Kilo Goldmines (KGL)

[investorwisdom]

LAFARGE sales up 35% Cement Zambia sales volume has risen by 32 per cent over the first-half of this year, driven by the booming construction and mining industries in the country.

Apart from the rise in sales of cement, the company recorded increased revenue of more the K360 billion which represented a 23 per cent rise from what the company had made in similar period of 2010.



Lafarge Cement Zambia finance director Harriet Kapekele said in a statement that the company performed well at its Lusaka and Ndola plants in the opening half of the year and expect a similar robust performance in the closing half.

She said while domestic demand increased mainly due to large-scale projects being undertaken in various sectors of the economy, there was a significant drop in the growth rate on the international market.

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"Domestic demand improved substantially over 2010 but regional demand grew more slowly though the Congo DR and Burundi markets remained the biggest. Combined, cement volumes went up 32 per cent," she said.

She said the kiln at the Ndola plant has helped meet the demand for both cement and clinker after hitches faced in 2010.

She said the increased performance of the two plants had resulted in operating profit rising to K95 billion which is 18 per cent more than it collected year-on-year while the net profit went up to K67.7 billion, a 23 per cent gain.

"Domestic and regional demand is expected to remain strong underpinned by the infrastructure projects in the power generation, construction and mining sectors and new export markets," she said.

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