• Fri. Apr 19th, 2024

Hwange Colliery mines better quarter amid economic turbulence

ByETimes

Mar 27, 2024 #Hwange Colliery

By ETimes

HARARE – Hwange Colliery, under administration in terms of Zimbabwean law, has reported a promising quarter ending September 30, 2023, despite ongoing economic challenges.

The company, whose stock remains suspended on the Zimbabwe Stock Exchange, navigated inflationary pressures and currency fluctuations to achieve notable improvements in production and sales.

In a recent trading update, the Administrator of Hwange Colliery, Munashe Shava, emphasized the company’s notable performance despite Zimbabwe’s economic challenges. Shava remarked, “Despite the adverse economic conditions, Hwange Colliery has shown resilience and adaptability.”

Shava highlighted the persistent inflationary pressures, stating, “The trading environment remains challenging, with inflation largely driven by adverse currency movements against the US dollar.”

Despite these challenges, the company maintained a hybrid pricing strategy, with Shava noting, “At least 50% of our sales are priced in US dollars, mitigating some of the currency risks.”

Financially, Shava expressed satisfaction with the company’s performance, stating, “We are pleased to report a unaudited profit before tax of US$10.2 million for the quarter, a significant improvement from the previous year.”

He attributed this success to increased production and sales volume, facilitated by efficient machinery acquired earlier in the year.

Segmentally, Shava pointed out the mining division’s outstanding contribution, stating, “The mining division emerged as the top performer, contributing 96% of the company’s revenues.”

He attributed this success to recent mechanization efforts, highlighting the division’s strategic importance.

Looking ahead, Shava outlined the company’s plans to address operational challenges, stating, “We aim to halt underground mine production for the next six months to mitigate coal loss through spontaneous combustion.”

Despite this temporary measure, he reassured stakeholders, saying, “The quantity of mined coal remains sufficient to meet our operational needs.”

Shava expressed cautious optimism about the company’s future, stating, “The positive performance of Hwange Colliery demonstrates our resilience and ability to navigate challenging economic conditions.”

He emphasized the company’s commitment to sustainable growth and profitability, concluding, “We remain focused on capitalizing on opportunities in the coal mining sector.”

By ETimes

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