Last checked at 17 Jan 2014 14:17
ZCCM INVESTMENTS HOLDINGS PLC
(Incorporated in the Republic of Zambia)
DIRECTORS' HALF-YEARLY SUMMARY FOR THE PERIOD ENDED 30 SEPTEMBER 2013
ZCCM INVESTMENTS HOLDINGS PLC
ZCCM INVESTMENTS HOLDINGS Plc
And its subsidiaries
DIRECTORS' INTERIM SUMMARY
For the six months period ended 30th September 2013
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 2013.
Financial Performance
The Group achieved a turnover of K203.7 million during the six month period ended 30th September 2013 which was 46% below the turnover of K375.8 million achieved during the six months to 30th September 2012. The decline in group turnover was as a result of a drop in dividends earned from K232.7 million during the same period in 2012 to K45.2 million in the six months ended 30th September 2013. Dividends were earned from Kansanshi Mine Plc (K43 million) and Chibuluma Mines Plc (K2 million).
Turnover for Ndola Lime Company Limited increased by 6% to K118 million for the period ended 30th September 2013 (September 2012: K111 million).
Interest earned from placements and fixed deposits amounted to K1.2 million (September 2012: K1.1 million). Other income was K3 million (September 2012: K5million).This was mainly composed of Management fees amounting to K2.61 million (September 2012:K5 million) earned from Chibuluma Mine Plc and Lubambe Copper Mine Limited.
The cost of turnover increased to K130 million for the period to 30th September 2013 (September 2012: K120 million). The operating profit for the period under review of K73.7 million was lower than K255.6 million earned in the same period in 2012 due to lower dividend income earned.
The share of profits of Associate Companies declined by 26% for the six months to 30th September 2013 to K97.5 million (September 2012: K131.4 million) against a backdrop of declining revenues as a result of lower copper prices .The price of copper reduced to US$7,300 per tonne compared to US$8,172 per tonne as at 30th September 2012.
Operations and Strategic developments
On 15th May 2013 the shareholders of Albidon approved the acquisition by Jin Tuo Investments limited (A wholly owned subsidiary of Jinchuan Group Resources Holdings limited which itself is a majority shareholder of Albidon Limited) of 100% of the company at a cash price per share of US$0.0025. The proposal was made to all the shareholders other than Jinchuan Group via a statutory merger pursuant to the British Virgin Islands (BVI) Business Companies Act 2004 (as amended). The company's' shares will now no longer be listed on the ASX whilst Jin Tuo will be struck off the register of companies in the BVI. ZCCM-IH has since commenced discussions with Jinchuan to facilitate ZCCM-IH's continued investment in Albidon Munali Nickel project.
Following the granting to ZCCM-IH of the mining licenses previously held by Collum Coal Mining Industries Limited situated in Southern province of Zambia ,on 3rd May 2013, ZCCM-IH incorporated Nkandabwe Coal Mines Limited, a 100% wholly owned subsidiary to operate the mine until such a time that a strategic investor is identified.
On 12th April 2013 ZCCM-IH incorporated Mawe Exploration and Technical services Limited, a wholly owned subsidiary. The company will play a catalytic role in exploration of base metals and other minerals, oil and gas, the development of local content and beneficiation capabilities, small scale mining development, as well as the provision of attendant quality mining services.
In September 2012, the Government of the Republic of Zambia being the majority shareholder gave approval for the conversion of all or part of the K2 billion debt owed by ZCCM-IH into equity, through a rights issue. As part of this exercise, a valuation of ZCCM-IH and its investments was conducted to ascertain the appropriate value of ZCCM-IH shares. The balance sheet restructuring exercise is expected to be completed in 2014 and discussions with the Government to agree the terms and conditions of the transaction are currently ongoing.
By Order of the Board
C Chabala
Company Secretary
16 January 2014
CONSOLIDATED GROUP INCOME STATEMENT FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2013.
SIX MONTHS ENDED | SIX MONTHS ENDED | ||||
30th September 2013 | 30th September 2012 | ||||
Consolidated | Consolidated | ||||
Income | K' 000 | K' 000 | |||
Sales | 118,409 | 111,120 | |||
Dividends | 45,216 | 232,724 | |||
Interest Earned | 40,035 | 16,109 | |||
Investment disposal | 47 | 15,879 | |||
203,707 | 375,832 | ||||
Cost of turnover | (129,964) | (120,265) | |||
Operating profit/(loss) | 73,743 | 255,567 | |||
Exchange (loss)/gain | (1,191) | (5,064) | |||
Environmental expenses | (80) | (825) | |||
Interest charge | (1,473) | (2,317) | |||
Royalty on minerals | (6,482) | (6,565) | |||
Other income | 3,026 | 5,951 | |||
Share of Associate Companies' Profit | 97,458 | 131,373 | |||
Profit/(loss) before taxation | 165,001 | 378,120 | |||
Income tax | (1,538) | (3,758) | |||
Retained profit/(loss) | 163,463 | 374,362 | |||
GROUP STATEMENT OF FINANCIAL POSITION AS AT 30th SEPTEMBER 2013 | ||||||
30th September 2013 | 30th September 2012 | |||||
K' 000 | K' 000 | |||||
Assets Employed | ||||||
Non - current assets | 5,840,871 | 4,732,100 | ||||
Current assets | 1,667,205 | 1,613,289 | ||||
Total Assets | 7,508,076 | 6,345,389 | ||||
Equity and liabilities | ||||||
Shareholders' funds | 4,758,561 | 3,012,172 | ||||
Non - current liabilities | 229,615 | 573,881 | ||||
Current liabilities | 2,519,900 | 2,759,336 | ||||
Total Equity and liabilities | 7,508,076 | 6,345,389 | ||||