ZCCM Invs.Hldgs PLC
28 September 2004
Directors' Quarterly Summary
incorporating Financial Results
for the quarter ended 30 June 2004
DIRECTORS
Mr G K Chibuye (Non-Executive)
Chairman of the Board
Dr S Musokotwane
Secretary to the Treasury
Ministry of Finance and National Planning
Dr M W Lewanika
Permanent Secretary
Ministry of Mines & Minerals Development
Mr G P Mukala
Permanent Secretary
Ministry of Energy & Water Development
Dr D H Kalyalya
Deputy Governor - Operations
Bank of Zambia
Mr E Mutale
General Secretary
Mineworkers' Union of Zambia
Management Committee
General Manager
Vacant
Company Secretary
W S Musama Acting Chairman
Technical Investments Manager
J M D Patterson
Finance and Investments Manager
Z Zekko
Legal Investments Manager
J K Kaite
Technical Investments Officer
W K Katoto
Environmental Manager
J Makumba
Financial Analyst
K K Mulaisho Committee Secretary
ZCCM INVESTMENTS HOLDINGS Plc
and its subsidiary companies
DIRECTORS' QUARTERLY SUMMARY
ZCCM - IH Group sales of K32,421 million was achieved during the quarter ended
30 June 2004 compared to K29,790 million at June 2003. There was a reduction in
group operational expenditure to K27,680 million during the quarter ended
30 June 2004 compared to K73,500 million for the quarter ended 30 June 2003.
A retained loss of K8,012 million was recorded in the quarter under review,
against a profit of K59,011 million in the quarter ended 30 June 2003. The main
source of the loss was the exchange movements during the quarter. However there
was an operating profit amounting to K4,741 million as compared to a loss of
K43,710 million in the quarter ended June 2003.
Subsequent to quarter end, negotiations for the acquisition of a 51%
shareholding between the Company, GRZ, ZCI and Vendanta were concluded,
resulting in the signing of a Subscription Agreement. In addition,
Mrs L I Ng'andwe, Commissioner - Finance, Zambia Revenue Authority, was
appointed a Director on the Board of the Company.
By order of the Board
W S Musama
Company Secretary
Lusaka
28 September 2004
ZCCM INVESTMENTS HOLDINGS PLC
GROUP PROFIT/(LOSS) ACCOUNT FOR THE QUARTER ENDED 30 JUNE 2004
QUARTER ENDED QUARTER ENDED
30 JUNE 2004 30 JUNE 2003
notes K' million K' million
Sales 1 32,421 29,790
Cost of Sales 2 (27,680) (73,500)
Operating profit/(loss) 4,741 (43,710)
Other Income 11,703 3,376
Exchange gain/(loss) (22,876) 92,063
Environmental expenses (382) (674)
Interest reversal/(charge) (1) 892
Interest income 295 4,076
Dividend receivable - 5,853
Royalty on minerals (452) (433)
Profit/(loss) before taxation (6,971) 61,443
Income tax (1,038) (2,432)
Retained profit/(loss) (8,010) 59,011
Notes:
1 & 2 Represents revenue /sales and administrative costs/cost of sales
for the Company and its subsidiaries.
3 The exchange rates applied are
30 June 2003 US$ = K4866.64
31 December 2003 USS = K4500
30 June 2004 USS = K4853.81
ZCCM INVESTMENTS HOLDINGS PLC
GROUP BALANCE SHEET As at 30 JUNE '04 As at 30 JUNE '03
K' million K' million
Current assets
Bank & cash 47,480 70,887
Inventories 12,784 34,948
Other debtors 321,911 271,053
Total current assets 382,176 376,888
Current liabilities
Creditors 45,241 80,502
Provisions 287,794 287,600
Taxation 2,117 4,223
Bank overdraft 0 0
Total current liabilities 335,152 372,325
Net current assets/liabilities) 47,025 4,563
Long term receivables 92,222 112,985
Investments 450,356 472,081
Fixed assets 78,110 41,147
Long term borrowings (1,374,328) (1,320,222)
Grants/others 0 (4,678)
Subordinated loan (865,445) (865,445)
Total Net Liabilities (1,572,059) (1,559,569)
Finances by:
Share capital 909 909
Reserves (1,572,968) (1,560,478)
Total shareholders' funds (1,572,059) (1,559,569)
ZCCM INVESTMENTS HOLDINGS PLC GROUP
CASH FLOW STATEMENT
Quarter ended Quarter ended
30 June '04 30 June '03
K'million K'million
Operating activities
Cash received from customers 30,989 33,073
Cash paid to suppliers and employees (47,107) (42,070)
Net cash generated from operating activities (16,118) (8,997)
Interest received and other operating income 3,193 753
Interest paid (45) (4)
Taxation paid (1,264) (3,682)
1,884 (2,933)
Net cashflow from operating activities (14,234) (11,930)
Investing activities
Purchase of fixed assets (8,554) (6,897)
Proceeds from sale of fixed assets 8 59
Proceeds from sale of operating units 0 201
(8,546) (6,637)
Financing activities
Long term borrowings received 9,287 32,560
Long term borrowing paid 0 (21,714)
Grants 6,688 10,655
Net cashflow from investing activities 15,975 21,501
Dividend received 10,811 9,921
26,786 31,422
Net cash inflow/(outflow) for period 4,006 12,855
Cash balances at start of period
Cash and bank balances 43,605 58,046
Bank overdrafts (131) -
43,474 58,046
Cash balances at end of period
Cash and bank balances 47,480 70,911
Bank overdrafts 0 (10)
47,480 70,901
CORPORATE LOCATIONS
Registered Office
Mukuba Pension House
First Floor
5309 Dedan Kimathi Road
P0 Box 30048
LUSAKA
Lusaka, 10101, Zambia
Tel Numbers 260(01)221023
220351
220654
228833
Fax Numbers 260(01)221057
220449
220727
E-mail: corporate@zccm-ih.com.zm
Kitwe Office
Investments House
Kantanta Street
PO Box 20172
Kitwe
Tel Numbers 260(02)245018
245054
245142
245126
245320
Fax Numbers 260(02)245363
245364
245473
E-mail :corporate@zccm-ih.com.zm
UK Registrars
CAPITA IRG Plc
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel No. 020 8639 2000
Fax No. 020 8658 3430
Depository for American Shares
JP Morgan Chase & Co
60 Wall Street
New York, NY 10260-0060
United States of America
Tel No. 001 2126483207
Fax No. 001 2126485104/5
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