Zambia Copper Invs - Final Results - Replacement
15 Septembre 1999 - 2:44PM
UK Regulatory
RNS No 4853a
ZAMBIA COPPER INVESTMENTS LIMITED
15 September 1999
The headline for the Zambia Copper Investments Limited announcement released
today at 10:45am under RNS No 4766x should read Final Results.
The full text shown below remains unchanged.
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ZAMBIA COPPER INVESTMENTS LIMITED
(Registered in Bermuda)
("ZCI")
RESULTS FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 1999
Unaudited Audited
Year to Year Ended
June 30 1999 June 30 1998
US$'000 US$'000
Interest and other financial income 1,238 1,581
Administration expenses (451) (531)
Share of Konkola Project Consortium expenses 6,833 6,373
Loss before exceptional item 6,046 5,323
Exceptional item - 3,348
Net Loss 6,046 8,671
per ordinary share in US cents
Headline loss before exceptional item (4.93) (4.34)
Net loss (4.93) (7.07)
STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 1999
US$'000 US$'000
Current assets
Cash and short-term investments 17,178 23,960
Accounts receivable 116 335
17,294 24,295
Current liabilities
Accounts payable and accrued liabilities 760 1,715
Net current assets 16,534 22,580
Investment and advances 32,237 32,237
48,771 54,817
Shareholders' equity 48,771 54,817
As previously advised, consequent upon the Company's financial year being
changed to December 31, the current financial period will be the eighteen months
ending December 31, 1999.
The directors have not declared an interim dividend in respect of the twelve
months ended June 30, 1999.
G M Holford was appointed a director on September 14, 1999. D E Fisher and D E
Salmon ceased to be alternate directors on the same date.
The Company's principal investment is a 27.3% interest in Zambia Consolidated
Copper Mines Limited ("ZCCM") which is recorded at a written down value of
US$32.2 million. The market value at June 30, 1999, although not necessarily
indicative of the value that could be realised on disposal, was US$23.9 million
(December, 1996: US$27.7 million).
The latest results of ZCCM show a net loss of Zambian kwacha 260,385 million
(US$131 million) for the year ended March 31, 1999 (year ended March 31, 1998):
net loss of Zambian kwacha 573,572 million (US$385 million). The loss in the
year ended March 31, 1998 included an exceptional loss on the disposal of assets
while in the year ended March 31, 1999 a substantial exceptional profit on the
transfer of debt to the Government of the Republic of Zambia ("GRZ") was
recorded. ZCCM did not declare a dividend for the year to March 31, 1999. The
US$ equivalents are calculated using the average of the opening and closing
rates that were applicable to ZCCM's financial years.
As previously advised, the Company signed a Memorandum of Understanding (MOU)
with ZCCM and GRZ in terms of which, subject to the satisfaction of certain
conditions precedent, the Company and partners would, through a company to be
formed, acquire 80% of the assets of the Konkola, Nkana and Nchanga Divisions of
ZCCM and its Nampundwe pyrite mine. The conditions precedent included the
Company finding a major mining partner, raising short-term non-recourse finance,
further due diligence study and the satisfactory negotiation of a number of
related agreements and shareholder approval. ZCCM would hold a 5% free carried
and a 15% repayable carried interest in the new company. The agreed purchase
consideration was US$90 million. In terms of the MOU, the Company relinquished
its exclusive rights to the Mufulira smelter and refinery. Anglo American plc
("AA plc") placed a team on behalf of the Company at the operations to monitor
the assets, carry out further due diligence studies and prepare a programme to
ensure a smooth take over of the assets if the acquisition was concluded. Good
progress was made in negotiations with ZCCM and GRZ in respect of inter alia a
Development Agreement, Shareholders' Agreement and Asset Purchase Agreement
while in parallel, the Company approached a number of major mining companies to
consider a partnership. Corporacion Nacional del Cobre de Chile ("Codelco"),
having expressed an interest in the transaction, carried out an appraisal of
assets and was involved in the aforementioned negotiations with ZCCM and GRZ.
Codelco has now however advised that it does not wish to participate in the
acquisition. ZCI is presently examining the alternatives available.
Shareholders will be kept informed of further developments in this regard.
Year 2000 Compliance
The Company is an investment holding company with no administrative
infrastructure of its own. In consequence it utilises the administrative and
financial and technical services of AA plc. The Company has been informed by AA
plc that it has implemented a strategy, in accordance with international best
practice, to achieve acceptable levels of Year 2000 compliance by the end of
September 1999.
Based on the assessments and information given by AA plc to date, the Company
does not expect to encounter material operational difficulties and based on a
reasonable examination considers the risk to itself of legal liaility to be not
material.
The Company's interim report at June 30, 1999 will be posted to shareholders on
or about September 27, 1999. Copies may be obtained from the transfer agents:
Computershare Services PLC, PO Box 82, Caxton House, Redcliffe Way, Bristol BS99
7NH, United Kingdom and Computershare Services Limited, First Floor, Edura, 41
Fox Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107, South Africa).
Bermuda
September 14, 1999
Registered Office: Clarendon House
2 Church Street
Hamilton, Bermuda
END
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