ZCCM records heavy losses due to loadshedding, depreciation of Kwacha

ZCCM records heavy losses due to loadshedding, depreciation of Kwacha

Screen Shot 2016-06-07 at 08.50.25ZCCM Investment Holdings has recorded heavy losses mainly due to load shedding, depreciating of the Kwacha and a bit of lower prices on the international market. The PF government holds  87.6% of the shares in ZCCM IH, appoints cadres as directors and employees and also uses the company as cash cow for party and personal usage.

But president Edgar Lungu, detached from reality in his designer suits, says Zambia’s economy is on the upswing and the people of the Copperbelt will give him 70 per cent votes because of the good economy. According to the Daily Mail, Lungu has declared that the Patriotic Front (PF) will get 70 percent of the votes on the Copperbelt Province in the August 11 general elections.

Lungu said the PF is poised to garner more votes compared to the previous election in 2015 because of the rebounding economy.

But the ZCCM, recorded a loss of K696.5 million in the second half of 2015 alone.

ZCCM also said that the Group’s operating profit of K51.7 million was lower than the K59 million achieved during the same period in 2014.

This is according to the ZCCM unaudited financial statement for the six-month period ended 30th September 2015.

ZCCM recorded a turnover of K208.4 million for the six-month period ended 30th September 2015, 10% above the turnover of K188.6 million achieved during the six months to 30th September 2014.

The increase in Group turnover was mainly as a result of an increase in turnover for Ndola Lime Company by 21% from K96.3 million to K116.5 million for the six months ended 30th September 2015.

ZCCM’s dividends earnings decreased by 56% to K11.9 million for the period ended 30th September 2015 compared to K27.1 million recorded in September 2014.

 

ZCCM said this was due to the depreciation of the kwacha from K7.6250/$ at the start of April 2015 to K12.3815/$ as at the end of September 2015.

The Group said dividends were earned from Kansanshi Mining Plc. at K11.9 million.

“Interest earned from placements and fixed deposits amounted to K24.9 million. Other income was K4.8 million. This was mainly composed of Management fees amounting to K4.3 million.”

“Overall the performance of the Associate companies was weak during the period. The significant share of losses of associate companies were recorded from Kansanshi Mining Plc at K871.9 million, Konkola Copper Mine Plc at K546.42 million and Copperbelt Energy at K133.36 million,” it said.

Share this post
Skip to toolbar