Message Mar 7 Mai 2013 18:56

Directors Interim Report period ended 30th September 2012 ... d=11439538

Company ZCCM Invs.Hldgs PLC
Headline Half Yearly Report
Released 11:53 24-Dec-2012

RNS Number : 2772U
ZCCM Invs.Hldgs PLC
24 December 2012

And its subsidiary

For the six months period ended 30th 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 30th September 2012.

The Group achieved a turnover of K375,833 million during the six month period ended 30th September 2012 which was 58% below the turnover of K891, 764 million for the six months to 30th September 2011. During the six months period ended 30th 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 30th September 2012 from K95, 136 million achieved at the end of 30th 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 30th 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
20th December 2012



Six Months Ended

Six Months Ended

30 Sept 2012

30 Sept 2011




K' million

K' million


111, 120

95, 136

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


(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


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
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU