Message Ven 29 Juil 2011 09:01

ZCCM turnover raises 43pct for the 6 months 2011 as income s

ZCCM turnover raises 43pct for the 6 months 2011 as income surged
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Friday, 29 Jul 2011
Zambia Consolidated Copper Mines Investment Holdings group’s turnover rose 43% for the 6 months period ending March 21st 2011 as income into the company surged with the increased sales and input from various subsidiaries.

According to the company’s an unaudited reported to the shareholders, Mr Chabby Chabala company secretary stated that the group had by the close of the period under review achieved a turnover of ZMK 147,762 million compared to ZMK 103,106 million during the six months ending March 31st 2011 year earlier.

The turnover according to Chabala was chiefly on account of increase turnover from Ndola Lime Company Limited, Zambia’s leading producer of the neutralizer used mainly in copper production and industries. Turnover of ZMK 110,286 million for Ndola Lime Company for the period ending March 31st 2011 was 39% higher than that of ZMK 79,615 million a year earlier and was chiefly on account of increases lime sales effected during the month of February 2011.

Further there was an increase in sales which was made possible as a result of both the rotary kiln and the vertical kiln at the Ndola based company in Northern Zambia being operational during the period under review. The increase in exports of Lime products to DRC also contributed to the rise in sales during the period.

On April 26th last year, ZCCM IH Plc divested 65 percent of the Maamba Collieries Limited shares to Nava Bharat Singapore Private Limited. This consequently the consolidated accounted to March 31st 2011 reflects Maaamba Collieries as an Associate Company whilst the comparative figures for the period to March 31st 2010 reflect MCL as a Subsidiary Company.

The report added that income amounting to ZMK 24,086 million was earned in December 2010 an amount which was enshrined in the transaction agreements between ZCCM-IH and TEAL Minerals Limited. The trigger for the payment was the development decision by TEAL to proceed with the Mine Development Program of the Konkola North Copper Project. The proceeds from this investment disposal contributed to the increase in turnover. During the period, ZCCM-IH exercised its option to take up 20% of the shares in KONNOCO as provided for under the transaction agreements.

Additionally, dividends of ZMK 4,414 million were received from Chibuluma Mines Plc during the period. Further interest earned from placements and fixed deposits during the period amounted to ZMK 3,979 million. This entailed those management fees of K961 million was earned from the Zambian government relating to the Copperbelt Environment Project implementation, which also added to the increase in turnover.

Chabala further told shareholders that the cost of turnover increased to ZMK 92,912 million for the period to March 31st 2011 compared to ZMK 82,140 million for the corresponding period to March 31st 2010. This was largely because of an increase in Ndola Lime’s cost of sales of ZMK 18,716 million attributed to the use of both the rotary kiln and the vertical kiln. This increase in price of Heavy Fuel Oils during the period also resulted in increased cost of turnover.

However, the increase in the cost of turnover was favorably impacted by the divestment of MCL. The divestment resulted in a reduction in cost of turnover of ZMK 9,115 million for the period to March 31st 2011. Operating profit for the period under review of ZMK 54,850 million was ZMK 33,884 million was 161 higher than that for the same period last year.

The retained profit for the period under review of ZMK 355,435 million was ZMK 54,788 million 18% higher than that for the same period last year. This result was attributable to a favorable exchange rate which resulted in an exchange gain of ZMK 13,545 million, a drop in interest charges and an increase in share of profits of Associate Companies.

The Company's share of profit from Associate Companies for the period March 31st 2011 was ZMK 322,944 million compared to ZMK 297,712 million for the period to March 31st 2010. The improvement was as a result of the general increase in activity in the Mining industry.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)

http://www.steelguru.com/metals_news/ZC ... 17175.html
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