Zambia Consolidated Copper Mines Investments has disclosed an operating profit of US$100.7mn in 2011 from 8.9mn in 2010 as a result of a favourable economic environment and high commodity prices
The group also recorded a profit before tax of US$100.7mn during the same year as opposed to US$162.5mn in 2010.
According to Zambia Consolidated Copper Mines Investments (ZCCM-IH) executive chairman, Wila Mung'omba, the company's performance benefitted from a stable business environment and a favourable business condition in China and globally, thus influencing commodity prices.
"For the group, the increase in copper prices encouraged continued scaling up of operations and a relatively stable Kwacha. The overall impact of all this was that the group significantly increased its profitability in the 2011 financial year," Mung'omba explained.
Speaking during the ZCCM-IH Annual General Meeting in Lusaka on 13 December 2012, Mung'omba pointed out that the high commodity prices impacted positively on the revenue of most of the group's subsidiaries, which continued to operate profitably.
The group recorded sales of US$75.2mn during the year under review from US$27mn in 2010.
While ZCCM-IH recorded positive retained earnings of US$3.8mn in 2010 from US$108.5mn the previous year spurred by share of profits of associates, it recorded negative retained earnings of US$119.4mn in 2011 compared to US$183.6mn in 2010.
In its continued efforts to diversify to other minerals, the company accepted an offer to purchase 50 per cent shares in Kariba Minerals Limited from the government during the financial year.
Kariba Minerals Limited is in the business of prospecting, mining, processing and marketing of amethyst and other precious and semi-precious stones.
Nawa Mutumweno
