- Total tonnes sold increased to 683 896 tonnes
- HPS sales volumes improved to 360 698 tonnes
- Total coal mined went up by 74%
Harare - Hwange Colliery Limited says despite facing challenges of price discovery which affected its input costs and profitability, the market was buoyed by strong demand for both thermal and coking coal that positively pushed sales during the first quarter ended 31 March 2022.
In a trading update, the Company said total sales sold for the three months increased from 354 888 to 683 896 tonnes during the quarter under review.
Hwange Power Station (HPS) sales volumes increased to 360 698 tonnes compared to 148 957 tonnes for the same period in 2021 while Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC) sales volumes increased to 295 755 tonnes compared to 204 816 for the same period in 2021.
Total coal mined for the year-to-date increased by 74% compared to the same period last year.
Production volumes of HPS coal increased to 412 528 tonnes in comparison to 112 207 tonnes recorded in the same quarter last year.
However, production volumes at HCC and HIC decreased to 236 041 tonnes in comparison to 260 677 tonnes in the same period in 2021.
Meanwhile, the Company's year-to-date inflation-adjusted revenue increased by 64% compared to the same quarter last year due to a combination of an increase in production and high-value coking coal sales and regular product price adjustments in line with market value.
Going forward, Hwange Colliery is currently on an export drive to improve export earnings.
“The company is increasing in-roads in regional markets such as Zambia, DRC, Malawi, Mozambique, Botswana and South Africa which is however negatively affected by poor logistics,” The Company said.
About Hwange Colliery
Hwange Colliery Company Limited explores, mines, processes and markets coal, coke and associated by-products. The coke categories include foundry coke, metallurgical coke, coke peas and coke breeze.
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