Half Yearly Report

RNS Number : 0541K

ZCCM Invs.Hldgs PLC

12 April 2010

 



 ZCCM Investments Holdings Plc

      Incorporated in the Republic of Zambia

 

ZCCM INVESTMENTS HOLDINGS Plc

And its subsidiaries

DIRECTORS' HALF YEARLY SUMMARY

For the period ended 31^st December 2009

In compliance with the requirements of the Securities Act, Cap 354 of the Laws of Zambia, the Securities [Registration of Securities] Rules, 1993, and the Listing Rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the half year ended 31 December 2009.

The Group achieved a turnover of K105, 679 million during the six month period ended

31 December 2009 which was 18% below the turnover of K128, 319 million for the six months to     31 December 2008.

This reduction was mainly on account of the negative effects of the world economic crisis which resulted in a drop in demand for base metals.  As a result no Price Participation payment (Deferred Consideration) was received during the period under review compared to K25, 390 million for the six months to December 2008. The conditions triggering a Price Participation payment by the Investee Company, Konkola Copper Mines Plc (KCM) were not met and the other Investee Company, Chambishi Metals Plc was under care and maintenance during the period under review.

There were coal sales for the period to 31 December 2009 of K8, 585 million from Maamba Collieries Limited (MCL) following the commencement of coal production in April 2009, after a partial rehabilitation of the mine, as compared to the period to 31 December 2008 when there were no sales. Ndola Lime Company (NLC) turnover of K75, 383 million during the period ended 31 December 2009 was 6% below that of K79, 956 million for the corresponding period to 31 December 2008.

The cost of turnover increased to K115, 468 million for the period to 31 December 2009 from

K60, 992 million for the corresponding period to December 2008. This was largely due to cost of sales of K41, 935 million arising from the increase in mine development costs at MCL during the period under review compared to 31 December 2008 when there were no production costs.

The appreciation of the Kwacha against the United States Dollar in the period under review resulted in a retained profit of K92, 492 million compared to a loss of K272, 459 million for the period to December 2008. This was attributable to the Kwacha appreciating against the US$ from K5, 194.29 as of 1st July 2009 to K4, 651.88 as of 31 December 2009 resulting in an exchange gain of K114, 726 million (after the translation of foreign denominated liabilities) for the period to 31 December 2009 compared to an exchange loss of K308, 617 million for the period to 31 December 2008.

By Order of the Board

C Chabala

Acting Company Secretary

30 March 2010

ZCCM INVESTMENTS HOLDINGS PLC
And Subsidiaries
GROUP PROFIT/( LOSS) ACCOUNT AS AT 31 DECEMBER 2009
				SIX MONTHS ENDED		SIX MONTHS ENDED
				31 DECEMBER 2009		31 DECEMBER 2008
				Consolidated		Consolidated
				K' million		K' million
Turnover				105,679		128,319
Cost of turnover				(115,468)		(60,922)
Operating profit/(loss)				(9,789)		67,397
Exchange gain/(loss)				114,726		(308,617)
Environmental expenses				(18,084)		(8,123)
Rehabilitation works				-		(18,016)
Interest charge				(3,420)		(1,856)
Royalty on minerals				(1,565)		(1,574)
Other income				11,534		-
Profit/(loss) before taxation				93,402		(270,789)
Income tax				(910)		(1,670)
Retained profit/(loss)				92,492		(272,459)

 

END

 

 

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