RNS Number:2094Z
ZCCM Invs.Hldgs PLC
27 July 2002
ZCCM Investments Holdings Plc
Incorporated in the Republic of Zambia
Directors' Quarterly Summary
incorporating Financial Results
for the quarter ended 31 March 2002
DIRECTORS
Mr S L Shimukowa (Non-Executive) (Up to 4 February 2002)
Chairman of the Board
Mr G K Chibuye (Non-Executive) (From 4 February 2002)
Chairman of the Board
Mr J M Mtonga (Up to 26 February 2002)
Secretary to the Treasury
Ministry of Finance and National Planning
Mr B Nonde (From 26 February 2002)
Secretary to the Treasury
Ministry of Finance and National Planning
Mr A M Kashimu (Up to 26 February 2002)
Permanent Secretary
Ministry of Mines and Minerals Development
Mr S Mpishi (From 26 February 2002)
Permanent Secretary
Ministry of Mines & Minerals Development
Dr A Mwenda
Deputy Governor - Operations
Bank of Zambia
Ms J Mapoma
Permanent Secretary
Ministry of Energy & Water Development
Mr D Kombe (Resigned 18 January 2002)
General Treasurer
Mineworkers' Union of Zambia
Acting Company Secretary
W S Musama
1
Management Committee
General Manager
M Shandavu Chairman
Acting Company Secretary
W S Musama
Technical Investment Manager
J M D Patterson
Finance and Investment Manager
Z Zekko
Legal Investment Manager
J K Kaite
Technical Investment Officer
W K Katoto
Financial Analyst
K K Mulaisho Committee Secretary
Environmental Manager
J Makumba
2
ZCCM INVESTMENTS HOLDINGS PLC
and its subsidiary companies
DIRECTORS' QUARTERLY SUMMARY
ZCCM Investments Holdings Plc Group sales, comprising income from minority
participation in the privatised mining companies and revenues achieved by its
subsidiaries, namely Ndola Lime Company Limited, ZCCM (Smelterco) Limited and
AHC Mining Municipal Services Limited, were K59 937 million for the quarter
ended 31st March 2002, compared with sales of K41 461 million in the quarter
ended 31 December 2001.
This satisfactory top-line result was attributed to substantial improvement in
quarterly sales at Smelterco.
Despite the registered improvement in quarterly sales, a net loss of K66 086
million fell short of the previous quarter profit of K767 million which mainly
arose from the sale of Lunsemfwa and Mulungushi Hydro Power Stations. The
results for the quarter under review also took into account increased Group
operational expenses of K103 357 million, interest and other income of K20 045
million, exchange losses of K41 010 million income tax of K129 million and
interest charges of K1 572 million.
During the quarter, Zambia Copper Investments Limited (ZCI), the majority
shareholder in Konkola Copper Mines Plc (KCM), announced its intention to pull
out of the operations of KCM, on the premise that weak prevailing and projected
metal prices would necessitate additional external funding of approximately US
$700 million for the development of the long term Konkola Deep Mining Project
(KDMP).
Without the prospect of raising finance for the development of KDMP on
affordable terms, ZCI have stated that further investment in the relatively
short life high cost operations of KCM would be of little benefit to their
shareholders. The Government of the Republic of Zambia and Anglo American plc
have since initiated negotiations, to facilitate ZCI's orderly exit in view of
the need to maintain KCM as a going concern.
Government has continued to provide funding in respect of both privatisation and
pre-privatisation obligations, including ZCCM trade creditors. In this regard,
during the period under review, an amount of K7 000 million was released from
the 2002 National budget of K50 000 million.
By Order of the Board
W S Musama
Acting Company Secretary
Lusaka
23rd July 2002
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ZCCM INVESTMENTS HOLDINGS PLC
GROUP PROFIT/( LOSS) ACCOUNT FOR THE QUARTER ENDED 31 MARCH 2002
QUARTER ENDED 9 MONTHS TO
31 MARCH '02 31 MARCH '02
notes K Million K Million
Sales 1 59,937 166,895
Cost of sales 2 (98,344) (234,620)
Operating profit/(loss) (38,407) (67,725)
Other income 3 19,754 55,093
Exchange gain/(loss) (41,010) (64,489)
Environmental expenses (4,903) (11,750)
Interest charge (1,572) (19,179)
Interest income 291 3,254
Dividend receivable - 7,508
Royalty on minerals (110) (680)
Profit/(loss) before taxation (65,957) (97,968)
Income tax (129) (603)
Retained profit/(loss) (66,086) (98,571)
Notes:
1 & 2 Represents revenue /sales and administrative
cost/cost of sales for the Company and its
subsidiaries. Group sales are higher in this quarter
due to improved sales at Smelterco( aproximately
three times the sales of the second quarter).
3 Other income includes the sale of 80% shareholding
in Kansanshi Mines plc to First Quantum Minerals Group.
4 The exchange rates applied are :
March 2002 :US$=K3967
December 2001 :US$=K3800
September 2001 :US$=K3754
June 2001 :US$=K3733
ZCCM INVESTMENTS HOLDINGS PLC
GROUP BALANCE SHEET As at 31 March '02 As at 30 June '01
K million K million
Current assets
Bank & cash 40,827 34,091
Inventories 53,014 44,352
Metal debtors 99,168 108,568
Other debtors 149,329 68,368
Total current assets 342,339 255,379
Current liabilities
Creditors
local 122,570 65,627
Overseas 33,362 17,173
Provisions 249,636 263,815
Taxation 2,845 2,027
Bank overdraft 118 172
Total current liabilities 408,532 348,814
Net current assets/(liabilities) (66,192) (93,435)
Long term receivables 329,294 309,987
Investments 192,232 150,033
Fixed assets 256,238 128,304
Long term borrowings (1,627,578) (1,342,500)
Grants/others (94,385) (93,088)
Subordinated loan (865,445) (865,445)
Total Net Liabilities (1,875,837) (1,806,144)
Financed by:
Share capital 893 893
Reserves (1,876,730) (1,807,037)
Total shareholders' funds (1,875,837) (1,806,144)
ZCCM INVESTMENTS HOLDINGS PLC
GROUP CASH FLOW STATEMENT
Quarter ended 9 months to
31 March '02 31 March ' 02
K Million K Million
Operating activities
Cash received from customers 28,278 208,098
Cash paid to suppliers and employees (42,573) (285,061)
Net cash generated from operating activities (14,295) (76,963)
Interest received 308 3,373
Interest paid (182) (200)
Taxation paid (475) (1,509)
(349) 1,664
Net cashflow from operating activities (14,644) (75,299)
Investing activities
Purchase of fixed assets (12,964) (94,093)
Proceeds from sale of fixed assets (Kabwe Hydropower) 4,720 5,402
Proceeds from sale of shares in subsidiary 6,858 6,858
Net cashflow from investing activities (1,386) (81,833)
Financing activities
Long term borrowings received 19,832 144,429
Long term borrowing paid - -
Short term borrowings received - -
Short term borrowings paid
Grants 2,235 5,909
Net cashflow from investing activities 22,067 150,338
Dividend received - 7,508
Net cash inflow/(outflow) for period 6,037 714
Cash balances at start of period
Cash and bank balances 27,581 32,753
Bank overdrafts (323) (172)
27,258 32,581
Cash balances at end of period
Cash and bank balances 33,413 33,413
Bank overdrafts (118) (118)
33,295 33,295
CORPORATE LOCATIONS
Registered Office UK Registrars
Mukuba Pension House CAPITA IRG Plc
First Floor Bourne House
5309 Dedan Kimathi Road 34 Beckenhan Road
P O Box 30048 Beckenham
LUSAKA Kent BR3 4TU
Lusaka, 10101, Zambia England
Tel Numbers 260 (01) 221023 Tel No. 020 8639 2000
220351 Fax No. 020 8658 3430
220654
228833 Depository for American Shares
Fax Numbers 260 (01) 221057 JP Morgan
220449 Chase & Co
220727 60 Wall Street
New York, NY 10260-0060
United States of America
E-mail:corporate@zccm-ih.com.zm Tel No. 001 212 648 3207
Fax No. 001 212 648 5104/5
Kitwe Office
Investments House
Kantanta Street
P O Box 20172
Kitwe
Tel Numbers 260 (02) 245008
245117
245118
245054
245160
245155
245319
245324
Fax Numbers 260 (02) 245363
245364
245474
E-mail:corporate@zccm-ih.com.zm
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