[miningmx.com] — ZCI Limited, formerly Zambia Copper Investments, on Thursday reported diluted headline earnings per share loss of 28.77 US cents from a diluted headline loss of 20 cents previously.
This was despite an increase in profit for the year to end March 2010 to $16.8m, compared to the previous year’s profit of $16,000.
Earnings per share were substantially higher at 33.50 US cents, compared to 0.56
US cents the year before.
Revenue was US$7.4m but after expenses and a foreign exchange loss of US$2.3m resulted in an operating loss of US$18.7m from US$2.9m.
ZCI chairman Thomas Kamwendo said the company’s return to profit and results were a reflection of the effect of the acquisition of African Copper.
“The year under review was marked by significant change,” Kamwendo said.
In May 2009, ZCI subscribed for and acquired almost 676.6 million ordinary shares
in African Copper, which is listed on London’s AIM market and the Botswana Stock
Exchange, effectively obtaining control of this group.
The financing transaction of African Copper’s operations effectively ended the company’s classification as a cash shell on the JSE and the investment became the
basis for the company’s relisting on the non-ferrous metal section of the JSE’s main
board, which was finalised in January.
To mark this new era in its history, the company changed its name in May and is
now trading on both its primary and secondary listings under ZCI Limited.
“The company’s newly acquired subsidiary is the focus of ZCI’s business plan,”
said Kamwendo.
African Copper holds exclusive rights for the exploration and development of
copper deposits in an extensive area of Botswana.
“The year was not without its difficulties however, not least of which was the
adverse economic climate in which the company did business,” Kamwendo said.
Against this background the company concentrated its investment focus on
bringing the newly acquired subsidiary to achieving full commercial production at its
open-pit Mowana mine, which had been placed under care and maintenance since
January last year.
Production recommenced in late August 2009 and ZCI is confident that significant
progress has been made towards achieving sustainable optimum production levels.
In the meantime, the subsidiary has turned its attention to exploiting and developing the Thakadu-Makala deposit.
“The company continues to review other investment opportunities in accordance
with its business plan,” said Kamwendo.
He said it was a “certain measure of optimism” that ZCI looks to the year ahead.
