Zimbabwean coal miner Hwange narrows its loss
The JSE-listed company’s improvement in the first half is due to cost cuts, with revenue falling and output far below target
HWANGE Colliery, a Zimbabwean mining company listed on the JSE, on Monday reported a narrower loss despite a 31% drop in revenue for the six months to end June.Hwange reported revenue fell to $24.5m from the matching period’s $35.3m while its loss narrowed to $28m from $44m thanks to a decrease in administrative costs following cost containment measures.But low production levels resulted in the company falling short of budgetary targets.Monthly production average was 113,862 tonnes of coal compared with the budgeted monthly production of 340,000 tonnes.Hwange said the company could not meet the market demand occasioned by product stockouts.It would implement comprehensive cost-cutting initiatives with the aim of returning to profitability in 2017.Hwange said the expansion of Zimbabwe Power Company’s Stage 3 would create higher demand for coal, and it expected to supply an additional 200,000 tonnes of coal a month for power generation.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.