HWANGE COLLIERY COMPANY LIMITED - Trading update Q1 2022
Trading update Q1 2022
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 QUARTER ENDED 31 MARCH 2022
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 economic environment for the quarter under review was fairly stable, with some price
discovery challenges affecting the company’s input costs and profitability. Despite these challenges,
the market was buoyed by a strong demand for both thermal and coking coal that positively pushed
sales.
Trading performance for the 3 months ended 31 March 2022
Total coal mined for the year-to-date increased by 74% compared to same period last year.
• Production volumes of Hwange Power Station (HPS) coal increased to 412 528 tonnes in
comparison to 112 207 tonnes in the same period in 2021.
• Productions volumes at Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC)
decreased to 236 041 tonnes in comparison to 260 677 tonnes in the same period in 2021.
Total tonnes sold for the 3 months increased from 354 888 to 683 896 tonnes compared to same
period last year.
• HPS sales volumes increased to 360 698 tonnes compared to 148 957 tonnes for the same
period in 2021.
• HCC and HIC sales volumes increased to 295 755 tonnes compared to 204 816 for the same
period in 2021.
Financial Performance for the 3 months ended 30 March 2022
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The year-to-date revenue for the 3 months ended 31 March 2022 increased by 64%, in inflation
adjusted terms when compared to the same period last year. This was largely 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.
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.
By Order of the Administrator
Chrispen Ncube (Mr)
Company Secretary
18 July 2022
JSE Sponsor to Hwange
Questco Corporate Advisory Proprietary Limited
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Date: 18-07-2022 02:30:00
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