Tuesday, 12 April 2016

Statement to the Media on ZCCM Investments Holdings Plc Financial Performance for 2014/15

Statement to the Media on ZCCM Investments Holdings Plc Financial Performance for 2014/15ZCCM Investments Holdings Plc (ZCCM-IH) group reported a loss after tax, of K987 million for the year ended 31 March 2015.     However, during the previous year ended 31 march 2014, the group recorded a profit of K277 million.     At Company level the loss was K639 million in 2015 versus a profit of K893 million in 2014.     As a result of the good performance in 2014, ZCCM-IH declared and paid a dividend of K1.56 per share, totaling K256 million, equivalent to about USD 40million.    


This was a record dividend in the history of ZCCM-IH, as it had never paid any dividend since its inception.     In 2015 however, a number of factors impacted the performance of the group.     Copper prices continued to decline falling from USD6,289 in 2014 to USD 4,701 in 2015.     As a result, dividend income was only K45 million in 2015 compared to K803 million in 2014, amid declined revenues and production, in most of ZCCM-IH’s investee companies.    

ZCCM-IH reported a Group operating loss of K2.2 billion in 2015 compared to an operating profit of K871 million in 2014.     The operating loss in 2015, was mainly as a result of an impairment loss of K2.1 billion, recognized in respect of amounts receivable from KONKOLA COPPER MINES (KCM), of K719 million (USD94.9million) and LUBAMBE COPPER MINES of K705 million (USD93 million).     A further impairment of K513.8 million was recorded, as a result of a decline in the fair value of the investment in KCM, in view of continued challenges at the mine. Read more...

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