HWANGE COLLIERY COMPANY LIMITED - Trading up for 9 months ended September 2022 - 3

Trading up for 9 months ended September 2022 - 3

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 NINE MONTHS ENDED 30 SEPTEMBER 2022 – Q3



The Administrator of the Company wishes to advise 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 nine months ended 30 September 2022

Total coal mined for the year-to-date increased by 62.06% compared to same period last year.
    •   Production volumes of Hwange Power Station (HPS) coal increased to 996 268 tonnes in
        comparison to 534 532 tonnes in the same period in 2021.
    •   Productions volumes of Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC)
        increased to 1 330 819 tonnes in comparison to 901 387 tonnes in the same period in 2021.


Total tonnes sold for the 9 months increased from 1 356 572 to 2 277 624 tonnes compared to same
period last year.
    •   HPS sales volumes increased to 1 005 711 tonnes compared to 537 579 tonnes for the same
        period in 2021.
    •   HCC and HIC sales volumes increased to 1 271 913 tonnes compared to 818 993 for the
        same period in 2021.




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Financial Performance for the 9 months ended 30 September 2022


The year-to-date revenue for the 9 months ended 30 September 2022 increased by 40.91%, 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 regular product price adjustments in line with market
changes.




Outlook

Global coal prices continue to rise amidst ongoing Russia-Ukraine conflict and the company intends
to position itself to benefit from the increase in global demand for fossil energy.


By Order of the Administrator

Chrispen Ncube (Mr)

Company Secretary

27 October 2022

JSE Sponsor to Hwange
Questco Corporate Advisory Proprietary Limited




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Date: 27-10-2022 10:45:00
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