CEC OUTLOOK REMAINS OPTIMISTIC

By BUUMBA CHIMBULU                               COPPERBELT Energy Corporation’s (CEC) outlook remains cautiously optimistic on the back of a booming mining environment locally and the Democratic Republic of Congo which has continued to drive increased demand for power. A booming mining environment locally and in DRC continues to drive increased demand for power supported by the motivation provided by bullish metal prices on the London Metal Exchange (LME). This is according to the Kwacha Arbitrageur Magazine which has indicated that this development provided cautious optimism for CEC as it would have more demand for power. “Global red metal prices continue to be rallied by an electric car era, forecast infrastructure bill in the US, global deficits and full economic recovery from the Covid19 pandemic in China. “CEC recorded a five increase in demand to 3,28 gigawatts supporting the top line,” the Magazine indicated in its analysis on the CEC’s outlook. It stated that other silver linings for the CEC stock were the 2020 liberalisation of the power market. This, it explained, followed the Electricity Act Amendment permitting direct sales of power by Independent Power Producers (IPPs) to consumers which was a massive breakthrough. The magazine indicated that the energy trader also modernised its power assets and recently was granted a judicial ruling that thwarted the SI.57 and its associated provisions. On the outlook, the magazine indicated that the energy trader’s stock remained cautiously optimistic. “This is due to the rising demand in the mines versus the nations generation capacity,” it stated.