- Revenue increased to ZWL3.03 billion from ZWL2.19 million
- Coal production scaled up by 51%
- However, PAT decreased by 87%
- Repair of HMS washing plant was completed
Harare – Zimbabwe Stock Exchange’s listed coal miner, Hwange Colliery recorded a 38% revenue growth for the half year ended 30 June 2021 to ZWL3.03 billion from ZWL2.19 million posted last year during the same half driven by increased high value coking sales and regular price adjustments in line with market value.
“Despite challenges, it is pleasing to note that operations continued throughout the period with an increase in production and sales,” the Company’s Administrator, Dale Sibanda said in a statement accompanying the financials.
Despite having foreign currency constrains to import spares and consumables, production increased by 51%, while sales volumes went up by 23.7% compared to the same period in 2020 mainly as a result of the COVID-19 effects on the market and logistics, as well as the reduced thermal coal offtake.
However, the Company posted a loss in profit after tax of 87% to ZWL160 million during the period from ZWL1.1 billion recorded last year and no definite reason was provided for by the Company, but the Company said they have been experiencing challenges in obtaining working capital as well as long term financing for the business during the period.
Coking coal sales increased by 28.6% during the period from 41 053 tonnes in 2020 to 52 793 tonnes in 2021.
“The coking coal sales volumes were however limited by washing capacity constraints,” said Sibanda.
Total coal mined by opencast operations increased by 55.59% to 806 404 tonnes during the period under review compared to the prior six months last year.
As a result, 305 679 tonnes of coal were delivered to Hwange Power Station during the course of the year, which was 14.03% increase from previous year.
Sibanda, however, said deliveries into the power station were negatively affected by plant challenges in the power station and limited stock holding space.
Meanwhile, significant investment has been made in repairs and maintenance of the HMS washing plant which was commissioned in April 2021 and is expected to boost the Company’s coal production.
Going forward, the Company expects to increase monthly coal production to 200 000 tonnes as operations are expected to stabilise within the next six to twelve months.
Equity Axis News