Cafca frets over scrap copper availability

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CAFCA, the country’s biggest cable manufacturer, says it is worried about the dwindling supply of local scrap copper because it does not have enough foreign currency to import the metal to cover the deficit.
While the company uses aluminium, polyvinyl chloride, polyethene and galvanised steel wire, copper remains the main raw material in the production of cables.
“The organisation, however, continues to buy local when available. In the year under review, there was a 26 percent reduction in the amount of redundant copper used,” the company said in its 2022 annual report.
“Cafca heavily depends on it because of scarce foreign currency to import copper. Redundant copper availability continues to dwindle causing a
… decrease in the amount of recycled copper and to complement production requirements, imported copper rod increased by 153 percent.”
The company also began an effort to improve copper recycling and purification.

“All necessary legal compliance requirements were met including approval from the Environmental Management Agency,” it said.
Cafca rebounded to profitability in its financial year ended September 30, 2022 as net profits gained 323 percent to $2,2 billion after tax.
The company’s inflation adjusted operating profits were up 187 percent to $6,6 billion.
Revenues increased 42 percent to $21,3 billion, despite the company reporting a four percent fall in volumes.
The decline was attributed to the adverse effects of the tight monetary policy on consumer demand. Of the revenues earned, 92 percent were from local sales and eight percent were from external customers.
The operation generated net cash flows of
$2,3 billion and net investment expenditures of $65,9 million.
At the end of the financial year, the company’s total assets stood at $12,9 billion, with cash holdings of $576 million and inventories worth
$9,7 billion.
Total liabilities stood at $4,9 billion, with borrowings of $1,7 billion.
It declared a dividend of $23,00 per share.
Looking ahead, the company expects the tight liquidity conditions to hold.
However, it expressed confidence in its capacity to sustain profitability and a favourable cashflow position through local and export market initiatives.
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