ZCCM Investments Holdings Plc 3Q 2010 results

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ZCCM Investments Holdings Plc 3Q 2010 results

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ZCCM Investments Holdings Plc 3Q 2010 results

  1. 1. 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 September 2010 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. On 26th 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 September 2009. 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.
  2. 2. 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 C Chabala Company Secretary 25 March 2011
  3. 3. ZCCM INVESTMENTS HOLDINGS PLC GROUP PROFIT/( LOSS) ACCOUNT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2010    NINE MONTHS ENDED NINE MONTHS ENDED 30 SEPTEMBER 2010 30 SEPTEMBER 2009      Consolidated Consolidated 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 

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