ZCCM

The Group recorded a turnover of ZMW98.2 million for the six-month period ended 30(th) September 2019 which represents a 45% increase over the turnover of ZMW67.5 million reported during the six months to 30(th) September 2018. The increase is largely on account of improved interest income from Investrust Bank Plc for the period.

The Group's share of profit in associate companies was ZMW154.8 million (September 2018: ZMW437.5 million). The performance of the associate companies declined during the period largely on account of:

-- Kansanshi Mining Plc's impairment of Value Added Tax receivable amounting to ZMW1.13 billion (US85.8 million).

-- Copperbelt Energy Corporations Plc impairment of receivable relating to Konkola Copper Mines Plc (KCM) amounting of ZMW358 million (USD28.8 million). No provision was made in prior period.

Overall the Group recorded a profit after tax of ZMW128.4 million (September 2018: Profit ZMW510.1 million).

2. KEY OPERATIONS AND STRATEGIC DEVELOPMENTS
Investrust Bank Plc

During the period under review, ZCCM-IH undertook a recapitalization exercise of Investrust Bank Plc ("Investrust" or the "Bank") whereby an amount totaling ZMW 286 million was injected into the Bank to bolster the Bank's capital adequacy and liquidity position. ZCCM-IH is committed to providing strategic direction to the Bank with a view to improve the Bank's performance going forward.

Konkola Copper Mines Plc

On 21 May 2019, ZCCM-IH filed a petition in the High Court of Zambia for the winding up of KCM. ZCCM-IH has filed the said petition pursuant to Section 56(1)(c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu Simwanza & Company has been appointed as provisional liquidator. The matter is yet to be determined by the Courts.

Kabundi Resources Limited

Kabundi Resources Limited ("KRL") a wholly owned subsidiary is located in Chief Muchinda's area in Serenje District, Central Province. KRL is a mining operating company whose main activities include mining, processing and marketing of manganese and other non-ferrous metals. Following its incorporation, KRL is expected to commence mining activities in December 2019.

3. OUTLOOK
Copper prices are expected to increase steadily premised on increased demand driven by increasingly demand from the following sectors: infrastructure developments, renewable energy and electronics. However, continued uncertainty around the US-China trade tensions and an economic slowdown in China is expected to keep price increases modest.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on Thursday, 26(th) December 2019