HWANGE COLLIERY COMPANY LIMITED - Condensed reviewed interim financial results for the period ended 30 June 2020

Condensed reviewed interim financial results for the period ended 30 June 2020

HWANGE COLLIERY COMPANY LIMITED
(Incorporated in Zimbabwe under registration number 381/1954)
ZSE Share Code: HCCL.ZW ISIN: ZW0009011934
JSE Share Code: HWA ISIN: ZW0009011934
LSE Share Code: HWA ISIN: ZW0009011934

Condensed reviewed interim financial results for the period ended 30 June 2020

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.

Owing to the above mining had stopped in August 2018.

Auditors’ Statement

The condensed interim financial results for the six months ended 30 June 2020 have been reviewed
by Grant Thornton Chartered Accountants (Zimbabwe). A report on the review has been issued and
has an adverse conclusion with respect to the following:

• Non-compliance with International Accounting Standard (IAS) 21 - The Effect of Changes in Foreign
Exchange Rates and International Accounting Standard (IAS) 29 – Financial Reporting in
Hyperinflationary Economies.

• Fair value determination of transactions, assets and liabilities.



The Engagement Partner responsible for this review is Farai Chibisa. The review report on these
condensed interim financial results is available for inspection at the Company’s registered office.


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/2020/jse/isse/hwae/hccl2020.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) and our
sponsor’s offices sharon.owens@sasfin.com on work-days during business hours, at no charge:


On behalf of the Administration Board
Zimbabwe
5 October 2020

Sponsor: Sasfin Capital (a member of the Sasfin Group)

Date: 05-10-2020 08:00:00
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