Hwange Colliery Company, which is suspended on the JSE and Zimbabwe stock exchanges and which mines coal and coke in the north-west of that country, increased gross profit 74% to Z$4.54 billion in inflation adjusted terms for the six months to June 30, 2022.
The improvement was largely due to an increase in sales volume and product price adjustments in line with market value, a statement said yesterday.
The company was placed under administration by the Zimbabwe minister of justice, legal and parliamentary affairs in October 2018 due to its financial difficulties and losses.
Despite an increase in revenue, the losses widened to Z$3.97bn from Z$870.7 million, with the net loss including a Z$8bn exchange loss on foreign legacy debts during the period.
Production increased 52%. Limited availability of spares and the general increase in prices affected the operations negatively.
The first half of 2022 operating environment was characterised by increases in commodity prices and raw materials including diesel, explosives and equipment spares.
This was partly caused by the ongoing Russia-Ukraine war, which sparked global inflation and increases in interest rates.
BUSINESS REPORT