Hwange Colliery Company Limited (HCCL) has this recorded some positive financial performance in the condensed Interim Financial Results for the Six Months Ended 30 June 2019.
Coal miner posted a profit of ZW$3.5 million against a loss of ZWL$23 million recorded in 2018 according to HCCL Bekithemba Moyo.
“The cost of sales increased by 16% to $35.7 million from $30.6 million for the prior year comparative period. As a result, the company posted a gross profit of ZWL$34 million compared to a gross loss of ZWL$144,000 in prior year which is pleasing,” Moyo said.
“The Company’s revenue increased by 128% from ZWL$30.5 million for the six months
ended 30 June 2018 to ZWL$69.8 million for the period under review.”
Production at the mining company, however, was little in the first three months of the year due to a combination of working capital constraints and antiquated equipment according to the administrator.
“The contract miner stopped mining on or about 15 December 2018 and only resumed mining in August 2019. In addition, the company only resumed open cast mining in March 2019. Owing to the above, production declined by 52% from 819,859 to 394,704 for the period under review,” Moyo said.
“It is interesting to note that HCCL production increased marginally from 344,694 tonnes to 394,704 tonnes and it has continued to increase for the first three months of the second half from 158 981 tonnes to 224 191 tonnes.”
“The last three months have shown some notable improvements as a result of targeted interventions,” explained Moyo.
Sales for the half year ended 30 June 2019 were 0.57 million metric tonnes which represented a
15.97% decrease compared to the same period last year according to Acting Managing Director Dr. Charles Zinyemba.
“Thermal coal contributed 40.5% of sales while industrial coal sales to the industrial customers and the tobacco sector contributed 59.5%,” Zinyemba said.
“Company’s largest export market was Zambia. Export of industrial coal to this market contributed to the export revenue.”