Half Yearly Report (2243K)

TIDMZCC

RNS Number : 2243K

ZCCM Invs.Hldgs PLC

12 July 2011

ZCCM INVESTMENTS HOLDINGS Plc

And its subsidiary

DIRECTORS' INTERIM SUMMARY

For the six month period ended 31(st) March 2011

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 month period ended 31 March 2011.

On 26(th) April, 2010 ZCCM-IH Plc divested 65% of the Maamba Collieries Limited (MCL) shares to Nava Bharat Singapore (Pte) Ltd. Consequently, the consolidated accounts to 31 March 2011 reflect MCL as an Associate Company whilst the comparative figures for the period to 31 March 2010 reflect MCL as a Subsidiary Company.

The Group achieved a turnover of K147, 762 million during the six month period ended 31 March 2011 which was 43% above the turnover of K103, 106 million for the six months to 31 March 2010.

This was mainly as a result of increase in turnover from Ndola Lime Company (NLC) Limited. Turnover of K110, 286 million for NLC during the period ended 31 March 2011 was 39% above that of K79, 615 million for the corresponding period to 31 March 2010. This increase was largely due to an increase in selling prices of Lime products effected during the month of February 2011 and an increase in sales which was made possible as a result of both the rotary kiln and the vertical kiln 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.

Income amounting to K24, 086 million (US$ 5,097,566) 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 Programme of the Konkola North Copper Project (KONNOCO). The proceeds from this investment disposal contributed to the increase in turnover. During the period under review, ZCCM-IH exercised its option to take up 20% of the shares in KONNOCO as provided for under the transaction agreements.

Dividends of K4, 414 million (US$ 882, 353) received from Chibuluma Mines Plc during the period.

In addition, interest earned from placements and fixed deposits during the period amounted to K3, 979 million, where as management fees of K961 million was earned from GRZ relating to the Copperbelt Environment Project implementation. This also contributed to the increase in turnover.

The cost of turnover increased to K92, 912 million for the period to 31 March 2011 from K82, 140 million for the corresponding period to 31 March 2010. This was largely due to an increase in NLC cost of sales of K18, 716 millionattributed 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, this increase in the cost of turnover was favourably impacted by the divestment of MCL. The divestment resulted in a reduction in cost of turnover of K9, 115 million for the period to 31 March 2011.

The operating profit for the period under review of K54, 850 million, was K33, 884 million (161%) higher than that for the same period last year. This was largely as a result of the increase in turnover for the period under review. The retained profit for the period under review of K355, 435 million was K54, 788 million (18%) higher than that for the same period last year. This result was attributable to a favourable exchange rate which resulted in an exchange gain of K13, 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 31 March 2011 was K322, 944 million compared to K297, 712 million for the period to 31 March 2010. The improvement was as a result of the general increase in activity in the Mining industry.

By Order of the Board

C Chabala

Company Secretary

24 June 2011

 
 
 ZCCM INVESTMENTS HOLDINGS 
  PLC 
 
 COMPREHENSIVE INCOME STATEMENT FOR THE SIX MONTHS ENDED 
  31 MARCH 2011 
 
 
 
                              SIX MONTHS ENDED   SIX MONTHS ENDED 
                                 31 MARCH 2011      31 MARCH 2010 
 
                                  Consolidated       Consolidated 
 
                                    K' million         K' million 
 
 Turnover                              147,762            103,106 
 Cost of turnover                     (92,912)           (82,140) 
 
 Operating profit/(loss)                54,850             20,966 
 
 Exchange (loss)/gain                   13,545              4,014 
 Environmental expenses               (23,409)           (14,249) 
 Interest charge                       (7,580)           (13,817) 
 Royalty on minerals                   (3,309)            (1,730) 
 Other income                            4,448              8,614 
 Associate Companies 
  Share of Profit                      322,944            297,712 
 Profit/(loss) before 
  taxation                             361,490            301,510 
 
 Income tax                            (6,055)              (863) 
 
 Retained profit/(loss)                355,435            300,647

This information is provided by RNS

The company news service from the London Stock Exchange

END

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