HWANGE COLLIERY COMPANY LIMITED - Condensed reviewed interim financial results for the period ended 30 June 2021

Condensed reviewed interim financial results for the period ended 30 June 2021

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 2021

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.

AUDITOR’S STATEMENT

The condensed interim financial statements for the six months ended 30 June 2021 have been
reviewed by Grant Thornton Chartered Accountants (Zimbabwe) and an adverse review conclusion
has been issued thereon.

The adverse review conclusion was issued regarding the following:

• Non-compliance with International Accounting Standard (IAS) 21 – ‘The Effect of Changes in
Foreign Exchange Rates’,

• Non-compliance with International Accounting Standard (IAS) 29 – ‘Financial Reporting in
Hyperinflationary Economies’,

• Valuation of investment properties, and property, plant & equipment,

• Limitation of scope for revenues and inventories for Estates and Medical Services divisions, and

• Going concern.

The conclusion on these condensed interim financial statements is available for inspection at the
Company’s registered office.

The Engagement Partner responsible for this review is Farai Chibisa (PAAB Number: 0547).


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/hccl2021.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
11 October 2021

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

Date: 11-10-2021 09:10:00
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