Maravi

Mining companies declare lower dividends to ZCCM-IH

Mining companies declare lower dividends to ZCCM-IH
By Chiwoyu Sinyangwe
Tuesday April 29, 2008 [04:00]

DIVIDENDS declared by mining companies to ZCCM-IH in the second half of last year reduced to K18.180 billion compared to K26. 53 billion in the corresponding period the previous year. And ZCCM Investment Holdings (ZCCM-IH) last year increased its turnover by 96 per cent to K149. 681 billion compared to K77. 613 billion earned the previous year.

This is according to the unaudited consolidated interim financial statements for the six month period to December 31, 2007 released by ZCCM-IH company secretary William Musama.

In a statement, Musama attributed the rise in turnover mainly due to the increase in significant increases in metal price participation income of K70. 757 billion, of which K12. 089 billion was for the period of six months to December 31, 2006.

He further announced that Lime sales also increased to K56. 851 billion for the period to December 31 2007 compared to K47.091 billion for six months to December 2006.

“However, this higher income was dampened by the reduction in dividends to the group for the period of December 31 2007 compared to K26. 53 billion in the corresponding period of December 2006,” Musama announced. “The reduction arose from one of the associate companies declaring a lower interim dividend in the period to December 31, 2007 compared to the period to December 31, 2006.”

Musama also announced that ZCCM-IH reduced its operating expenditure to K54. 73 billion for the half year ended December 3, 2007 compared to K70. 562 billion for the corresponding previous year.

He attributed the reduction to what he termed ZCCM-IH’s operational efficiency.

“As a result of the above, an operating profit of K54. 173 billion for half year ended December 31, 2007 compared to K70. 562 billion for the corresponding period to December 31, 2006,” stated Musama.

And Musama observed that the appreciation of the kwacha against the United States dollar in the period under review enabled a retained profit of K67.028 billion for ZCCM-IH compared to the K173.910 million loss the company incurred during the year ending December 2006 after the translation of foreign denominated liabilities.

Musama also stated that ZCCM-IH’s investments grew last year after Ministry of Finance and National Planning signed an agreement permitting the holding company to assume 100 per cent ownership and control of Mamba Colliers Limited.

Labels: DIVIDENDS, ZCCM-IH

posted by MrK @ 8:19 AM