ZCCM-IH | Directors’ Interim Summary for Period Ended 30th September 2016

Introduction

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months’ period ended 30th September 2016.

Financial Performance

The Group achieved a turnover of K65.5 million for the six-month period ended 30th September 2016 which was 49% below the turnover of K128.4 million achieved during the six months to 30th September 2015. The decrease in Group turnover was mainly as a result of a decrease in turnover for Ndola Lime Company by 46% from K116.5 million to K62.5 million for the period under review. No Dividends were earned for the period ended 30th September 2016 (September 2015: K11.9 million)…

Operations and Strategic developments

On 6th June 2016 ZCCM-IH filed a Claim Form with the English High Court to recover outstanding sums in excess of US$100 million due to it from KCM, pursuant to the terms of the Settlement Agreement entered into in 2013. On 16 December 2016, ZCCM-IH was successful in its application for default judgment. KCM was ordered to pay all sums owed to ZCCM-IH pursuant to the Settlement Agreement (plus associated contractual interest) within thirty (30) days. The total amount to be paid by KCM amounted to approximately US$103 million. KCM was also ordered to reimburse ZCCM-IH 80% of the costs it had incurred in pursuing its claim. Further directions were given to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM…

Subsequent events to 30 September 2016

ZCCM-IH also filed a Notice of Arbitration on 26th October 2016 in London against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced Legal Proceedings in Lusaka against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascal, Arthur Mathias Pascal, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited…
By Order of the Board

Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 23 January 2017

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First Issued on 23 January 2017


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ZCCM-IH Interims to 30 September 2016

2017-02-13T05:16:32+00:00 January 23rd, 2017|Corporate announcements|0 Comments

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