HWANGE COLLIERY COMPANY LIMITED - Trading update for the 3rd quarter ended 30 September 2021
Trading update for the 3rd quarter ended 30 September 2021
HWANGE COLLIERY COMPANY LIMITED
(Incorporated in Zimbabwe under registration number 381/1954)
ZSE Share Code: HCCL
JSE Share Code: HWA
LSE Share Code: HWA
ISIN: ZW0009011934
(“Hwange” or “the Company”)
TRADING UPDATE FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2021
The Administrator of the Company wishes to advice that the Company remains under administration
in terms of the Reconstruction of State-Indebted Companies Act [Chapter 24:27] of Zimbabwe. The
Company’s listing on the Zimbabwe Stock Exchange also remains suspended.
Economic environment
The operating environment continued to be extremely, challenging characterized by inflation and
shortage of foreign currency in Zimbabwe, as well as obsolete and redundant machinery, driven by
insufficient foreign currency as a result of low retention and low export volumes as well as poor
interbank forex availability.
Trading performance for the 9 months ended 30 September 2021
Total coal mined for the year-to-date increased by 47.66% compared to same period last year.
• Production volumes at Hwange Power Station (HPS) coal increased to 538 182 tonnes in
comparison to 406 104 tonnes in the same period in 2020.
• Productions volumes at Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC)
increased to 901 386 tonnes in comparison to 568 849 tonnes in the same period in 2020.
Total tonnes sold for the 9 months increased from 1.02 million to 1.36 million tonnes compared to
same period last year.
• HPS sales volumes increased to 537 231 tonnes compared to 486 297 tonnes for the same
period in 2020.
• HCC and HIC sales volumes increased to 818 993 tonnes compared to 537 579 for the same
period in 2020.
Financial Performance for the 9 months ended 30 September 2021
The year-to-date revenue for the 9 months ended 30 September 2021 increased by 27%, in inflation
adjusted terms when compared to the same period last year. This was largely due to a combination
of an increase in high value coking coal sales and regular product price adjustments in line with market
value.
Outlook
The company 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. Engagements with key logistical partners such
as BBR, NRZ and ZRL are on-going to ensure the whole value chain is smoothened and that Hwange
coal remains competitive on the export market. This has however been negatively affected by the
Covid 19 pandemic which has resulted in many countries placing restrictions on cross border
movements.
By Order of the Administrator
S.Chigumira
A/Finance Manager and Company Secretary
20 December 2021
JSE Sponsor to Hwange
Questco Corporate Advisory Proprietary Limited
Date: 20-12-2021 04:45:00
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