| Fri 21 Jul 2006, 16:10 | | ZCI - Abridged Audited Consolidated Financial Resu |
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ZCI
ZAKK
ZCI - Abridged Audited Consolidated Financial Results
ZAMBIA COPPER INVESTMENTS LIMITED
(Registered in Bermuda)
("ZCI" or "the Company")
JSE code: ZCI
ISIN: BMG988431240
Abridged Audited Consolidated Financial Results
Consolidated Income Statement
for the period 1 January 2005 to 31 March 2006
expressed in thousands of US Dollars
1 January 2005 Year ended
to 31 March 31 December
2006 2004
(restated)
Turnover - 440,649
Cost of sales - (300,638)
Gross Profit - 140,011
Other operating expenses - (62,020)
Depreciation - (12,412)
Profit from operations - 65,579
Other income 2,485
Finance income 2,248 30
Interest expense - (1,331)
General and administration expenses (1,359) (1,090)
Loss on sale of investment in
subsidiary company - (3,097)
Income from associated companies 37,640 25,093
Exceptional item - (9,763)
Profit before taxation 38,529 77,906
Taxation (76) (85)
Profit for the period / year 38,453 77,821
Attributable to equity holders 38,453 77,906
Attributable to minority interest - (85)
Profit for the period / year 38,453 77,821
per ordinary share in US cents
Headline earnings before exceptional
items 30.47 50.77
Exceptional items - (7.73)
Earnings per share 30.47 43.04
Number of ordinary shares in issue 126,197,362 126,197,362
Consolidated Balance Sheet
as at 31 March 2006
expressed in thousands of US Dollars
1 January 2005 Year ended
to 31 March 31 December
2006 2004
(restated)
Non-Current Assets
Long term accounts receivable 9,477 12,910
Investment in associated companies 84,502 61,282
93,979 74,192
Current assets
Available for sale investment 2,842 -
Accounts receivable 5,296 4,892
Cash and cash equivalents 4,066 3,120
12,204 8,012
Current liabilities
Accounts payable and accrued liabilities (260) (356)
Net current assets 11,944 7,656
Total assets less current liabilities 105,923 81,848
Net assets 105,923 81,848
Capital and reserves
Capital 334,547 334,547
Revaluation reserves 42 -
Deficit on hedging reserves (14,420) -
Accumulated deficit (214,246) (252,699)
Shareholders" equity 105,923 81,848
Consolidated Statement of Changes in Equity
for the period 1 January 2005 to 31 March 2006
expressed in thousands of US Dollars
Share Contributed Revaluation
capital surplus reserve
Balance at 31 December 2003 30,299 478,508 1,220
Reversal of net loss on
cashflow hedges transferred
to income statement - - -
Reversal of revaluation on
Equity fund investment - - (1,220)
Change in scope of
consolidation - (174,260) -
Profit for the year - - -
Balance at 31 December 2004
as restated 30,299 304,248 -
Revaluation on available for
sale investment - - 42
Hedging reserve of associated
company - - -
Profit for the period - - -
Balance at 31 March 2006 30,299 304,248 42
Hedging Accumulated Minority Total
reserve deficit interest equity
Balance at 31 December
2003 (2,989) (481,270) 1,255 27,023
Reversal of net loss on
cashflow hedges
transferred
to income statement 2,989 - (1,255) 1,734
Reversal of revaluation on
Equity fund investment - - - (1,220)
Change in scope of
consolidation - 150,750 23,510 -
Profit for the year - 77,821 (23,510) 54,311
Balance at 31 December
2004 as restated - (252,699) - 81,848
Revaluation on available
for sale investment - - - 42
Hedging reserve of
associated company (14,420) - - (14,420)
Profit for the period - 38,453 38,453
Balance at 31 March 2006 (14,420) (214,246) - 105,923
Consolidated Statement of Cash Flows
for the period 1 January 2005 to 31 March 2006
expressed in thousands of US Dollars
1 January 2005 Year ended
to 31 March 31 December
2006 2004
Cash flow from operating activities
Cash received from customers - 425,201
Cash paid to suppliers and employees (1,480) (325,967)
Cash (absorbed) / generated by operations (1,480) 99,234
Interest received 96 30
Interest paid - (1,020)
Income tax paid (90) (121)
Net cash (absorbed) / generated by operating
activities (1,474) 98,123
Cash flow from investing activities
Purchase of available for sale investments (2,800) -
Proceeds from disposal of short term investment - 981
Proceeds from partial disposal of investment
in subsidiary, net of cash disposed of 5,220 (24,006)
Purchase of tangible fixed assets - (46,060)
Cash generated / (absorbed) by investing
activities 2,420 (69,085)
Cash flow from financing activities
Lease financing paid - (3,526)
Cash absorbed by financing activities - (3,256)
Net increase in cash 946 25,512
Net cash / (debt) at the beginning of the
period / year 3,120 (22,392)
Net cash at the end of the period / year 4,066 3,120
CHAIRMAN"S REPORT
I am pleased to present the Company"s audited annual financial statements for
the fifteen months ended 31 March 2006. It will be noted that these results
reflect a satisfactory consolidated net profit figure of USD 38.5 million,
which compares favourably to the USD 13.6 million published for the period
ended 31 December 2005. These figures differ slightly from the unaudited
results published on SENS on 30 June 2006, most notably in the fact that the
consolidated net profit figure has increased from USD 36.3 million and that a
prior year adjustment has required a consequential restatement to the Company"s
2004 results.
During the period, management and the newly appointed auditors discovered that
the deferred sale consideration receivable from Vendanta Resources plc had been
recorded at its nominal value instead of being discounted to net present value.
This error has been corrected retrospectively by restating the comparative
statements for 31 December 2004. The effect of the change is a decrease in the
long term accounts receivable of USD 2,750,000, a decrease in current accounts
receivable of USD 328,000, and an increase in the loss on sale of subsidiary
company of USD 3,078,000. Accordingly, the opening reserves have been decreased
by USD 3,078,000.
The Company"s annual report and notice of Annual General Meeting will be
posted to shareholders on Tuesday 25 July 2006, on which date the full annual
report will also appear on the Company"s website.
ACCOUNTING POLICIES
As shareholders are aware, the Company"s financial year-end has been changed
from 31 December to 31 March in order to bring the Company in line with the
financial reporting period of KCM and primarily with the object of avoiding
previous delays associated with timeous production of financial results. As a
result, the comparative amounts for the income statement, statement of changes
to equity, cash flows, and related notes are not comparable. The accounting
policies applied in the preparation of the consolidated financial statements
for the fifteen months ended 31 March 2006 are in accordance with
International Financial Reporting Standards (IFRS) and interpretations adopted
by the International Accounting Standards Board (IASB). In 2005, the
International Accounting Standards Board issued new standards and
interpretations, which had no significant impact on the consolidated financial
statements as at 31 March 2006.
The consolidated balance sheet of Zambia Copper Investments Limited and its
subsidiaries for the fifteen - month period ended 31 March 2006 and the related
consolidated statements of income, cash flow and changes in shareholders"
equity for the period then ended, have been audited by KPMG Audit S.a.r.l.. The
report of the auditors will be available for inspection at the registered
office of the Company. These consolidated financial statements are the
responsibility of the Board of Directors.
ANNUAL GENERAL MEETING - CHANGE OF DATE
Due to unforeseen delays in the finalisation of the audit, the directors have
determined that the initial date scheduled for the annual general meeting would
not permit shareholders to receive sufficient notice of such meeting and have
accordingly deferred the meeting by one week to 16 August 2006 in terms of the
notice set out below.
Notice is hereby given that the annual general meeting of the Company will be
held at the offices of Maitland Luxembourg S.A., 6 Rue Adolphe Fischer,
Luxembourg, on Wednesday 16 August 2006 at 11h00, to transact the business as
stated in the notice of annual general meeting included in the annual report.
Thomas Kamwendo
Chairman
Bermuda, 21 July 2006
Registered office
Clarendon House, 2 Church Street, Hamilton, Bermuda
Transfer Secretaries
Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001
Website: www.zci.lu
Date: 21/07/2006 04:10:12 PM Produced by the JSE SENS Department
