|
Wankie Colliery Company Limited - Unaudited Financial Results
Wankie Colliery Company Limited
Code: WAN ISIN: ZW0009011702
STATEMENT TO SHAREHOLDERS As At 30 June 2004
The company`s unaudited results for the six months ended 30 June 2004
together with appropriate comparisons for the previous periods were as follows:
FINANCIAL HIGHLIGHTS
- Turnover increased from $ 8.9 billion to $164 billion.
- Operating profit increased from $921 million to $25.1 billion.
- Net interest received was $9 billion compared to interest payable of $192
million recorded in June 2003.
- Profit after tax rose from $619.8 million to $22.9 billion.
- Earnings per share increased from 364 cents to 13 381 cents.
OVERVIEW
It is pleasing to report that in the first six months of the year, the company
operated profitably despite the continued challenges posed by the operating
environment. The overall economy stabilised following a decline in the year on
year inflation to 395% as at 30 June 2004 from a high of 622% in January 2004.
Foreign currency shortages were eased by the Reserve Bank of Zimbabwe`s auction
system. The borrowing costs were curbed by the availability of the productive
sector facility at concessionary interest rates of 30%. The prices of coal
continued to be under the price-monitoring regime for the period under review.
TRADING PERFORMANCE
Demand for coal and coke remained firm throughout the period for both the
domestic and export markets. Total coal sales for the six months period under
review increased to 1 405 960 tonnes compared to 1 314 137 tonnes achieved
during the same period last year. Of the total coal sales, 59 902 tonnes were
sold to the export market compared to 51 587 tonnes for the same period last
year.
Wankie Colliery Company (WCC) Coal
WCC coal sales tonnage was 15% above the tonnage sold in the first six months of
the previous year. This was largely due to measures put in place as part of the
turnaround strategic plan. There was generally an improved supply of wagons from
the National Railways of Zimbabwe but the market continued to utilise road
transportation for a quicker turnaround time.
Hwange Power Station (HPS) Coal
HPS coal sales tonnage was 3% above that achieved for the same period last year.
This was due to the increased plant and equipment availability at the opencast
mine. Outsourcing of some drilling, hauling and handling equipment had to be
undertaken to augment the current fleet. Coke Coke sales tonnage increased by 7%
when compared to the same period last year. Exports accounted for 43% of coke
sales for the period under review.
Gas
The increase in the supply of coke oven gas to the Hwange Power Station was due
to the increased availability of coke oven batteries and the gas pipeline.
FINANCIAL RESULTS
The unaudited accounts were prepared in compliance with International Accounting
Standard (IAS) 29 (Financial Reporting in Hyperinflationary Economies). However,
the following comments on the financial statements are based on the historic
cost figures.
Income Statement
Turnover of $163.9 billion was significantly above that for the same period last
year. This increase was attributed to a mix of increased production volumes and
price adjustments during the second half of 2003 and in February 2004. The
operating profit of $25.1 billion for the period was well above the $921.3
million realised in the first half of last year. The improvement was attributed
to the company`s turnaround efforts that emphasised increased production volumes
and reduction in costs.
The company realised net finance income of $9 billion against a net interest
payment of $191.5 million recorded for the same period last year.
After providing for corporate tax of $11.3 billion, a net profit of $22.9
billion was realised compared to $619.8 million profit earned for the same
period the previous year.
Balance Sheet
The offshore loans from Commonwealth Development Corporation, West LB and Africa
Export Import Bank that were all overdue were transferred to current
liabilities. The company was not able to fully service the offshore loans due to
inadequate foreign currency resources.
The company`s two major debtors accounted for 70% of the outstanding debtors as
at 30 June 2004. The company continued to engage these debtors at all levels and
payment plans are currently under discussion.
OUTLOOK
The demand for coal and coke products is expected to remain firm in both the
domestic and export markets.
The company`s key strategic objectives of increased production, cost reduction,
culture change and safety awareness, should be consolidated in the second half
of the year. The company has appointed a consortium of local bankers as
financial advisors to raise US$25 million required for the new 3 Main
Underground Mine. The new mine is expected to commence production in the last
quarter of 2004. A further US$8 million is being sought to capitalize the
current opencast mine to maintain production at optimum capacity. These projects
will enhance the company`s capacity to service all its existing and future
markets. A contingency plan has already been put in place and work is currently
in progress to ensure that the new mine will be opened on time even if the
securing of funding is delayed.
DIVIDEND
In light of the current economic environment and the expansion plans, the Board
has agreed that no interim dividend will be declared.
DIRECTORATE
The company welcomes Mr T.E.N Chigudu who joined the Board of Directors on 01
June 2004.
By Order of the Board
T.K NCUBE
COMPANY SECRETARY
13 August 2004
(Incorporated in Zimbabwe)
DIRECTORS: M.T. A MUTEZO (CHAIRMAN), DR. G. DZINOMWA (MANAGING), F. CHASI,
T.E.N. CHIGUDU, J. GOROMONZI, S. GULA-NDEBELE, T. KWASHIRAI, G.S MLILO, DR M.
NCUBE, J. NQINDI
INFLATION ADJUSTED
6 Months 6 Months Year
ended ended ended
30.06.04 30.06.03 31.12.03
Sales
WCC coal tones
HPS coal tonnes
Total coal sales
Coke tonnes
Coke oven gas Nm3
Income Statement $000 $000 $000
Sales Revenue 191,961,936 60,947,777 158,910,149
Profit before interest (18,334,578) (52,651,291) (60,937,486)
Monetary adjustment (12,988,855) 19,699,902 13,367,244
(31,323,433) (32,951,389) (47,570,242) Net interest income
8,973,020 (979,376) (5,923,173) Fixed assets
impairment reversal 5,500,000 0 39,329,873
Investments write-down (148,602) 0 0
(Loss)/Profit before taxation (16,999,015) (33,930,766) (14,163,542)
Taxation 4,121,485 6,379,503 4,988,096
(Loss)/Profit after taxation (12,877,530) (27,551,263) (9,175,446)
Ordinary dividend 0 0 0
(12,877,530) (27,551,263) (9,175,446)
Cents Cents Cents
(Loss)/earnings per share (7,537) (16,194) (5,376)
INFLATION ADJUSTED
30.06.04 30.06.03 31.12.03
$000 $000 $000
Summarised Balance Sheet
Capital employed:
Share capital 170,859 170,133 170,681
Reserves and retained profits 256,682,850 251,175,330 269,557,806
Shareholders equity 256,853,709 251,345,463 269,728,487
Deferred taxation 71,664,914 79,771,560 79,289,927
Long term loans 0 22,211,438 0
328,518,623 353,328,461 349,018,414
Represented by:
Fixed assets and
investments 293,915,204 310,638,371 311,429,173
Deferred foreign currency
differences 0 26,253,834 1,728,944
Current assets 169,806,010 83,638,502 92,204,279
Current liabilities 135,202,591 67,202,246 56,343,983
Net current assets 34,603,419 16,436,256 35,860,297
328,518,623 353,328,461 349,018,414
INFLATION ADJUSTED
6 Months 6 Months Year ended
ended ended ended
30.06.04 30.06.03 31.12.03
Abridged Cash Flow Statement $000 $000 $000
Cash flows from operating
activities
Operating cash flow (31,323,433) (32,951,389) (47,570,242)
Non - cash items 43,551,319 36,370,191 70,169,124
Operating cash flow before
Investment in working capital 12,227,886 3,418,802 22,598,882
Net movement in
working capital (9,547,809) 15,349,418 (1,635,306)
Net financing (costs paid)/
income received 8,973,020 (979,372) (5,923,173)
Dividends paid 0 0 0
11,653,097 17,788,849 15,040,403
Taxes Paid
Zimbabwe Income Tax (1,171,186) (183,430) (341,788)
Net cash flows from
operating activities 10,481,911 17,605,418 14,698,615
Cash flows from investing activities
Net cash flow related to
fixed assets (27,209,514) (9,078,005) (9,262,699)
Net cash flow before
financing activities (16,727,603) 8,527,413 5,435,916
Cash flows from financing
Activities
Net loans received 13,356,048 20,927,253 6,774,013
Net cash inflow/(outflow) (3,371,555) 29,454,666 12,209,928
Overdraft and acceptances less
bank balances and cash
31 December 2003 5,451,546 (6,758,386) (6,758,383)
30 June 2004 2,079,991 22,696,280 5,451,545
(3,371,555) 29,454,666 12,209,928
Statement of
Changes in Equity Share Capital General Retained Total
Capital Reserves Reserves Profit
$000 $000 $000 $000 $000
Balance as at
1 January 2004 :
Historic Cost 170,681 735,858 0 2,978,458 3,884,997
Net profit for
the half year - - - 22,863,337 22,863,337
Dividends - - - 0 0
Adjustments to
Capital Reserve 0 0 0 0 0
Adjustments to
General Reserve - - - 0 0
Issue of Share
Capital under
Option Scheme 177 - - - 177
Adjustment to
Share Capital 0 2,412 - - 2,412
Balance as at
30 June 2004 :
Historic Cost 170,858 738,270 0 25,841,795 26,750,923
Balance as at
1st January 2004 :
Current Cost 357,580,508 179,323,402 0 (267,175,351) 269,728,559
Net profit for
the half year - (12,877,530) (12,877,530)
Dividends - - - 0
Adjustments to
Capital Reserve 0 0 0 0 0
Adjustments to
General Reserve - - - - 0
Issue of Share
Capital under
Option Scheme 184 - - - 184Adjustment
to
Share Capital - 2,496 - - 2,496
(Balance as at
30 June 2004 :
Current Cost 357,580,692 179,325,898 0 (280,052,881) 256,853,709
HISTORICAL COST
6 Months 6 Months Year
ended ended ended
30.6.04 30.06.03 31.12.03
Sales
WCC coal tones 527,536 457,553 854,604
HPS coal tonnes 878,424 856,584 1,694,394
Total coal sales 1,405,960 1,314,137 2,548,998
Coke tonnes 103,266 96,702 228,389
Coke oven gas Nm3 10,149,320 9,830,644 15,598,834
Income Statement $000 $000 $000
Sales Revenue 163,916,394 8,919,397 54,310,740
Profit before interest 25,132,044 921,261 4,577,751
Monetary adjustment 0 0 0
25,132,044 921,261 4,577,751
Net interest income 9,051,732 (191,526) (1,691,609)
Fixed assets impairment
Reversal - - -
Investments write-down - - -
(Loss)/Profit before taxation 34,183,776 729,735 2,886,142
Taxation (11,320,439) (109,977) (1,007,171)
(Loss)/Profit after taxation 22,863,337 619,758 1,878,971
Ordinary dividend 0 0 0
22,863,337 619,758 1,878,971
Cents Cents Cents
(Loss)/earnings per share 13,381 364 1,104
HISTORICAL COST
30.6.04 30.06.03 31.12.03
$000 $000 $000
Summarised Balance Sheet
Capital employed:
Share capital 170,859 170,133 170,681
Reserves and retained
profits 26,580,064 2,453,105 3,714,314
Shareholders equity 26,750,923 2,623,238 3,884,995
Deferred taxation 7,816,887 554,369 0
Long term loans 0 4,491,200 0
34,567,810 7,668,807 3,884,995
Represented by:
Fixed assets and investments 31,028,255 2,454,782 4,962,580
Deferred foreign
currency differences 0 5,308,581 1,117,043
Current assets 137,944,402 13,493,881 34,208,307
Current liabilities 134,404,847 13,588,437 36,402,935
Net current assets 3,539,555 (94,556) (2,194,628)
34,567,810 7,668,807 3,884,995
HISTORICAL COST
6 Months 6 Months Year
ended ended ended
30.6.04 30.06.03 31.12.03
Abridged Cash Flow
Statement $000 $000 $000
Cash flows from
operating activities
Operating cash flow 25,132,044 921,261 4,577,751
Non - cash items 1,785,902 3,403,992 9,465,019
Operating cash
flow before
Investment in
working capital 26,917,946 4,325,253 14,042,770
Net movement in
working capital (23,270,437) (2,336,498) (9,092,061)
Net financing
(costs paid)/income
received 9,051,732 (191,527) (1,691,609)
Dividends paid 0 0 0
12,699,241 1,797,228 3,259,100
Taxes Paid
Zimbabwe Income Tax (1,171,186) (15,599) (105,273)
Net cash flows from
operating activities 11,528,055 1,781,629 3,153,827
Cash flows from
investing activities
Net cash flow related
to fixed assets (26,308,183) (799,024) (3,507,119)
Net cash flow before
financing activities (14,780,128) 982,605 (353,292)
Cash flows from
financing activities
Net loans received 13,337,964 4,231,535 4,500,351
Net cash inflow/(outflow) (1,442,164) 5,214,140 4,147,059
Overdraft and acceptances less
bank balances and cash
31 December 2003 3,522,155 (624,904) (624,904)
30 June 2004 2,079,991 4,589,236 3,522,155
(1,442,164) 5,214,140 4,147,059
Date: 14/09/2004 08:19:32 AM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
