ZCCM-IH has posted a profit after tax of over K307 million in its first nine-month financial year, mainly boosted by returns from its investee companies in the mining sector.

According to an audited statement of profit or loss and other comprehensive income for its nine-month financial year ending December 31, 2019, ZCCM-IH has announced that it earned a profit of over K307 million, triggered by strong income generated from its investee companies in its group portfolio.

The ZCCM-IH Group consisted of eight subsidiary companies as at December 31, 2019, including Investrust Bank Plc and Ndola Lime Company Limited, among others.

“The Group reported a profit for the nine-month period of K307 million (March 2019: K448 million. The 31 per cent decrease in profitability was mainly due to the fact that the previous period is accounting for 12 months as compared to 9 months for the current period. Furthermore, there was a decrease in share of profit of equity accounted investee companies on account of the impairment of receivables by associate companies such as Kansanshi Mining Plc and Copperbelt Energy Corporation Plc,” the statement read.

At company-level, ZCCM-IH reported a profit for the year of K153 million compared to incurring a K108 million loss in the 12-month period ending March 31, 2019, mainly due to exchange gains on foreign denominated assets and reduced administrative costs, among others.

The Group’s total assets increased by 14 per cent to K15.2 billion as at December 31, 2019, from K13.4 billion as at March 31, 2019, mainly attributed to an increase in values of investments in associates from K10.3 billion as at March 31, 2019, to K11.9 billion.

Three core strategies employed in the mining sector were cited as having contributed to ZCCM-IH’s impressive profitability during its nine-month financial year.

“ZCCM-IH’s investments were steered towards the mining sector. Thus, three core strategies were employed targeted at driving portfolio growth which were: Pursuit of the royalty model in order to introduce new revenue stream; realignment of the portfolio to achieve more focus in mining and mining-related activities and development of turnaround strategies for loss-making subsidiaries,” explained ZCCM-IH company Secretary Chabby Chabala.

“ZCCM-IH is committed to enhance value creation for its shareholders. Thus, ZCCM-IH will continue to diversify within the mining sector to mitigate slumps that may be experienced in some metals at a particular time while taking advantage of surges occurring in other metals during the same time.”

Directors will recommend a final dividend pay-out of K53.1 million in total, translating to around K0.33 per share.

Source: https://zambiandigest.com/2021/06/zccm-ih-post-k307m-profit-in-9-months/