ZCCM-IH records reduced turnover By Fridah Zinyama Tue 20 Ap

[bingogo]

ZCCM-IH records reduced turnover
By Fridah Zinyama
Tue 20 Apr. 2010, 07:10 CAT [3 Reads, 0 Comment(s)]


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ZCCM-Investment Holdings Plc has achieved a turnover of K105.7 billion during the six month period which ended on 31st December 2009, which is 18 per cent below the K128 billion recorded over the same period in 2008.

According to the company, 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 billion for the six months to December 2008,” ZCCM-IH stated. “The conditions triggering a price participation payment by the investee company, Konkola Copper Mines Plc (KCM) were not met and Chambishi Metals Plc was under care and maintenance during the period under review.”

ZCCM-IH also added that there were coal sales of K8.5 billion from Maamba Collieries Limited (MCL) for the period to 31 December 2009 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.

The group also added that Ndola Lime Company (NLC) achieved a turnover of K75 billion during the period ended 31 December 2009, 6 per cent below that of K79.9 billion for the corresponding period to 31 December 2008.

“The cost of turnover increased to K115 billion for the period to 31 December 2009 from K60 billion for the corresponding period to December 2008,” ZCCM-IH stated. “This was largely due to cost of sales of K41.9 billion 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.”

ZCCM-IH also observed that the appreciation of the Kwacha against the United States Dollar in the period under review resulted in a retained profit of K92 billion compared to a loss of K272 billion 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 billion (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,” the group stated.