ZCI - Lifting Of Suspension And Details On The Change In Accounting Policy
Zambia Copper Investments Limited
(Registered in Bermuda)
JSE code: ZCI
ISIN: BMG988431240
(`ZCI` or `the Company`)
LIFTING OF SUSPENSION AND DETAILS ON THE CHANGE IN ACCOUNTING POLICY
Shareholders are advised that, as ZCI have posted their annual financial
statements for the year ended 31 December 2004, the ZCI share is no longer
suspended and trading in ZCI securities may be continued.
Change in accounting policy details which were not included in the SENS
announcement dated 22 August 2005:
During the year, the Company changed its accounting policy in respect of
secondary development expenditure. Previously, the cost of developing access to
mine ore bodies during the commercial
production stage that were deemed significant and identified as benefiting
future years were deferred and expensed in the year when the related production
was achieved. These costs are now expensed as incurred. The effect of this
change has resulted in the write off of deferred expenditure of USD 25,771,000
and a decrease of Minority Interest of USD 10,824,000 as at 31 December 2003.
Further, the cost of sales have been decreased by USD 3,388,000 and the minority
interest share in the losses was decreased by USD 1,423,000 in the 2003
statement of earnings as a result of the change in accounting policy. Loss per
ordinary share for the year ended 31 December 2003 decreased by US cents 1.56.
The comparative information for the year ended 31 December 2003 has been
restated. The change has been accounted for retrospectively by adjusting the
opening revenue reserves, deferred secondary development, and minority interest
for 2003 as if the deferred secondary development had always been accounted for
according to this policy.
The Directors of ZCI wish to advise shareholders further that the restatement of
the 2003 comparative information referred to above was required due to changes
in the accounting policies of KCM, which were necessary to align KCM with the
group accounting and reporting requirements of KCM`s new majority shareholder,
Vedanta Resources plc (`Vedanta`). These changes came into effect from 31
October 2004. The ZCI Board believes it reasonable and practical to incorporate
these restatements in the Company`s accounts.
Bermuda
30 August 2005
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/08/2005 09:56:04 AM
Produced by the JSE SENS Department
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