By CHATULA KANGALI -
THE ZCCM Investment Holdings (IH) registered a share profit of K227.3 million from associate companies for the first half of 2017.
The performance of the associate companies improved on account of improved copper prices which rose by 35 per cent from $4,790 per tonne as at September, 30 2016 to $6,482 per tonne as at September, 30 2017.
The associate companies include Kariba Minerals, Mamba Collieries Limited, Konkola Copper Mines Plc Kansanshi Mining Plc, Copperbelt Energy Corporation Plc, Africa Investments Limited, Lubambe Copper Mine Plc and CNMC Luanshya Copper Mines Plc.
This is according to its unaudited interim financial result for six month period ended September 2017 issued to the Lusaka Security Exchange (LuSE) by the investment holding company.
During the same year, the group recorded a turnover of K37.7 million compared to K65.5 million recorded in the previous year representing a 42 per cent decline.
The decline in the group’s turnover was attributed to decreased turnover at Ndola lime Limited from K62.5 million to K36.7 million.
The group recorded an operating loss of K123 million and no dividends were earned for the period ended September, 30, 2017.
The group concluded an agreement to dispose ARM and Vale’s combined 80 per cent beneficial interest in Lubambe to EMR Capital Limited (EMR).
The per cent beneficial interest in Lubambe, which is held in equal shares by ARM and Vale, included the equity holding in Lubambe as well as loans to Lubambe.
Lubambe is owned 40 per cent by ARM and 40 per cent by VALE, both as beneficial owners while ZCCM-IH holds the strategic 20 per cent of the shares.
The purchase consideration for the disposal is US$97.1 million and will be settled in cash.