HWANGE COLLIERY COMPANY LIMITED - Interim results for 6 months ended 30 June 2033

Interim results for 6 months ended 30 June 2033

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”)


Summary: Condensed interim financial results for the period ended 30 June 2022

Introduction to the Company

The Company’s principal activities are exploration, mining, processing of coal and the production of
coke and related by-products in the north western part of Zimbabwe, Hwange District in the
Matabeleland North Province.

The Company was placed under administration by a Reconstruction Order made by the Minister of
Justice, Legal and Parliamentary Affairs (“the Minister”) in terms of the Reconstruction of State-
Indebted Companies Act (Chapter 24:27) on or about 26 October 2018. The reasons for this include:

a) Gross losses;
b) Persistent losses over a long period;
c) Negative cash flow;
d) Obsolete and antiquated plant and equipment;
e) Technical insolvency with liabilities significantly exceeding assets;
f) Non payment of creditors as they fell due; and
g) Non payment of employees over a long period of time.

ZSE AND JSE LISTING

The Zimbabwe Stock Exchange (“ZSE”) and JSE Limited (‘JSE”) suspension owing to Administration,
continues.

FINANCIAL PERFORMANCE

Despite the increase in revenue, the company posted losses for the period, of ZWL 3.97 billion in
inflation adjusted terms. The net loss is a result of ZWL 8 billion exchange loss on foreign legacy
debts during the period under review.



The Company’s gross profit increased by 74% to ZWL 4.54 billion in inflation adjusted terms
compared to same period last year. This was largely due to a combination of an increase in sales
volume and regular product price adjustments in line with market value.



REVIEW OF OPERATIONS
The Company’s production increased by 52% during the period under review. The sales volumes,
however increased by only 74% compared to 2021. Limited availability of spares and the general
increase in prices of maintenance spares and consumables affected the operations negatively.


Full Announcement

This short-form announcement is the responsibility of the Administrators of the Company and is a
summary of the information in the full announcement which is available for viewing on the following
website:

JSE website: https://senspdf.jse.co.za/documents/2022/jse/isse/hwae/int2022.pdf

Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement, copies of which can be requested from our offices from ppfunye@dmh.co.zw) on work-
days during business hours, at no charge:


On behalf of the Administration Board


Zimbabwe
4 October 2022

JSE Sponsor to Hwange
Questco Corporate Advisory Proprietary Limited

Date: 04-10-2022 08:00:00
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