HWANGE Colliery Company (HCC), a thermal coal miner in Zimbabwe, had shown signs of its potential but lower-than-budgeted production still resulted in a $43.8m loss for the year ended December 31. The company recorded a loss of $89.9m in the previous financial year.
“As demonstrated by the financial results, there are signs of recovery. The narrowing of the loss position confirms the company is on course to recovery,” it said in notes to its financial results issued last week.
However, average monthly production of 110,000 tonnes was way below the budgeted 340,000 tonnes. “As a result, the company failed to meet the market demand,” it said. Total sales tonnage was 1.38 million tonnes (Mt) against a budget of 3.6Mt compared to 921,627 tonnes and 3.66Mt respectively recorded in 2016.
“The company’s scheme of arrangement with its creditors afforded the company the operating space while building the financial resources to capacitate the company to meet its financial obligations,” it said.
“The company is grateful for the support received from all its stakeholders and still requires such support notably from its creditors, employees, suppliers and shareholders. The board remains confident that the turnaround efforts shall yield the desired results,” it said.
