4th Quarter Results

ZCCM Invs.Hldgs PLC 27 September 2006 ZCCM Investments Holdings Plc Incorporated in the Republic of Zambia Directors' Quarterly Summary incorporating Financial Results for the quarter ended 30 June 2006 DIRECTORS Mr G K Chibuye (Non-Executive) Chairman of the Board Mr C Evans Chibiliti 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 Group achieved a turnover of K22,165 million during the quarter ended 30 June 2006 compared to K41,465 million at June 2005. The apparent reduction in turnover over the two quarters was as a result of the effect of the appreciation of the kwacha on the turnover of Ndola Lime Limited (a 100% subsidiary) which is dollar-denominated. In addition, AHC Mining Municipal Services Limited (AHC MMS) a wholly owned subsidiary of the company and a discontinued operation, was not consolidated into the group. The Group operational expenditure was K25,146 million compared to K39,473 million last year. A net retained loss of K51,088 million was recorded in the quarter, compared to last year's loss of K24,615 million. The loss reported was mainly on account of the exchange movements. During the quarter, investments increased by K 52,934 million (US$15 million), being the second and final investment installment into the Lumwana Copper Mine through a purchase of some 7% equity stake in Equinox Minerals Limited The transfer of AHC MMS, during the last quarter has had a significant impact on the Group's current consolidated financial figures. Its shareholding was finally transferred to the respective district councils on the Copperbelt on 19 January 2006. Consequently, any comparison with last year's figures needs to take this into account. Subsequent to the quarter end, Dr B Nsemukila, Permanent Secretary, Ministry of Energy and Water Development and Mr O M Munyenyemba, General Secretary of the Mineworkers' Union of Zambia, were appointed as Directors of the Company replacing Messrs G P Mukala and E Mutale respectively, who retired. By order of the Board W S Musama Company Secretary Lusaka 26th September 2006 ZCCM INVESTMENTS HOLDINGS PLC GROUP PROFIT/( LOSS) ACCOUNT FOR THE QUARTER ENDED 30 JUNE 2006 QUARTER ENDED QUARTER ENDED 30 June 2006 30 June 2005 notes K' million K' million ------------ ------------ Turnover 2 22,165 41,465 Cost of Turnover 3 (25,146) (39,473) Operating profit/ (2,980) 1,992 (loss) Other income 2,579 4,121 Exchange gain/(loss) (46,035) 5,733 Environmental (3,188) (9,882) expenses Interest charge (1,477) (142) Interest income 1,824 1,645 Dividend receivable 853 2,631 Royalty on minerals (443) (471) Exceptional Item 4 (27,760) Profit/(loss) before taxation (48,867) (22,133) Income tax (2,221) (2,482) Retained profit/(loss) (51,088) (24,615) Notes: 1 The financial statements to 30 June 2005 include AHC MMS, a discontinued operation, while the figures for 30 June 2006 relate only to ZCCM-IH and Ndola Lime 2 & 3 Represents revenue /sales and administrative costs/cost of sales for the Company and its subsidiaries. 4 Exceptional item relates to Mukuba Pensions as a result of an actuarial valuation report conducted on behalf of the participating employees in the Mukuba Pension Scheme 5 The exchange rates applied are : 30 June 2006 US$ = K3,582 30 June 2005 US$ = K4,698 ZCCM INVESTMENTS HOLDINGS PLC GROUP BALANCE SHEET As at 30 June As at 30 June 2006 2005 K' million K' million Current assets Bank & cash 83,287 79,610 Inventories 34,552 22,547 Other debtors 305,132 309,995 --------------- --------------- Total current assets 422,971 412,152 Current liabilities Creditors (48,158) (50,485) Provisions (309,931) (320,776) Taxation (2,529) (4,540) Bank overdraft (4,426) 0 --------------- --------------- Total current liabilities (365,044) (375,801) Net current assets 57,927 36,351 Long term receivables 16,430 65,464 Investments 472,418 368,662 Fixed assets 13,246 110,133 Long term borrowings (977,658) (1,266,824) Grants/others 0 (28,337) Subordinated loan (865,445) (865,445) --------------- --------------- Total Net Liabilities (1,283,082) (1,579,996) --------------- --------------- Financed by: Share capital 893 893 Grant reserves 3,038 0 Reserves (1,287,012) -1,580,889 --------------- --------------- Total shareholders' funds (1,283,082) (1,579,996) --------------- --------------- ZCCM INVESTMENTS HOLDINGS PLC GROUP CASH FLOW STATEMENT Quarter ended Quarter ended 30 JUNE '06 30 JUNE '05 K' million K' million Operating activities Cash received from customers 23,972 9,391 Cash paid to suppliers and employees (11,258) (7,288) ---------- ------------ Net cash generated from operating 12,714 2,103 activities Interest received and other operating 4,142 6,932 income Interest paid (497) (220) Taxation paid (1,030) (2,248) ---------- ------------ 2,615 4,464 Net cashflow from operating activities 15,329 6,567 Investing activities Purchase of investment and fixed assets (54,203) (8,721) Proceeds from sale of fixed assets 256 0 ---------- ------------ (53,947) (8,721) Financing activities Long term borrowings received 3,666 8,563 Long term borrowing paid 846 (502) Long term receivables collected 48,000 0 Short term borrowings paid (973) 0 Grants 4 8,923 ---------- ------------ Net cashflow from investing activities 51,543 16,984 Dividend received 232 0 ---------- ------------ 51,775 16,984 Net cash inflow for period 13,156 14,830 Cash balances at start of period Cash and bank balances 70,786 64,780 Bank overdrafts (5,081) 0 ---------- ------------ 65,705 64,780 Cash balances at end of period Cash and bank balances 83,287 79,610 Bank overdrafts (4,426) 0 ---------- ------------ 78,861 79,610 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, 10101, Zambia Kent BR3 4TU England Tel Numbers 260 (01) 221023 220351 220654 Tel No. 020 8639 2000 228833 Fax Numbers 260 (01) 221057 Fax No. 020 8658 3430 220449 220727 E-mail:corporate@zccm-ih.com.zm Depository for American Shares JP Morgan Chase & Co 60 Wall Street New York, NY 10260-0060 United States of America Tel No. 001 212 648 3207 Fax No. 001 212 648 5104/5 Kitwe Office Investments House Kantanta Street P O Box 20172 Kitwe Tel Numbers 260 (02) 245018 245054 245142 245126 245320 Fax Numbers 260 (02) 222638 222639 222640 E-mail:corporate@zccm-ih.com.zm This information is provided by RNS The company news service from the London Stock Exchange

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