By Varaidzo Zhakata
Zimbabwe Stock Exchange-listed coal giant, Hwange Colliery Company Limited (HCCL) has recorded a 65 percent (%) recovery on its net loss for the first quarter to March, 2020 compared to the prior year.
Net loss for the quarter stood at $64 million, reflecting a magnificent recovery from a loss of $181million recorded in the comparative year.
According to the group, the reduction is largely attributed to its reconstruction phase that has seen the group gradually resuming to performance.
During the same period under review, production rose significantly to record 175,849 tonnes hence amounting to 50% compared to the prior year.
The firm however deflected a reduction in sales volumes; thereby it documented a 33% for the period.
The coal giant also communicated that this year it is expecting to increase its production to reach an average of 35 000t monthly and this target is buttressed on the formation of a second underground mining section from the already existing one.
According to the report, the firm is also ambitious in broadening high value coking coal in the production mix, so as to augment the profit margin.
HCCL has vowed to continue producing the essential mineral, as it is mostly used in all sectors that are important in the economy of this country.
While the country is on an indefinite lockdown phase as announced by President, important sectors of the economy have reopened, hence there is need for coal in manufacturing companies and for the provision of electricity.
“As a provider of coal, which is essential in the provision of electricity to the nation, as well as for processes for manufacturers, who are currently reopened for production, HCCL’s domestic market, which was the target portion of its client base remains in place and so business remains assured,” said HCCL.
“In spite of the challenges, the company has ensured continued production in order to meet customer requirements and ensure business continuity.”
Going forward, HCCL has expressed its hope over the country’s economy as the government has already announced economic revival interventions after the COVID-19 period.
By Varaidzo Zhakata