inter-relationship between Key unobserv- able inputs and fair value measurement Limestone Resources Limited Net asset value approach ■ Availability of the Kiln ■ Cost of materials used in the produc- tion of lime The estimated fair value would increase/ (decrease) if: ■ Availability of the Kiln increase/(de- crease) ■ Cost of materials used in the production of lime (increase)/decrease Misenge Environmen- tal and Technical Services Net asset value approach ■ The level of activity from the environ- mental and radia- tion safety services ■ The level of activity from the analytical services ■ The level of activity from the engineer- ing services The estimated fair value would increase/ (decrease) if: ■ The level of activity from the environ- mental and radiation safety services increase/(decrease) ■ The level of activity from the analytical services increase/(decrease) ■ The level of activity from the engineer- ing services increase/(decrease) Kariba Minerals Limited Net asset value approach ■ The grade of ame- thyst being mined ■ The level of mining activity affects the operational costs The estimated fair value would increase/ (decrease) if: ■ The grade of amethyst being mined increase/(decrease) ■ The level of mining activity affects the operational costs increase/(decrease) Kabundi Resources Limited Net asset value approach ■ The level of mining activity being per- formed ■ The level of mining activity affects the operational costs The estimated fair value would increase/ (decrease) if: ■ The level of mining activity being per- formed ■ The level of mining activity affects the operational costs ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 93 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries (continued) (b) Measurement of fair value (continued) Valuation technique and significant unobservable inputs (continued) Subsidiary Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Zambia Gold Company Limited Net asset value approach • The level of mining activity being performed • Operational costs incurred which are marginally related to mining activities The estimated fair value would increase/ (decrease) if: • The level of mining activity being performed increase/(decrease) • Operational costs incurred which are marginally related to mining activities (Increase)/decrease Investments in subsidiaries have been measured at fair value as follows: Company Company investments in subsidiaries analysis 31-Dec 31-Dec 2024 2023 Misenge Environmental and Technical Services - 33,508 Kariba Minerals Limited 97,666 99,624 Kabundi Resources Limited 52,455 64,850 Limestone Resources Limited - - Zambia Gold Company Limited 41,380 84,402 Total 191,501 282,384 Fair value hierarchy The fair value measurement for the Company’s investment in subsidiaries of ZMW192 million (2023: ZMW 282 million) has been categorised as a level 3 fair value based on the inputs to the valuation technique used. The following table shows a reconciliation from the opening balances to the closing balances for level 2 and 3 fair values. December 2024 Level 2 Level 3 Total Balance at 1 January - 282,384 282,384 Additions - 116,407 116,407 Transfer to assets held for sale - (33,508) (33,508) Change in fair value - (173,782) (173,782) Balance at 31 December 191,501 191,501 December 2023 Level 2 Level 3 Total Balance at 1 January - 405,051 405,051 Additions - 195,840 195,840 Change in fair value - (318,507) (318,507) Balance at 31 December - 282,384 282,384 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 94 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries (continued) (c) Non-controlling interest The Group’s material non-controlling interests (NCI) relates to Zambia Gold Company Limited as shown below: Name Proportion of ownership interests and voting rights held by the NCI Total comprehensive income allocated to NCI Accumulated NCI 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Investrust Bank Plc 28.6% 28.6% - (216,840) - (252,969) Zambia Gold Company Limited 49% 49% (41,169) (11,439) 37,016 78,185 Total (41,169) (228,279) 37,016 (174,784) Summarised financial information for Zambia Gold Company limited, before intragroup eliminations, is set out below: 2024 31 Dec 2024 Zambia Gold Company Limited Non-current assets 191,397 Current assets 134,942 Total assets 326,339 Non-current liabilities 212,514 Current liabilities 32,687 Total liabilities 245,201 Equity attributable to owners of the parent 41,380 Equity attributable non-controlling interests 39,758 Revenue - Other income 327 Loss for the year attributable to owners of the parent (42,850) Loss for the year attributable to NCI (41,169) Loss for the year (84,019) Net cash from operating activities (90,118) Net cash used in investing activities (36,024) Net cash from financing activities 139,068 Net cash inflow 12,926 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 95 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 22 Investment in subsidiaries (continued) (c) Non-controlling interest (continued) 2023 31 Dec 2023 31 Dec 2023 Investrust Bank Plc Zambia Gold Company Limited Non-current assets - 211,303 Current assets 1,593,397 115,491 Total assets 1,593,397 326,794 Non-current liabilities - 15,313 Current liabilities 2,503,825 146,330 Total liabilities 2,503,825 161,643 Equity attributable to owners of the parent (657,459) 86,966 Equity attributable non-controlling interests (252,969) 78,185 Revenue 188,822 38,524 Other income 13,977 - Loss for the year attributable to owners of the parent (541,341) (11,906) Loss for the year attributable to NCI (216,840) (11,439) Loss for the year (758,181) (23,345) Net cash used in operating activities 569,594 18,599 Net cash used in investing activities (9,373) (267) Net cash from financing activities - 95,247 Net cash out flow 560,221 113,579 (d) Derecognition of Investrust Bank Plc from the Group’s Financial Statements During the financial year ended 31 December 2024, the Bank of Zambia (“BoZ”) exercised regulatory authority over Investrust Bank Plc (“Investrust”). On 2 April 2024, the Lusaka Securities Exchange (“LuSE”) issued a notice halting the trading of Investrust’s securities, and subsequently, on 24 April 2024, LuSE for- mally suspended the listing of Investrust Bank Plc. Further, on 8 July 2024, BOZ issued a Notice on the Resolution of Investrust, in accordance with Section 127 of the Banking and Financial Services Act, 2017. The notice confirmed that Investrust had been placed under compulsory liquidation to address residual matters. As part of the resolution process, BOZ appoint- ed a Liquidation Manager to oversee and administer the liquidation process. ZCCM-IH’s shareholding was also cancelled. The Company continues to monitor developments regarding the liquidation process and, ensuring appropriate disclosures in line with applicable financial reporting standards. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 96 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 22 Investment in subsidiaries (continued) (d) Derecognition of Investrust Bank Plc from the Group’s Financial Statements (continued) 31 Dec 2024 31 Dec 2024 Investrust Bank Plc Total Term deposits 1,005,015 1,005,015 Trade and other receivables 28,161 28,161 Cash and cash equivalents 560,221 560,221 Trade and other payables (2,503,825) (2,503,825) Net liabilities derecognised (910,428) (910,428) NCI accumulated NCI (22 (c)) (252,969) (252,969) In 2023, a wholly owned subsidiary of ZCCM-IH, Mushe Milling Limited was declared insolvent and ceased its operations. The Board of Directors resolved that Mushe be liquidated and a notice for a meeting to wind up the company voluntarily be issued. Following the decision by the Directors of Mushe, the remainder of the assets and liabilities were derecognised and written off. The table below shows the assets and liabilities derecognised in 2023. 31 Dec 2023 31 Dec 2023 31 Dec 2023 Mushe Milling Limited Central African Cement Limited Total Property, plant and equipment 5,296 - 5,296 Inventories 144 - 144 Cash and cash equivalents 571 - 571 Retirement benefits (1,932) - (1,932) Trade and other payables (22,864) - (22,864) Provisions (1,187) - (1,187) Current tax liabilities (127) - (127) Non-controlling interest - 733 733 Net liabilities derecognised (20,099) 733 (19,366) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 97 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 23 Investment in associates (a) Reconciliation of carrying amounts Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Balance at 1 January 10,090,940 15,174,862 11,240,080 16,256,411 Share of profit/(loss) of equity accounted associates 3,327,837 2,261,209 - - Share of other comprehensive income (1,558) 11,529 - - Dividend received (750,029) (739,836) - - Additions 566,340 540,849 566,340 540,849 Transfer to intangible assets (Note 19) - (11,036,000) - (11,036,000) Transfer from associate to receivable - (29,507) - (29,507) Transfer from associate to assets held for sale (Note 21(ii)) (39,348) - (39,348) - Additions 4,750,000 - - - Impairment of investments in associates (Note 23 (a) (i/ii)) (4,461,755) - - - Change in fair value (unrealised) - - 22,685,093 5,508,327 Currency translation adjustment 10,922,393 3,907,834 - - Total Balance 24,404,820 10,090,940 34,452,165 11,240,080 * Investments in associates are measured at fair value in the Company’s statement of financial position. In the consolidated financial statements, investments in associates are equity - accounted. The increase in fair value from ZMW 11.24 million to ZMW34.45 million is mainly due to the reclassification of Mopani from investments in subsidiary to investment in associate coupled with unrealised capital gains from ZCCM-IH’s investment in CEC Plc and other investee companies. Mopani Copper Mines Plc: During the financial year ended 31 December 2024, ZCCM Investments Holdings Plc (ZCCM-IH) entered into a strategic equity partnership with Delta Mining Limited (Delta), a subsidiary of International Resource Holdings (IRH). This partnership involved Delta acquiring a 51% shareholding in Mopani Copper Mines Plc (Mopani) through an investment of up to US$1.1 billion. Consequently, ZCCM-IH's ownership stake in Mopani was adjusted from 100% to 49%. The investment by Delta comprises US$620 million in new equity capital, up to US$100 million for settling existing third-party letters of credit, and up to US$380 million in shareholder loans. This infusion of capital is aimed at enhancing Mopani's operational capacity and financial stability. The Strategic Partnership was approved by ZCCM-IH shareholders during an Extraordinary General Meeting held on 23 February 2024. This collaboration is anticipated to unlock the long-term sustainability of Mopani's operations, contributing significantly to the revitalization of Zambia's Copperbelt region. The investment has been reclassified from a subsidiary to an investment in associate. Copperbelt Energy Corporation Plc: During the year ZCCM-IH has increased its stake in Copperbelt Energy Corporations Plc to 32.41% from the pre- vious 31.07% Lubambe Copper Mines Plc: Lubambe Copper Mines Investment (2024): ZCCM-IH reached an agreement with Jinchengxin Mining Manage- ment Company Ltd (JCHX) to acquire an additional 10% shareholding in Lubambe Copper Mines Ltd, increas- ing its ownership from 20% to 30% in the subsequent period. There was no consideration paid for the additional 10% shareholding acquired in Lubambe. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 98 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (a) Reconciliation of carrying amounts (continued) Impairment of investments in associates (i) Mopani Copper Mines Plc During the financial year ended 31 December 2024, management performed an assessment of the impairment of ZCCM-IH’s investment in Mopani Copper Mines Plc (MCM) in accordance with IAS 36 Impairment of Assets and IAS 28 Investments in Associates and Joint Ventures. As at the reporting date, the carrying amount of the investment in MCM was assessed for indicators of impairment. The assessment was triggered by an objective impairment indicator which arose from a significant decline in recoverable amount of the investment in MCM. ZCCM-IH’s management annually performs an assessment of the recoverable amount of its investment in associates. The key assumptions used in the assessment and determination of the recoverable amount of the investment in MCM are disclosed in Note 23 (c), Measurement of fair value. Based on the assessment, an impairment loss of ZMW2.06 billion was recognised in the statement of profit or loss, reducing the carrying amount of the investment in the MCM from ZMW10.74 billion to its recoverable amount of ZMW8.62 million as at 31 December 2024. (ii) Konkola Copper Mines Plc During the financial year ended 31 December 2024, management performed an assessment of the impairment of ZCCM-IH’s investment in Konkola Copper Mines Plc (KCM) in accordance with IAS 36 Impairment of Assets and IAS 28 Investments in Associates and Joint Ventures. As at the reporting date, the carrying amount of the investment in KCM was assessed for indicators of impairment. The assessment was triggered by an objective impairment indicator which arose from a significant decline in the recoverable amount of the investment in KCM. ZCCM-IH’s management annually performs an assessment of the recoverable amount of its investment in associates. They key assumptions used in the assessment and determination of the recoverable amount of the investment in KCM are disclosed in Note 23 (c), Measurement of fair value. Based on the assessment, an impairment loss of ZMW2.40 billion was recognised in the statement of profit or loss, reducing the carrying amount of the investment in the KCM from ZMW4.76 billion to its recoverable amount of ZMW2.36 million as at 31 December 2024. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 99 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (a) Reconciliation of carrying amounts (continued) Company Name Principal place of business Ownership interest Fair value of ownership interest ZMW’ million Functional currency Konkola Copper Mines Plc Zambia 20.60% 2,359 US$ Kansanshi Mining Plc Zambia 20.00% - US$ Copperbelt Energy Corporation Plc Zambia 32.41% 7,289 US$ Mopani Copper Mines PIc Zambia 49.00% 8,682 US$ CNMC Luanshya Copper Mining limited Zambia 20.00% 6,939 US$ Maamba Energy Limited Zambia 35.00% 7,621 US$ Lubambe Copper Mines Limited Zambia 30.00% Nil US$ Mingomba Mining Limited Zambia 20.00% 1,563 US$ The following are considered when determining the level of control or influence over the investee companies: • ZCCM-IH’s representation on the Board of the investee company • Appointment of key management staff • Number of voting rights Currently ZCCM-IH appoints directors in line with its percentage holding on all the Boards of its associates except for Kansanshi Mining Plc, and as such it exercise’s significant influence over them. Many of the investee companies have United States Dollars (US$) as their functional currency, due to the nature of the mining industry, although all investee companies are domiciled in Zambia. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 100 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (b) Investment in associates’ analysis Nature of business relationship and strategic impact on ZCCM-IH’s activities Name Nature of business relationship Strategic impact on ZCCM-IH’s activities Konkola Copper Mines Plc KCM is Zambia’s largest in- tegrated copper producer, with an entire production value chain comprising of open pit and underground mines, concentrators, a state-of-the-art smelter, a tailings leach plant and a refinery. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. Kansanshi Mining Plc Kansanshi is Zambia’s largest copper producer. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. Copperbelt Energy Corporation Plc CEC Plc is a power generation, transmission, distribution and supply company. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining and energy sectors. Mopani Copper Mines Pic Mopani is a copper mine comprising underground mines, a concentrator, a smelter, a refinery, underground mines, open pits, a concentrator and a cobalt plant. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. CNMC Luanshya Copper Mining limited CNMC is a copper producing mine. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. Maamba Energy Limited Maamba is largest coal mining company in Zambia. Maamba has a coal power plants that contributes power to the national grid. Strategic to ZCCM-IH’s focus on enhancing Zambia’s energy sectors. Lubambe Copper Mines Limited Lubambe Copper Mine is an underground mining operation. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. Mingomba Mining Limited Mingomba is currently undertaking an extensive exploration programme on its license to develop it into a fully-fledged copper mine. Strategic to ZCCM-IH’s focus on enhancing Zambia’s mining sector. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 101 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (b) Investment in associates’ analysis (continued) Group Summary of financial information for material equity accounted investees. Where the equity accounted value is zero, no further losses are recognised by ZCCM-IH as there is no obligation to settle any liabilities. The equity accounted value was zero for Lubambe Copper Mines Limited as at 31 December 2024. There was no profit or loss from discontinued operations. Dec-24 Investee companies Account- ing year end Country of incor- poration % interest held Assets Current Non- Current Assets Liabilities Current Liabilities Non-Current Net assets Value Revenues Profit/ (Loss) Share of profit/(loss) Share of profit/(loss) not rec- ognised Share of net assets ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 Konkola Copper Mines Plc 31-Mar Zambia 20.60% 12,690,435 47,686,965 (2,543,678) (34,717,005) 23,116,717 10,778,856 12,152,529 2,503,421 - 2,359,000 Copperbelt Energy Corporation Plc 31-Dec Zambia 32.41% 9,653,619 14,313,301 (2,971,658) (8,283,835) 12,711,427 14,322,710 2,534,803 821,530 - 4,119,773 Mopani Copper Mines Plc 31-Dec Zambia 49.0% 13,944,943 38,092,074 (10,003,641) (20,113,557) 21,919,819 13,145,078 (3,489,692) (1,709,949) 8,682,000 CNMC Luanshya Copper Mine Plc 31-Dec Zambia 20.0% 10,191,482 4,273,210 (4,347,145) (509,490) 9,608,057 11,758,119 3,916,505 783,301 - 1,921,611 Maamba Energy Limited 31-Mar Zambia 35.0% 9,273,841 12,431,547 (1,209,009) (4,365,770) 16,130,609 6,323,317 3,071,614 1,075,065 - 5,645,713 Lubambe Copper Mines Limited 31-Dec Zambia 30.0% 2,012,664 5,458,648 (3,349,436) (30,430,964) (26,309,088) 3,896,237 (2,706,705) - (812,012) - Rembrandt Proper- ties Limited 31-Dec Zambia 49.0% - - - - - - - - - - Mingomba Mining Limited 31-Dec Zambia 20.0% 632,260 7,885,897 (123,091) (11,450) 8,383,616 - (727,657) (145,531) - 1,676,723 Total 58,399,244 130,141,642 (24,547,658) (98,432,071) 65,561,157 60,224,317 14,751,397 3,327,837 (812,012) 24,404,820 The financial statements of the Company and associates used in the preparation of the current consolidated financial statements have the same reporting date of 31 December except for Maamba Energy Limited and Konkola Copper Mines Plc. For the two-investee companies with different reporting date from that of the Company, their financial information has been adjusted to align to the reporting date of the consolidated financial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 102 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (b) Investment in associates’ analysis (continued) Group Summary of financial information for material equity accounted investees. Dec-23 Investee companies Account- ing year end Country of incor- poration % Interest held Current Assets Non-Cur- rent Assets Current Liabilities Non-Current Liabilities Net asset value Revenues Profit/(Loss) Share of profit/(loss) Share of profit/(loss) not rec- ognised Share of net assets ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 ZMW’000 Copperbelt Energy Corporation Plc 31-Dec Zambia 31.07% 4,631,023 12,764,059 (1,093,634) (5,597,083) 10,704,365 7,845,760 2,825,126 877,767 - 3,325,846 CNMC Luanshya Copper Mine Plc 31-Dec Zambia 20.00% 5,418,840 4,345,211 (3,234,867) (247,733) 6,281,451 8,492,866 2,929,081 585,816 - 1,256,290 Maamba Energy Limited 31-Mar Zambia 35.00% 8,816,113 12,170,941 (2,657,654) (6,495,708) 11,833,692 5,001,542 2,566,315 898,210 - 4,141,792 Lubambe Copper Mines Limited 31-Dec Zambia 20.00% 1,782,150 5,683,344 (3,563,927) (22,544,188) (18,642,621) 2,516,011 (3,055,266) - (611,053) - Rembrandt Proper- ties Limited 31-Dec Zambia 49.00% 5,774 156,648 (37,643) (44,476) 80,303 14,768 (2,468) (1,209) - 39,348 Mingomba Mining Limited 31-Dec Zambia 20.00% 5,808 6,652,908 (20,396) - 6,638,320 - (496,875) (99,375) - 1,327,664 Totals 20,659,708 41,773,111 (10,608,121) (34,929,188) 16,895,510 23,870,947 4,765,913 2,261,209 (611,053) 10,090,940 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 103 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (b) Investments in associates’ analysis (continued) Company Summary of fair values for equity accounted investees held by the Company: % Interest 31 Dec 2024 % Interest 31 Dec 2023 Copperbelt Energy Corporation Plc c(i) 32.41 7,288,625 31.07 3,579,268 Maamba Energy Limited c(ii) 35 7,621,000 35 5,066,300 CNMC Luanshya Copper Mines Plc c(iii) 20 6,939,000 20 1,227,500 Mopani Copper Mines Plc c(iv) 49 8,682,000 100 - Konkola Copper Mines Plc c(v) 20.6 2,359,000 20.6 - Lubambe Copper Mine Limited c(vi) 30 - 20 - Rembrandt Properties Limited c(vii) 49 - 49 39,348 Mingomba Mining Limited c(viii) 20 1,562,540 20 1,327,664 34,452,165 11,240,080 (c) Measurement of fair value Fair value hierarchy The fair values of the Company’s investment in associates were determined by Stockbrokers Zambia, an external independent fair valuation expert, having appropriate recognised professional qualifications and experience. The independent valuers provide the fair value of the Company’s associates annually. The fair value moved from ZMW11.24 billion in December 2023 to ZMW34.45 billion in December 2024. The fair value measurement for the Company’s investment in associates of ZMW27.16 billion (2023: ZMW7.66 billion) has been categorised as a level 3 fair value based on the inputs to the valuation technique used (see Note 4 (b)). The new Strategic Equity Partnership has increased the fair value of ZCCM-IH Plc’s shareholding in Mopani Copper Mines Plc to ZMW8.68 billion. The increase in the fair value is because of the infusion of capital in Mopani which is aimed at enhancing the operational capacity and financial stability of the mine. Copperbelt Energy Corporation Plc, ZMW7.29 billion (2023: ZMW3.58 billion) has been categorised as a level 1 based on quoted market prices. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 104 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) The following table shows a reconciliation from the opening balances to the closing balances for level 1 and 3 fair values. Company Level 1 Level 3 Total Balance at 1 January 2024 Copperbelt Energy Corporation Plc 3,579,268 - 3,579,268 CNMC Luanshya Copper Mine Plc - 1,227,500 1,227,500 Maamba Energy Limited - 5,066,300 5,066,300 Rembrandt Properties Ltd - 39,348 39,348 Mingomba Mining Limited - 1,327,664 1,327,664 3,579,268 7,660,812 11,240,080 Fair value movement Copperbelt Energy Corporation Plc 3,391,983 - 3,391,983 Konkola Copper Mines Plc - 2,359,000 2,359,000 Mopani Copper Mines Plc - 3,932,000 3,932,000 CNMC Luanshya Copper Mine Plc - 5,711,500 5,711,500 Mingomba Mining Limited (14,090) (14,090) Maamba Energy Limited - 2,554,700 2,554,700 3,391,983 14,543,110 17,935,093 Additions/ Transfer Copperbelt Energy Corporation Plc 317,374 - 317,374 Mopani Copper Mines Plc - 4,750,000 4,750,000 Rembrandt Properties Ltd - (39,348) (39,348) Mingomba Mining Limited - 248,966 248,966 317,374 4,959,618 5,276,992 Balance at 31 December 2024 Mopani Copper Mines Plc - 8,682,000 8,682,000 Konkola Copper Mines Plc - 2,359,000 2,359,000 Copperbelt Energy Corporation Plc 7,288,625 - 7,288,625 CNMC Luanshya Copper Mine Plc - 6,939,000 6,939,000 Maamba Energy Limited - 7,621,000 7,621,000 Mingomba Mining Limited - 1,562,540 1,562,540 7,288,625 27,163,540 34,452,165 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 105 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) Company Level 1 Level 3 Total Balance at 1 January 2023 Kansanshi Mining Plc - 11,036,000 11,036,000 Copperbelt Energy Corporation Plc 1,480,987 - 1,480,987 CNMC Luanshya Copper Mine Plc - 744,000 744,000 Maamba Energy Limited - 2,965,600 2,965,600 Rembrandt Properties Ltd - 20,324 20,324 Consolidated Gold Company of Zambia Limited - 9,500 9,500 1,480,987 14,775,424 16,256,411 Fair value movement Kansanshi Mining Plc - - - Copperbelt Energy Corporation Plc 1,557,423 - 1,557,423 CNMC Luanshya Copper Mine Plc - 483,500 483,500 Rembrandt Properties Ltd - 19,024 19,024 Maamba Energy Limited - 2,100,700 2,100,700 1,557,423 2,603,224 4,160,647 Additions/ Transfer Copperbelt Energy Corporation Plc 540,858 - 540,858 Consolidated Gold Company of Zambia Limited - (9,500) (9,500) Mingomba Mining Limited - 1,327,664 1,327,664 Kansanshi Mining Plc - (11,036,000) (11,036,000) 540,858 (9,717,836) (9,176,978) Balance at 31 December 2023 Copperbelt Energy Corporation Plc 3,579,268 - 3,579,268 CNMC Luanshya Copper Mine Plc - 1,227,500 1,227,500 Maamba Energy Limited - 5,066,300 5,066,300 Rembrandt Properties Ltd - 39,348 39,348 Mingomba Mining Limited - 1,327,664 1,327,664 3,579,268 7,660,812 11,240,080 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 106 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) Valuation technique and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs used. Associate Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Maamba Energy Limit- ed (C(ii)) Discounted cash flows: It is an income approach to val- uation and the most widely used valuation methodolo- gy. It computes the value of a business by calculating the present value of antici- pated future cash flows gen- erated by the business. The expected net cash flows are discounted using risk adjust- ed discount rates. There has been no changes to the valuation technique applied in the prior year. Relative valuation: The relative valuation meth- odology values a company using market-based multi- ples, including operational and asset-based metrics. DCF accounts for 75% of the fair valuation and the relative valuation accounts for 25%. • Target participation capital structure - Debt to total capitalisation (2024: 36.7%, 2023: 36.7%) - Equity to total capitalisation (2024:63.4%, 2023: 63.4%) • Cost of debt - Cost of debt (2024: 10.00%, 2023: 11.90%) - Effective tax rate (2024:30 %, 2023: 30%) - After tax cost of debt (2024: 7.00%, 2023: 8.34%) • Cost of equity - Risk free rate (2024:4.60 %, 2023: 3.88 %) - Market risk premium (2024: 16.4 %, 2023: 19.2 %) - Unlevered beta (2024: 0.64, 2023: 0.53) - Cost of equity (2024: 19.3%, 2023: 18.2%) • WACC (2024: 14.80, 2023: 13.20%) • The assumptions considered were as follows: - PPA is valid until 2036 - The MRT on coal is projected at 5% throughout the forecast period - Maamba also pays an ERB fee which is 0.07% of turnover of coal used in the power plant and the coal that is sold to the market - Plant Availability is assumed to be 85.78% throughout the remaining life of PPA. Plant availability is reduced by 10.38% to allow for major rehabil- itation works. - Capital expenditure for the construction of new plant is assumed at US$637 million - Projected to produce an annual average of 1.9 million MWH - Projected to mine an annual average of 447,000 tonnes of high-grade coal - Projected to mine an annual average of 1.52 million tonnes of thermal coal The estimated fair value would increase /(decrease) if: • Equity to total capitalisa- tion were (lower)/higher • Cost of debt were lower/ (higher) • The cost of equity were lower/(higher) • Coal sales prices increase/ (decrease) • Capital expenditure de- crease/ (increase) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 107 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) Valuation technique and significant unobservable inputs (continued) The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs used. Associate Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement CNMC Luanshya Copper Mines Plc ((C(iii)) Discounted cash flows: It is an income approach to valuation and the most widely used valuation methodology. It computes the value of a business by calculating the present value of anticipated future cash flows generated by the business. The expected net cash flows are discounted using risk adjusted discount rates. Relative valuation: The relative valuation methodology values a company using market-based multiples, including operational and asset-based metrics. DCF accounts for 75% of the fair valuation and the relative valuation accounts for 25%. • Target participation capital structure - Debt to total capitalisation (2024: 38.70%, 2023: 26.00%) - Equity to total capitalisation (2024: 61.30%, 2023: 74.00%) • Cost of debt - Cost of debt (2024: 7.00%, 2023: 7.00%) - Effective tax rate (2024: 30%, 2023: 30%) - After tax cost of debt (2024: 4.90%, 2023: 4.90%) • Cost of equity - Risk free rate (2024: 4.58%, 2023: 3.88%) - Market risk premium (2024: 8.54%, 2023: 9.72%) - Levered beta (2024: 1.95, 2023: 1.10). - Cost of equity (2024:21.20%, 2023: 14.54%) • WACC (2024: 14.89%, 2023: 12.03%) • Key assumptions considered were as follows: - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral royalty is treated as deductible from income tax from 2024 onwards. - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as deductible from income tax from 2024 onwards. - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 /ton and US$10,570/ton respectively. Gold price forecasts for 2025-2027 are US$2,793/oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate of US$9,211/ton was used for copper and US$2,190/oz was used for gold. - Capex expenditure has been projected at US$606 million over the life of mine. - Life of mine was estimated to be 25 years. The estimated fair value would increase/(decrease) if: • Equity to total capitalisation were (lower)/higher • The cost of debt were lower/ (higher) • The cost of equity were lower/ (higher). • Copper/gold prices were higher/ (lower) • Capital expenditure decrease/ (increase) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 108 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) Valuation technique and significant unobservable inputs (continued) The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs used. Associate Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Mopani Copper Mines Plc ((C(iv)) Discounted cash flows: It is an income approach to valuation and the most widely used valuation methodology. It computes the value of a business by calculating the present value of anticipated future cash flows generated by the business. The expected net cash flows are discounted using risk adjusted discount rates. Relative valuation: The relative valuation methodology values a company using market-based multiples, including operational and asset-based metrics. DCF accounts for 75% of the fair valuation and the relative valuation accounts for 25%. • Target participation capital structure - Debt to total capitalisation (2024: 36.00%, 2023: 26.2%) - Equity to total capitalisation (2024: 64.00%, 2023: 73.80%) • Cost of debt - Cost of debt (2024: 10.30%, 2023: 10.30%) - Effective tax rate (2024: 30%, 2023: 30%) - After tax cost of debt (2024: 7.20%, 2023: 7.20%) • Cost of equity - Risk free rate (2024: 4.6%, 2023: 3.9%) - Market risk premium (2024: 8.5%, 2023: 9.7%) - Levered beta (2024: 1.88, 2023: 1.53). - Cost of equity (2024:20.60%, 2023: 18.44%) • WACC (2024: 15.80%, 2023: 15.50%) • Key assumptions considered were as follows: - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral royalty is treated as deductible from income tax from 2024 onwards. - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as deductible from income tax from 2024 onwards. - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 / ton and US$10,570/ton respectively. Gold price forecasts for 2025- 2027 are US$2,793/oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate of US$9,211/ton was used for copper and US$2,190/oz was used for gold. - Capex expenditure has been projected at US$1.84 billion from 2025 to 2029 and the Life of mine was estimated to be 23 years The estimated fair value would increase/(decrease) if: • Equity to total capitalisation were (lower)/higher • The cost of debt were lower/ (higher) • The cost of equity were lower/ (higher) • Copper/gold prices were higher/ (lower) • Capital expenditure decrease/ (increase) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 109 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) Valuation technique and significant unobservable inputs (continued) The following table shows the valuation technique used in measuring the fair value of investment in associates as well as the significant unobservable inputs used. Associate Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Konkola Copper Mines Plc ((C(v)) Discounted cash flows: It is an income approach to valuation and the most widely used valuation methodology. It computes the value of a business by calculating the present value of anticipated future cash flows generated by the business. The expected net cash flows are discounted using risk adjusted discount rates. DCF accounts for 75% of the fair valuation and the relative valuation accounts for 25%. • Target participation capital structure - Debt to total capitalisation (2024: 39.00%) - Equity to total capitalisation (2024: 61.00%) • Cost of debt - Cost of debt (2024: 10.00%) - Effective tax rate (2024: 30%) - After tax cost of debt (2024: 7.00%) • Cost of equity - Risk free rate (2024: 4.58%) - Market risk premium (2024: 8.54%) - Levered beta (2024: 1.72). - Cost of equity (2024:14.50%) • WACC (2024: 14.50%, 2023: 0.0%) • Key assumptions considered were as follows: - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral royalty is treated as deductible from income tax from 2024 onwards. - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as deductible from income tax from 2024 onwards. - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122 /ton and US$10,570/ton respectively. From 2028 onwards, a flat rate of US$9,211/ton was used for copper. - Capex expenditure has been projected at US$1 billion over the life of mine - Life of mine was estimated to be 30 years. The estimated fair value would increase/(decrease) if: • Equity to total capitalisation were (lower)/higher • The cost of debt were lower/ (higher) • The cost of equity were lower/ (higher) • Copper prices were higher/ (lower) • Capital expenditure decrease/ (increase) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 110 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) (i) Copperbelt Energy Corporation Plc (CEC) CEC is listed on Lusaka Securities Exchange (LuSE) and consequently the valuation was based on the spot price and has been categorised as level 1 as shown below: Mark to market 31-Dec 31-Dec 2024 2023 Details Spot price per share at 31 December (ZMW) 13.84 7.09 Number of issued shares owned 526,634,783 504,833,325 Market value (ZMW’000) 7,288,625 3,579,268 CEC is categorised as level 1 based on the quoted market price on the Lusaka Securities Exchange. (ii) Maamba Energy Limited A sensitivity analysis table of the equity value, which is based on the discount rate and MRT/ERB fees over the life of power plant indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: 2024 MRT AND ERB FEES 5.1% 5.4% 5.7% 6.0% 6.3% WACC 13.3% 8,121,000 8,250,000 8,379,000 8,508,000 8,637,000 14.0% 7,986,000 8,122,000 8,259,000 8,365,000 8,531,000 14.8% 7,352,000 7,486,000 7,621,000 7,755,000 7,890,000 15.5% 6,456,000 6,606,000 6,708,000 6,833,000 6,959,000 16.3% 6,381,000 6,512,000 6,644,000 6,777,000 6,909,000 The equity value ranges from ZMW6.6 billion (2023: ZMW4.9 billion) to ZMW8.4 billion (2023: ZMW5.2 billion) with the calculated equity value being ZMW7.6 billion (2023: ZMW5.1 billion). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 111 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) (ii) Maamba Energy Limited (continued) 2023 MRT AND ERB FEES 5.1% 5.4% 5.7% 6.0% 6.3% WACC 13.1% 5,385,000 5,382,000 5,379,000 5,376,000 5,374,000 13.9% 5,224,000 5,222,000 5,219,000 5,216,000 5,213,000 14.6% 5,072,000 5,069,000 5,066,300 5,064,000 5,061,000 15.3% 4,927,000 4,924,000 4,922,000 4,919,000 4,916,000 16.0% 4,789,000 4,786,000 4,784,000 4,781,000 4,779,000 The equity value ranges from ZMW4.9 billion (2022: ZMW2.8 billion) to ZMW5.2 billion (2022: ZMW3.1 billion) with the calculated equity value being ZMW5.1 billion (2022: ZMW3.0 billion). (iii) CNMC Luanshya Copper Mines Plc A sensitivity analysis table of the equity value, which is based on the discount rate and long-term average copper price over the life of mine indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: 2024 Equity Value Sensitivity Analysis Long-Term Copper Price (US$/lb) 3.65 3.85 4.18 4.39 4.61 WACC 11.6% 7,409,000 7,896,000 8,402,000 8,908,000 9,433,000 13.6% 7,334,000 7,804,000 8,291,000 8,770,000 9,284,000 14.89% 6,157,000 6,540,000 6,939,000 7,336,000 7,749,000 17.6% 5,805,000 6,148,000 6,523,000 6,889,000 7,267,000 19.6% 5,765,000 6,107,000 6,460,000 6,814,000 7,179,000 The equity value ranges from ZMW6.1 billion (2023: ZMW0.9 billion) to ZMW8.8 billion (2023: ZMW1.5 billion) with the calculated equity value being ZMW6.9 billion (2023: ZMW1.2 billion). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 112 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) (iii) CNMC Luanshya Copper Mines Plc (continued) 2023 Equity Value Sensitivity Analysis Long-Term Copper Price (US$/lb) 3.40 3.58 3.77 3.95 4.15 WACC 13.4% 801,000 1,048,000 1,308,000 1,568,000 1,841,000 14.1% 772,000 1,013,000 1,268,000 1,522,000 1,790,000 14.9% 743,000 979,000 1,227,500 1,476,000 1,737,000 15.6% 715,000 946,000 1,189,000 1,432,000 1,687,000 16.4% 688,000 913,000 1,151,000 1,388,000 1,637,000 The equity value ranges from ZMW0.9 billion (2022: ZMW0.6 billion) to ZMW1.5 billion (2022: ZMW0.9 billion) with the calculated equity value being ZMW1.2 billion (2022: ZMW0.7 billion). (iv) Mopani Copper Mines Plc A sensitivity analysis table of the equity value, which is based on the discount rate and long-term average copper price over the life of mine indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: 2024 Equity Value Sensitivity Analysis Long-Term Copper Price (US$/lb) 3.65 3.85 4.18 4.39 4.61 WACC 8.7% 4,319,000 8,122,000 12,011,000 15,849,000 19,842,000 11.2% 3,053,000 6,363,000 9,754,000 13,103,000 16,591,000 13.7% 2,437,000 5,520,000 8,682,000 11,807,000 15,062,000 16.2% 1,853,000 4,729,000 7,683,000 10,602,000 13,644,000 18.7% 726,000 3,224,000 5,794,000 8,337,000 10,988,000 The equity value ranges from ZMW4.7 billion to ZMW13.1 billion with the calculated equity value being ZMW8.7 billion. (v) Konkola Copper Mines Plc (KCM) A sensitivity analysis table of the equity value, which is based on the discount rate and long-term aver- age copper price over the life of mine indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 113 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) (v) Konkola Copper Mines Plc (KCM) (continued) Equity Value Sensitivity Analysis Long-Term Copper Price (US$/lb) 3.65 3.85 4.18 4.39 4.61 WACC 8.7% 632,000 2,037,000 3,443,000 4,848,000 6,254,000 11.2% 232,000 1,555,000 2,878,000 4,202,000 5,525,000 13.7% (135,000) 1,112,000 2,359,000 3,606,000 4,854,000 16.2% (472,000) 705,000 1,881,000 3,057,000 4,234,000 18.7% (781,000) 330,000 1,441,000 2,551,000 3,662,000 The equity value ranges from ZMW0.7 billion (2023: Nil) to ZMW4.2 billion (2023: Nil) with the calculated equity value being ZMW2.4 million (2023: Nil). (vi) Lubambe Copper Mine Limited The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of the investee company) (2023: nil). (vii) Rembrandt Properties Limited The equity value is ZMW40.30 million (2023: ZMW39.35 million) Associate Valuation technique Significant inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Rembrandt Proper- ties Limited (c(vii)) Net asset value approach • Average ac- commodation occupancy rate • Average conference occupancy rate • Basic room rental rate • Hotel land rent The estimated fair value would in- crease/(decrease) if: • Average accommodation occu- pancy rate increase/(decrease) • Average conference occupancy rate increase/(decrease) • Basic room rental rate increase/(de- crease) • Hotel land rent (Increase)/decrease ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 114 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 23 Investment in associates (continued) (c) Measurement of fair value (continued) (viii) Mingomba Mining Limited The equity value is ZMW1.56 billion (2023: ZMW1.3 billion). Associate Valuation tech- nique Significant inputs and key assumptions Inter-relationship between Key unobservable inputs and fair value measurement Mingomba Mining Limited (c(viii)) Net asset value approach • The level of activity on drill- ing to delineate the mineral ore deposit • The level on activity on min- ing geology The estimated fair value would increase/(decrease) if: • The level of activity on drill- ing to delineate the mineral ore deposit increase/(de- crease) • The level on activity on min- ing geology Increase/(decrease) 24 Financial assets at fair value through profit or loss Group and Company (a) Reconciliation of carrying amounts 31 Dec 2024 31 Dec 2023 Balance at 1 January 3,019,500 1,252,400 Changes in fair value (unrealised) (278,500) 1,767,100 2,741,000 3,019,500 Financial assets at fair value through profit or loss include the following: 31 Dec 2024 31 Dec 2023 Unlisted equities – at fair value Chibuluma Mines Plc b(i) - - Chambishi Metals PLC b(ii) - - NFC Africa Mine PLC b(iii) 2,741,000 3,019,500 2,741,000 3,019,500 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 115 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 24 Financial assets at fair value through profit or loss (continued) (b) Measurement of fair value Fair value hierarchy The fair value for the Company’s financial investments at fair value through profit or loss was determined by Stockbrokers Zambia ("SBZ”), an external independent valuer, having appropriate recognised profes- sional qualifications and recent experience of the financial investments being valued. The independent valuers provide the fair value of these investments annually. The fair value measurement for the Company’s investments of ZMW 2.74 billion (2023: ZMW 3.02 billion) has been categorised as a level 3 fair value based on the inputs to the valuation technique used. Level 3 fair value The following table shows a reconciliation from the opening balances to the closing balances for level 3 fair values. Group and Company 31 Dec 2024 Level 3 Total Balance at 1 January 3,019,500 3,019,500 Net change in fair value (278,500) (278,500) Balance at 31 December 2,741,000 2,741,000 31 Dec 2023 Level 3 Total Balance at 1 January 1,252,400 1,252,400 Net change in fair value 1,767,100 1,767,100 Balance at 31 December 3,019,500 3,019,500 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 116 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) in thousands of Kwacha 24 Financial assets at fair value through profit or loss (continued) (a) Measurement of fair value (continued) Valuation technique and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of investment in fair value through profit or loss (FVTPL) as well as the significant unobservable inputs used. Associate Valuation technique Significant unobservable inputs and key assumptions Inter-relationship between Key un- observable inputs and fair value measurement NFC Africa Mine (b(iii) Discounted cash flows: It is an income approach to valuation and the most widely used valuation methodology. It computes the value of a business by calculating the present value of anticipated future cash flows generated by the business. The expected net cash flows are discounted using risk adjusted discount rates. Relative valuation: The relative valuation meth- odology values a company using market-based multiples, including operational and asset-based metrics. • Target participation capital structure - Debt to total capitalisation (2024:42.9%, 2023: 26.2%). - Equity to total capitalisation (2024:57.1%, 2023:73.8%) • Cost of debt - Cost of debt (2024: 10.6%, 2023: 10.0%) - Effective tax rate (2024: 30%, 2023: 30%) - After tax cost of debt (2024: 7.4%, 2023: 7.0%) • Cost of equity - Risk free rate (2024: 4.6%, 2023: 3.9%) - Market risk premium (2024: 8.5%, 2023: 9.72%) - Levered beta (2024: 2.06, 2023: 1.53). - Cost of equity (2024:22.2%, 2023: 18.7%) • WACC (2024: 15.8%, 2023: 15.6%) • Key assumptions considered were as follows: - Mineral Royalty tax is assumed as follows for copper (a sliding scale – from 4% to 10%, with the higher bands being: 10% for Cu price over US$7,000/t. Mineral royalty is treated as deductible from income tax from 2024 onwards. - The MRT for gold revenue is assumed at a fixed rate of 6% and is treated as deductible from income tax from 2024 onwards. - Copper price forecasts for 2025-2027 are US$9,459/ton, US$10,122/ton and US$10,570/ton respectively. Gold price forecasts for 2025-2027 are US$2,793/ oz, US$2,815/oz and US$2,609/oz respectively. From 2028 onwards, a flat rate of US$9,211/ton was used for copper and US$2,190/oz was used for gold. - Capex expenditure has been projected at US$74.7 million, US$48.6 million and US$50.7 million for 2025 to 2027 respectively. Thereafter, 6 % of sales has been assumed - Life of mine was estimated to be 10 years. The estimated fair value would increase/(decrease) if: • Equity to total capitalisation were (lower)/higher • Cost of debt were lower/(high- er) • The cost of equity were lower/ (higher) • Copper price were higher/ (lower) • Capital expenditure were high- er/(lower) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 117 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 24 Financial assets at fair value through profit or loss (continued) (i) Chibuluma Mines Plc The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of the investee company) (2023: nil). (ii) Chambishi Metals Plc The equity value is nil (negative equity value is limited to a zero-value due to the limited liability nature of the investee company) (2023: nil). (iii) NFC Africa Mines Plc A sensitivity analysis table of the equity value, which is based on the discount rate and long-term average copper price over the life of mine indicating reasonably possible changes at the reporting date to one of the relevant valuation assumptions, holding other assumptions constant, would have affected the value of the investment by the amounts shown below: 2024 Equity Value Sensitivity Analysis Long-Term Average Copper Price (US$/lb) 3.77 3.97 4.18 4.39 4.61 WACC 11.6% 3,502,000 3,669,000 3,840,000 4,011,000 4,188,000 13.6% 3,305,000 3,465,000 3,629,000 3,786,000 3,961,000 15.6% 2,692,000 2,825,000 2,741,000 3,096,000 3,234,000 17.6% 2,027,000 2,124,000 2,232,000 2,336,000 2,441,000 19.6% 1,951,000 2,050,000 2,152,000 2,253,000 2,356,000 The equity value ranges from ZMW2.1 billion (2023: ZMW2.6 billion) to ZMW3.8 billion (2023: ZMW3.5 billion with the calculated equity value being ZMW2.7 billion (2023: ZMW3.0 billion. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 118 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 24 Financial assets at fair value through profit or loss (continued) (iii) NFC African Mines Plc (continued) 2023 Equity Value Sensitivity Analysis Long-Term Average Copper Price (US$/lb) 3.39 3.58 3.77 3.95 4.14 WACC 11.6% 3,378,000 3,557,000 3,736,000 3,915,000 4,094,000 13.6% 3,049,000 3,200,000 3,352,000 3,504,000 3,656,000 15.6% 2,761,000 2,890,000 3,019,500 3,149,000 3,278,000 17.6% 2,509,000 2,619,000 2,730,000 2,840,000 2,951,000 19.6% 2,286,000 2,381,000 2,476,000 2,571,000 2,665,000 The equity value ranges from ZMW2.6 billion (2022: ZMW1 billion) to ZMW3.5 billion (2022: ZMW1.6 bil- lion) with the calculated equity value being ZMW3 billion (2022: ZMW1.3 billion). 25 Inventories Group 31 Dec 2024 31 Dec 2023 Consumable stores 19,243 11,686 Production stock 6,700 14,659 Stockpiles 4,569 4,440 Gemstones 2,024 7,514 Balance at 31 December 32,536 38,299 The cost of inventories recognised as an expense and included in the cost of sales amounted to ZMW658 million (2023: ZMW2,145 million). The expensed amounts include ZMW nil (2023: ZMW2,072 mil- lion) relating to Mopani. Assets pledged as security Refer to note 40 (iii) for information on current assets pledged as security by the Group. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 119 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 26 Trade and other receivables Group December 2024 Current Gross Expected credit loss/ Impairment Net Trade receivables 32,774 (5,233) 27,541 Dividend receivable 78,066 (78,066) - Amounts due from related parties (note 39b (viii)) 1,163,894 (316,649) 847,245 Other receivables 138,777 (43,855) 94,922 Total current receivables 1,413,511 (443,803) 969,708 Non-current Other receivables 11,508 - 11,508 Amounts due from related parties (note 39b(viii)) 4,203,859 (1,662,316) 2,541,543 Total non-current receivables 4,215,367 (1,662,316) 2,553,051 Total balance 5,628,878 (2,106,119) 3,522,759 Trade and other receivables have been further classified as financial and non-financial assets as follows: Group December 2024 Gross Expected credit loss/ Impairment Net Financial assets Trade receivables 32,774 (5,233) 27,541 Treasury interest receivable 25,058 (1,488) 23,570 Management fees receivable 12,309 (12,309) - Rental income receivable 7,412 (6,791) 621 Dividend receivable 78,066 (78,066) - Amounts due from related parties 5,367,753 (1,978,965) 3,388,788 Price participation receivable 9,182 (9,182) - Total financial assets 5,532,554 (2,092,034) 3,440,520 Non-financial assets Prepayments 31,959 (11,483) 20,476 VAT receivable 39,400 (153) 39,247 Other receivables * 24,965 (2,449) 22,516 Total non-financial assets 96,324 (14,085) 82,239 Total balance 5,628,878 (2,106,119) 3,522,759 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 120 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 26 Trade and other receivables (continued) Group December 2023 Current Gross Expected credit loss/ Impairment Net Trade receivables 51,455 (12,601) 38,854 Dividend receivable 124,970 (78,066) 46,904 Amounts due from related parties (note 39b (viii)) 497,669 (312,926) 184,743 Other receivables 123,521 (54,853) 68,668 Total current receivables 797,615 (458,446) 339,169 Non-current Amounts due from related parties (note 39b (viii)) 2,338,515 (709,678) 1,628,837 Total non-current receivables 2,338,515 (709,678) 1,628,837 Total balance 3,136,130 (1,168,124) 1,968,006 Trade and other receivables have been further classified as financial and non-financial assets as follows: Group December 2023 Gross Expected credit loss/Impairment Net Financial assets Trade receivables 51,455 (12,601) 38,854 Treasury interest receivable 20,680 (4,311) 16,369 Management fees receivable 12,309 (12,309) - Rental income receivable 6,983 (6,614) 369 Dividend receivable 124,970 (78,066) 46,904 Amounts due from related parties 2,836,184 (1,022,604) 1,813,580 Price participation receivable 9,182 (9,182) - Total financial assets 3,061,763 (1,145,687) 1,916,076 Non-financial assets Prepayments 12,789 (217) 12,572 VAT receivable 22,614 (655) 21,959 Other receivables * 38,964 (21,565) 17,399 Total non-financial assets 74,367 (22,437) 51,930 Total balance 3,136,130 (1,168,124) 1,968,006 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 121 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 26 Trade and other receivables (continued) Company December 2024 Current Gross Expected credit loss/Impairment Net Trade receivables 24,951 (1,123) 23,828 Amounts due from related parties (note 39b (viii)) 1,216,065 (368,123) 847,942 Dividend receivable 78,066 (78,066) - Price participation receivable 9,182 (9,182) - Other receivables 84,579 (34,673) 49,906 Total current assets 1,412,843 (491,167) 921,676 Non-current Other receivables 11,508 - 11,508 Amounts due from related parties (note 39b (viii)) 4,585,906 (1,898,275) 2,687,631 Total non-current assets 4,597,414 (1,898,275) 2,699,139 Total balance 6,010,257 (2,389,442) 3,620,815 Trade and other receivables have been further classified as financial and non-financial assets as follows: Company December 2024 Gross Expected credit loss/Impairment Net Financial assets Trade receivables 24,951 (1,123) 23,828 Treasury interest receivable 25,058 (1,488) 23,570 Management fees receivable 12,309 (12,309) - Rental income receivable 7,412 (6,791) 621 Dividend receivable 78,066 (78,066) - Amounts due from related parties (note 39b (viii)) 5,801,971 (2,266,398) 3,535,573 Price participation receivable (note 39b (viii)) 9,182 (9,182) - Trade Receivables (Other) 17,337 (11,219) 6,118 Total financial assets 5,976,286 (2,386,576) 3,589,710 Non-financial assets Prepayments 6,486 (264) 6,222 VAT receivable 3,753 (153) 3,600 Other receivables * 23,732 (2,449) 21,283 Total non-financial assets 33,971 (2,866) 31,105 Total balance 6,010,257 (2,389,442) 3,620,815 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 122 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 26 Trade and other receivables (continued) Company December 2023 Current Gross Expected credit loss/ Impairment Net Trade receivables 42,072 (19,283) 22,789 Other receivables 60,341 (26,554) 33,787 Price participation receivable (note 39b (viii)) 9,182 (9,182) - Amounts due from related parties (note 39b (viii)) 549,188 (364,400) 184,788 Dividend receivable 124,970 (78,066) 46,904 Total current assets 785,753 (497,485) 288,268 Non-current Amounts due from related parties (note 39b (viii)) 5,311,011 (724,540) 4,586,471 Total non-current assets 5,311,011 (724,540) 4,586,471 Total assets balance 6,096,764 (1,222,025) 4,874,739 Trade and other receivables have been further classified as financial and non-financial assets as follows: Company December 2023 Gross Expected credit loss/ Impairment Net Financial assets Trade receivables 42,072 (19,283) 22,789 Treasury interest receivable 20,680 (4,311) 16,369 Management fees receivable 12,309 (12,309) - Rental income receivable 6,983 (6,614) 369 Price participation receivable 9,182 (9,182) - Dividend receivable 124,970 (78,066) 46,904 Amounts due from related parties (note 39b (vii)) 5,860,199 (1,088,940) 4,771,259 Total financial assets 6,076,395 (1,218,705) 4,857,690 Non-financial assets Prepayments 942 (217) 725 VAT receivable 2,848 (655) 2,193 Other receivables * 16,579 (2,448) 14,131 Total non-financial assets 20,369 (3,320) 17,049 Total assets balance 6,096,764 (1,222,025) 4,874,739 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 123 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 26 Trade and other receivables (continued) * Other receivables analysis Group 31 Dec 24 31 Dec 23 Gross Impairment Net Gross Impairment Net Staff receivables 22,751 (235) 22,516 14,365 (234) 14,131 Other sundry debtors 2,214 (2,214) - 24,599 (21,331) 3,268 24,965 (2,449) 22,516 38,964 (21,565) 17,399 Company 31 Dec 24 31 Dec 23 Gross Impairment Net Gross Impairment Net Staff receivables 21,518 (235) 21,283 14,365 (234) 14,131 Other sundry debtors 2,214 (2,214) - 2,214 (2,214) - 23,732 (2,449) 21,283 16,579 (2,448) 14,131 27 Environmental Protection Fund Group 31 Dec 2024 31 Dec 2023 Environmental protection fund deposit 369 7,060 369 7,060 For the financial year ended 31 December 2024 the Environmental Protection Fund deposit relates to the subsidiaries Limestone Resources Limited, Zambia Gold Company Limited and Kabundi Resources Limited. This is recoverable from Government or can be offset against future liabilities as assessed by the Government. The Environmental Protection Fund deposit is an advance payment for the estimated future decommissioning and closure costs to be incurred at the closure of the mine sites. The Mines and Minerals Regulations, 1998 (Statutory Instrument No.102 of 1998) provide for the payment of contributions by mine owners into the Environmental Protection Fund designed to provide for environmental restoration of defunct sites. The Group contributes into the Environmental Protection Fund and the contributions paid into the Fund are based on the environmental assessment carried out by environmental experts. The funds are not accessible and are only available at the time of restoration. The contributions are only due based on further assessment made by the Government in line with the Act. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 124 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 28 Burden of costs for mining Group 31 Dec 2024 31 Dec 2023 Burden of costs for mining 6,599 - 6,599 - In the mining industry, the burden of costs is a significant factor influencing financial performance and reporting. The matching concept, a core accounting principle, requires that expenses be recorded in the same period as the revenues they help generate. For a mining company, this ensures that costs are aligned with the income derived from mineral extraction and sales, providing a clearer picture of profitability. For Zambia Gold Company Limited and other ZCCM-IH’s mining investee companies, adhering to the matching concept helps balance the burden of costs across the operational timeline. By aligning expenditures with the revenue they support, financial statements present a more realistic view of profitability and operational performance. This approach not only aids in regulatory compliance but also supports better decision-making by management and investors. The burden costs for mining amounted to ZMW6.6 million (2023: ZMW Nil) relates to direct cost of sales expenses incurred to which there were no sales made. The costs comprise of ZMW1.9 million Kasenseli labour costs, ZMW3 million cost of mining and ZMW1.7 million fuel for mining activities. These amounts have been capitalised and will be depreciated over the life of the mining licence. 29 Long term bonds and short-term deposits Term deposits relate to fixed deposits placed in various banks and long-term bonds. The movement in term deposits is as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Current Balance at 1January 4,450,451 5,340,202 4,411,330 5,340,202 Matured during the period (4,450,451) (5,340,202) (4,411,330) (5,340,202) Additions 5,015,626 4,450,451 5,015,626 4,411,330 5,015,626 4,450,451 5,015,626 4,411,330 Non-current Balance at 1January - - - - Matured during the period - - - - Additions * 329,525 - 329,525 - 329,525 - 329,525 - Total 5,345,151 4,450,451 5,345,151 4,411,330 As at 31 December 2024, ZCCM-IH held investments in government bonds with a total carrying value of ZMW50 million. The tenure of the government bonds is 3 years. The bonds carry yields of 21.5% and 20% per annum. * As at 31 December 2024, ZCCM-IH held investments in the CEC renewable bond with a total carry value of ZMW279.53 million. The tenure of the bond is 15 years. The bond carries an interest rate of 8.23%. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 125 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 30 Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents comprise the following: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Cash and bank 525,663 360,204 221,719 61,119 Cash in hand 22 152 17 18 Cash and cash equivalents in the statement of financial position 525,685 360,356 221,736 61,137 Under assets held for sale (Note 21) - (476,874) - - Cash and cash equivalents at 31 Dec 525,685 (116,518) 221,736 61,137 Assets pledged as security Refer to note 39 (iii) for information on current assets pledged as security by the Group. 31 Trade and other payables Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Current Trade payables 43,371 220,715 7,804 43,639 Other payables 136,231 92,041 95,329 34,649 Total current liabilities 179,602 312,756 103,133 78,288 Trade and other payables have been further classified as financial and non-financial liabilities as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Financial liabilities Trade payables 43,371 220,715 7,804 43,639 Other payables: Treasury security deposits 52,994 2,949 52,994 2,949 Accrued expenses 18,591 5,026 18,591 5,026 Rental payables 1,625 1,278 1,625 1,278 IDC - Intercompany 245 931 245 931 Other environmental payables 489 464 489 489 Total financial liabilities 117,315 231,363 81,748 54,312 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 126 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 31 Trade and other payables (continued) Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Non-financial Liabilities Other payables: Statutory liabilities 1,695 1,283 1,695 1,283 Staff payables 5,858 9,193 5,858 9,193 Dividends received in advance 10,724 10,724 10,724 10,724 Dividend payable 3,108 2,776 3,108 2,776 Other payables 40,902 57,417 - - Total non-financial liabilities 62,287 81,393 21,385 23,976 Total liabilities balance 179,602 312,756 103,133 78,288 (i) The carrying amount of the current payables and accrued expenses approximate their fair values due to the short-term nature and low impact of discounting. (ii) Statutory liabilities relate to Pay As You Earn (PAYE), National Pension Scheme Authority (NAPSA), Mineral Royalty Tax and Value Added Tax (VAT). Dividends received in advance relates to dividends received from investee companies which are not payable but will be offset against future dividends 32 Provisions Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Legal provisions (i) 3,625 5,036 3,625 5,036 Provisions – others (ii) 46,046 39,207 21,926 36,425 49,671 44,243 25,551 41,461 i) Legal provision Opening balance 5,036 85,332 5,036 85,332 Addition - - - - Payments/reversal (1,411) (80,296) (1,411) (80,296) Closing balance 3,625 5,036 3,625 5,036 ii) Provisions other Opening balance 39,207 402,357 36,425 23,354 Addition/(reduction) 81,897 38,501 58,226 35,719 Amounts used during the period (72,725) (25,220) (72,725) (22,648) Translation (Note 34) - 160,435 - - Reclassified to held for sale (Note 21) (2,333) (536,866) - - Closing balance 46,046 39,207 21,926 36,425 Total provision closing balance 49,671 44,243 25,551 41,461 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 127 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 32 Provisions (continued) Legal provision i) The legal provision arises mainly from several legal cases involving the Group. These cases relate to various legacy matters of the old ZCCM Limited, mostly relating to employee cases and sale of houses. The legal provisions amount is premised on claims against the Company before the courts of law and the likelihood of a matter going in favour of the claimant as determined by the legal team. Legal provisions are payable within 12 months. Other provisions ii) Other provisions comprise of consultancy fees regarding various investments projects, as well as staff related provisions which includes gratuity and leave pay. Provisions other are payable within 12 months. Gratuity disclosed as part of provisions is based on the employee contracts and is fixed per contract as a rate of the total salary (known percentage of the agreed basic salary in the contract). iii) The makeup of provisions other balances are: Provisions other Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Staff costs provision 37,076 14,697 12,956 11,915 Consultancy fees provision 8,970 24,510 8,970 24,510 Total 46,046 39,207 21,926 36,425 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 128 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 33 Share capital and premium (i) Ordinary shares Group and Company Class A shares Class B shares Total 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Balance at 31 Dec 969 969 639 639 1,608 1,608 Class “A” Ordinary Shares and Class “B” Ordinary Shares all rank pari passu in all respects. Holders of these shares are entitled to dividends as declared from time to time and are entitled to one vote per share. The Company has authorised class A and B shares of 96,976,669 and 63,873,617 respectively of ZMW0.01 each. Both class A and B shareholders have a right to vote, appoint directors, chairperson and receive a dividend. (ii) Number of shares In thousands of shares Class A shares Class B shares Total 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 In issue at 31 December – fully paid 96,927 96,927 63,873 63,873 160,800 160,800 Authorised – par value ZMW0.01 120,000 120,000 80,000 80,000 200,000 200,000 (iii) Share premium Class A shares Class B shares Total 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Ordinary shares 1,259,407 1,259,407 829,936 829,936 2,089,343 2,089,343 1,259,407 1,259,407 829,936 829,936 2,089,343 2,089,343 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 129 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 34 Other reserves (i) Revaluation reserve The revaluation reserve arises from the periodic revaluation of items of property, plant and equipment, and represents the excess of the revalued amount over the carrying value of the property, plant and equipment at the date of revaluation. The reserves are non-distributable to the shareholders and are recognised net of deferred income tax. Deferred tax arising in respect of the revaluation of property, plant and equipment has been charged directly against revaluation reserves in accordance with IAS 12: Income Taxes. (ii) Translation reserves of foreign denominated subsidiaries The translation reserve arises from the translation of the results of the investments in subsidiaries and equity accounted investees whose functional and presentation currency is the US Dollar. The 2024 and prior year translation reserves relate solely to Mopani Copper Mines Plc (Mopani) whose functional and presentation currency is the United States Dollar. Following the reclassification of Mopani from subsidiary to associate, no translation reserve balance is included in the consolidated assets and liabilities as at 31 December 2024. Subsidiary translation reserve movement for the year were as follows: ZMW’000 ZMW’000 20 Mar 2024 31 Dec 2023 Trade and other receivables (1,078) 904,155 Environmental protection fund 175 42,858 Cash and cash equivalents 26,047 (281,464) Borrowings 432,871 (12,707,437) Retirement benefits (154) (69,146) Provisions for environmental rehabilitation 35,243 (815,048) Trade and other payables (44,945) (3,350,997) Current tax liabilities - - Provisions (3,494) (160,435) Total 444,665 (16,437,514) For the year ended 31 December 2024, foreign exchange translations related to Mopani were calculated using the prevailing exchange rates at the cut-off date of 20 March 2024. 20 March 2024 is the cut-off date for the finalisation of the transaction between ZCCM-IH and International Resource Holdings RSC Limited. Subsequent to 20 th March 2024, Mopani was reclassified from subsidiary to associate and its assets and liabilities reported as a single line item in the balance sheet as at 31 December 2024. (iii) Fair value reserve Fair value reserve comprises the cumulative net change in the fair value through other comprehensive income financial assets until the assets are derecognised or impaired. The reserves are distributable upon realisation. Where a revalued financial asset is sold, the portion of the reserve that relates to that financial asset, which is effectively realised, is reduced from the investment revaluation reserve and is recognised in profit or loss. Where a revalued financial asset is impaired, the portion of the reserve that relates to that financial asset is recognised in retained earnings. (See note 45 (d (ii)). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 130 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 35 Borrowings Group Company 31 Dec 31 Dec 31 Dec 31 Dec 2024 2023 2024 2023 Current Borrowings 538,449 - 538,449 - Non-current Borrowings 2,808,418 - 2,808,418 - Total borrowings 3,346,867 - 3,346,867 - Group Company 31 Dec 31 Dec 31 Dec 31 Dec 2024 2023 2024 2023 Additions (GRZ Loan) 1,162,139 128,733 1,162,139 - Fair value change on other shareholders equity (714,181) - (714,181) - Mopani investment expense (Note 9) 3,859,125 - 3,859,125 - Repayments (1,282,155) (436,036) (1,282,155) - Interest on borrowing (Note 13) 340,457 2,776,751 340,457 - Interest paid (318,038) - (318,038) - Exchange difference due to translation (in- cluded in reserves) (note 34 (ii)) - 12,707,438 - - Exchange difference recognised in the P&L 299,520 - 299,520 - Reclassified to held for sale (Note 21) - (43,518,156) - - Closing balance 3,346,867 - 3,346,867 - ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 131 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 35 Borrowings (continued) The Table below provides further information on the borrowings of ZCCM-IH Plc. Glencore Loan MOF Loan Total 31 Dec 2024 31 Dec 2024 31 Dec 2024 Additions (GRZ Loan) - 1,162,139 1,162,139 Fair value change on other shareholders equity - (714,181) (714,181) Mopani investment expense (Note 35 (ii)) 3,859,125 - 3,859,125 Repayments (1,282,155) - (1,282,155) Interest on borrowing (Note 13) 318,038 22,419 340,457 Interest paid (318,038) - (318,038) Exchange difference due to translation (included in reserves) (note 33 (ii)) 234,232 65,288 299,520 Closing balance 2,811,202 535,665 3,346,867 (i) US$150 Million Glencore Payment Covenant Between GRZ and ZCCM-IH During the financial year ended 31 December 2024, ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) entered into a Loan Facility Agreement with the Government of the Republic of Zambia (GRZ) through the Ministry of Finance and National Planning, in which GRZ provided an interest-free loan of US$172 million to ZCCM-IH. The purpose of this loan is to facilitate the repayment of ZCCM-IH’s liability to Glencore under the Tripartite Agreement involving ZCCM-IH, Glencore and Standard Chartered Bank Zambia Limited. The key terms of the GRZ Loan Facility are as follows: ■ The loan facility is designated solely for the repayment of the outstanding loan and accrued interest owed to Glencore. ■ GRZ made an initial disbursement covering four months of repayments, with subsequent monthly drawdowns available to ZCCM-IH. ■ The loan is incrementally recognized in ZCCM-IH’s financial position over five years, based on disbursements made by GRZ to settle Glencore’s liability. ■ The loan is interest-free and carries no finance charges. ■ ZCCM-IH shall repay the loan from dividends earned from Mopani Copper Mines Plc (“MCM”) over a period of ten (10) years, following a five (5)-year grace period. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 132 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 35 Borrowings (continued) (i) Tripartite Agreement – US$135 Million Payment to Glencore On 20 March 2024, ZCCM-IH executed a Tripartite Agreement with Glencore and Standard Chartered Bank to facilitate structured repayments to Glencore. Tripartite agreement outlines the terms of the repayment of $150million by ZCCM IH to Glencore. This agreement was entered into per the specific condition that was included in the Investment agreement referred to as the “Glencore Payment Covenant.” ZCCM-IH made a payment of $15 million on 19 March 2024 towards the $150million liability and on this date, the liability was recognised in the financial records of ZCCM-IH. The US$135 million loan obligation to Glencore is governed by the terms and conditions outlined in the Tripartite Agreement, which include the following provisions: ■ Royalty Payment Allocation: ZCCM-IH is required to deposit quarterly royalty payments received from Kansanshi Mining Plc (“KMP”) into a designated account held at Standard Chartered Bank. The royalty payment period is from 31 March 2024 to 30 June 2028. Quarterly Payments to Glencore: Standard Chartered Bank is mandated to disburse payments to Glencore on a quarterly basis from the designated account. The agreed amount payable to Glencore is US$7.5 million per quarter, plus accrued interest as per the Agreement. ZCCM-IH is required to top up the designated account if the funds available are insufficient to meet the quarterly payment obligations to Glencore. Grace Period for Default: In the event of non-payment, a 90-day grace period is provided before an event of default is formally declared. Interest Type Rate Normal Interest Rate 7.5% margin plus the Central Bank benchmark rate (90-day tenor) Default Interest (If Default is Not Waived) 12.5% (7.5% + 5.0%) Default Interest (If Default is Waived or Remediated) 10% (7.5% + 2.5%) The Tripartite Agreement includes security conditions that govern the repayment process are as follows ■ ZCCM-IH Royalty Account: ZCCM-IH holds a designated account at Standard Chartered Bank, where all royalty payments from Kansanshi Mining Plc are deposited. In the event that ZCCM-IH is unable to secure sufficient funds for its quarterly payments, Standard Chartered Bank will directly transfer royalties due to ZCCM-IH to Glencore as a settlement mechanism. As of 31 December 2024, ZCCM-HI’s financial statements reflect the ongoing financial obligations arising from the Tripartite Agreement and GRZ Loan Facility Agreement. These commitments are aligned with the Company’s strategic financial restructuring objectives and are expected to contribute to long-term financial stability while fulfilling its obligations to Glencore, GRZ, and other stakeholders. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 133 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 36 Deferred tax Group Deferred tax arises as a result of differences between the carrying amounts of assets and liabilities presented in the statement of financial position determined in accordance with the International Financial Reporting Standards (IFRSs), and their carrying amounts determined in accordance with the Income Tax Act. Deferred tax is regarded as an obligation/asset that will be payable or recoverable at a future date when the carrying amount of the asset/liability is recov- ered/settled. Deferred income tax was calculated using the enacted income tax rate of 30% (2023: 30%). Group Balance 1 Jan 2023 Recognised in profit or loss Recognised OCI Balance 31 Dec 2023 Recognised in profit or loss Recognised in OCI Balance 31 Dec 2024 Movement in temporary differences during the year Deferred tax asset Provision for gratuity and leave pay (2,900) (890) - (3,790) (499) - (4,289) Other provisions (12,838) (11,171) - (24,009) (9,857) - (33,866) Bad debt provision (259,550) (25,088) - (284,638) (76,763) - (361,401) Legal Provision (25,528) 24,017 - (1,511) 423 - (1,088) Environmental provision (11,807) (4,204) - (16,011) (5,037) - (21,048) Unrealised exchange losses (87,625) (1,981) - (89,606) (29,015) - (118,621) Supply chain tax losses (405) - - (405) - - (405) Mopani Investment Expense - Provision - - - - - - - Tax losses (136,331) 136,331 - - 6,601 - 6,601 (536,984) 117,014 - (419,970) (114,147) - (534,117) Deferred tax liability Property, plant, and equipment 35,723 6,344 - 42,067 (5,768) - 36,299 Property, plant, and equipment – Revaluation 1,236 - (221) 1,015 - (221) 794 Unrealised exchange gains 362,684 753,980 - 1,116,664 (335,565) - 781,099 Employee provision 14,489 512 (2,944) 12,057 694 (692) 12,059 414,132 760,836 (3,165) 1,171,803 (340,639) (913) 830,251 Deferred tax (asset)/liability (122,852) 877,850 (3,165) 751,833 (454,786) (913) 296,134 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 134 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 36 Deferred tax (continued) Deferred tax on foreign currency reserve The translation reserves which arise from consolidation (reporting) are not recognised. There is no group tax registration in Zambia, hence translation reserves will not result in any tax obligations at any time. All taxes recognised at group level are a summation of individual entity’s tax obligations/claims. Deferred income tax assets are recognised for provisions to the extent that the future related tax benefits will be realised. There were no unrecognised deferred tax assets during the period. Company Deferred income tax assets are recognised for provisions to the extent that the future related tax benefits will be realised. There were no unrecognised deferred tax assets during the period. Deferred income tax assets and liabilities are attributable to the following items: Company Balance 1 Jan 2023 Recognised in profit or loss Recognised OCI Balance 31 Dec 2023 Recognised in profit or loss Recognised OCI Balance 31 Dec 2024 Movement in temporary differences during the year Deferred tax asset Property, plant and equipment (6,110) 3,735 - (2,375) 365 - (2,010) Provision for gratuity and leave pay (2,933) (444) - (3,377) (295) - (3,672) Other provisions (396) 396 - - (2,685) - (2,685) Bad debt Provision (363,880) (24,917) - (388,797) (79,538) - (468,335) Legal provision (25,528) 24,017 - (1,511) 423 - (1,088) Employee provision (2,783) 512 (2,944) (5,215) 694 (692) (5,213) Environmental provision (11,807) (4,542) - (16,349) (5,037) - (21,386) Tax losses (140,391) 139,986 - (405) - - (405) (553,828) 138,743 (2,944) (418,029) (86,073) (692) (504,794) Deferred tax liability Property, plant and equipment – revaluation 9,755 - (221) 9,534 - (221) 9,313 Unrealised exchange gains 361,514 753,179 - 1,114,693 (335,566) - 779,127 Unrealised exchange losses (76,407) (11,732) - (88,139) (19,697) - (107,836) Change in investment property - - - - - - - (294,862) 741,447 (221) 1,036,088 (355,263) (221) 680,604 Deferred tax (asset)/liability (258,966) 880,190 (3,165) 618,059 (441,336) (913) 175,810 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 135 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 36 Deferred tax (continued) (i) Group defined contribution plan A defined contribution plan is a pension plan under which the Group pays fixed contributions into the fund. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior years. The Company’s contributions to the defined contribution schemes are charged to profit or loss in the year to which they relate. The Group has no further obligation once contributions have been paid. (ii) Group defined benefit obligation Under the terms of employment, permanent employees of the Group are entitled to post employment gratuity benefits. The benefits are defined benefit in nature based on the members’ length of service and their salary at the earlier of retirement or death or termination from employment. This scheme is unfunded, and the Group only pays a benefit upon retirement of an individual qualifying for the benefit. The regulator, Pensions and Insurance Authority, does not regulate gratuity schemes such as this one. However, companies that opt to provide an additional and separate unfunded gratuity benefit for their employees are required to operate within the governing covenants and agreements with their employees. Taxation of this scheme falls under the framework and administration of this arrangement, including decisions as to whether to prefund the benefit costs or amend the arrangement design. The Group’s accrued liability in respect of each employee is the present value of the benefits in respect of service completed to the valuation date but based on projected earnings to retirement or date of payment. The total accrued liability (or the required provision) at the valuation date is a summation of the accrued liability in respect of each employee. Key risks The plan typically exposes the Group to actuarial risks such as: interest rate risk, salary risk and liquidity risk. Interest rate risk The plan liabilities are calculated using a discount rate set with reference to Zambian government bond yields. A decrease in government bonds will increase the plan liabilities. Salary risk The present value of the defined benefit plan liability is calcu- lated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. Liquidity risk The plan is unfunded. There is a risk that resources might not be available when needed to pay the benefits that have become due. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 136 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 37 Retirement benefits (continued) (a) The amounts recognised in the statement of financial position are determined as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Present value of unfunded obligations 17,373 17,381 17,373 17,381 (b) Movement in the defined benefit obligation over the year is as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Balance at 1 January 17,381 322,071 17,381 9,275 Charge for the period – expense 4,861 36,853 4,861 2,619 Charge for the period – other comprehensive in- come 2,305 (24,134) 2,305 9,813 Benefits paid during the year (7,174) (11,078) (7,174) (4,326) Reclassified to trade and other payables - (245,715) - - Foreign currency translation - 69,146 - - Reclassified as held for sale - (129,762) - - Closing balance – 31 December 17,373 17,381 17,373 17,381 Non-current liability 17,373 17,381 17,373 17,381 17,373 17,381 17,373 17,381 (c) Recognised in profit or loss Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Current service cost 1,373 13,414 1,373 648 Interest cost 3,488 23,439 3,488 1,971 Personnel expenses (Note 12) 4,861 36,853 4,861 2,619 (d) Recognised in equity Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Experience adjustment 409 (27,510) 409 6,437 Demographic assumptions 7,208 7,208 7,208 7,208 Financial assumptions (5,312) (3,832) (5,312) (3,832) Total 2,305 (24,134) 2,305 9,813 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 137 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 37 Retirement benefits (continued) Group defined benefit plans (e) Actuarial assumptions Critical assumptions are made by the actuary in determining the present value of retirement benefit obligation including the discount rate. The carrying amount of the provision and the key assumptions made in estimating the provision were as follows: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Discount rate 22.00% 26.95% 22.00% 23.00% Benefit increase rate - 16.59% - 16.59% Future salary increases 9.5% 10.0% 9.5% 11% The liability and actuarial assumptions are based on the actuarial valuation report as at 31 December 2024. (f) Sensitivity analysis The results of the actuarial valuation are sensitive to changes in the financial assumptions than changes in the demographic assumptions. In preparing the sensitivity analysis of the results to the discount rate used, the actuary relied on calculations of the duration of the liability. Based on this methodology, the results of the sensitivity analysis are summarized in the table below: Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Present value of obligation Present value of obligation Present value of obligation Present value of obligation ZMW’000 ZMW’000 ZMW’000 ZMW’000 1% increase in discount rate (1,179) (4,660) (1,178) (1,221) 1% decrease in discount rate 1,312 5,095 1,313 1,359 1% increase in salary rate 1,444 5,876 1,445 1,494 1% decrease in salary rate (1,304) (5,398) (1,303) (1,352) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 138 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 37 Retirement benefits (continued) (f) Sensitivity analysis (continued) Since all the benefits payable under the plan are salary related, the sensitivity of the liability to a change in the salary escalation assumption is not expected to be materially different. Effect on Company cash flows The arrangement is unfunded and the Company pays benefits from general revenues as and when they arise. The timing of the benefit payments from the plan will be influenced by the age at which employees retire from the Company. 38 Provisions for environmental rehabilitation Group Company 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Balance at 1 January 112,751 1,221,068 54,498 39,357 Charge for the year 25,599 (471) 12,121 (1,632) Increase/(decrease) in environmental provision charged to environmental assets 93,739 1,299,950 - - Exchange movement 10,205 16,773 4,670 16,773 Unwinding of discount 3,516 23,520 - - Amount paid - - - - Translation - included in reserves - 815,048 - - Reclassified to held for sale (Note 21) - (3,263,137) - - Balance at 31 December 245,810 112,751 71,289 54,498 The year-end balance represents restoration, rehabilitation and environmental provisions for the Company and its subsidiaries; Limestone Company Limited (“Limestone”), Kabundi Resources Limited (“Kabundi”) and Kariba Minerals Limited (“Kariba”). The Company’s provision is as a result of inherited environmental obligations from the old ZCCM Limited combined with environmental disturbances from mining operations at Limestone, Kabundi and Kariba. The provisions have been assessed to cost ZMW245.81 million as at 31 December 2024 as compared to ZMW112.75 million as at 31 December 2023. The increase in the provision for environmental rehabilitation in 2024 as compared to 2023 was mainly resulting from the updated risk assessment from Kariba, Kabundi and Limestone. The provision represents the best estimate of the expenditure required to settle the obligations to rehabilitate environmental disturbances caused by mining operations. Mining companies are expected to make contributions to the Environmental Protection Fund, controlled by the Department of Mines and Mineral Development. Contributions made towards the fund reduces the environmental provision obligation. At the end of useful life of the mine, mining companies are obligated to rehabilitate the damage to the environment and all payments made to the Environmental Protection Fund will be reimbursed towards this rehabilitation. The valuation for the environmental restoration provision at 31 December 2024 for the Company and subsidiaries were performed by independent consultants. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 139 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 38 Provisions for environmental rehabilitation (continued) Assumptions The following assumptions were consindered: Inflation rate of 10% (2023: 7%), Discount rate of 4.38% (2023: 3.84%) and time to settle of 5 to 25 years when cashflows are expected to be incurred. Based on this assessment, there was an increase in the liability for the Asset Retirement Obligation (ARO) after an inflation factor of 10% (2023: 7%) of approximately ZMW18.6 million (US$0.46 million) (2023:ZMW118 million (US$4.38 million)). The discount factor of 4.38% was applied in 2024 (2023: 3.84%). The increase in the restoration provision in the current year is principally attributable to exchange movements. An impact of a 10% movement in the inflation rate results into ZMW0.194 million (2023: ZMW0.12 million) change in the retirement and remediation liability while a 10% movement in the discount rate results into a ZMW0.002 million (2023: ZMW0.02 million) change in the liability and corresponding mineral properties asset. For each mining area, the ARO cash outflows have been estimated to occur after the end of the mining over a period which is between 5 to 25 years. 39 Related party transactions a) Parent and ultimate controlling party The Group is controlled by the Government of the Republic of Zambia through the Zambian Industrial Development Corporation (IDC) (60.3%) and Ministry of Finance (17.2%) which owns a total of 77.5% of the Company’s shares. b) Related party transactions (i) Dividend paid to parent company Name Type Ownership interest Place of incorporation 31 Dec 2024 31 Dec 2023 ZMW million ZMW million Industrial Development Corporation Ultimate parent entity and controlling party 60.3% Zambia 146 436 (ii) Loan amount payable to Ministry of Finance Name Type Ownership interest Place of incorporation 31 Dec 2024 31 Dec 2023 ZMW million ZMW million Ministry of Finance Shareholder 17.3% N/a 1,226 - ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 140 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (iii) Key management personnel compensation Group Company 2024 2023 2024 2023 Item Executive Director’s fees and Emoluments 6,901 10,605 6,901 4,694 Non-executive Director’s Fees 26,726 26,477 13,499 10,465 Total 33,627 37,082 20,400 15,159 Key management compensation relates to Director’s in the Company and its subsidiaries. Directors’ emoluments include sitting allowances and salaries. (iv) Dividend income from related parties Company Relationship 31 Dec 2024 31 Dec 2023 Kansanshi Mining Plc (Associate) - 170,745 CNMC Luanshya Copper Mines Plc (Associate) 266,560 233,568 Copperbelt Energy Corporation Plc (Associate) 483,469 335,523 NFC Africa Mining Plc – (Other investee) 36,623 - Total dividends (Note 8) 786,652 739,836 (v) Interest income from related parties Company Relationship 31 Dec 2024 31 Dec 2023 Maamba Energy Limited (Associate) 62,369 56,504 Konkola Copper Mines Plc (Associate) 607 832 Limestone Resources Limited (Subsidiary) 21,239 14,070 Rembrandt Properties Limited (Associate) 5,509 5,501 Zambia Gold Company Limited (Subsidiary) 6,631 - Mingomba Mining Limited (Associate) 9,920 - Mopani Copper Mines Plc (Associate) 196,668 168,728 Total interest income 302,943 245,635 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 141 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (vi) Management fees income from related parties Company Relationship 31 Dec 2024 31 Dec 2023 Lubambe Copper Mines (Associate) - 5,072 Kariba Minerals Limited (Subsidiary) - 11 Zambia Gold Company Limited (Subsidiary) - 295 Total management fees (note 9) - 5,378 (vii) Royalty income from related parties Company Relationship 31 Dec 2024 31 Dec 2023 Kansanshi Mining Plc (Associate) 1,425,969 1,201,395 (viii) Amounts due from related parties Group 2024 Relationship Gross Impairment Carrying amount Konkola Copper Mines Plc (iv) Associate 310,916 (310,916) - Mingomba Mining Limited Associate 464,148 (1,573) 462,575 Royalty receivable (Kansanshi Mining Plc) Associate 388,830 (4,160) 384,670 Sub total 1,163,894 (316,649) 847,245 Maamba Energy Limited (i) Associate 612,307 (2,075) 610,232 Lubambe Copper Mines Limited (ii) Associate 701,493 (701,493) - Mopani Copper Mines Plc (viii) Associate 2,843,235 (911,924) 1,931,311 Rembrandt Properties Limited Associate 46,824 (46,824) - Sub total 4,203,859 (1,662,316) 2,541,543 Price participation receivable (KCM) Associate 9,182 (9,182) - Dividends receivable (KCM) Associate 78,066 (78,066) - Sub total 87,248 (87,248) - Total amounts due from related parties 5,455,001 (2,066,213) 3,388,788 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 142 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (viii) Amounts due from related parties (continued) Group 2023 Relationship Gross Impairment Carrying amount Konkola Copper Mines Plc (iv) Associate 309,420 (309,420) - Royalty receivable (Kansanshi Mining Plc) Associate 185,397 (3,506) 181,891 Royalty receivable (Consolidated Gold Company Limited) Associate 2,852 - 2,852 Sub total 497,669 (312,926) 184,743 Maamba Energy Limited (i) Associate 1,595,707 (7,978) 1,587,729 Lubambe Copper Mines Limited (ii) Associate 701,493 (701,493) - Rembrandt Properties Limited Associate 41,315 (207) 41,108 Sub total 2,338,515 (709,678) 1,628,837 Price participation receivable (KCM) Associate 9,182 (9,182) - Dividends receivable from Kansanshi Associate 124,970 (78,066) 46,904 Sub total 134,152 (87,248) 46,904 Total amounts due from related parties 2,970,336 (1,109,852) 1,860,484 Company December 2024 Relationship Gross Impairment Carrying amount Misenge Environmental and Technical Ser- vices Limited (iii) Subsidiary 5,321 (4,624) 697 Konkola Copper Mine Plc (iv) Associate 310,916 (310,916) - Limestone resources limited (vii) Subsidiary 46,850 (46,850) - Mingomba Mining Limited Associate 464,148 (1,573) 462,575 Royalty receivable (Kansanshi) Associate 388,830 (4,160) 384,670 Sub total 1,216,065 (368,123) 847,942 Maamba Energy Limited (i) Associate 612,307 (2,075) 610,232 Lubambe Copper Mine Limited (ii) Associate 701,493 (701,493) - Mopani Copper Mines Plc (viii) Associate 2,843,235 (911,924) 1,931,311 Rembrandt Properties Limited (vi) Associate 46,824 (46,824) - Zambia Gold Limited Subsidiary 146,585 (497) 146,088 Limestone Resources Limited (vii) Subsidiary 235,462 (235,462) - Sub total 4,585,906 (1,898,275) 2,687,631 Mushe Milling Company Limited (v) Subsidiary 73,965 (73,965) - Price participation receivable (KCM) Associate 9,182 (9,182) - Dividends receivable (KCM) Associate 78,066 (78,066) - Sub total 161,213 (161,213) - Total amounts due from related parties 5,963,184 (2,427,611) 3,535,573 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 143 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (viii) Amounts due from related parties (continued) Company December 2023 Relationship Gross Impairment Carrying amount Misenge Environmental and Technical Services Limited (iii) Subsidiary 4,669 (4,624) 45 Konkola Copper Mine Plc (iv) Associate 309,420 (309,420) - Limestone Resources Limited (vii) Subsidiary 46,850 (46,850) - Royalty receivable (Kansanshi) Associate 188,249 (3,506) 184,743 Sub total 549,188 (364,400) 184,788 Maamba Energy Limited (i) Associate 1,595,707 (7,978) 1,587,729 Lubambe Copper Mine Limited (ii) Associate 701,493 (701,493) - Mopani Copper Mines Plc (viii) Subsidiary 2,776,497 (13,882) 2,762,615 Rembrandt (vi) Associate 41,315 (207) 41,108 Limestone Resources Limited (vii) Associate 195,999 (980) 195,019 Sub total 5,311,011 (724,540) 4,586,471 Mushe Milling Company Limited (v) Subsidiary 73,965 (73,965) - Price participation receivable (KCM) Associate 9,182 (9,182) - Dividends receivable (Kansanshi) Associate 124,970 (78,066) 46,904 Sub total 208,117 (161,213) 46,904 Total amounts due from related parties 6,068,316 (1,250,153) 4,818,163 (i) Maamba Energy Limited (MEL) On 17 June 2015, ZCCM-IH advanced an inter-company loan of ZMW 321.15 million (US$26.345 million) to Maamba Collieries Limited (MCL) as part of its equity contribution towards the implementation of the Integrated Mining Project and the development of a 300MW Thermal Power Plant. The loan carries an annual interest rate of 6% and is repayable in five equal annual instalments, commencing one year after the commercial operational date of 27 July 2017. The loan is subordinated to third-party lenders who financed the Maamba Project. During the year, the full project finance facility owed to commercial lenders was settled, and MCL continued to make repayments towards the ZCCM-IH shareholder loan. In addition, on 25 March 2019, ZCCM-IH extended a short-term liquidity support facility of ZMW 220.5 million (US$10 million) to MCL. The facility was repayable within 60 days from the date of disbursement or upon receipt of payment from ZESCO for power sales. This shareholder loan was also subordinated to the project finance loans, unsecured, and carried an interest rate of 6% per annum. As at 31 December 2024, MEL had fully repaid the US$10 million shareholder loan along with the accrued interest of US$2.68 million to ZCCM-IH. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 144 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (viii) Amounts due from related parties (continued) (ii) Lubambe Copper Mines Limited On 9 November 2023, ZCCM-IH amended the inter-company loan agreement with Lubambe Copper Mines Limited. The principal amount outstanding for the loan is ZMW701 million (US$103.7 million). The loan is fully impaired by ZCCM-IH Plc. (iii) Misenge Environmental and Technical Services Limited The loan amount outstanding from Misenge Environmental and Technical Services Limited is totalling ZMW4.25 million. The loan is fully impaired by ZCCM-IH Plc. (iv) Konkola Copper Mine Plc (KCM) ZCCM Investments Holdings Plc (“ZCCM-IH”) has provided significant financial support to Konkola Copper Mines Plc (“KCM”) through a combination of loan facilities and guarantees. Following the appointment of a Provisional Liquidator for KCM by the High Court, ZCCM-IH advanced ZMW166.57 million (US$10 million) to KCM through the office of the Provisional Liquidator. Subsequently, on 23 August 2019, an additional loan amounting to ZMW208.21 million (US$12.5 million) was extended to KCM. The latter facility carries an annual interest rate of 6% and total outstanding balance at year end is ZMW64.81 million (US$2.66 million). In addition to the above loans, ZCCM-IH also issued a corporate guarantee of ZMW220 million (US$10 million) to Zambia National Commercial Bank Plc (“ZANACO”) to secure a working capital facility for KCM. The guarantee remained in effect until 30 November 2023. Due to KCM’s financial constraints, it was unable to meet its repayment obligations, prompting ZANACO to call on the guarantee. ZCCM- IH honoured the guarantee and settled the full amount of US$10 million. This corporate guarantee was backed by a Promissory Note issued by the Ministry of Finance in favour of ZCCM-IH, and ZCCM-IH has formally requested reimbursement of the guaranteed amount. On 28 June 2024, the High Court of Lusaka, under Cause No. 2019/HP/0761, approved and sanctioned a Scheme of Arrangement between KCM and its Scheme Creditors. The repayment of the outstanding loans to ZCCM-IH now falls under the terms of this Court-Sanctioned Scheme. As at 31 December 2024, the total outstanding balance from these loan facilities stood at ZMW310.92 million (US$12.66 million). (v) Mushe Milling Company On 12 December 2019, ZCCM-IH and Mushe Milling Company Limited entered into a loan facility agreement amounting to ZMW20.48 million. The facility was attracting interest computed as the Bank of Zambia average commercial lending rate plus 2% per annum. Payment of interest was to commence six months from the date of the facility. The principal repayment of the loan had a moratorium of 12 months, thereafter, the principal was to be paid in 24 equal monthly instalments. The loan is fully impaired and written off. On 7th September 2021, ZCCM-IH and Mushe Milling Company Limited entered into a loan facility agreement amounting to ZMW6.29 million. The facility was attracting interest computed as the Bank of Zambia average commercial lending rate plus 2% per annum. Payment of interest was to commence six months from the date of the facility. The principal repayment of the loan had a moratorium of 12 months, thereafter, the principal to be paid in 24 equal monthly instalments. The loan is fully impaired and written off. The liquidation of Mushe Milling Company Limited began in 2023 and is still in progress. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 145 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 39 b) Related party transactions (continued) (viii) Amounts due from related parties (continued) (vi) Rembrandt Properties Limited On 1 September 2022, ZCCM-IH extended a term loan facility of ZMW29.5 million to support the company’s working capital requirements, with a repayment due date of 20 August 2023. Subsequently, on 29 December 2022, an additional shareholder loan of ZMW4.84 million was granted, repayable by 30 November 2023. Both facilities accrue interest at the 364-day Bank of Zambia treasury bill yield rate as of 1 September 2022, plus a margin of 1%. The loans are secured by a combined 25.5% shareholding—equally pledged by the other shareholders of Rembrandt, Urban Brands and Sims Capital. As at 31 December 2024, Rembrandt had not fulfilled its repayment obligations on either facility. Consequently, ZCCM-IH is actively pursuing appropriate measures to enforce its rights over the pledged security in accordance with the shareholder loan agreement. (vii) Limestone Resources Limited On 7 July 2022, ZCCM-IH entered a Preference Share Subscription Agreement with Limestone Resources Limited (LRL), under which ZCCM-IH subscribed to Redeemable Preference Shares (RPS) valued at ZMW174.86 million (US$6.79 million). The RPS carry a fixed interest rate of 10% per annum and were initially set to mature in July 2024, with the maturity date subsequently extended to July 2025. As at 31 December 2024, the total amount receivable from LRL stood at ZMW235.46 million and has been fully impaired. (viii) Mopani Copper Mines Plc On 19 January 2023, ZCCM Investments Holdings Plc (“ZCCM-IH”) entered into a Bridge Facility Agreement with Mopani Copper Mines Plc (“Mopani”) amounting to ZMW2.45 billion (US$100.35 million) to provide immediate working capital support during the process of engaging a Strategic Equity Partner. The facility was intended as a short-term recapitalisation measure to sustain Mopani’s operations. On 20 March 2024, the terms of the loan were modified in response to developments under the SEP transaction. The modification included: ■ A reduction in the interest rate from SOFR + 8% to SOFR + 1%; and ■ An extension of the maturity date from 31 December 2035 to 31 December 2036. This change was accounted for under IFRS 9 as an extinguishment of the original financial liability. Consequently: ■ The original loan was derecognised; ■ A new liability was recognised at its fair value of US$97 million; and ■ A resulting loss of US$32.0 million (being the difference between the carrying amount of the old loan and the fair value of the new loan) has been recognised in profit and loss (note 10). Following the successful completion of the SEP process, ZCCM-IH received a partial repayment of US$14 million. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 146 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 40 Contingent liabilities (i) Maamba contingent liabilities ZCCM-IH, being a co-owner of Maamba Energy Limited (MEL) with Nava Bharat (Singapore) PTE Ltd (NBS), was in 2017 required to contribute ZMW 162 million (US$9.75 million) in form of a shareholder loan towards Maamba’s Base Project Equity according to its shareholding ratio of 35%. However, NBS contributed the whole amount including the US$9.75million share for ZCCM-IH. As a result, it was resolved that ZCCM-IH refunds NBS, interest free, the excess contribution through offset of ZMW 27.1 million (US$1.23 million) interest payment which was due to ZCCM-IH from Maamba on the initial outstanding shareholder loan of 31 May 2015. The balance of ZMW 141.68 million (US$8.52 million) was to be paid by Maamba to NBS from future dividends of Maamba, payable to ZCCM-IH. ZMW 27.1 million (US$1.23 million) was paid to NBS in 2017, however, no dividends have been received from Maamba since 2017 to settle the balance. ZCCM-IH has determined that in the absence of dividends from Maamba it has no present obligation to settle the outstanding balance. For this reason, ZMW 187.9million (US$8.52 million) due to NBS has not been recognised in these financial statements. (ii) Trafigura Legal Claim ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) is currently involved in arbitration proceedings initiated by Trafigura Pte Ltd (“Trafigura”) before the London Court of International Arbitration (LCIA). The claim arises from an alleged obligation under an on-demand guarantee (the “Guarantee”) provided by ZCCM-IH in connection with prepayment agreements between Trafigura and Konkola Copper Mines Plc (“KCM”) for the supply of copper concentrates. Trafigura is seeking the following reliefs from ZCCM-IH: i. Payment of US$82,81 million plus late payment interest or, alternatively, damages; ii. Any pre-award interest accrued by the date of the arbitration award; iii. Reimbursement of legal and arbitration costs; and iv. Any further relief as deemed appropriate by the Tribunal. ZCCM-IH has vigorously disputed the claim and filed a comprehensive defence against this clam. As of 31 December 2024, the arbitration proceedings are ongoing, and the ultimate outcome remains uncertain. While ZCCM-IH considers the claim to be without merit and continues to robustly defend its position, there is a possibility that an adverse ruling could expose the Company to material financial liabilities. Given the complexities and uncertainties associated with arbitration, no provision has been recognized in these financial statements, as the probability and quantum of any potential obligation cannot be reliably estimated at this stage. The Board of Directors continues to closely monitor the developments of the case. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 147 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 40 Contingent liabilities (continued) (iii) Assets pledged as security For the year ending 31 December 2024, there were no assets pledged as security (2023: ZMW 22.48 billion) relates to Mopani. The assets pledged as security were specifically for Mopani’s liabilities. The carrying amounts of assets pledged as security for the borrowings and included assets held for sale were: 31 Dec 2024 31 Dec 2023 Assets Notes Property, plant, and equipment 17 - 12,525,429 Intangible assets 19 - 3,121,181 Trade and other receivables 26 - 3,137,572 Environmental protection fund 27 - 147,553 Inventories 25 - 3,489,128 Term deposits 29 - - Cash and cash equivalents 30 - 58,367 Total assets - 22,479,230 41 Commitments (i) Capital expenditure authorised by the Board of directors at the reporting date but not yet contracted for is as follows: Group Company 31Dec 2024 31Dec 2023 31Dec 2024 31 Dec 2023 Property, plant and equipment 47,834 5,113,296 47,834 43,835 47,834 5,113,296 47,834 43,835 * The 2024 financial year capital commitments relate to ZCCM-IH. For the 2023 financial year, included in capital commitments is a balance of ZMW5.07 billion (US$247 million) relating to Mopani authorised by the Board but not yet contracted as at 31 December 2023. (ii) Maamba Energy Limited Commitments Shareholders are referred to the announcement dated 10th July 2024, in which the Board of ZCCM Investments Holdings Plc (“ZCCM-IH” or the “Company”) informed shareholders and the market that Maamba Energy Limited (“MEL”), formerly Maamba Energies Limited, had reached an agreement with anchor lenders to finance the construction and installation of an additional 300-megawatt power plant at MEL (“the Project”). The total estimated cost of the Project is US$ 400 million, of which approximately US$ 300 million will be financed through a consortium of lenders. ZCCM-IH is expected to contribute USD 15 million toward the debt portion in the form of a loan, with a tenor of 10.25 years from the start of construction, including a 3.25-year moratorium. The loan will bear interest at a rate of 9% per annum. As of 31 December 2024, ZCCM-IH has advanced a total of US$ 5 million. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 148 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 41 Commitments (continued) (ii) Maamba Energy Limited Commitments (continued) Additionally, US$ 100 million will be provided as equity by the shareholders, Nava Bharat Singapore Pte Limited (“NBS”) and ZCCM-IH, in proportion to their respective shareholding in MEL, which stands at 65% and 35%, respectively. This translates to an equity contribution of US$ 65 million from NBS and US$ 35 million from ZCCM-IH. As of 31 December 2024, no equity contributions have been advanced. The disbursements towards the equity contribution will commence in June 2025. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 149 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management The Group has exposure to the following risks arising from financial instruments: ■ Market risk (see (a)) ■ Credit risk (see (b)) ■ Liquidity risk (see (c)) (i) Risk management framework The Company’s Board of directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board of directors has established the audit and risk committee, which is responsible for developing and monitoring the Group’s risk management policies. The committee reports quarterly to the Board of directors on its activities. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Group audit committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee. (a) Market risk Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices – will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (i) Exposure to currency risk The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. The Group is affected by foreign exchange movements because it has assets and income which are denominated in currencies other than the Company’s functional currency, which is the Zambian Kwacha. Management’s policy to manage foreign currency risk is to hold both functional and foreign currency fixed deposits with various banks which act as a natural hedge for foreign currency obligations. Hedging techniques such as currency swap are also used to manage currency risk. The Group did not enter into any transactions that required currency swap technique during the year and the prior year. Comparative amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on previously reported net income or equity. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 150 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (i) Exposure to currency risk (continued) The summary quantitative data about the Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Zambian Kwacha is detailed in the table below. Group 2024 ZMW equivalent of US$ and other foreign currencies US$'000 Cash and cash equivalents 101,731 3,639 Trade and other receivables 1,603,565 57,367 Short term deposits 5,090,150 182,100 Long term bonds 329,525 11,789 Borrowings (3,346,867) (119,734) Net exposure 3,778,104 135,161 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 151 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (i) Exposure to currency risk (continued) The summary quantitative data about the Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Zambian Kwacha is detailed in the table below. Group 2023 ZMW equivalent of US$ and other foreign currencies US$ Amounts ZMW equivalent of EUR and other foreign currencies EUR Amount ZMW equivalent of GBP and other foreign currencies GBP Amount ZMW equivalent of RAND and other foreign currencies RAND Amount ZMW equivalent of PULA and other foreign currencies PULA Amount Cash and cash equivalents 180,414 7,007 - - - - 12 9 - - Trade and other receivables 1,831,666 71,142 - - - - 35 25 - - Term deposits 4,023,712 156,282 - - - - - - - - Assets held for sale 157,163 6,104 11,302 397 6,117 186 64 46 83 60 Borrowings - - - - - - - - - - Bank overdraft - - - - - - - - Trade and other payables (108,524) (4,215) - - - - - - - - Liabilities directly as- sociated with assets classified as held for sale (54,506,470) (2,117,044) (11,968) (420) (5,892) (180) (452) (326) - - Net exposure (48,422,039) (1,880,724) (666) (23) 225 6 (341) (246) 83 60 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 152 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (i) Exposure to currency risk (continued) The summary quantitative data about the Company’s exposure to foreign currency risk at the end of the re- porting period, expressed in Zambian Kwacha is detailed in the table below. Dec 2024 ZMW equivalent of US$ and other foreign currencies US$'000 Cash and cash equivalents 101,731 3,639 Trade and other receivables 3,534,876 126,460 Short term deposits 5,090,150 182,100 Long term bonds 329,525 11,789 Borrowings (3,346,867) (119,734) Trade and other payables - - Net exposure 5,709,415 204,254 Dec 2023 ZMW equivalent of US$ and other foreign currencies US$'000 Cash and cash equivalents 49,574 1,925 Trade and other receivables 4,777,010 185,540 Term deposits 4,023,712 156,282 Trade and other payables (32,128) (1,248) Net exposure 8,818,168 342,499 Comparative amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on previous reported net income or equity ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 153 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (i) Exposure to currency risk (continued) The following significant exchange rates have been applied during the year: Average rate Reporting date spot rate 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Kwacha US$ 1 26.1528 20.52413 27.9525 25.7465 Sensitivity analysis A 10 percent strengthening of the Kwacha against the US Dollar at 31 December 2024 would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The analysis is performed on the same basis for 31 December 2023. Equity and profit or loss Group Company 31 Dec 2024 ZMW 344,858 2,879,105 31 Dec 2023 ZMW (4,842,274) 2,001,890 A 10 percent weakening of the Kwacha against the US Dollar at 31 December 2024 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 154 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (ii) Exposure to interest rate risk The Group’s operations are subject to cash flow variability due to the risk of interest rate fluctuations to the extent that interest-earning assets (including investments) and interest-bearing liabilities mature or reprice at different times and/or in differing amounts. In the case of floating rate assets and liabilities the Group is also exposed to basis risk, which is the difference in repricing characteristics of the various floating rate indices. Asset-liability risk management activities are conducted in the context of the Group’s sensitivity to cash flow variability attributable to interest rate changes. Group 31 December 2024 31 December 2023 Total Zero rate instruments Floating rate instruments Fixed rate instruments Total Zero rate instruments Floating rate instruments Fixed rate instruments Assets Cash and cash equivalents 525,685 525,685 - - 360,356 360,356 - - Trade and other receivables 3,440,520 1,363,121 - 2,077,399 1,899,338 270,501 - 1,628,837 Assets held for sale - - - 1,661,908 656,893 - 1,005,015 Long term bonds 329,525 - - 329,525 - - - - Short term deposits 5,015,626 - - 5,015,626 4,450,451 - - 4,450,451 Total assets 9,311,356 1,888,806 - 7,422,550 8,372,053 1,287,750 - 7,084,303 Liabilities Borrowings (3,346,867) - (3,346,867) - - - - - Trade and other payables (117,315) (117,315) - - (177,076) (177,076) - - Liabilities directly associated with assets classified as held for sale - - - - (56,466,686) (11,354,896) (43,518,155) (1,593,635) Total liabilities (3,464,182) (117,315) (3,346,867) - (56,643,762) (11,531,972) (43,518,155) (1,593,635) Gap 5,847,174 1,771,491 (3,346,867) 7,422,550 (48,271,709) (10,244,222) (43,518,155) 5,490,668 The interest rate gap is measured on an ongoing basis to assess the impact of the exposure after which corrective measures are deliberated. These may include contract renegotiation and use of money market options to hedge against significant change in variable interest rates. Trade and other receivables/payables, excludes prepayments and statutory obligations and contract liabilities respectively. Statutory liabilities are imposed by law while contract liabilities represent an obligation to deliver a good or service rather than cash or other assets in settlement. Therefore, these do not meet the definition of financial instruments and have been excluded from the table above. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 155 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (ii) Exposure to interest rate risk (continued) Company 31 December 2024 31 December 2023 Total Zero rate instruments Floating rate instruments Fixed rate instruments Total Zero rate instruments Floating rate instruments Fixed rate instruments Assets Cash and cash equivalents 221,736 221,736 - - 61,137 61,137 - - Trade and other receivables 3,589,710 438,181 1,931,311 1,220,218 4,581,312 243,605 2,762,615 1,575,092 Long term bonds 329,525 - - 329,525 - - - - Short term deposits 5,015,626 - - 5,015,626 4,411,330 - - 4,411,330 Total assets 9,156,597 659,917 1,931,311 6,565,369 9,053,779 304,742 2,762,615 5,986,422 Liabilities Borrowings (3,346,867) - (3,346,867) - - - - - Trade and other payables (81,748) (81,748) - - (25,643) (25,643) - - Total liabilities (3,428,615) (81,748) (3,346,867) - (25,643) (25,643) - - Gap 5,727,982 578,169 (1,415,556) 6,565,369 9,028,136 279,099 2,762,615 5,986,422 Trade and other receivables/payables, excludes prepayments and statutory obligations and contract liabilities respectively. Statutory liabilities are imposed by law while contract liabilities represent an obligation to deliver a good or service rather than cash or other assets in settlement. Therefore, these do not meet the definition of financial instruments and have been excluded from the table above. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 156 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (ii) Exposure to interest rate risk (continued) Risks arising from the interest rate benchmark reform The key risks for the Group arising from the transition are: ■ Interest rate basis risk: There are two elements to this risk as outlined below: If the bilateral negotiations with the Group’s counterparties are not successfully concluded before the cessation of IBORs, there are significant uncertainties with regard to the interest rate that would apply. This gives rise to additional interest rate risk that was not anticipated when the contracts were entered into and is not captured by our interest rate risk management strategy. For example, in some cases the fall- back clauses in IBOR loan contracts may result in the interest rate becoming fixed for the remaining term at the last IBOR quote. The Group is working closely with all counterparties to avoid this from occurring, however if this does arise, the Group’s interest rate risk management policy will apply as normal and may result in closing out or entering into new interest rate swaps to maintain the mix of floating rate and fixed rate debt. ■ Interest rate risk basis may arise if a non-derivative instrument held to manage the interest risk on the non-derivative instrument transition to alternative benchmark rates at different times. The Group will mon- itor this risk against its risk management policy which has been updated to allow for temporary mismatch- es of up to 12 months and transact additional basis interest rate swaps if required. ■ Liquidity risk: There are fundamental differences between IBORs and the various alternative benchmark rates which the Company will be adopting. IBORs are forward looking term rates published for a period (e.g. 3 months) at the beginning of that period and include an inter-bank credit spread, whereas alter- native benchmark rates are typically risk-free overnight rates published at the end of the overnight period with no embedded credit spread. These differences will result in additional uncertainty regarding floating rate interest payments which will require additional liquidity management. The Group’s liquidity risk man- agement policy has been updated to ensure sufficient liquid resources to accommodate unexpected increases in overnight rates. ■ Accounting: If transition to alternative benchmark rates for certain contracts is finalised in a manner that does not permit the application of the reliefs introduced in the Phase 2 amendments, this could lead to volatility in the profit or loss if nonderivative financial instruments are modified or derecognised. The Group is aiming to agree changes to contracts that would allow IFRS 9 reliefs to apply. ■ Litigation risk: If no agreement is reached to implement the interest rate benchmark reform on existing contracts, (e.g., arising from differing interpretation of existing fallback terms), there is a risk of prolonged disputes with counterparties which could give rise to additional legal and other costs. The Group is work- ing closely with all counterparties to avoid this from occurring. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 157 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (ii) Exposure to interest rate risk (continued) Interest rate risk The Group’s interest rate risk arises primarily from the interest received on short term deposits and variable interest long term borrowings. This exposes the Group to cash flow interest risk. Cash flow sensitivity analysis of variable rate instrument A reasonable possible change of 100 basis points in interest rates at the reporting date would have in- creased /(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange, remain constant. Group Effect in thousands of Kwacha Profit or loss Increase Decrease 31 Dec 2024 Variable rate instruments 3,347 (3,347) 31 Dec 2023 Variable rate instruments 43,518 (43,518) Company 31 Dec 2024 Variable rate instruments 1,416 (1,416) 31 Dec 2023 Variable rate instruments (2,763) 2,763 The Group’s investments in corporate term deposits, all of which are fixed rate and are measured at am- ortised cost exposes the Group to cash flow interest rate risk. The tenure of the investments is mostly less than 1 year. At 31 December 2024, an increase/decrease of 100 basis points would not have resulted in a decrease/increase in the Consolidated and company post tax profit and equity of ZMW534.81 million (December 2023: ZMW483.5 million). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 158 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (a) Market risk (continued) (iii) Price risk The Group is exposed to equity securities price risk because of investments in quoted and unquoted shares classified as financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity and debt securities, the Group diversifies its portfolio, in accordance with limits set by the Group. All quoted shares held by the Group are traded on the Lusaka Securities Exchange. Further, management of the Group monitors the proportion of equity securities in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Investment Committee of the Board. The primary goal of the Group’s investment strategy is to maximise investment returns and to improve its returns in general. Management is assisted by external advisers in this regard. At 31 December 2024, if the LuSE Index had increased/decreased by five percent with all other variables held constant and all the Group’s equity instruments moved according to the historical correlation to the index, consolidated equity and profit or loss would have been ZMW364.43 million (2023: ZMW178.96 million) higher/lower. Commodity price risk General corporate hedging unrelated to any specific project is not undertaken by the Group. The Group also does not issue or acquire derivative instruments for trading purposes. The Group is subject to price risk from fluctuations in the market prices of copper and gold. The impact of a 10% movement on commodity prices with all other variables held constant, consolidated equity and profit or loss would have been ZMW0.81 billion higher/lower (2023: ZMW1.16 billion higher/lower) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 159 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (b) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s from cash and cash equivalents, term deposits with banks, as well as trade and other receivables. Credit risk is managed on a Group basis. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each coun- terparty. However, management also considers the factors that may influence the credit risk of its coun- terparty base, including the default risk associated with the industry. (i) Risk management The Group through risk and audit committee has established a credit procedure under which each new customer or counterparty is analysed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references. Sale limits are established for each customer and monitored regularly by line management. (ii) Security To limit the amount of credit exposure to financial institution for term deposits, the Group obtains col- lateral from financial institutions which are rated “B” and below. As at 31 December 2024, ZMM507.25 million (December 2023: ZMW680.77 million) of term deposits, collateral was held in the form of treasury bills and government bonds. Due to the short-term nature of collateral held for term deposits, their car- rying amounts approximates their fair values. No collateral is obtained as security for trade and other receivables. Instead, the Group requests for advance payments where necessary to reduce credit risk on some customers. The amount that best represents the Group’s and Company’s maximum exposure to credit risk at 31 December 2024 is made up as follows: Group Company 31-Dec 31-Dec 31-Dec 31-Dec 2024 2023 2024 2023 Cash and cash equivalents 525,685 360,356 221,736 61,137 Trade and other receivables 3,440,520 1,899,338 3,589,710 4,581,312 Long term bonds 329,525 - 329,525 - Term deposits and other finan- cial assets at amortised costs 5,015,626 4,450,451 5,015,626 4,411,330 9,311,356 6,710,145 9,156,597 9,053,779 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 160 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (b) Credit risk (continued) (iii) Impairment of financial assets The Group applies the Simplified Approach to assess and measure expected credit losses (ECLs) for cash and cash equivalents, financial instruments at amortised costs and contract assets. The simplified approach entails recognising the ECL on the lifetime of the balance due to the Group. It involves the calculation of the loss rates to categories of the third parties that is then applied to the balance. The categorization is done both per unique characteristics and time the balances are outstanding. The loss rates are derived using the Group’s own historical credit loss experience and adjust for both current and forward-looking information. The information is evaluated for its appropriateness in light of market changes so as to remain relevant and provide valid assessment results. To calculate ECL, trade and other receivables are grouped based on shared credit risk characteristics and the days past due. The Group’s historical credit loss experience does not indicate significant different loss patterns for the various customer segments. In calculating the expected credit loss rates, the Group considers historical loss rates for each category of customers. Historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified long term consensus copper price of $3/lb or 6,615/MT, gross domestic product projected growth of 4% for Zambia, inflation rate for Zambia projected to trend around 8% and 10%, The group considers these factors in which it sells its goods and services to be the most relevant and, accordingly, adjusts the historical loss rates based on expected changes in these factors. The Group’s historical credit loss experience does not show significantly different loss patterns for the various customer segments. Therefore, the grouping of trade receivables is not disaggregated into further risk profiles other than days past due. There were no changes in the estimating techniques or significant assumptions made as at the reporting period. The loss allowance as at reporting date was determined as follows: ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 161 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (b) Credit risk (continued) (iii) Impairment of financial assets (continued) Trade and other receivables (Excludes prepayments and statutory receivables) Group 31 December 2024 Gross Lifetime expected credit loss Net Estimated rate of Default (%) Not due 4,142,127 (709,512) 3,432,615 17.13 Past due 30 - 60 days 2,753 (1,231) 1,522 44.72 Past due 61 – 90 days 5,237 (2,283) 2,954 43.59 Past due 91 - 120 days 6,521 (4,983) 1,538 76.42 Over 121 days 1,375,916 (1,374,025) 1,891 99.86 5,532,554 (2,092,034) 3,440,520 31 December 2023 Gross Lifetime expected credit loss Net Estimated rate of Default (%) Not due 1,935,205 (14,090) 1,921,115 0.73 Past due 30 - 60 days 2,657 (1,231) 1,426 46.33 Past due 61 – 90 days 5,237 (2,283) 2,954 43.59 Past due 91 - 120 days 6,006 (4,983) 1,023 82.97 Over 121 days 1,147,202 (1,144,659) 2,543 99.78 3,096,307 (1,167,246) 1,929,061 Company 31 December 2024 Gross Lifetime expected credit loss Net Estimated rate of Default (%) Not due 4,553,748 (964,649) 3,589,099 21.18 Past due 30 - 60 days 1,140 (1,044) 96 91.58 Past due 61 - 90 days 841 (841) - 100.00 Past due 91 - 120 days 736 (221) 515 30.03 Over 121days 1,419,821 (1,419,821) - 100.00 5,976,286 (2,386,576) 3,589,710 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 162 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (b) Credit risk (continued) (iii) Impairment of financial assets (continued) Company 31 December 2023 Gross Lifetime expected credit loss Net Estimated rate of Default (%) Not due 4,782,194 (28,592) 4,753,602 0.58 Past due 30 - 60 days 1,044 (1,044) - 100.00 Past due 61 - 90 days 841 (841) - 100.00 Past due 91 - 120 days 221 (221) - 100.00 Over 121days 1,190,455 (1,190,455) - 100.00 5,974,755 (1,221,153) 4,753,602 No trade receivables have been written off during the year. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. The loss allowance recognised is categorised as follows: Group Company 2024 2023 2024 2023 ZMW’000 ZMW’000 ZMW’000 ZMW’000 Performing debtors 29,614 23,144 27,282 22,267 Non-performing debtors 310,607 318,046 284,756 318,923 340,221 341,190 312,038 341,190 Cash and cash equivalents While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. To limit the amount of credit exposure to financial institution for cash and cash equivalent, cash and cash equivalents are held with banks which are rated A. Term deposits and other financial assets Term deposits and other financial assets at amortised cost relate to staff debtors which are considered to have a low risk of default and the counterparts have a strong capacity to meet their contractual cash flow obligations in the near term. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 163 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (c) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Management monitors rolling forecasts of the Group’s liquidity reserve on the basis of expected cash flows. The Group maintains the level of its cash flow and cash equivalents and other highly marketable debt investments at an amount in excess of expected cash outflows on financial liabilities through cash flow forecasts. (i) Financing arrangements The Group had no undrawn borrowing facilities at the end of the reporting period (2023: Nil). (ii) Maturities of financial liabilities The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and include estimated interest payments and exclude the impact of netting agreements. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Group Carrying amount Contractual amount Within 1 year 2 -5 years At 31 December 2024 Financial liabilities Borrowings 3,346,867 4,858,848 538,449 2,808,418 Trade and other payables 117,315 117,315 117,315 - Liabilities directly associated with assets classified as held for sale - - - - 3,464,182 4,976,163 655,764 2,808,418 At 31 December 2023 Financial liabilities Borrowings - - - - Overdraft - - - - Trade and other payables 177,076 177,076 177,076 - Liabilities directly associated with assets classified as held for sale 56,466,686 57,294,412 57,294,412 - 56,643,762 57,471,488 57,471,488 - ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 164 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (c) Liquidity risk (continued) (ii) Maturities of financial liabilities (continued) Company Carrying amount Contractual amount Within 1 year 2 - 5 years At 31 December 2024 Financial liabilities Borrowings 3,346,867 4,858,848 538,449 2,808,418 Trade and other payables 81,748 81,748 81,748 - 3,428,615 4,940,596 620,197 2,808,418 At 31 December 2023 Financial liabilities Borrowings - - - - Trade and other payables 25,643 25,643 25,643 - 25,643 25,643 25,643 - (i) Capital management The scope of the Group management framework covers the Group’s total equity reported in its financial statements. The Group’s and Company objectives when managing capital are to safeguard their ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the number of dividends paid to shareholders, issue new capital or sell assets to reduce debt. The Board’s policy is to implement a sound financial strategy that ensures financial independence and maintains adequate capital to sustain the long terms objectives of the Group and to meet its operational and capital budget. The Group monitors capital on the basis of the average gearing ratio in the industry, in Zambia which currently stands at below 50% of equity. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as equity plus net debt. The gearing ratios at 31 Dec 2024 and 31 Dec 2023 were as follows: ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 165 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (c) Liquidity risk (continued) (i) Capital management (continued) Group Company 31Dec 2024 31Dec 2023 31Dec 2024 31 Dec 2023 Borrowings 3,346,867 - 3,346,867 - Bank overdraft - - - - Less: cash and cash equivalents (525,685) (360,356) (221,736) (61,137) Net debt 2,821,182 (360,356) 3,125,131 (61,137) Total equity 52,263,711 (5,690,633) 62,292,543 37,422,019 Total capital 55,084,893 (6,050,989) 65,417,674 37,360,882 Gearing ratio 5.12% 5.96% 4.78% 0% The interest rates used to discount estimated cash flows when applicable are based on the government yield curve at the reporting date plus an appropriate credit spread, and are as follows: 31Dec 2024 31 Dec 2023 Loans and borrowings 16.5% 14.21% There has been no change in management of capital during the year. (ii) Fair value estimation The Group classifies its financial assets in the following measurement categories: (i) those to be measured subsequently at fair value (either through OCI or through profit or loss): and (ii) those to be measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. Financial liabilities are recorded initially at fair value and subsequently measured at amortised cost using the effective interest rate method except for derivative instruments that continue to be measured at fair value. Comparative amounts have been reclassified for consistency with the current year’s presentation. These reclas- sifications had no effect on previously reported net income or equity. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 166 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (c) Liquidity risk (continued) (ii) Fair value estimation (continued) The fair value of the financial assets and liabilities carried at amortised cost including cash and cash equivalents, trade and other receivables, term deposits, borrowings and trade and other payables are considered to ap- proximate their respective carrying values due to their short-term nature and negligible credit losses. Group – 2024 Financial assets at FVTPL Financial assets at amortised cost Financial liabilities at amortised cost Financial assets at fair value through profit or loss 2,741,000 - - Cash and cash equivalents - 525,685 - Trade and other receivables -current - 887,469 - Trade and other receivables non - current - 2,505,570 - Long term bonds - 304,799 - Short term deposits - 5,015,626 - Assets classified as held for sale 73,588 (73,588) - Financial liabilities Borrowings - - (3,569,621) Trade and other payables - - (117,315) 2,814,588 9,165,561 (3,686,936) Group – 2023 Financial assets at FVTPL Financial assets at amortised cost Financial liabilities at amortised cost Financial assets at fair value through profit or loss 3,019,500 - - Cash and cash equivalents - 360,356 - Trade and other receivables -current - 287,239 - Trade and other receivables non - current - 1,152,561 - Term deposits - 4,411,330 - Assets classified as held for sale 584 1,661,324 - Financial liabilities Bank overdraft - - - Trade and other payables - - (177,076) Liabilities directly associated with assets classified as held for sale - - (56,466,686) 3,020,084 7,872,810 (56,643,762) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 167 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 42 Financial risk management (continued) (c) Liquidity risk (continued) (ii) Fair value estimation (continued) Company – 2024 Financial assets at FVTPL Financial assets at FVTOCI Financial assets at amortised cost Financial liabilities at amortised cost Financial assets at fair value through profit or loss 2,741,000 - - - Investments in associates - 34,452,165 - - Investments in subsidiaries - 191,501 - - Cash and cash equivalents - - 221,736 - Trade and other receivables -current - - 890,571 - Trade and other receivables non - current - - 2,640,150 - Assets classified as held for sale 73,588 - - - Long term bonds - - 304,799 - Short term deposits - - 5,015,626 - Financial liabilities Borrowings - - - (3,569,621) Trade and other payables - - - (81,748) 2,814,588 34,643,666 9,072,882 (3,651,369) Company – 2023 Financial assets at FVTPL Financial assets at FVTOCI Financial assets at amortised cost Financial liabilities at amortised cost Financial assets at fair value through profit or loss 3,019,500 - - Investments in associates - 11,240,080 - - Investments in subsidiaries - 282,384 - - Cash and cash equivalents - 61,137 - Trade and other receivables -current - 271,219 - Trade and other receivables non - current 3,932,391 Term deposits - 4,411,330 - Financial liabilities Trade and other payables - - - (25,643) 3,019,500 11,522,464 8,676,077 (25,643) Valuation techniques and sensitivity analysis are included in note 23 and 24. The fair value of the financial assets and liabilities carried at amortised cost including cash and cash equivalents, trade and other receivables, term deposits, borrowings and trade and other payables are considered to ap- proximate their respective carrying values due to their short-term nature and negligible credit losses. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 168 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 43 Subsequent events (i) Additional Purchase of Shares in CEC Plc Subsequent to the year end, ZCCM-IH Plc purchased additional shares in CEC Plc which increased the shareholding from 32.41% to 32.64%. This reinforces ZCCM-IH’s commitment to powering Zambia’s industrial and mining sectors. (ii) Disbursement of US$5 million to Maamba Energy Limited On 2 April 2025, an amount of US$ 5 million was disbursed to Maamba Energy Limited by ZCCM-IH in accordance with the approval granted by the Board of Directors. The disbursement of the US$ 5 million is the second tranche for ZCCM-IH to invest US$ 15 million in debt financing for the Maamba Phase II expansion project. The disbursement is consistent with ZCCM-IH’s strategic focus which revolves around Zambia’s mining and energy sectors. (iii) ZCCM-IH Board approval of shareholder loan to Limestone Resources Limited On 28 March 2025, the Board of Directors of ZCCM-IH approved the short-term funding request from Limestone Resources Limited. ZCCM-IH will extend a shareholder loan of US$ 2.96 million to Limestone repayable one year after disbursement at an interest rate of 9.0%. ZCCM-IH’s Management has committed to have the shareholder loan disbursed to Limestone. (iv) Sino Great Co. Ltd. On 19 May 2025, ZCCM Investments Holdings Plc (“ZCCM-IH”) entered a strategic partnership with Jiangsu Sino Great Co. Ltd. and Wonderful Group of Companies Limited to co-invest in the development of an integrated phosphate fertiliser project in Zambia. The total investment commitment by ZCCM-IH amounts to US$ 50 million, comprising: • US$ 37.8 million for a 30% equity stake in the project company; and • US$ 12.2 million in project debt financing. The integrated project will include a phosphate mine, a 300,000 tonnes per annum Monoammonium Phosphate (MAP) plant, and a 40 MW thermal power plant. The transaction is subject to fulfilment of standard conditions precedent, including regulatory approvals, execution of definitive agreements, transfer of funds, issuance of shares, and the provision of a corporate guarantee by the Wonderful Group. The debt facility carries a 12-month moratorium on interest and principal repayments, followed by equal quarterly instalments over four years, with interest accruing quarterly on a 360-day year basis. (v) Funding Commitment to Mingomba Mining Limited On 19 May 2025, the Board of Directors of ZCCM Investments Holdings Plc (“ZCCM-IH”) approved a funding commitment of up to USD 10 million for the 2025 financial year towards Mingomba Mining Limited, in line with the approved 2025 Annual Work Program and Exploration Budget. The above transactions have been classified as a non-adjusting event after the reporting period under IAS 10 and is disclosed for its strategic and financial significance. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 169 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 44 Basis of measurement The consolidated and company financial statements have been prepared on the historical cost basis except for the following items which are measured on an alternative basis on each reporting date. Items Measurement basis Financial assets at fair value through profit or loss Fair value Investments in associates (Company) Fair value Retirement benefits Present value of the defined obligation Investment property Fair value Investment in subsidiary (Company) Fair value Royalty right Fair value ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 170 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies The Group has consistently applied the following accounting policies to all periods presented in these financial statements. Certain comparative amounts in the statement of profit or loss and OCI have been re-presented, to ensure consistency (see Note 7,8 and 13). Set out below is an index of the significant/material accounting policies, the details of which are available on the pages that follow: (a) Basis of consolidation (b) Foreign currency (c) Discontinued operation (d) Financial instruments (e) Property, plant and equipment (f) Investment property (g) Intangible assets (h) Assets held for sale (i) Inventories (j) Impairment (k) Employee benefits (l) Provisions and contingent liabilities (m) Revenue from contracts with customers (n) Investments income and expenses (o) Finance income and costs (p) Exploration costs (q) Income tax (r) Earnings per share (s) Segment reporting (t) Share capital (u) Dividend (v) Mine Developments (w) Environmental restoration (a) Basis of consolidation (i) Business combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if they are related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 171 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (a) Basis of consolidation (continued) (i) Business combinations (continued) If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards) and relate to past services, then all or a portion of the amount of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based value of the replacement awards compared with the market-based value of the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service. (ii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when control ceases. In the company financial statements, investments in subsidiaries are classified as fair value through other comprehensive income (OCI). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 172 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (a) Basis of consolidation (continued) (iii) Non-controlling interests (NCI) The group recognises non-controlling interests in an acquired entity either at fair value or at the non-con- trolling interest’s proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. (iv) Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related Non-controlling interests (NCI) and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. (v) Interest in equity accounted investees The Group’s interest in equity accounted investees comprise interests in associates. Associates are those entities in which the Group has significant influence, but not control or joint control over the financial and operating policies. Interests in associates are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. In the company financial statements investments in associates is subsequently measured at fair value. These are classified as fair value through other comprehensive income. When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, including any long-term interests that form part thereof is reduced to zero, and the rec- ognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. (vi) Transactions eliminated on consolidation Intra-group balances and transactions, fair value changes recognised in respect of its investment in sub- sidiaries and associates, and any unrealised income and expenses arising from intra group transactions, are eliminated. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 173 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (a) Basis of consolidation (continued) (vi) Transactions eliminated on consolidation (continued) losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. (vii) Remeasurement of previously held equity interest – Step up Acquisition A step acquisition occurs when a shareholder obtains control over an entity by acquiring an additional interest in that entity. If that entity is a business, the group’s previously held equity interest is remeasured to fair value at the date the controlling interest is acquired. The remeasurement of the previously held equity interest is recognized in Profit or loss. Any amounts previously recorded in other comprehensive income relating to the investee is reclassified and included in the calculation of the gain or loss as of the acquisition date. (viii) Reporting date The financial statements of the Company and subsidiaries used in the preparation of the current consolidated financial statements have the same reporting date of 31 December. When the end of the reporting date of the Company is different from that of the subsidiary or associates, the Company consolidates the financial information of the subsidiaries or associates using the most recent financial statements of the subsidiaries or associates adjusted for the effects of significant transactions or events that occur between the date of those financial statements and the date of the consolidated financial statements. (ix) Price Participation Fee Price Participation fees are variable amount, if any, to be credited to the seller as an additional income based on variations in the Payable Copper Price, if, as and when reflected in Benchmark Reference Terms from time to time. The price participation fees are recognised once conditions indicate that additional income is to be received, based on prevailing prices over the agreed period, and that its been agreed with other parties involved, in this case the buyer. (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in foreign currency are translated to the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs. However, foreign currency differences arising from the translation of the following items are recognised in other comprehensive income: • An investment in equity securities designated as at FVOCI (except on impairment, in which case foreign currency differences that have been recognised in other comprehensive income are reclassified to profit or loss). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 174 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (b) Foreign currency (continued) (i) Foreign currency transactions (continued) • Foreign currency differences which arise on the translation of investee companies (which have a different functional currency) are recognised in other comprehensive income and accumulated in the foreign currency translation reserve. (c) Discontinued operation A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: • represents a separate major line of business or geographic area of operations; • is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or • is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year. (d) Financial instruments (i) Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or fi- nancial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. (ii) Classification and subsequent measurement Financial assets On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group chang- es its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 175 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (d) Financial instruments (continued) (ii) Classification and subsequent measurement (continued) Financial assets (continued) Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL): • they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: • it is held within a business model whose objective is achieved by both collecting contractu- al. cash flows and selling financial assets; and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 176 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (d) Financial instruments (continued) (ii) Classification and subsequent measurement (continued) Financial assets – Business model assessment The Group assesses the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes: • the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets; • how the performance of the portfolio is evaluated and reported to the Group’s management. • the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed. • how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and • the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. Financial assets – Assessment whether contractual cash flows are solely payments of principal and interest For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: • contingent events that would change the amount or timing of cash flows; • terms that may adjust the contractual coupon rate, including variable-rate features; • prepayment and extension features; and • terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 177 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (d) Financial instruments (continued) (ii) Classification and subsequent measurement (continued) Financial assets – Subsequent measurement and gains and losses Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 178 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (d) Financial instruments (continued) (ii) Classification and subsequent measurement (continued) Financial liabilities – Classification, subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. (iii) Derecognition Financial assets The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset The Group enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial liabilities The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. (iv) Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. No set offs have been effected in these financial statements. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 179 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (e) Property, plant and equipment (i) Recognition and measurement All items of property, plant and equipment are measured at cost save for land and buildings are which are measured at revalued amounts for the Company. For subsidiaries, property plant and equipment are measured at cost less accumulated depreciation and others at revalued amounts as applicable (see note 17 for full disclosure). Cost includes capitalised borrowing costs, less accumulated depreciation, and any accumulated impairment losses. If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self- constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing costs. Capital work in progress relates to items of property, plant and equipment that are under construction and are yet to be commissioned for use. Work in progress is measured at the costs incurred in relation to the construction up to the reporting date. Capital work in progress is not depreciated. The Group’s policy is to revalue regularly to ensure that the carrying amount does not differ materially from the fair value. The revaluation differences are recognised in other comprehensive income and accumulated in equity "revaluation reserve" unless the revaluation difference represents the reversal of a revaluation decrease previously recognised as an expense, in which case the revaluation difference is recognised in profit or loss. A decrease arising as a result of a revaluation is recognised as an expense to the extent that it exceeds any amount previously credited to the revaluation surplus relating to the same asset. The revaluation surplus included in equity is transferred directly to retained earnings when the asset is used by the Group. The amount of the surplus transferred is the difference between depreciation charge based on the revalued carrying amount of the assets and the depreciation charge based on the original cost. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognised net within other income/other expenses in profit or loss. When revalued assets are sold, any related amount included in the revaluation reserve is transferred to retained earnings. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 180 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (e) Property, plant and equipment (continued) Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the expenditure will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (ii) Depreciation Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. The estimated useful lives for the current and comparative years are as follows: • Property 20 years • Leasehold land and buildings Life of mine • Motor vehicles 3 - 5 years • Plant and equipment 3 - 7 years • Vertical and rotary kiln 15 years • Rotary kiln 12 years • Mineral properties Unit of production method • Mine Development Unitof production method Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (iii) Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified accordingly. Any gain arising on this remeasurement is recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised in other Comprehensive Income (OCI) and presented in the revaluation reserve. Any loss is recognised in profit or loss. However, to the extent that an amount is included in the revaluation surplus for that property, the loss is recognised in other comprehensive income and reduces the revaluation surplus within equity. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 181 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (f) Investment property Investment property is property held to earn rental income or capital appreciation or for both, but not for sale in the ordinary course of business, use for the production or supply of goods or services or for administrative purposes. Investment property is initially measured at cost and subsequently at fair value with any change therein recognised in the profit or loss. Any gain or loss on the disposal of investment property (calculated as the difference between the net proceeds and the carrying amount of the item) is recognised in profit or loss. When investment property that was previously classified as property, plant and equipment is sold, any related amount that is included in the revaluation reserve is transferred to retained earnings. (g) Intangible assets (i) Recognition and measurement Intangible assets Intangible assets that are acquired by the Group and have finite useful lives are measured at cost less any accumulated amortisation. The group’s intangible assets comprises of acquired computer software programmes. Costs associated with maintaining software programmes are recognised as an expense as incurred. Royalty right Royalty rights have finite useful lives and are measured at fair value less any accumulated amortisation. The group’s Royalty right comprises the converted dividend right in Kansanshi Mining Plc to a right to receive 3.1% life of mine royalty. (ii) Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill are recognised in profit or loss as incurred. (iii) Amortisation and impairment Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. The estimated useful lives of the Group’s computer software are three to five years. The estimated useful life of the royalty right interest is over the life of the mine. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (iv) Derecognition Intangible assets are derecognised when an asset is sold, exchanged or abandoned and therefore, removed from the statement of financial position. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 182 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (h) Assets held for sale Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets or investment property, which continue to be measured in accordance with the Group’s other accounting policies. Impairment losses on initial classification as held-for-sale or held-for distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted. (i) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle. In the case of manufactured inventories, cost includes an appropriate share of production overheads based on normal operating capacity. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 183 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (j) Impairment (i) Non-derivative financial assets Financial instruments and contract assets The Group recognises loss allowances for ECLs on: • financial assets measured at amortised cost; • debt investments measured at FVOCI; and • contract assets. The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs: • debt securities that are determined to have low credit risk at the reporting date; and • other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition. Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial rec- ognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative in- formation and analysis, based on the Group’s historical experience and informed credit assessment and including forward-looking information. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Group considers a financial asset to be in default when: the debtor is unlikely to pay its credit obliga- tions to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or the financial asset is more than 90 days past due. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 184 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (j) Impairment (continued) (i) Non-derivative financial assets (continued) Financial instruments and contract assets (continued) 12-month ECLs are the portion of ECLs that result from default events that are possible within the. 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset. Credit-impaired financial assets At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data: • significant financial difficulty of the borrower or issuer; • a breach of contract such as a default or being more than 90 days past due; • the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise; • it is probable that the borrower will enter bankruptcy or other financial reorganisation; or • the disappearance of an active market for a security because of financial difficulties. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 185 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (j) Impairment (continued) (i) Non-derivative financial assets (continued) Presentation of allowance for ECL in the statement of financial position Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI Write-off The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. (ii) Non-financial assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than, investment property, inventories and deferred tax assets) to determine whether there is any indication of impairment. Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, then the asset’s recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. Determining whether goodwill is impaired requires an estimation of the present value of future cash flows generated from the cash generating units to which the goodwill has been allocated. The present value calculation requires an estimation of the future cash flows expected to arise and a suitable discount rate in order to calculate present value. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is re- versed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 186 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (j) Impairment (continued) (iii) Exploration and evaluation assets Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability of resources found. Exploration and evaluation expenditure is charged to the income statement as incurred, except in the following circumstances in which case the expenditure may be capitalised: • the existence of a commercially viable mineral deposit has been established • the exploration and evaluation activity is within an area of interest that was previously acquired. A regular review of each area of interest is undertaken to determine the appropriateness of continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward to the extent that they are expected to be recovered through successful exploration of the area of interest. Impairment tests for all non-financial assets (including exploration and evaluation assets) are performed when there is an indication of impairment. Tests of impairment are performed in line with what has been stated in Note 45 j (ii). (iv) Environmental protection fund assets The environmental protection fund asset, recognised within property, plant and equipment is depreciated over the life of mine. Impairment tests for all non-financial assets (including environmental protection fund assets) are performed when there is an indication of impairment. Tests of impairment are performed in line with what has been stated in Note 45 j (ii). (v) Burden costs of mining Burden costs of mining refer to the costs incurred for removing overburden or waste material to access mineral ore, which are capitalized when they provide probable future economic benefits. Impairment tests for all non-financial assets (including burden costs of mining) are performed when there is an indication of impairment. Tests of impairment are performed in line with what has been stated in Note 45 j (ii). ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 187 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (k) Employee benefits (i) Short -term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (ii) Defined contribution plans Obligations for contribution to defined contribution plans are expensed in the profit or loss as the related service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or reduction in future payments is available. The Group and all its employees also contribute to the National Pension Scheme Authority, which is a defined contribution scheme. (iii) Defined benefit plans The Group provides for retirement benefits (i.e. a defined benefit plan) for all permanent employees in accordance with established pension scheme rules as well as the provisions of Statutory Instrument No. 119 of the Laws of Zambia. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The cost of providing the defined benefit plan is determined annually using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. The discount rate is required to be determined with reference to the corporate bond yield. However, due to the non-availability of an active developed market for corporate bonds the discount rate applicable is the yield at the reporting date on the Government of the Republic of Zambia’s bonds that have maturity dates approximating the terms of the Group's obligations and that are denominated in the same currency in which the benefits are expected to be paid. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 188 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (k) Employee benefits (continued) (iii) Defined benefit plans (continued) The defined benefit obligation recognised by the Group, in respect of its defined benefit pension plan, is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods and discounting that benefit to determine its present value, then deducting the fair value of any plan assets. When the calculations above result in a benefit to the Group, the recognised asset is limited to the net total of any cumulative unrecognised actuarial losses and past service costs and the present value of any economic benefits available in the form of any refunds from the plan or reductions in future contributions to the plan. An economic benefit is available to the Group if it is realisable during the life of the plan or on settlement of the plan liabilities. Actuarial gains and losses arising from changes in actuarial assumptions are charged or credited to other comprehensive income when they arise. These gains or losses are recognised in full in the year they occur. Past service costs are recognised immediately in the profit or loss, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period. (iv) Other entitlements Some employees are on fixed term contracts and are entitled to gratuity. These are recognised when they accrue to employees. An estimate is made for the liability for such entitlements as a result of services rendered by employees up to the reporting date. The estimated monetary liability for employees’ accrued annual leave entitlement at the reporting date is recognised as an expense accrual. (l) Provisions and contingent liabilities Provisions are determined by discounting the expected future cash flows at a pre – tax rate that reflects current market assessment of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. (i) Environmental rehabilitation and restoration In accordance with applicable legal requirements, a provision for site restoration in respect of contaminated land, and the related expense, is recognised when the land is contaminated. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 189 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (l) Provisions and contingent liabilities (continued) (i). Environmental rehabilitation and restoration (continued) Changes in the measurement of an existing decommissioning, restoration and similar liability that result from changes in the estimated timing or amount of the outflow of resources embodying economic benefits required to settle the obligation, or a change in the discount rate, is accounted for in accordance with: i. changes in the liability alter the revaluation surplus or deficit previously recognised on that asset, so that: 1. a decrease in the liability is (subject to (b)) be recognised in other comprehensive income and increase the revaluation surplus within equity, except that it is recognised in profit or loss to the extent that it reverses a revaluation deficit on the asset that was previously recognised in profit or loss; 2. an increase in the liability is recognised in profit or loss, except that it shall be recognised in other comprehensive income and reduce the revaluation surplus within equity to the extent of any credit balance existing in the revaluation surplus in respect of that asset. ii. in the event that a decrease in the liability exceeds the carrying amount that would have been recognised had the asset been carried under the cost model, the excess is recognised immediately in profit or loss. iii. a change in the liability is an indication that the asset may have to be revalued in order to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. Any such revaluation is taken into consideration in determining the amounts to be recognised in profit or loss or in other comprehensive income under If a revaluation is necessary, all assets of that class are revalued. The adjusted depreciable amount of the asset is depreciated over its useful life. Therefore, once the related asset has reached the end of its useful life, all subsequent changes in the liability shall be recognised in profit or loss as they occur. This applies under both the cost model and the reval- uation model. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 190 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (l) Provisions and contingent liabilities (continued) 1. Financial guarantee contracts Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently at the higher of: the amount determined in accordance with the expected credit loss model under IFRS 9 Financial Instruments, and the amount initially recognised less, where appropriate, the cumulative amount of income rec- ognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers. The fair value of financial guarantees is determined based on the present value of the difference in cash flows between the contractual payments required under the debt instrument and the payments that would be required without the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations. Where guarantees in relation to loans or other payables of associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment. 2. Contingent liabilities All possible obligations whose outcomes are dependent on whether some uncertain future event occurs, or a present obligation but payment is not probable, or the amount cannot be measured reliably are considered as Contingent liabilities. These contingent liabilities are reviewed on a regu- lar basis and were appropriate an estimate is made of the potential financial impact on the Group. As at 31 December 2023 and 2024, no potential liability was recognised. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 191 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (m) Revenue from contracts with customers Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over a good or service to a customer. The following provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies. Type of product/ service Nature and timing of satisfaction of performance obligations, including significant payment terms Revenue recognition policies Sale of goods Customers obtain control of the products when the goods are delivered. Invoices are generated and revenue is recognised at that point in time. Invoices are payable within 30 days. Revenue is recognised in the period in which the Group has delivered products to the customer, the customer has full discretion over the channel and price to sell the products, and there are no unfulfilled obligations that could affect the customers’ acceptance of the products. Delivery does not occur until the products have been accepted by the customers. Services rendered The Group is involved in provision of environmental consultancy services, analytical services, surveying services and radiation safety. Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided, because the customer receives and uses the benefits simultaneously. Contract assets primarily relate to the Group’s right to consideration for the work completed but not billed at the reporting date on the customer contracts. The Group had no contract assets as at year end. Contract liabilities primarily relate to the advance consideration received from the customer for which revenue is recognised when the goods and services are provided. The Group had no contract liabilities as at year end. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 192 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (n) Investment income and expenses The Group’s investments income and expenses costs include: Dividends receivables; Royalty receivables; Interest income; and Interest expense. Dividends are recognised as revenue in the period in which the right to receive payment is established, which in the case of quoted securities is usually the ex-dividend date. Royalty income is recognised as revenue in the period in which it is earned. Interest income or expense is recognised using the effective interest method. (o) Finance income and finance costs The Group’s finance income and finance costs include Gain or loss on financial assets at fair value through profit or loss; The foreign currency gain or loss on financial assets and financial liabilities; Unwinding income or expense on price participation fees; Unwinding expense on environmental provision; and Borrowing costs. All borrowing costs are recognised in the profit or loss using the effective interest method. Borrowing costs attributable to fixed assets during construction are capitalised (p) Exploration costs The Group is involved in exploration and evaluation of mineral resources including, oil and gas and other similar non – regenerative resources in specific licence areas where the Group has legal rights. This process also involves the determination of both the technical feasibility and commercial viability of extracting the mineral resource. General exploration and associated costs incurred in connection with exploration and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource is demonstratable, are expensed in the period in which they are incurred. Exploration and associated costs for projects which are commercially viable, and it is considered that future economic benefits will flow to the Company are capitalised. Accounting for exploration and evaluation expenditures Exploration and evaluation expenditures are measured at cost on initial recognition. Costs directly associated with commercially viable exploration project are capitalised until the determination of reserves is evaluated. If it is determined that commercial discovery has not been achieved, these costs are charged to expenses. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 193 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (p) Exploration costs (continued) Depreciation of exploration and evaluation assets Exploration and evaluation asset are depreciated using a straight-line method over a period of five years. After recognition, the exploration and evaluation assets are measured using the cost model in IAS 16 Property, plant and equipment. (q) Income tax Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI. (i) Current tax Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends. (ii) Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;` • temporary differences related to investments in subsidiaries and associates to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible tem- porary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when probability of future taxable profit improves. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 194 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (q) Income tax (continued) (ii) Deferred tax (continued) Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the Group has not rebutted this presumption. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. (iii) Tax exposures In determining the amount of current and deferred tax, the Group considers the impact of tax exposures, including whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New in- formation may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities would impact tax expense in the period in which such a determination is made. (r) Earnings per share The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary sharehold- ers and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options. (s) Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components and for which discrete financial information is available. All operating segments’ operating results are reviewed regularly by the Group’s Chief Executive Officer to make deci- sions about resources to be allocated to the segment and to assess its performance. (t) Share capital (i) Ordinary shares Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are recognised as a deduction from equity. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 195 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In thousands of Kwacha 45 Material accounting policies (continued) (u) Dividends Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders. When dividends are proposed they are presented in a separate column in the statement of changes in equity. (v) Mine development costs Exploration and associated costs relating to non-specific projects or properties are expensed in the period in which they are incurred. Significant property acquisition costs and development costs relating to specific properties for which economically recoverable reserves are believed to exist are deferred until the project to which they relate is sold, abandoned, or placed into production. No costs are deferred on a property believed to be impaired in value. Mine development and property acquisition costs, including costs incurred during production to expand ore reserves within existing mine operations, are deferred, and amortised over the life of the mines. Reviews are undertaken regularly to evaluate the carrying values of operating mines and development properties. If it is determined that the net recoverable amount is significantly lower than the carrying value, and the impairment in value is likely to be permanent, a write- down to the net recoverable amount is made by a charge to profit or loss. (w) Environmental restoration Provision is made for costs associated with the restoration and rehabilitation of mining sites as soon as the obligation to incur such costs arises. Such restoration and closure costs are typical of the extractive industry and are normally accrued to reflect the Company's obligations at that time. Additional disturbances that arise due to further development/construction at the mine are recognised as additions or charges to the corresponding assets and rehabilitation liability when they occur. Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively by recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, if the initial estimate was originally recognised as part of an asset measured in accordance with IAS 16. If the related asset is measured using the revaluation model, a decrease in the liability shall be recognised in other comprehensive income and an increase in the liability shall be recognised in profit or loss, except that it shall be recognised in other comprehensive income. Any reduction in the rehabilitation liability and, therefore, any deduction from the asset to which it relates, may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to the statement of profit or loss and other comprehensive income. Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability. The periodic unwinding of the discount is recognised in the statement of profit or loss and other comprehensive income as part of finance costs. For closed sites, changes to estimated costs are recognised immediately in the statement of profit or loss and other comprehensive income. The Company is required to make contributions to the government for future rehabilitation work relating to its production activities. The contributions are based on an environmental assessment that is performed by environmental auditors. The Company records a liability for the future contributions to be made to the government based on the environmental disturbances incurred to date per the environmental auditor’s assessment with a corresponding charge to profit or loss. ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 196 Registered and Corporate Ofce Stand No. 16806 Alick Nkhata Road Mass Media Complex Area P O Box 30048 Lusaka 10101, Zambia UK Registrars Link Asset Service Bourne House 34 Beckenham Road Beckenham Kent BR3 4TU United Kingdom Brokers for Lusaka Securities Exchange Listing Stockbrokers Zambia Limited 32 Lubu Road Longacres P O Box 38956 Lusaka, Zambia Auditors KPMG Chartered Accountants 6th Floor Sunshare Towers Cnr Lubansenshi/Katima Mulilo Roads Olympia Park PO Box 31282 Lusaka, Zambia Principal Bankers: Barclays Bank (Zambia) Plc Standard Chartered Bank (Zambia) Plc Zambia National Commercial Bank Plc Transfer Secretaries Corpserve Transfer Agents Limited Mwaleshi Road, Olympia Park P O Box 37522 Lusaka 10101, Zambia Phone: + 260 211 256969/70 Fax : +260 211 256975 Email: [email protected] Shareholder Contact Charles Mjumphi Company Secretary Monica Mwananshiku Chikonde Board Affairs Manager Loisa Mbatha Kakoma Corporate Affairs Manager Phone : +260 211 221023/228833 Fax : +260 211 220727 E-mail : [email protected] Website: www.zccm-ih.com.zm CORPORATE INFORMATION ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 197 Appendix CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 (Unaudited) 31-Dec 31-Dec 2024 2023 US$’000 US$’000 Assets Property, plant and equipment 14,529 9,666 Exploration and evaluation asset 552 1,998 Intangible assets 715,061 559,064 Investment property 7,366 8,102 Investment in associates 873,082 391,934 Financial assets at fair value through prot or loss 98,059 117,278 Trade and other receivables 91,335 63,264 Environmental Protection Fund 13 274 Term deposits 11,789 - Non-current assets 1,811,786 1,151,580 Inventories 1,164 1,488 Trade and other receivables 34,691 13,173 Assets held for sale 3,296 917,654 Term deposits 179,434 172,857 Burden costs for mining 236 - Cash and cash equivalents 18,806 13,996 Current assets 237,627 1,119,168 Total assets 2,049,413 2,270,748 Equity Share capital 58 62 Share premium 74,746 81,151 Other reserves 973,607 343,949 Retained earnings 819,998 (639,401) Equity attributable to shareholders 1,868,409 (214,239) Non-controlling interest 1,324 (6,789) Total Equity 1,869,733 (221,028) Liabilities Borrowings 100,471 - Deferred tax liability 10,594 29,201 Retirement benets 622 675 Provisions for environmental rehabilitation 8,794 4,379 Non-current liabilities 120,481 34,255 Borrowings 19,263 - Trade and other payables 6,425 12,148 Liabilities associated with assets classied as held for sale 512 2,434,387 Provisions 1,776 1,721 Current tax liabilities 31,223 9,265 Current liabilities 59,199 2,457,521 Total liabilities 179,680 2,491,776 Total equity and liabilities 2,049,413 2,270,748 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 198 Appendix COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 (Unaudited) 31-Dec 31-Dec 2024 2023 US$’000 US$’000 Assets Property, plant and equipment 5,138 4,297 Intangible assets 712,257 553,888 Investment property 7,366 8,102 Investments in subsidiaries 6,851 10,968 Investment in associates 1,232,525 436,567 Term deposits 11,789 - Financial assets at fair value through P&L 98,059 117,278 Trade and other receivables 96,562 178,140 Non-current assets 2,170,547 1,309,240 Trade and other receivables 32,972 11,196 Assets held for sale 2,633 - Term deposits 179,434 171,337 Cash and cash equivalents 7,933 2,375 Current assets 222,972 184,908 Total assets 2,393,519 1,494,148 Equity Share capital 58 62 Share premium 74,746 81,151 Other reserves 1,907,529 925,297 Retained earnings 246,182 446,969 Equity attributable to shareholders 2,228,515 1,453,479 Liabilities Borrowings 100,471 - Deferred tax liability 6,290 24,006 Retirement benets 622 675 Provisions for environmental rehabilitation 2,550 2,117 Non-current liabilities 109,933 26,798 Borrowings 19,263 - Trade and other payables 3,690 3,041 Provisions 913 1,610 Current tax liabilities 31,205 9,220 Current liabilities 55,071 13,871 Total liabilities 165,004 40,669 Total equity and liabilities 2,393,519 1,494,148 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 199 Appendix CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 (Unaudited) 31-Dec 31-Dec 2024 2023 US$’000 US$’000 Revenue from customer with contracts 122,701 572,356 Cost of sales (141,305) (745,772) Gross loss (18,604) (173,416) Investment income 63,786 67,670 Net investment income 63,786 67,670 Other income 1,308,978 11,875 Fair value adjustment nancial asset at fair value through prot or loss (10,649) 86,099 Gain on reclassication of investee company 363,228 - Net impairment losses on nancial assets (1,030) (3,906) Administration expenses (262,320) (90,881) Operating prot/(loss) 1,443,389 (102,559) Finance income 41,750 107,809 Finance costs (66,929) (218,306) Net nance income (25,179) (110,497) Share of prot of equity-accounted investees, net of tax 127,246 110,173 Prot/(loss) before tax 1,545,456 (102,883) Income tax (expense)/credit (21,699) (58,762) Prot/(loss) from continuing operations 1,523,757 (161,645) Loss from discontinued operations (145) (36,941) Prot/(loss) for the year 1,523,612 (198,586) Other comprehensive income Items that will never be reclassied to prot or loss Revaluation on property, plant and equipment - 185 Deferred tax on revaluation reserve 8 11 Actuarial gain on dened benet pension plans (88) 1,176 Deferred tax on dened benet actuarial loss 26 143 Royalty right fair valuation 239,851 174,761 ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 200 Appendix CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED) Equity-accounted investees- share of other comprehensive income (60) 562 Fair value change on Other Shareholders Equity 27,308 - 267,045 176,838 Items that are or may be reclassied to prot or loss Foreign currency translation differences - equity - accounted investees 417,638 190,402 Foreign currency translation differences - Subsidiaries investees 17,003 (800,887) 434,641 (610,485) Other comprehensive income, net of tax 701,686 (433,647) Total comprehensive income 2,225,298 (632,233) ZCCM INVESTMENTS HOLDINGS PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 201 Appendix COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 (Unaudited) 31-Dec 31-Dec 2024 2023 US$’000 US$’000 Investment income 92,465 103,717 Revenue from contracts with customers - 1,129 Cost of sales - (822) Other (expenses)/income (177,873) 2,061 Fair value adjustment nancial asset at fair value through prot or loss (10,649) 86,099 Net impairment losses on nancial assets (10,138) (4,047) Administration expenses (53,069) (38,693) Operating (loss)/prot (159,264) 149,444 Finance income 39,106 145,216 Finance costs (25,278) (54) Net nance income/(cost) 13,828 145,162 (Loss)/prot before tax (145,436) 294,606 Income tax expense (22,185) (58,713) (Loss)/prot for the year (167,621) 235,893 Other comprehensive income Items that will never be reclassied to prot or loss Deferred tax on amortisation of revaluation reserve 8 11 Actuarial (loss)/gain on dened benet pension plans (88) (478) Deferred tax on dened benet actuarial/(loss) gain 26 143 Fair value change in Investments in subsidiaries (6,645) (22,618) Fair value change in Investments in associates 867,408 268,383 Fair value change in investments in assets held 28 - Fair value change on other shareholders equity 27,308 - Royalty right fair valuation 239,851 174,761 Other comprehensive income, net of tax 1,127,896 420,202 Total comprehensive (loss)/income 960,275 656,095 ZCCM INVESTMENTS HOLDINGS PLC INTEGRATED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 202 iso4217:ZMK xbrli:shares iso4217:ZMK xbrli:shares 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 5493005OY00M9G3XSY51 2024-12-31 5493005OY00M9G3XSY51 2023-12-31 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 5493005OY00M9G3XSY51 2022-12-31 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:IssuedCapitalMember 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:SharePremiumMember 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:RevaluationSurplusMember 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:NoncontrollingInterestsMember 5493005OY00M9G3XSY51 2022-12-31 ifrs-full:RetainedEarningsMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:IssuedCapitalMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:SharePremiumMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:RevaluationSurplusMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 5493005OY00M9G3XSY51 2023-01-01 2023-12-31 ifrs-full:RetainedEarningsMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:IssuedCapitalMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:SharePremiumMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:RevaluationSurplusMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:NoncontrollingInterestsMember 5493005OY00M9G3XSY51 2023-12-31 ifrs-full:RetainedEarningsMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:RevaluationSurplusMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:NoncontrollingInterestsMember 5493005OY00M9G3XSY51 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:IssuedCapitalMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:SharePremiumMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:RevaluationSurplusMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:NoncontrollingInterestsMember 5493005OY00M9G3XSY51 2024-12-31 ifrs-full:RetainedEarningsMember
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