Categories: Stories

Hwange Colliery posts $37m loss

Coal miner Hwange Colliery’s full year losses increased by nearly 16 percent to $37 million in the full-year to December 2014 on non-recurring items which cost the company $13 million.

The company’s loss position, excluding non-recurring items was $23.7 million from the $31.6 million posted in the previous year.

Revenue marginally grew by 1.5 percent to $72 million from $71.5 million in 2013.

Sales volumes grew by six percent to 1.7 million tonnes buoyed by a 23 percent increase in production.

“The improved overall sales performance was attributed to increased production throughput,” said the group in a statement.

However, production volumes were below target at 1.8 million tonnes due to outdated company’s plant and equipment.

The company is eying to increase monthly production to 450 000 tonnes from June through its mining and contribution by a contractor.

Hwange Colliery is planning to hike coal prices.

“The current prices of $29 per tonne is unsustainable and Hwange Colliery Company will be pushing for a price increase of up to $35 per tonne. This is essential to ensure that coal supplies to all power stations remain stable. Hwange Colliery Company is of the view that this should not translate into a power tariff increase as the price of our HPS coal is relatively underpriced,” said the company.

Coal fines sales were 20 percent up compared to the prior year attributable to the demand from cement manufacturers.

Sales of coal fines of 242 735 tonnes were 20 percent above the 201 610 tonnes sold the previous year.

The company decried the impact of the legacy debt on its operations.

“The impact of the legacy debts on current cash flows continued to inflict pain on the operations of the company and torpedoed the turnaround initiatives,” it said.

“During the year under review, a total of $25 million was paid towards liquidation of legacy debts whose balance has come down to $136 million. This is in addition to $35 million which was applied to legacy debts in 2013.”- The Source

(216 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Reserve Bank of Zimbabwe expects more foreign currency sellers to join the interbank market

The gazetting into law of the payment of quarterly taxes on a 50-50 basis in…

December 4, 2024

Zimbabwe 2025 citizens’ budget

Zimbabwe has today unveiled a ZiG276.4 billion budget for 2025 during which it expects the…

November 28, 2024

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024