Last checked at 28 Apr 2009 09:06
ZCCM Investments Holdings Plc
Incorporated in the Republic of Zambia
ZCCM INVESTMENTS HOLDINGS Plc
And its subsidiaries
DIRECTORS' HALF YEARLY SUMMARY
For the period ended 31st December 2008
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 half year ended 31 December 2008.
The Group's results include the consolidation of Maamba Collieries Limited (MCL) in which ZCCM-IH acquired a 100% shareholding as of 19th November 2007.
The Group achieved a turnover of K128, 319 million during the six month period ended 31 December 2008 which was 14% below the turnover of K149, 681 million for the six months to 31 December 2007.
This reduction was mainly as a result of a significant decrease in metal price participation income which was K25, 390 million for the six months to 31 December 2008 compared to K70, 757 million for the six months to 31 December 2007. The reduction in price participation which is received from two of the Investee Companies was due to the fall in metal prices during the period under review.
However, Lime sales increased to K79, 941 million for the period to 31 December 2008 compared to K56, 851 million for the six months to 31 December 2007. This was mainly attributable to an increase in both Limestone prices and quantities during the period under review compared to the period to 31 December 2007.
There has been no turnover from MCL which is currently not producing due to ongoing rehabilitation of the mine. The rehabilitation costs amounted to K18, 016 million for the period to 31st December 2008. Production is expected to commence in April 2009 with projected monthly production of 62, 500 tonnes.
The cost of turnover increased to K60, 922 million for the period to 31 December 2008 from K54, 173 million for the corresponding period to 31 December 2007 due to the increase in price of Heavy Fuel Oil at Ndola Lime Company as utilization remained fairly constant.
Due to the reduction in turnover coupled with the increase in cost of turnover, operating profit has significantly decreased from K95, 508 for the period to 31 December 2007 to K67, 397 million for the period to 31 December 2008.
The depreciation of the Kwacha against the United States dollar in the period under review resulted in a retained loss of K272, 459 million compared to K67, 028 million profit for the period to 31 December 2007, after the translation of foreign denominated liabilities. This was attributable to the Kwacha depreciating against the US$ from K3, 193 as of 1st July 2008 to K4, 810 as of 1 December 2008 resulting in an Exchange loss of K308, 617 million for the period compared to K15, 084 million for the period to 31 December 2007.
By Order of the Board
C Chabala
Acting Company Secretary
7 April 2009
| ZCCM INVESTMENTS HOLDINGS PLC | |||||
| And its Subsidiaries | |||||
| GROUP PROFIT/( LOSS) ACCOUNT AS AT 31 DECEMBER 2008 | |||||
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| SIX MONTHS ENDED | SIX MONTHS ENDED | ||||
| 31 DECEMBER 2008 | 31 DECEMBER 2007 | ||||
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| Consolidated | Consolidated | ||||
| K' million | K' million | ||||
| Turnover | 128,319 | 149,681 | |||
| Cost of turnover | (60,922) | (54,173) | |||
| Operating profit | 67,397 | 95,508 | |||
| Exchange (loss) | (308,617) | (15,084) | |||
| Environmental expenses | (8,123) | (8,094) | |||
| Rehabilitation works | (18,016) | - | |||
| Interest charge | (1,856) | (1,254) | |||
| Royalty on minerals | (1,574) | (1,052) | |||
| Profit/(loss) before taxation | (270,789) | 70,024 | |||
| Income tax | (1,670) | (2,996) | |||
| Retained profit/(loss) | (272,459) | 67,028 | |||