HCCL’s after tax loss

Hwange Colliery Company Limited registered an after tax loss of US$1,5 million despite an 8 percent jump in sales revenue in the first six months of the year.

Sales revenue for the mining firm grew to US$48,6 million compared to US$42,2 million during the same period last year.

“The company incurred an unaudited net loss after taxation of US$1,5 million and this compared unfavourably to the US$4,5 million profit recorded for the same period in 2010,” HCCL company secretary, Thembelani Ndlovu, said. “This negative financial performance is attributed to the increase in overhead costs against stagnant production volumes and prices of products. The cost of short-term borrowings, increase in fuel prices and mining contract costs impacted negatively on the company.”

During the period under review, HCCL entered into discussions with potential new clients including New Zimsteel (formerly Ziscosteel). Total coal sales for six months were down to 1 161 427 tonnes from 1 178 724 tonnes. Coal deliveries to Zimbabwe Power Company amounted to 688 263 tonnes from 769 340 tonnes.

Hwange’s coking coal and industrial coal sales increased by 14 percent from 319 159 tonnes during the same period last year to 364 688 tonnes during the period under review.

The company recorded a 5 percent increase in coke sales from 18 198 tonnes in the first half of 2010 to 18 943 tonnes. Ncube said export marketing efforts were negatively affected by a global recession that depressed demand and prices of fossil fuels in general.

Post published in: Business

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