The ZCCM-IH says the Group has reported a profit of K975 million in the financial year ended 31st March, 2018 compared to the K729 million in 2017 representing 33% increase.
The company says this is mainly driven by improved production volumes of copper in most of ZCCM – IH’s investee companies and an upsurge in copper prices during the year.
The company made this announcement in its Provisional Abridged Financial Results 2018 posted on Lusaka Securities Exchange (LuSE).
ZCCM-IH Company Secretary Chabby Chabala says London Metal Exchange copper price increased by 14.8 % to US$ 6,724 per ton during the year.
Mr. Chabala says the Group recorded an operating loss of K130 million as compared to last year that stood at K848 million mainly due to Ndola Lime Company Limited ’s which is a subsidiary company.
“Additionally, the impairment of the investment in Konkola Copper Mines Plc amounting to K218 million increased the recorded operating loss during the year. The Group recorded a positive share of profit from equity accounted investee companies of K689 million (2017: loss K 189 million), he said.
Mr. Chabala says this movement represents 464% increase.
He disclosed that profit after tax was K 975 million as compared to K729 million in 2017.
“The Group’s total assets increased by 13% from K9, 579 million (2017) to K10, 865 million (2018) on account of increase in the net assets of investee companies whose performance continued to improve during the year. Subsequent events Investrust Bank Plc Subsequent to the year – end, ZCCM – IH Plc concluded a Mandatory Offer to the minority shareholders of Investrust Bank Plc that took place from 9 to 30 April 2018,” he said.
He said ZCCM-IH Plc acquired a further 2,125,890 shares, representing a 26.00% shareholding in Investrust Bank Plc.
He added that the mandatory offer increased ZCCM – IH’s shareholding in the Bank from 45.4% to 71.40%.
“ZCCM Investments Holdings Plc as the majority shareholder has embarked on recapitalisation and restructuring plans to make the Bank more competitive and better positioned to maximise returns for its shareholders. Ndola Lime Company Limited Subsequent to the year end, two (2) former employees of Ndola Lime Company Limited employees instituted proceedings to the High Court of Zambia to place NLC under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017,” said Mr. Chabala.
Mr. Chabala says ZCCM – IH’s performance is expected to continue improving in light of continued improvement in copper prices which drives the performance of most investee companies in the mining sector.