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Friday, 4 June 2010

Press Release : ZCCM-IH Annual Reports Delay

Press Release by ZCCM-IH (28 May 2010) :

Further to our earlier communication concerning the delayed publication of the Annual Accounts for the financial years ended 30 June 2006, 2007, and 2008, we hereby inform all Shareholders and Stakeholders that the finalization of the audit of the Financial Statements for the year ended 30 June 2008 is advanced and is scheduled to be completed around the middle of June 2010.

We kindly remind you that while the Annual Reports for 2006 and 2007 have been approved by the Board, their presentation at an Extraordinary General Meeting (EGM) and subsequent issuance awaits completion of audit of financial statements for the year to 30 June 2008. The Board’s decision to issue the three reports simultaneously arises from the need to reduce costs resulting from undertaking subsequent events review for each year separately. We further inform you that the decision to revert to the use of cost values in respect of the Company’s interests has meant that the Accounts had to be reworked.

We therefore anticipate that Board approval for the Annual Accounts to June 2008 would be given at the scheduled quarterly Board Meeting in June 2010 and an EGM date announced thereafter.

ZCCM-IH Management sincerely regrets the delay in the publication of the afore-said Annual Reports and appreciates your understanding in this matter.

28 MAY 2010


  1. So this company has no published accounts for the last three to four years?

  2. The ZCCM-IH reports are online. From the 2009 6 month director's summary:

    8. Directors Half Year Summary December 2009

    " The Group achieved a turnover of K105, 679 million during the six month period ended 31 December 2009 which was 18% below the turnover of K128, 319 million for the six months to 31 December 2008.

    This reduction was mainly on account of the negative effects of the world economic crisis which resulted in a drop in demand for base metals. "

    This is odd, because according to this article from Reuters, Zambia's copper output rose 14% in 2009:

    UPDATE 1-Zambia 2009 copper output rose 14
    Mon Feb 15, 2010 7:26am EST

    LUSAKA, Feb 15 (Reuters) - Copper output in Zambia, Africa's top producer, rose 14 percent to 697,860 tonnes last year, but output was hampered by the closure of some mines after the global financial crisis unfolded.

    Zambia has previously said copper production could hit 1.0 million tonnes by 2011 as new mines come on stream and expansions and upgrades take place at existing mines.

    So did production go up or down, and if it went up, what explains the reduction in turnover for ZCCM-IH?

    Also, according to their brief 'unaudited' balance statement, turnover was greater than the cost of turnover, resulting in an operating loss of K9.789 billion but an 'exchange gain' of K114.726 billion (I don't know what that means - perhaps a British as opposed to US accounting term)?

    They reported a 'loss' of K272.459 billion for the same period in 2008.

    Now I have to think, if they are reporting losses when copper is at record high, and ZCCM was breaking even when it was government owned and copper was about $1500 per tonne, doesn't that smash the myth of the 'efficient private sector' and the 'inefficient government'?

    If they can't make a profit during these high copper prices, bring back state ownership.


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