In accordance with the requirements of the Securities Act No. 41 of 2016, ZCCM-IH Plc announces its audited annual financial statements for the year ended 31 March 2016. Below are excepts from the results.
- Performance of the Group continued to be impacted by low global copper prices coupled with low production. The price of copper on the LME further fell from US$6,052/ton at 31 March 2015 to US$4,848/ton at 31 March 2016. As a result, most of the investee companies recorded significant operating losses during the period. Further, the Kwacha depreciated by 48% from K7.5755/US$ as at 31 March 2015 to K11.1800/US$ as at 31 March 2016. This had a significant impact on the Group results.
- Operating loss reduced by 61% to K858 million (2015: K 2,179million). The Group’s share of losses of equity accounted investees was K2, 210 million (2015: Share of Profit K280 million).
- Loss after tax was K2, 912million (2015: Loss K987million).
- Total assets increased by 15% from K8, 504 million to K9, 797 million largely on account of translation differences on equity accounted investees.
- The Ndola Lime recapitalization project is undergoing hot commissioning. The K651 million shareholder loan that ZCCM-IH lent to Ndola Lime Company Limited (NLC) was converted into Equity in order to strengthen the company’s balance sheet.