TIDMZCC
RNS Number : 7347S
ZCCM Invs.Hldgs PLC
10 July 2015
ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 771
Share Code: ZCCM-IH
ISIN: ZM0000000037
["ZCCM-IH" or "the Company"]
DIRECTORS' INTERIM SUMMARY FOR THE SIX MONTHS PERIOD ENDED 31
MARCH 2015
Introduction
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 (LuSE), ZCCM Investments Holdings Plc (ZCCM-IH) announces
the unaudited results for the six months period ended 31(st) March
2015.
Financial Performance
The Group achieved a turnover of K223.1 million during the six
month period ended 31(st) March 2015 which was 75% below the
turnover of K887.4 million for the six months to 31(st) March 2014.
The turnover for Ndola Lime Company Limited (NLC) increased by 26%
to K99.7 million (2014: K 79.1 million).
During the period under review total Dividend income earned was
K18 million (2014:K758 million) and this was from Copperbelt Energy
Corporation Plc.
Interest earned during the period under review was K102 million
(2014: K 48.5 million). Management fees income was K3.9 million
(2014: ZMW 6.3 million).
The cost of turnover increased to K165.4 million (2014: K
149.6million). The 11% increase was largely driven by an increase
in operating costs at Ndola Lime Company Limited.
The Group's operating profit for the period under review was
K57.6 million (2014: K 737.8 million). Share of profits of
associate companies was K388.7 million (2014: K77.8 million).
Konkola Copper Mine Plc, Maamba Collieries Limited and Lubambe
Copper Mine Limited recorded losses, while Kansanshi Mining Plc and
Copperbelt Energy Corporation Plc recorded profits during the
period under review. The Group profit after tax for the six months
ending 31(st) March 2015 was K 832.9 million (2014: K 277.8
million).
Copper prices continued to decline from an average of US$ 6,740
per tonne in October 2014 to US$6,082 per tonne as at end of March
2015.
Operations and Strategic developments
Recapitalisation of Ndola Lime Company (NLC)
The recapitalisation project at NLC continued. ZCCM-IH provided
additional shareholder loan of US$16.5 million for the Ndola Lime
Recapitalisation Project. The commissioning is targeted for the end
of September 2015. Once commissioned, VK-2 is expected to increase
production by 500 tonnes per day, which is predominantly expected
to substitute the less efficient Rotary Kiln's capacity of 400
tonnes per day. The use of coal in the VK-2 as opposed to Heavy
Fuel Oil (HFO) will greatly enhance the prospects of reducing
operating costs and thus make the products competitive.
Nkana Alloy Smelting Company Limited
ZCCM-IH owns 10% of Nkana Alloy Smelting Company Limited (Nkana
Alloy), a company that was formed to process the slag material from
the Nkana Slag Dump situated in Kitwe, Copperbelt Province of
Zambia. As at 31 March 2015, operations at the company had not
commenced due to an injunction served on Nkana Alloy, restraining
it from interfering with activities on the slag dump. The
plaintiffs who obtained the injunction were to be handed the
property to commence prospecting works at the site as per mineral
processing license until determination of the matter.
Mawe Exploration and Technical Services Limited
ZCCM-IH incorporated Mawe Exploration and Technical Services
Limited (Mawe), a wholly owned subsidiary in April 2013. Mawe was
intended to 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.
Following a review of the structure and operations of Mawe,
ZCCM-IH reversed this decision and will now retain the functions
that were to be performed by Mawe into a Technical Directorate
within ZCCM-IH. This decision is aimed at rationalising costs
related to above-named activities.
Nkandabwe Coal Mine Limited
Following the granting to ZCCM-IH of the mining licences
previously held by Collum Coal Mining Industries Limited (CCMIL)
situated in Southern province of Zambia, ZCCM-IH incorporated
Nkandabwe Coal Mines Limited, a 100% wholly owned subsidiary to
operate the mine. During the period under review, ZCCM-IH applied
to convert the small-scale coal licences into a large scale
prospecting licence and was issued with one following approval by
the Ministry of Mines, Energy and Water Development. However, in
March 2015, ZCCM-IH was informed that the licence was cancelled and
re-issued to the previous owners, CCMIL. ZCCM-IH, therefore, has
divested from this investment and the mines have since been handed
over to CCMIL.
Real Estate and Agriculture
The Company recently included investment into the real estate
and agriculture in its 2016 Strategic Plan. This is part of the
on-going initiatives for diversification and one of the approaches
to reduce its investment concentration in the mining sector.
GRZ Sale Down
In his Budget Speech in October 2014, the Minister of Finance
announced that the Government of the Republic of Zambia (GRZ) would
reduce its shareholding in ZCCM-IH from 87% to 60% via the sale of
its shares proportionate to the required reduction. The reduction
in GRZ's shareholding will also lead to ZCCM-IH complying with the
listing requirement that the company must have at least 25% of each
class of equity securities held by the public.
Subsequent to this announcement, ZCCM-IH was mandated to
initiate processes to achieve the GRZ sale down. ZCCM-IH is in
liaison with the relevant regulators and stakeholders to actualise
the sale down.
Capital market
The ZCCM-IH share price on the Lusaka Stock Exchange closed the
year at K40 (2014: K27). The market capitalisation as at 31 March
2015 was K6, 431 million (2014: K4, 341 million).The continued
growth in the company's share price is indicative of the growing
confidence from the market.
Directorate Changes
Mr Paul M Chanda was appointed to the Board of ZCCM-IH in
November 2014.
By Order of the Board
C Chabala
CCSO/Company Secretary
1 July 2015
GROUP INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2015 (UNAUDITED)
K'000
SIX MONTHS SIX MONTHS
ENDED ENDED
31 March 2015 31 March 2014
Consolidated Consolidated
Income
Sales 103,033 81,082
Dividends 17,977 757,797
Interest Earned 102,040 48,526
223,050 887,405
Cost of turnover (165,428) (149,580)
Operating profit/(loss) 57,622 737,825
Exchange (loss)/gain 415,558 102,495
Environmental
expenses (2,039) (8,239)
Interest charge (818) (2,252)
Royalty on minerals (5,348) (3,965)
Other income 4,065 133,240
Associate Companies Share
of Profit/(loss) 388,731 77,793
Dividends Earned (17,977) (752,300)
Profit/(loss) before
taxation 839,794 284,597
Income tax (6,943) (6,779)
Profit from continuing
operations 854,374 277,818
Loss from discontinuing
operations (21,523) -
Retained profit 832,851 277,818
EPS 4.16 1.39
GROUP STATEMENT OF FINANCIAL STATEMENT AS AT
31 MARCH 2015
31 March 2015 31 March 2014
K' 000 K' 000
Assets Employed
Non Current Assets 7,698,368 6,314,833
Current Assets 2,247,193 2,444,163
Total Assets 9,945,561 8,758,996
Equity and Liabilities
Shareholders Funds 9,155,786 8,136,322
Non Current Liabilities 340,684 249,734
Current Liabilities 449,092 372,940
Total Equity and
Liabilities 9,945,561 8,758,996
LUSAKA STOCK EXCHANGE SPONSORING BROKER
-------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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