ZCCM-IH posted a profit after tax of K729 million during its financial year ending March 31, 2017, from incurring losses of nearly K3 billion in the previous corresponding period.
And ZCCM-IH have expressed optimism in its outlook due to the prevailing high copper prices on the international market that have averaged over US $6,500 per tonne since last year.
According to an audited statement for the financial year ending March 31, 2017, ZCCM-IH posted a massive profit after tax of K729 million, turning around from incurring enormous losses of almost K3 billion in the previous corresponding period in 2016.
Data further shows that the group’s share of losses from equity-accounted investee companies significantly reduced by 91 per cent from K2.2 billion in 2016 to K189 million in 2017 owing to investee companies’ improved performance.
“The profit after tax was K729 million (2016: Loss K2,912 million). Total assets marginally reduced by 2% from K9, 797 million to K9, 579 million largely on account of impairment of Ndola Lime Company Limited (NLC) plant (the 100 per cent subsidiary of ZCCM-IH). As a result of a continuing loss-making position and operational challenges experienced by NLC, assets amounting to K861 million were impaired during the year. During the year, ZCCM-IH increased its equity shareholding in Investrust Bank Plc from 10.6 per cent to 45.4 per cent through the rights offer and to 71 per cent (subsequent to the year under review through of a mandatory offer to Investrust’s minority shareholders),” ZCCM-IH announced in a statement issued in Lusaka.
“The group’s performance improved during the year owing to increase in copper production for most major mining companies. The increased production benefited from stability in energy supply and improvement in copper prices on the world market in the last quarter of 2016 and the first quarter of 2017. Copper prices on the London Metal Exchange (LME) increased from US $4,848/tonne at 31 March 2016 to US $5,858/tonne at 31 March 2017. The group recorded an operating profit of K848 million (2016 Loss: K858 million), largely attributable to the recovery of K1,923 million impairments from investee companies whose performance improved during the year.”
And ZCCM-IH have expressed optimism in its outlook due to the prevailing high copper prices on the international market, which averaged over US $6,500 per tonne since last year.
“Outlook copper prices are expected to increase steadily premised on increased demand from high copper consumer countries. ZCCM-IH’s performance is expected to improve as a result of the increase in copper prices, which drive the performance of the mining portfolio. Furthermore, as a result of good rains experienced during the 2016/17 season, the generation capacity of hydroelectricity is expected to improve, thereby, stabilising energy supply. In response to the positive outlook, ZCCM-IH will implement its new Strategic Plan hinged on expansion of its investment in various sectors of the economy,” stated ZCCM-IH.
ZCCM-IH further proposed that a final dividend of K0.84 per share be declared for the financial year ended March 31, 2017.