Abridged audited financial results for the year ended 31 December 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 (“the Company”) Abridged audited financial results for the year ended 31 December 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 remains under administration in terms of the Reconstruction of State-Indebted Companies Act (Chapter 24:27). The appeal by the Minister of Justice, Legal and Parliamentary Affairs to the Supreme Court in the matter of the confirmation of the Reconstruction Order remains pending, and administration continues as normal. Owing to the above mining had stopped in August 2018. Total costs in 2020 were 794% higher than in 2019 at $269,182,079 as a result of the increase in labour costs, power costs and legacy cost adjustments. Net loss for the year was $4,122,004 compared to a profit of $2,324,748 in the previous year . Actions to improve the Division’s performance will include: • Increasing commercial space by engaging in BOOT arrangements with potential investors; • Stringent debt collection to boost cashflows; • Refurbishment of retail facilities to improve customer experience; and • Diversification of product ranges. Planned projects were slowed down mainly by Covid19-induced restrictions. The Division undertook the Zimbabwe Open University Hwange Campus project and undertook major repairs on employee housing. Auditor’s Statement The auditors have issued an adverse audit opinion on the inflation adjusted financial statements with respect to non-compliance with International Accounting Standard (IAS) 21 - The Effect of Changes in Foreign Exchange Rates, International Accounting Standard (IAS) 29 – Financial Reporting in Hyperinflationary Economies, going concern, financial results of equity accounted investments, and the revenue streams and inventory for some of the divisions in the Company. The Auditors have included a section on key audit matters. The key audit matters were with respect to the allowances for credit losses and income taxes. There is an emphasis of matter regarding the impact of COVID-19 pandemic on the Company’s operations. The auditor’s report on the inflation adjusted financial statements which form the basis of these financial results is available for inspection at the Company’s registered office. The Engagement Partner on the audit resulting in this auditor’s report is Farai Chibisa (PAAB Number 0547). The full audit opinion can be downloaded on the following link: HCCLINDEPENDENTAUDITORSASSEMENTREPORT.pdf (hwangecolliery.co.zw) 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/2021/jse/isse/hwae/hwa2021.pdf Any investment decision by investors and/or shareholders should be based on consideration of the full announcement, copies of which are also available for inspection at our offices (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 11 June 2021 Sponsor: Sasfin Capital (a member of the Sasfin Group) Date: 11-06-2021 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.