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 six months period ended 30th September 2012.
The Group achieved a turnover of K375,833 million during the six month period ended 30th September 2012 which was 58% below the turnover of K891,764 million for the six months to 30th September 2011. During the six months period ended 30th September 2011 the high turnover was influenced by the sale of ZCCM‐IH shares in Equinox Minerals Limited (Equinox) which transaction resulted in a capital gain of K699, 137 million.
However, turnover for Ndola Lime Company Limited increased by 17% to K111,120 million for the period ended 30th September 2012 from K95, 136 million achieved at the end of 30th September 2011. The increase in turnover was as a result of improved production levels following the successful repair of the electrostatic precipitator at the beginning of 2012.
Download the full Directors’ interim summary for the six months ended 30 September 2012 below:
Directors’ interim summary for the six months ended 30 September 2012
Status of appointment of a director to represent minority shareholders on the ZCCM-IH Board.
The company has been in discussions with the Government of the Republic of Zambia (GRZ) over loans that ZCCM-IH owes GRZ amounting to K2,139 billion as reflected in the 2011 Annual Report. Recently GRZ accepted proposals to convert all or part of the loans to equity through a rights issue.
Following the impending debt-equity conversion via a rights issue referred to above, the Board of ZCCM-IH resolved that the appointment of a director to represent minority shareholders on the ZCCM-IH Board be deferred awaiting the conclusion of this transaction and further consultation with GRZ. Shareholders are therefore informed that this matter will await the completion of consultations with GRZ concerning the GRZ debt-equity conversion via a rights issue.
By Order of the Board
Further to the cautionary announcement issued on 12 December 2012, shareholders and the market are advised of the following further and on – going developments relating to the Company and are advised to continue exercising caution when dealing in ZCCM-IH shares.
ZCCM Investments Holdings PLC (“ZCCM-IH”) is an investments holdings company with diversified interests in metals,mining, power and other sectors of the Zambian economy. The Company has a primary listing on the Lusaka Stock Exchange(“LuSE”) in Zambia and a currently non active secondary listing on the London Stock Exchange and some shares are traded on the Euronext stock exchange in Paris.
ZCCM-IH is the privatized entity formerly known as Zambia Consolidated Copper Mines Limited (“ZCCM”). In 2000 ZCCM was privatized by the Government of the Republic of Zambia(“GRZ”). ZCCM-IH emerged from the privatization of ZCCM as an investments holdings company with equity stakes of between 10 to 20.6% in the new companies that were formed from the unbundling of ZCCM…
Download the full market update below:
Market update on the internal restructuring and repositioning strategy and further cautionary announcement
The market and shareholders are advised of the following new developments relating to the company.
Restructuring of the ZCCM-IH Balance Sheet
ZCCM-IH currently has significant loans mainly arising from the restructuring programs undertaken prior to and during the company’s privatisation in 2000. The majority of these loans are owed to the Government of the Republic of Zambia (“GRZ”) and continue to be carried on the books of the company. As at 31 March 2011, the ZCCM-IH Financial Statements reflected loans amounting to K2, 139 billion (approximately US$425 million) owed to the GRZ.
These loans have placed a significant burden on the company with the result that ZCCM-IH has had a weak balance sheet from 2000.
The company has been in discussions with the GRZ over these loans and recently the GRZ accepted proposals to convert all or part of the loans to equity through a rights issue transaction. The main objective, amongst others, of the proposed debt-equity conversion is to clean the ZCCM-IH balance sheet.
ZCCM-IH is currently liaising with the GRZ to agree the terms of the transaction.
ZCCM –IH shares are listed on the Lusaka Stock Exchange (LuSE) and also traded on the Paris Bourse in France.
In compliance with the Securities Act, Cap 354 of the Laws of Zambia and the Listing Rules of the LuSE, further announcements will be made to inform the shareholders and the investing public as the transaction progresses.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made.
12 December 2012