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However, production volumes were below target at 1.8 million tonnes due to outdated company’s plant and equipment.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

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024