Harare – ZSE-listed coal miner Hwange Colliery Company Limited’s (HCCL) revenue for the half year ended June 30, 2018 increased by 62 percent from $18.8 million in the comparable period last year to $30.5 million in 2018.
In a statement accompanying the company’s financial results, Acting Chairperson, Juliana Muskwe attributed the increase in revenue to an increase in sales volume of 51 percent and increased prime grades in the sales mix.
She said the loss for the year decreased by 6 percent from US$24.5 million recorded in 2017 to US$23 million during the period under review.
Muskwe said production on the mine during the period under review increased significantly.
“Mine production improved significantly to 819,859 tonnes from 565,298 tonnes achieved during the same period in 2017, representing an increase of 45 percent.
“Though favourable than the comparable period in 2017, the company’s production performance for the period under review fell short of budgetary target of 1,047,026 tonnes by 22 percent. This was attributable to working capital constraints.”
She said the improved production has seen the company regaining its market share lost in prior years.
In the period under review, total sales tonnage was 682,152 from 450,452 for the same period last year against a budget of 1,242,880.
HPS sales to Hwange Power Station increased by 70 percent from 221,646 tonnes to 376,695 tonnes and HCC/HIC coal sales increased by 54 percent from 174,201 tonnes to 268,570 tonnes.
The cost of sales increased by 46 percent from $20.9 million in 2017 to $30.6 million driven by sales volumes which increased by 231,700 tonnes.
Muskwe added that the Company’s scheme of arrangement with its creditors afforded the Company moratorium while building the financial resources to capacitate the Company to meet its financial obligations in favour of its creditors and the Board remains confident that the turnaround efforts shall yield the desired results.
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