ZCCM-IH posted an increased profit after tax of K975 million during its financial year ending march 31, 2018, from K729 million in the previous corresponding period, triggered by high copper prices.
According to a provisional abridged group statement of comprehensive income year ended March 31, 2018, ZCCM-IH earned an increased profit of K975 million for the period under review, up from K729 million in the same period last year, buoyed by an upsurge of copper prices and strong production volumes.
“The Group reported a profit of K975 million (2017: K729 million) representing 33 per cent increase, driven by improved production volumes of copper in most of ZCCM-IH’s investee companies and an upsurge in copper prices during the year. London Metal Exchange copper price increased by 4.8 per cent to US $6,724/tonne (2017: US $5,858/tonne) during the year,” ZCCM-IH announced in a statement issued in Lusaka.
“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.”
The Group, however, sustained massive operating losses of K130 million compared to a profit-making position of nearly K848 million in the corresponding period last year, due to the performance of its subsidiary, Ndola Lime, among other factors.
“The Group recorded an operating loss of K130 million (2017: profit K848 million), mainly due to Ndola Lime Company Limited’s continued loss-making position, which contributed an operating loss of K167 million (2017: K1,152 million) during the year. Additionally, the impairment of the investment in Konkola Copper Mines Plc amounting to K218 million increased the recorded operating loss during the year,” stated ZCCM-IH.