Mining conglomerate ZCCM-IH saw a sharp decline in profits from K448 million to 307 million for the nine month period ended 31st December 2019.
This was compared to the period 31st March 2019 year end.
The decline in profits is happening at a time when Copper is enjoying one of its highest price booms in recent history averaging above 8,000 dollars per tone.
This decline in profit is on account of 57% reduction in share of profit mainly due to lower than last year profit recorded by investee companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation (CEC) Plc.
There was a change in the Company’s financial year end from 31st March to 31st December.
“At the ZCCM-IH Group level, profit for the period was K307 million compared to K448 million for 31st March 2019 year end. Shareholders of ZCCM Investments Holdings Plc (ZCCM-IH) have approved a K53 million dividend at K0.33 per share during the 17th Annual General Meeting held recently virtually, says company Spokeswoman Loisa Mbatha.
She said this follows a profit of K153.4 million recorded at a Company level.
“The Group total assets increased by 14 % mainly as a result of a 15% increase in investment in associates due to share of profit of equity accounted investee companies of K420.3 million and improvement in net asset value of investee companies by K1.28 billion. Further, the Group recorded an 18% increase in retained earnings due to the profit of K307 million, and at Company level, retained earnings increased by 19% due to the profit recorded for the period of K153.4 million,” she said.
“This is the fifth consecutive time that the Company has declared a dividend in line with its strategic goal of ensuring shareholder return on investment. ZCCM-IH has paid out K590 million in total in dividend to its shareholders in the past five years.”
Copper prices are soaring but as is the case in Zambia we are cursed with short-sighted political leaders surely how can you attain profitability with a corrupt man like Lazy Lungu as President. He has removed competent CEO and placed a stooge in that position …he has also place a bootlicker as ZCCM chairman…he is only interested in giving thieving Yes-men positions.
SURPRISE SURPRISE
THIS SAME SONG WAS SUNG IN THE KAUNDA ERA
SO HISTORY DOES REPEAT ITS SELF
You’re reporting 2019 figures now? Madness.
WHAT DO YOU EXPECT ???
COOKING THE BOOKS ??????????????????
Someone is cooking the books. Not declaring the true figures. The other explanation could be simply corruption.
We need campaign money, zccm cash cow it’s the first stop to collect.
Deja vu!
History repeats.
Everyone makes mistakes but only mad people repeat them. The strange thing is that Congo, a country in a civil war is making huge profits from mining the neighbouring copper seams. Congo produced 1.4 million tonnes in 2020 while Zambia failed to reach 1 million which was promised by Wilbur Simuusa a long time ago. For ten years, PF has failed to meet that target. Now, with higher prices of copper, ZCCM-IH is making less profits than Trade Kings!
What nonsense is this??? Finances report 2019, shame on you!!!!
But this kind of reporting is confusing. You are mentioning 2019 reports? I thought you are comparing recent 2020/2021 copper price boom.
Kindly report correctly.