Zambia: ZCCM posts operating profit of 530 Billion
By Nawa Mutumweno – The Zambia Consolidated Copper Mines – Investments Holdings posted an operating profit of ZMK530 billion in 2011 from ZMK47 billion in 2010 as a result of a favourable economic environment and high commodity prices.
The group also recorded a profit before tax of ZMK1 530 billion during the same year as opposed to ZMK855 billion in 2010.
According to the group executive chairman Wila Mung’omba, the company’s performance benefitted from a stable business environment and a favourable business condition in China and globally, thus influencing commodity prices.
“For the group, the increase in copper prices encouraged continued scaling up of operations and a relatively stable Kwacha. The overall impact of all this was that the group significantly increased its profitability in the 2011 financial year,” he explained.
Speaking during the ZCCM – IH Annual General Meeting in Lusaka on December 13, 2012, Mr Mung’omba pointed out that the high commodity prices impacted positively on the revenue of most of the group’s subsidiaries which continued to operate profitably.
The group recorded sales of ZMK396 billion during the year under review from ZMK142 billion in 2010.
While the group recorded positive retained earnings of K2 005 billion in 201from K571 billion the previous year spurred by share of profits of associates, it recorded negative retained earnings of ZMK628 billion in 2011 compared to ZMK966 billion in 2010.
Under the period under review, ZCCM – IH took up 20 percent shareholding in Konnoco, in line with the provisions of the Konnoco agreement in 1997.
The group owns 20.6 percent shares in Konkola Copper Mines (KCM), while Vedanta holds the remainder 79.4 percent. It also has some shareholding in a number of other mining firms.
In its continued efforts to diversify to other minerals, the company accepted an offer to purchase 50 percent shares in Kariba Minerals Limited from the Government during the financial year with the transaction expected to be wrapped up by March 31, 2003.
Kariba Minerals Limited is in the business of prospecting, mining, processing and marketing of amethyst and other precious and semi-precious stones.
