In compliance with the requirements of the Listing Rules of the Lusaka Securities Exchange, ZCCM-IH Plc announces its unaudited provisional annual financial statements for the year ended 31 March 2016. Below are excepts from the financial statements.
- Performance of the Group continued to be impacted by low Global Copper Prices and low production. The Price of Copper on the LME further fell from US$6,052/ton at 31 March 2015 to US$4,848/ton at 31 March 2016. As a result, most of the Investee Companies recorded significant operating losses during the period. Further, the Kwacha depreciated by 48% from K7.5755/US$ in March 2015 to K11.1800/US$ at 31 March 2016. This had a significant impact on the Group results.
- Operating loss reduced by 91% to K207 million (2015: K 2,179million). The Group’s share of losses of equity accounted investees was K2, 259 million (2015: Share of Profit K280 million).
- Loss after tax was K2,303 million (2015: Loss K987million).
- Total assets increased by 29% from K8, 504 million to K10, 956 million largely on account of translation differences on equity accounted investees.
- The Ndola Lime recapitalization project underwent 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.
The copper price has recently shown signs of recovery, and it would appear that beyond 2016 the price will continue to recover. ZCCM-IH’s investee companies that operate mines, have been undergoing restructuring in order to contain operating costs in the midst of the global copper price crunch. This should have positive results going forward, though recovery will be slow.
In order to ensure survival ZCCM-IH, continues to explore diversification. Introducing initiatives to achieve efficiencies at Ndola Lime Company Limited, investment into property and agriculture are activities expected to positively impact the Group in the medium to long term.
By Order of the Board
Issued in Lusaka, Zambia on 16 January 2017
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First Issued on 16 January 2017
ZCCM-IH Abridged to 31 March 2016