| Mon 5 Mar 2001, 0:00 | | Zci - Results |
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ZAMBIA COPPER INVESTMENTS LIMITED
(Registered in Bermuda)
("ZCI" or "the Company")
A member of the Anglo American plc group
Consolidated results for the year ended December 31, 2000
Audited Audited
Twelve months Eighteen months
to December 31, to December 31,
2000 1999
US$ '000 US$ '000
Loss from mining operations (9,156) -
Interest and other financial income 1,886 1,568
Interest expense (9,676) -
Commitment fee on loan facility (1,676) -
General and administration expenses (1,163) (1,129)
Share of Konkola Project
Consortium expenses (2,878) (12,219)
Loss before taxation (22,663) (11,780)
Taxation 3,522 -
Loss after taxation (19,141) (11,780)
Loss attributable to minority interests 3,329 -
Loss before exceptional item (15,812) (11,780)
Exceptional item - (2,237)
Net loss (15,812) (14,017)
per ordinary share in US cents
Headline loss before exceptional item (12.90) (9.61)
Net loss (12.90) (11.43)
Consolidated statement of financial position as at December 31, 2000
Audited Audited
at December 31, at December 31,
2000 1999
US$ '000 US$ '000
Fixed assets
Intangible assets 5,998 -
Deferred taxation 3,794 -
Tangible assets 174,623 -
184,415 -
Investments and advances 35,879 30,000
220,294 30,000
Current assets
Stocks 112,887 -
Accounts receivable 26,435 213
Cash and short-term investments 28,314 11,894
167,636 12,107
Current liabilities
Accounts payable and
accrued liabilities 83,443 1,307
Net current assets 84,193 10,800
Total assets less current liabilities 304,487 40,800
Long-term loans (120,091) -
Provisions for liabilities and charges (79,112) -
Deferred purchase consideration (60,000) -
Minority equity interests (20,296) -
Shareholders' equity 24,988 40,800
Note: The above Financial Position at December 31, 2000 and the results for the
year then ended are not comparable with previous periods due to the acquisition
by ZCI of a 65% interest in Konkola Copper Mines PLC in March 2000.
Comments
The directors have not declared a dividend in respect of the year ended
December 31, 2000.
As previously reported, following approval at the Special General Meeting held
on March 29, 2000, ZCI concluded the acquisition of a 65% interest in Konkola
Copper Mines PLC ("KCM") and disposed of its 27,3% interest in Zambia
Consolidated Copper Mines Limited ("ZCCM"). In the nine months to December 31,
2000, KCM has embarked on the major challenge of refurbishing the assets
acquired from ZCCM and at the same time has been engaged in the revalidation of
the feasibility study of the Konkola Deep Mining Project ("KDMP") and is in the
process of seeking to raise the necessary long-term project finance. The
feasibility study is expected to be completed in the first quarter of this year
and thereafter the Board will be in a position to determine the long-term
financing requirements and appropriate financial structure for ZCI. Should the
KDMP be approved, it is expected to commence construction, which will take five
years to complete, in the beginning of 2002.
KCM operational report
Work commenced immediately following take-over on the refurbishment of the
assets acquired from ZCCM with good progress being made in all areas. US$70
million has been spent on refurbishment in 2000.
Finished copper production for the nine months to December 31 was
125,385 tonnes compared to a plan of 149,334 tonnes. The shortfall in
production was initially due to a combination of delays in receiving spares and
equipment and the fact that development, particularly at Konkola was further in
arrears than anticipated. In the latter part of the year problems were
experienced by the smelters, also undergoing refurbishment, which resulted in a
build up of concentrates. Cobalt production for the period at 1,659 tonnes
compared to the planned 1,432 tonnes.
Operating statistics for KCM for the nine months to December 31, 2000
Ore processing Actual Plan
Copper ore mined (t) 5,969,000 5,747,000
Cobalt ore mined (t) 463,000 1,208,000
Metal in concentrate
Copper (t) 93,711 106,336
Cobalt (t) 3,129 2,683
Finished production
Copper (t) 125,385 149,334
Cobalt (t) 1,659 1,432
Metal sales
Copper (t) 107,607 133,164
Cobalt (t) 1,114 887
Average price realised
Copper USc/lb 84 82
Cobalt US$/lb 11 14
As this is the first year in which KCM results are being reported, the
comparisons are to plan - future comparisons will be to past results.
KCM incurred an operating loss of US$9,156 million and a loss after provision
for interest and taxation of US$9.513 million in the period to December 31,
2000. Copper production of some 240,000 tonnes is planned for the year 2001.
Annual Report
The Company's annual report at December 31, 2000 will be posted to shareholders
on or about March 6, 2001. Copies may be obtained from the transfer agents,
Computershare Services Limited, Second Floor, Edura, 41 Fox Street,
Johannesburg 2001 (PO Box 61051, Marshalltown 2107, South Africa) and
Computershare Services PLC, PO Box 82, The Pavilions, Bridgwater Road, Bristol
BS99 7NH or from the Company's French Listing Agents, Euro Emetteurs Finance,
48 boulevard des Batignolles, 75850 Paris Cedex 17, France.
Bermuda
March 5, 2001
Registered Office: Clarendon House, 2 Church Street, Hamilton, Bermuda
