ZCCM Investments Holdings Plc
Incorporated in the Republic of Zambia
ZCCM INVESTMENTS HOLDINGS Plc
And its subsidiary
DIRECTORS’ INTERIM SUMMARY
For the nine month period ended 30th
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 nine month period ended 30 September 2010.
April, 2010 ZCCM-IH Plc divested 65% of the Maamba Collieries Limited (MCL) shares to
Nava Bharat Singapore (Pte) Ltd. Consequently, only approximately four months have been
consolidated in the accounts to 30 September 2010.
The Group achieved a turnover of K252, 566 million during the nine month period ended
30 September 2010 which was 82% above the turnover of K138, 978 million for the nine months to 30
This increase in turnover was mainly as a result of dividends of K107, 580 million received during the
period under review compared to K29, 623 million for the nine months to September 2009. These
dividends include a special dividend paid out by Kansanshi Mining Plc (KMP) of K86, 173 million
($18.1 million) for the years 2007-2009, interim dividends of K9, 349 million ($2 million) from CEC,
K9, 349 million ($1.9 million) from KMP and K2, 579 million ($528, 668 million) from NFC Africa.
In addition, Ndola Lime Company (NLC) turnover of K139, 314 million during the period ended 30
September 2010 was 39% above that of K100, 238 million for the corresponding period to 30
September 2009 owing to an increase in exports to DRC during the period, as well as an increase in
selling price of Lime products as of June 2010 to account for increase in the cost of production such as
fuel and electricity costs as well as inflation.
MCL turnover for the four months period from 1st
January 2010 to 26th
April 2010 which is included
in the consolidation was K1, 566 million whilst a turnover of K4, 755 million was achieved during the
nine months to September 2009.
The cost of turnover for the group increased to K146, 661 million for the period to 30 September 2010
from K137, 920 million for the corresponding period to September 2009. This was largely due to an
increase in NLC cost of sales of K32, 233 million attributed to the use of the rotary kiln which uses
twice the amount of Heavy Fuel Oil as compared to the vertical kiln.
ZCCM-IH’s cost of turnover reduced to K20, 134 million for the period to 30 September 2010 from
K28, 321 million for the period to September 2009. This reduction is attributed to a change in the
provision of permanent employee benefits that was undertaken in the period to 30 September 2009.
MCL cost of turnover only accounts for K15, 525 million for the period to 30 September 2010
compared to K30, 831 million for the period to September 2009. However, K30, 831 relates to a nine
months period where as K15, 525 relates to approximately four months.
The Company’s share of profit from associate companies for the period 30 September 2010 is
K500, 037 million compared to K125, 311 million for the period to 30 September 2009. The increase
is as a result of operational improvements by some associate companies and the general increase in
activity in the Mining industry.
The Group achieved an operating profit for the period under review of K105, 905 million compared to
K1, 058 million as at 30 September 2009. This was as a result of the increase in turnover for this
period. However, share of profits as well as the depreciation of the Kwacha against the United States
Dollar in the period under review resulted in a retained profit of K545, 029 million compared to a
profit of K103, 942 million for the period to September 2009. The exchange movements were
attributable to the Kwacha depreciating against the US$ from K4, 651.88 as of 1st January 2010 to
K4, 850.00 as of 30 September 2010 resulting in an exchange loss of K42, 776 million (after the
translation of foreign denominated liabilities) for the period to 30 September 2010 compared to an
exchange loss of K1, 089 million for the period to 30 September 2009.
By Order of the Board
25 March 2011
ZCCM INVESTMENTS HOLDINGS PLC
GROUP PROFIT/( LOSS) ACCOUNT FOR THE NINE MONTHS ENDED 30 SEPTEMBER
K' million K' million
Turnover 252,566 138,978
Cost of turnover (146,661) (137,920)
Operating profit 105,905 1,058
Exchange (loss)/gain (42,776) (1,089)
Environmental expenses (12,074) (20,632)
Interest charge (6,023) (3,586)
Royalty on minerals (982) (2,485)
Other income 11,575 7,548
Associate Companies Share of Profit 500,037 125,311
Profit before taxation 555,661 106,124
Income tax (10,633) (2,183)
Retained profit 545,029 103,942