3rd Quarter Results

ZCCM Invs.Hldgs PLC
30 June 2006



                    ZCCM Investments Holdings Plc 
               Incorporated in the Republic of Zambia


                    Directors' Quarterly Summary
                   incorporating Financial Results
                 for the quarter ended 31 March 2006


DIRECTORS

Mr G K Chibuye (Non-Executive) 
Chairman of the Board

Dr S Musokotwane 
Director

Mr L Nkhata 
Director

Mr G P Mukala 
Director

Dr D H Kalyalya 
Director

Mr E Mutale 
Director

Mrs L I Ng'andwe 
Director



Management Committee

General Manager 
Vacant

Company Secretary
Mr W S Musama                    Acting Chairman

Technical Investments Manager 
Mr J M D Patterson

Finance and Investments Manager 
Mr Z Zekko

Legal Investments Manager 
Mr J K Kaite

Technical Investments Officer 
Mr W K Katoto

Environmental Manager 
Mr J Makumba

Financial Analyst
Mr K K Mulaisho                  Committee Secretary



ZCCM INVESTMENTS HOLDINGS PLC
and its subsidiary companies

DIRECTORS QUARTERLY SUMMARY

The Shareholding of Asset Holding Company - Mining Municipal Services Limited 
(AHC-MMS), a wholly owned subsidiary of the company, was finally transferred to 
the respective district councils on the Copperbelt on 19 January 2006.

The Group achieved a turnover of K14,394 million during the quarter ended 31 
March 2006 compared to K42,615 million at 31 March 2005. The steep reduction in 
turnover was due to the non inclusion of AHC-MMS data. The Group operational 
expenditure was K26,945 million compared to K46,951 million last year.

A net operating loss of K6,102 million was recorded in the quarter, compared to 
last year's profit of K15,336 million for the same quarter. The loss reported 
was mainly on account of the effects of appreciation of the Kwacha on Lime sales 
from Ndola Lime Company Limited coupled with reduced sales volumes (a reduction 
of 14% in sales). In addition, there was a reduction in dividend receipts from 
Copperbelt Energy Corporation plc and cobalt price participation fees from 
Chambishi Metals plc.

During the quarter, the Company committed to invest US$30 million of equity in 
the Lumwana Copper Project, in the North-Western Province of Zambia.   The 
investment will entitle the Company to a Directorship on the Board of Equinox 
Copper Ventures Limited, a wholly owned subsidiary of Equinox Minerals Limited.

Subsequent to the quarter end, Dr S Musokotwane resigned from the Board and was 
replaced by Mr C Evans Chibiliti, Secretary to the Treasury with effect from 10 
April 2006.


                         By order of the Board

                              W S Musama 
                           Company Secretary
 

 
ZCCM INVESTMENTS HOLDINGS PLC
GROUP PROFIT/(LOSS) ACCOUNT FOR THE QUARTER ENDED 31 MARCH 2006

                                        QUARTER ENDED           QUARTER ENDED
                                        31 March 2006           31 March 2005
                                notes      K' million              K' million
     
Turnover                            1          14,394                  42,615
Cost of Turnover                    2         (26,945)                (46,951)

Operating profit/(loss)                       (12,551)                 (4,336)

Other income                                    1,414                     778
Exchange gain/(loss)                            3,878                  17,362
Environmental expenses                              -                  (2,409)
Impairment of Investments                           -                       -
Interest charge                                  (334)                      -
Interest income                                   867                     249
Dividend receivable                               232                   4,662
Royalty on minerals                              (292)                   (401)
Profit/(loss) before taxation                  (6,786)                 15,905

Income tax                                        684                    (569)

Retained profit/(loss)                         (6,102)                 15,336


Notes:
          
1 & 2     Represents revenue /sales and administrative costs/cost of sales for 
          the Company and its subsidiaries.

3         The exchange rates applied are :

               31 March 2006     US$ = K3,314
               31 March 2005     US$ = K4,709


ZCCM INVESTMENTS HOLDINGS PLC

GROUP BALANCE SHEET               As at 31 March 2006     As at 31 March 2005
                                           K' million              K' million
Current assets
Bank & cash                                    70,786                  64,780
Inventories                                    31,898                  17,346
Other debtors                                 326,560                 348,937

Total current assets                          429,244                 431,063

Current liabilities           
Creditors                                     (40,670)                (57,967)
Provisions                                   (311,228)               (317,653)
Taxation                                       (1,241)                 (8,440)
Bank overdraft                                 (5,081)                      0

Total current liabilities                    (358,220)               (384,060)

Net current assets/(liabilities)               71,024                  47,003

Long term receivables                          37,553                 154,136
Investments                                   418,379                 368,662
Fixed assets                                   13,711                 104,869
Long term borrowings                         (907,157)             (1,336,635)
Grants/others                                       0                 (15,168)
Subordinated loan                            (865,445)               (865,445)

Total Net Liabilities                      (1,231,935)             (1,542,578)

Financed by:
Share capital                                     897                     909
Grant reserves                                  3,038
Reserves                                   (1,235,870)             (1,543,487)

Total shareholders' funds                  (1,231,935)             (1,542,578)



ZCCM INVESTMENTS HOLDINGS PLC 
GROUP CASH FLOW STATEMENT
                                        Quarter ended           Quarter ended
                                        31 March 2006           31 March 2005
                                           K' million              K' million
Operating activities

Cash received from customers                      500                  12,133

Cash paid to suppliers and employees           (1,391)                (23,648)

Net cash generated from operating 
activities                                       (891)                (11,515)

Interest received and other operating 
income                                            867                   4,177
Interest paid                                    (288)                   (523)
Taxation paid                                    (799)                   (629)
                                                 (220)                  3,025

Net cashflow from operating activities         (1,110)                 (8,490)

Investing activities
Purchase of fixed assets                         (513)                (19,399)
Proceeds from sale of fixed assets                  0                       -
Proceeds from sale of operating units             446                       -
                                                  (67)                (19,399)

Financing activities
Long term borrowings received                       0                   9,305
Long term borrowing paid                         (547)                   (936)
Grants                                            920                   4,756

Net cashflow from investing activities            373                  13,125
Dividend received                                 232                   4,662
                                                  605                  17,787

Net cash inflow/(outflow) for period             (573)                (10,102)

Cash balances at start of period
Cash and bank balances                         66,278                  74,882
                                               66,278                  74,882

Cash balances at end of period
Cash and bank balances                         70,786                  64,780
Bank overdrafts                                (5,081)                      -
                                               65,705                  64,780



CORPORATE LOCATIONS

Registered Office                    UK Registrars

Mukuba Pension House                 CAPITA IRG Plc
First Floor                          Bourne House
5309 Dedan Kimathi Road              34 Beckenham Road
P O Box 30048                        Beckenham
LUSAKA                               Kent BR3 4TU
Lusaka, 10101, Zambia                England

Tel Numbers 260(01)221023            Tel No. 020 8639 2000
                   220351            Fax No. 020 8658 3430
                   220654
                   228833            Depository for American Shares

Fax Numbers 260(01)221057            JP Morgan Chase & Co
                   220449            60 Wall Street
                   220727            New York, NY 10260-0060
                                     United States of America 
E-mail:[e-mail]

                                     Tel No. 001 212 648 3207
Kitwe Office                         Fax No. 001 212 648 5104/5

Investments House 
Kantanta Street 
PO Box 20172 
Kitwe

Tel Numbers 260(02)245018
                   245054 
                   245142 
                   245126 
                   245320

Fax Numbers 260(02)222638
                   222639
                   222640 
E-mail:[e-mail]


 

 

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