Half Yearly Report

RNS Number : 2772U

ZCCM Invs.Hldgs PLC

24 December 2012

 



 

ZCCM INVESTMENTS HOLDINGS PLC

 

ZCCM INVESTMENTS HOLDINGS Plc

And its subsidiary

DIRECTORS' INTERIM SUMMARY

For the six months period ended 30^th September 2012

In compliance with the requirements of the "Securities Act, Cap 354 of the Laws of Zambia" and the Listing Rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months period ended 30^th September 2012.

The Group achieved a turnover of K375,833 million during the six month period ended     30^th  September 2012 which was 58% below the turnover of K891, 764 million for the six months to 30^th  September 2011. During the six months period ended 30^th September 2011 the high turnover was influenced by the sale of ZCCM-IH shares in Equinox Minerals Limited (Equinox) which transaction resulted in a capital gain of K699, 137 million.

However, turnover for Ndola Lime Company Limited increased by 17% to K111, 120 million for the period ended 30^th September 2012 from K95, 136 million achieved at the end of   30^th September 2011. The increase in turnover was as a result of improved production levels following the successful repair of the electrostatic precipitator at the beginning of 2012.

Dividends amounting to K232, 723 million were earned from Kansanshi Mine Plc (K196, 688 million), Konkola Copper Mines Plc (K26, 835 million), Chibuluma Mine Plc K2,200 million and Copperbelt Energy Corporation (K7, 000 million). 

In addition, interest earned from placements and fixed deposits during the period amounted to K3, 637 million. Management fees of K5, 078 million were earned from Chibuluma Mine Plc and Lubambe Copper Mine Limited.

The cost of turnover increased to K120, 265 million for the period to 30^th September 2012 from K106, 484 million for the corresponding period to 30 September 2011. This was due to increased production activity at Ndola Lime Company Limited and a corresponding increase in production costs.

The operating profit for the period under review of K255,568 million, was K529,712 million (68%) lower than that for the same period last year. This again was largely because during the period ended 30 September 2011 operating profit included the gain on sale of shares in Equinox.  The retained profit for the period under review of K374, 363 million was K686, 013 million (65%) lower than that for the same period last year for the same reason.

The  profitability of Associate Companies declined by 12% over the six month period on account of the combined effects of a decline in total revenues  resulting from the  effects of a reduction in metal prices. However, dividends from Associate Companies increased from  K 87, 346 million during the six months ended 30 September 2011 to K232 724 million as at 30 September 2012.The above indicated factors had the combined effect of reducing the Group's share of profits of Associate Companies from K371, 430 million as at 30 September 2011 to K131,373 million for the six months period to 30 September 2012.

The Implementation of the 300 MW Thermal Power Plant Project at Maamba Collieries was progressing according to schedule and is expected to be completed in June 2014.

The Mine development works at Lubambe Copper Mine (Formerly Konkola North Copper Project) was ahead of implementation schedule with production expected to commence during the third quarter of the year.

Ndola Lime Company Limited continued with the rehabilitation of the plant as part of the recapitalisation project of the company. The project is progressing well and is expected to lower unit costs and strengthen production capacity upon completion.

To strengthen corporate governance, ZCCM-IH adopted a new policy for the appointment of representative directors intended to tap best talent to represent ZCCM-IH on the Boards of Directors of its Investee Companies. To this effect new ZCCM-IH's representative directors were appointed on the Boards of Investee Companies in September 2012.

By Order of the Board

C Chabala

Company Secretary

 20^th December 2012

ZCCM INVESTMENTS HOLDINGS PLC
COMPREHENSIVE GROUP INCOME STATEMENT FOR THE SIX MONTHS PERIOD
ENDED 30 SEPTEMBER 2012
			Six Months Ended		Six Months Ended
			30 Sept 2012		30 Sept 2011
			Consolidated		Consolidated
Income			K' million		K' million
Sales			111, 120		95, 136
Dividends			232, 723		87, 346
Interest Earned			16, 111		10, 146
Investment disposal			15, 879		699, 136
			375, 833		891, 764
Cost of turnover			(120, 265)		(106 484)
Operating profit/(loss)			255, 568		785, 280
Exchange (loss)/gain			(5, 064)		(11, 958)
Environmental expenses			(825)		(1, 554)
Interest charge			(2, 317)		(1, 961)
Royalty on minerals			(6, 565)		(2, 854)
Other income			5, 951		12, 221
Associate Companies Share of Profit			131, 373		371, 430
Profit/(loss) before taxation			378, 121		1, 150, 604
Income tax			(3, 758)		(90, 228)
Retained profit/(loss)			374, 363		1, 060, 376

Group Balance Sheet as at 30 September			2012		2011
			K' million		K' million
Assets Employed
Non current assets			1, 510, 183		615, 412
Current assets			1, 613, 289		2, 041, 701
Total Assets			3, 123, 472		2, 657, 113
Equity and liabilities
Shareholders funds			(209, 743)		(610, 941)
Non current liabilities			2, 594, 650		2, 610, 709
Current liabilities			738, 565		657, 345
Total Equity and liabilities			3, 123, 472		2, 657, 113

 

END

 

 

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