HWANGE COLLIERY COMPANY LIMITED Listed coal producer,
Presenting the company's performance for the period ended
"This will result in the company getting new underground mining equipment valued in excess of
"This arrangement will enable us to increase production to 50 000 tonnes per month in the second half of 2022, then 100 000 tonnes per month in the first half of 2023 and 150 000 tonnes per month in the last quarter of year 2023, compared to the current production of 15 000 tonnes per month," he said.
He said in addition, Opencast operations at the JKL pit will continue to be capacitated in order to increase high value coking coal in the product mix so as to increase production to 90 000 tonnes per month by end of 2022.
Sibanda added: "The company will also engage a new mining contractor to increase high value coking coal, with a target production of 20 000 tonnes per month."
During the review period, revenue improved by 31% from ZW$ 7,2 billion in 2020 to ZW$ 9,4 billion in 2021 on an inflation-adjusted basis on the back of an increase in sales of high value coking coal and regular product price adjustments done during the year in line with market value.
Gross profit also increased by 26% from ZW$ 1,6 billion in the prior year to ZW$ 2,1 billion in inflation adjusted terms this year.
The company posted a net profit of ZW$ 28,6 million during the year and the decrease was mostly attributed to exchange rate impact on legacy debts, which contributed ZW$904 million of unrealised losses on inflation adjusted terms.
"Going forward, the company aims to grow its market share of coking coal sales in neighbouring countries, as its coking coal and coke meet quality specifications in the ferro-chrome industries and smelters. Plans to develop dedicated solutions for the delivery of coking coal and coke products in the region are underway," added Sibanda.
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