Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2017 of K89.6 million (2016: K196.6 million) and a loss before tax of K1,163 million (2016: K82.3 million loss).
Major contributors to the loss was lower sales of 75.7% (K279.4 million) below budget, impairment of the plant amounting to K861 million, finance costs and penalties on overdue Zambia Revenue Authority (ZRA) tax obligations totalling K93.7 million.
Ndola Lime Company (“NLC”) has been working on optimizing a second vertical kiln (“VK-2”) to be powered by coal that will result in additional capacity of 500 tonnes per day. The primary objectives of the VK2 is to substitute the inefficient and out-dated operations of the Rotary Kiln and reduce operational expenses attributable to the use of Heavy Fuel Oil (“HFO”) through the use of coal. Following the perennial escalation in costs related to the Recapitalization Project (RP) and adverse financial performance from the latter half of 2013 onwards, owing to a myriad of factors including significant escalations in the price of HFO, loss of market share, ZCCM-IH resolved to finance the completion of the RP which has cost about $105 million to date. The hot commissioning of the project started in December 2015. However, the commissioning of the project has been met with a lot of challenges.
There were no dividends declared during the year under review (2016: Nil).