Hwange Colliery Company Limited
ABRIDGED AUDITED | Proudly Providing |
FINANCIAL RESULTS | |
More Than Just Coal | |
For the year ended 31 December 2022
MAIN OPERATIONS
Hwange Colliery Company Limited P.O. Box 123, Hwange, Zimbabwe.
The HCCL Financial Results areTel: 263 - 81 - 23101 23401/9. Fax: 263 - 81 - 22727, 23052/95
available on the following websites:
Email: hremarketing@hwange.co.zw, corporatea@hwanqecolliery.co.zw
www.hccl.co.zw, www.zse.co.zw
www.hccl.co.zw
ADMINISTRATOR'S LETTER
OVERVIEW | OUTLOOK |
The operating economic environment for the year under review was stable, with some price discovery challenges affecting the company's input costs and profitability. Despite these challenges, the market was buoyed by a strong demand for both thermal and coking coal, which positively pushed sales.
FINANCIAL PERFORMANCE
Revenue improved by 139.76% from ZWL32.42 billion in 2021 to ZWL77.73 billion in 2022 on an inflation- adjusted basis. This was largely driven by the increase in sales tonnes.
Gross profit increased by 226.20% from ZWL7.10 billion prior year to ZWL23.16 billion in inflation adjusted terms this year. The Company posted a loss of ZWL8.6 billion for the year. The loss was mostly attributed to exchange rate impact on legacy debts. Legacy debts contributed ZWL30.70 billion of unrealised losses in inflation adjusted terms.
REVIEW OF OPERATIONS
Coal production increased by 63% while sales volumes increased by 45% compared to the prior year. Despite the remarkable increase in production and sales compared to the previous year, the underground mine section was affected by delays in the commissioning of new equipment, while the market for NPD (nuts, peas, and duff) and Duff products was depressed. Going forward, the company intends to continue increasing coking coal production and sales, which will in turn increase capacity to discharge obligations to creditors as well as create a positive balance sheet in the medium term.
The Company continues to place emphasis on a low-cost,high-productivity strategy. This has enabled the organization to significantly reduce costs while remaining viable. Tight controls remain on costs, and this has had a very positive impact on cash flows as well. The strategy of low capital investment, low risk of losses, and high production output by outsourcing opencast mining also continued in the period under review.
The strategic priorities for the year were as follows:
The business maintained its certification to the three (3) ISO standards on Health and Safety, Environmental Management and Quality Management. Operations were guided by strict adherence to these standards.
As a part of efforts to increase production, the Company entered into an equipment mobilisation and coal offtake agreement through which it will receive new underground mining equipment valued at USD15 million over a period of two years. A consignment of the equipment worth USD6 million has since been received and commissioned into operation. This is expected to increase underground production to 50,000 tonnes by mid-2023.
The Company has also engaged new mining contractors to open three new opencast pits to guarantee coking coal annual production of 772,000 tonnes per year.
On the coal processing front, the Company acquired two new washing plants that will be commissioned during the second half of 2023. The washing plants will be located near the mining areas to reduce hauling and processing costs.
The development of the Option Area has started with the boxcut and mining of a portal that will lead to the underground mine. This new mine will augment the production of coking coal from the current 3 Main underground mines. Coal production from the Option Area is scheduled for 2024.
The Company has a thrust in 2023 to grow its market share of coking coal sales in neighbouring countries. Advanced plans to develop dedicated solutions for the delivery of coking coal and coke products in the region are underway.
MR MUNASHE SHAVA ADMINISTRATOR
30 April 2023
Page 1 of 7
Overall, 2022 was a safe year with no fatal accidents. The Company achieved a lost-time injury frequency rate of 1.06. This was a notable achievement. This commendable performance was a product of initiatives implemented by the organisation through increasing safety awareness and behaviour, system implementation, and technology adoption. HCCL has embraced a risk- and opportunity-based approach to all its operations to enhance its journey to zero harm.
On the health front, robust measures aimed at preventing and managing incidents related to non-communicable diseases were established through a wellness policy.
The quality of products produced was managed throughout the value chain using the Integrated Business Management System (IBMS). This ensured that our production was done safely, with minimal negative impact on the environment, and that quality products were delivered to our customers.
The focus during the period under review was on increasing production and sales of high value coking coal. Raw coking coal and clean coking coal sales increased by 36%, from 594,482 tonnes in 2021 to 808,315 tonnes in 2022. The total coal produced by opencast operations was 3,128,884 tonnes, a 73% increase in production from the previous year.
A total of 1,198,539 tonnes of coal were delivered to Hwange Power Station during the course of the year, which was an increase of 63% from the previous year. Deliveries into the power station were, however, negatively affected by challenges at the power station and limited stock holding space at the same.
Underground mine coal production declined by 24% compared to the previous year. This was mainly due to delays in commissioning the new underground mining equipment due to COVID-19 restrictions that affected the movement of the engineers from the Original Equipment Manufacturers.
PRODUCTION
31-Dec-2231-Dec-21
Tonnes | Tonnes | |
COAL PRODUCTION | ||
Underground | 168 023 | 221 808 |
Open Pits | 3 128 883 | 1 804 664 |
Total Coal Produced | ||
3 296 906 | 2 026 472 |
ABRIDGED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
INFLATION ADJUSTED | HISTORICAL COST | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Notes | ZW$ | 000 | ZW$ | 000 | ZW$ | 000 | ZW$ | 000 | |
Revenue | 4 | 77 733 913 | 32 419 059 | 60 017 845 | 7 505 194 | ||||
Cost of sales | (54 572 469) | (25 359 320) | (40 155 840) | (5 927 407) | |||||
Gross profit | 23 161 444 | 7 059 739 | 19 895 005 | 1 577 787 | |||||
Other income | 6 | 520 071 | 179 983 | 424 260 | 44 178 | ||||
Other losses and gains | 7 | (30 717 015) | (3 108 200) | (22 834 044) | (780 795) | ||||
Marketing costs | (373 051) | (169 587) | (281 141) | (40 878) | |||||
Administrative costs | (14 234 401) | (7 678 566) | (12 965 666) | (1 859 896) | |||||
Gain on net monetary position | 14 262 814 | 3 915 058 | - | - | |||||
Operating (loss)/profit before interest and tax | (7 380 138) | 198 427 | (15 797 586) | (1 059 604) | |||||
Finance costs | 8 | (1 490 016) | (436 210) | (932 420) | (108 862) | ||||
Share of profit/(loss) from equity accounted | |||||||||
investments | 9 | 4 645 | (19 326) | 4 645 | (1 414) | ||||
Loss before tax | 10 | (8 865 509) | (257 109) | (16 725 361) | (1 169 880) | ||||
Income tax credit | 11 | 236 817 | 355 431 | 130 399 | 80 125 | ||||
(LOSS)/PROFIT FOR THE YEAR | (8 628 692) | 98 322 | (16 594 962) | (1 089 755) | |||||
Other comprehensive income: | |||||||||
Gain on revaluation property plant and equipment | - | - | - | - | |||||
Tax effect on revaluation | - | - | - | - | |||||
- | - | - | - | ||||||
TOTAL COMPREHENSIVE (LOSS)/INCOME | |||||||||
FOR THE YEAR | (8 628 692) | (16 594 962) | |||||||
98 322 | (1 089 755) | ||||||||
Attributable (loss)/earnings per share | 12.1 | (46.97) | 0.54 | (90.33) | (5.93) | ||||
Diluted (loss)/earnings per share | 12.2 | (46.97) | 0.54 | (90.33) | (5.93) | ||||
Headline (loss)/earnings per share | 12.2 | (47.31) | 0.46 | (90.52) | (5.91) | ||||
12.3 | (47.31) | 0.46 | (90.52) | (5.91) |
Hwange Colliery Company Limited
ABRIDGED AUDITED | Proudly Providing |
FINANCIAL RESULTS | More Than Just Coal |
For the year ended 31 December 2022
ABRIDGED STATEMENT OF FINANCIAL POSITION | ABRIDGED STATEMENT OF CHANGES IN EQUITY |
AS AT 31 DECEMBER 2022 | FOR THE YEAR ENDED 31 DECEMBER 2022 |
INFLATION ADJUSTED | HISTORICAL COST | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||
ASSETS | |||||||
Non current assets | |||||||
Property plant and equipment | 13 | 59 569 360 | 59 849 161 | 10 563 170 | 10 761 079 | ||
Investment property | 14 | 4 102 360 | 4 102 360 | 458 433 | 458 433 | ||
Investments accounted for using the equity method | 15 | 2 275 993 | 2 271 348 | 19 398 | 14 753 | ||
Inventories - non current portion | 17 | 1 041 176 | 1 098 488 | 4 687 | 4 945 | ||
66 988 889 | 67 321 357 | 11 045 688 | 11 239 210 | ||||
Current assets | |||||||
Inventories | 18 | 10 665 919 | 4 954 646 | 8 897 302 | 1 156 729 | ||
Prepayments | 899 252 | - | 899 252 | - | |||
Trade and other receivables | 19 | 8 586 210 | 3 356 373 | 8 586 210 | 976 371 | ||
Cash and cash equivalents | 21 | 880 674 | 345 541 | 880 674 | 100 518 | ||
21 032 055 | 8 656 560 | 19 263 438 | 2 233 618 | ||||
Total assets | 88 020 944 | 75 977 917 | 30 309 126 | 13 472 828 | |||
EQUITY AND LIABILITIES | |||||||
Capital and reserves | |||||||
Share capital | 22.1 | 11 174 890 | 11 174 890 | 45 962 | 45 962 | ||
Share premium | 126 899 | 126 899 | 578 | 578 | |||
Non-distributable reserve | 1 059 671 | 1 059 671 | 4 358 | 4 358 | |||
Revaluation reserve | 801 284 | 801 284 | 8 357 425 | 8 357 425 | |||
Retained earnings/(Accumulated losses) | 22 352 120 | 30 980 812 | (18 852 596 ) | (2 257 634 ) | |||
35 514 864 | (10 444 273 ) | ||||||
44 143 556 | 6 150 689 | ||||||
Non current liabilities | |||||||
Borrowings | 23.1 | 13 017 031 | 630 002 | 13 017 031 | 183 266 | ||
Long term creditors | 24 | 17 938 459 | 9 525 980 | 17 938 459 | 2 771 114 | ||
Income tax liability | 25 | 1 281 | 14 259 | 1 281 | 4 148 | ||
Deferred tax liability | 11.3 | 13 753 611 | 13 990 428 | 2 000 930 | 2 131 329 | ||
32 957 701 | |||||||
44 710 382 | 24 160 669 | 5 089 857 | |||||
Current liabilities | |||||||
Borrowings | 23.2 | - | 182 957 | - | 53 222 | ||
Trade and other payables | 24 | 5 720 714 | 4 728 380 | 5 720 714 | 1 375 489 | ||
Provisions | 26 | 2 074 984 | 2 762 355 | 2 074 984 | 803 571 | ||
7 795 698 | |||||||
7 795 698 | 7 673 692 | 2 232 282 | |||||
Total equity and liabilities | 88 020 944 | 75 977 917 | 30 309 126 | 13 472 828 | |||
INFLATION ADJUSTED
Non - | ||||||||
Share | Share | distributable | Revaluation | Retained | ||||
capital | premium | reserve | reserve | earnings | Total | |||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ | 000 | ZW$ 000 | ||
Balance at 1 January 2021 | 11 174 890 | 126 899 | 1 059 671 | 801 284 | 30 882 490 | 44 045 234 | ||
Total comprehensive income for the year | - | - | - | - | 98 322 | 98 322 | ||
Balance at 31 December 2021 | 11 174 890 | 126 899 | 1 059 671 | 801 284 | 30 980 812 | 44 143 556 | ||
Balance at 1 January 2022 | 11 174 890 | 126 899 | 1 059 671 | 801 284 | 30 980 812 | 44 143 556 | ||
Other comprehensive income, net of tax | - | - | - | - | - | |||
Total comprehensive income for the year | - | - | - | - | (8 628 692 ) | (8 628 692) | ||
Balance at 31 December 2022 | 11 174 890 | 126 899 | 1 059 671 | 801 284 | 22 352 120 | 35 154 864 | ||
HISTORICAL COST | ||||||||
Non - | ||||||||
Share | Share | distributable | Revaluation | Accumulated | ||||
capital | premium | reserve | reserve | Losses | Total | |||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||
Balance at 1 January 2021 | 45 962 | 578 | 4 358 | 8 357 425 | (1 167 879) | 7 240 444 | ||
Comprehensive income for the year | - | - | - | - | (1 089 755 ) | (1 089 755) | ||
Other comprehensive income, net of tax | - | - | - | - | - | - | ||
Balance at 31 December 2021 | 45 962 | 578 | 4 358 | 8 357 425 | (2 257 634) | 6 150 689 | ||
Balance at 1 January 2022 | 45 962 | 578 | 4 358 | 8 357 425 | (2 257 634 ) | 6 150 689 | ||
Total comprehensive income for the year | - | - | - | - | (16 594 962 ) | (16 594 962) | ||
Balance at 31 December 2022 | 45 962 | 578 | 4 358 | 8 357 425 | (18 552 596) | (10 444 273) | ||
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1 NATURE OF OPERATIONS AND GENERAL INFORMATION
Hwange Colliery Company Limited is a Company whose principal activities include extraction, processing and distribution of coal and coal products and provision of health services and various retail goods and services. Its activities are catergorised into the following three (3) areas:
Page 2 of 7
ABRIDGED STATEMENT OF CASH FLOWS | i) Mining - the extracting, processing and distribution of coal and coal products. | |||||||||||
FOR THE YEAR ENDED 31 DECEMBER 2022 | ii) Medical services - provides healthcare to staff members and the surrounding community. | |||||||||||
iii) Estates - the division provides properties for rental and sell retail goods and services. | ||||||||||||
INFLATION ADJUSTED | HISTORICAL COST | The Company is a limited liability Company incorporated and domiciled in Zimbabwe. It is listed primarily on | ||||||||||
2022 | 2021 | 2022 | 2021 | the Zimbabwe Stock Exchange (ZSE), and has secondary listing on the Johannesburg Stock Exchange (JSE) and | ||||||||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | London Stock Exchange (LSE). | |||||||
The Company's financial statements were authorised for issue by the Administrator on the 4th of May 2023. | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Loss before tax | (8 865 509) | (257 109 ) | (16 725 361 ) | (1 169 880 ) | ||||||||
Presentation currency | ||||||||||||
Adjustment for non-cash items: | These financial statements are presented in Zimbabwe Dollars (ZWL) being the functional and reporting currency | |||||||||||
Foreign exchange loss | 30 717 015 | 3 108 200 | 22 834 044 | 780 795 | of the primary economic environment in which the Company operates. | |||||||
Finance costs | 8 | 1 490 016 | 436 210 | 932 420 | 108 862 | |||||||
Impairment of assets | 13 | - | 52 454 | - | 9 040 | |||||||
Depreciation | 13 | 829 184 | 1 871 457 | 462 062 | 429 356 | 2 | STATEMENT OF COMPLIANCE | |||||
Share of loss/(profit) from equity accounted | ||||||||||||
investments | 9 | (4 645 ) | 19 326 | (4 645 ) | 1 414 | The abridged financial results of the Company have been prepared using accounting policies consistent with | ||||||
Amortisation | - | 22 757 | - | 53 | International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods | |||||||
Allowance for credit losses | 19 | 161 685 | (127 651 ) | 431 542 | (37 134 ) | followed in the abridged financial results are as applied in the Company latest annual financial statements. The | ||||||
Gain on net monetary position | (14 262 814 ) | (3 915 058 ) | - | - | Company partially complied with the International Financial Reporting Standards due to the requirement to | |||||||
comply with Statutory Instrument 33 of 2019. | ||||||||||||
Operating cash flow before changes in working capital | 10 064 932 | 1 120 586 | 7 930 062 | 122 506 | IAS 29 'Financial Reporting in Hyper -Inflationary Economies' | |||||||
The Company adopted IAS 29 - "Financial Reporting in Hyper -Inflationary Economies" effective 1 January 2019 | ||||||||||||
Changes in working capital: | as proclaimed by the local accounting regulatory board, Public Accountants and Auditors Board "PAAB". IAS | |||||||||||
Increase in inventory | (5 653 961 ) | (2 647 015 ) | (7 740 315 ) | (596 725 ) | 29 requires that the financial statements prepared in the currency of a hyper-inflationary economy be stated in | |||||||
Increase in prepayments | (899 252 ) | - | (899 252 ) | - | terms of a measuring unit current at the balance sheet date. The restatement has been calculated by means of | |||||||
Increase in receivables | (5 229 837 ) | (479 089 ) | (7 609 839 ) | (418 509 ) | conversion factors derived from the consumer price index( CPI) prepared by the Reserve Bank Of Zimbabwe. The | |||||||
Increase in provisions | 687 371 | 1 055 100 | 1 271 413 | 494 593 | conversion factors used to restate the financial statements at 31 December 2022, using a 31 December 2021 | |||||||
Increase in trade and other payables | (992 334 ) | 175 046 | 4 345 225 | 551 430 | base are as follows: | |||||||
Cash utilised in operating activities | (2 023 081) | (685 372 ) | (2 702 706 ) | 153 295 | Date | Indices | Conversion Factor | |||||
31 December 2022 | 13 673 | 1.000 | ||||||||||
Interest paid | - | (9 043 ) | - | (2 039 ) | 31 December 2021 | 3 977 | 3.438 | |||||
Tax paid | (3 081 ) | - | (2 867 ) | - | ||||||||
2.1 | Changes in accounting policy and disclosures | |||||||||||
Other standards and amendments that are not yet effective and have not been adopted early by the Company | ||||||||||||
Net cash flows utilised in operating activities | (2 026 162) | (694 415) | (2 705 573) | 151 256 | include: | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | 2.1.1 | Classification of Liabilities as Current or Non-current-Amendments to IAS 1 | ||||||||||
Acquisition of property,plant and equipment | (556 279 ) | (195 853 ) | (271 049 ) | (55 288 ) | The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are classified | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification | |||||||||||
is unaffected by the expectations of the entity or events after the reporting date (e.g. the receipt of a waver or a | ||||||||||||
Increase in long-term creditors | 6 834 027 | 226 688 | 3 763 033 | 51 103 | breach of covenant). The amendments also clarify what IAS 1 means when it refers to the 'settlement' of a liability. | |||||||
Repayment of borrowings | (15 487 ) | (509 574 ) | (6 255 ) | (110 327 ) | ||||||||
The amendments could affect the classification of liabilities, particularly for entities that previously considered | ||||||||||||
Net cash flows generated from financing activities | 6 818 540 | (282 886) | 3 756 778 | (59 224) | ||||||||
management's intentions to determine classification and for some liabilities that can be converted into equity. | ||||||||||||
Net Increase/(decrease) in cash and cash equivalents | 4 236 099 | (1 173 154 ) | 780 156 | 36 744 | They must be applied retrospectively in accordance with the normal requirements in IAS 8 Accounting Policies, | |||||||
Cash and cash equivalents at beginning of the year | 345 541 | 219 229 | 100 518 | 63 774 | Changes in Accounting Estimates and Errors. The amendment will impact how the entity classifies liabilities | |||||||
Effects of inflation | (3 700 966 ) | 1 299 466 | - | - | between current and non current. | |||||||
Cash and cash equivalents at end of year | 21 | 880 674 | 345 541 | 880 674 | 100 518 | |||||||
Hwange Colliery Company Limited
ABRIDGED AUDITED | Proudly Providing |
FINANCIAL RESULTS | More Than Just Coal |
For the year ended 31 December 2022
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.1.2 Deferred Tax related to Assets and Liabilities arising from a Single Transaction -Amendments to IAS 12
The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities.
The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with:
- right-of-useassets and lease liabilities, and
- decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related assets.
2.1.2 Deferred Tax related to Assets and Liabilities arising from a Single Transaction-Amendments to IAS 12
The cumulative effect of recognising these adjustments is recognised in retained earnings, or another component of equity, as appropriate. IAS 12 did not previously address how to account for the tax effects of on-balance sheet leases and similar transactions and various approaches were considered acceptable. Some entities may have already accounted for such transactions consistent with the new requirements. These entities will not be affected by the amendments.
The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events as well as the current period. This amendment will have an impact on the company should there be changes in accounting policies or estimates.
3 SUMMARY OF ACCOUNTING POLICIES
3.1 Overall considerations
The financial statements have been prepared using the measurement bases specified by IFRSs for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below:
3.2 Foreign currency translation
Foreign currency transactions are translated into the functional currency of the Company, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currency at year-end exchange rates are recognised in profit or loss.
Non-monetary items are not retranslated at year-end and are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value which are translated using the exchange rates at the date when fair value was determined.
In the Company's financial statements, all assets, liabilities and transactions of the entities with a functional currency other than the ZWL , are translated into ZWL.
3.3 Investment in associates and joint ventures
Investments in associates and joint ventures are accounted for using the equity method.
Associates are all entities over which the Company has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method and are initially recognised at cost. The company's investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
5 SEGMENT REPORTING
For management purposes, the Company is organised into divisions based on its products and services and has three reportable segments, as follows:
-The Mining Division, which mines and sells coal and coal products; -The Medical services Division, which provides medical services; and
-The Estates Division, which leases property owned by the company.
No operating segments have been aggregated to form the above reportable operating segments.
Segment information for the reporting period is as follows:
Mining | Services | Estates | Total | |
INFLATION ADJUSTED | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 |
2022 | ||||
Revenue | ||||
From external customers | 72 213 015 | 731 752 | 4 789 146 | 77 733 913 |
From other segments | - | - | 2 341 361 | 2 341 361 |
Segment revenues | 72 213 015 | 731 752 | 7 130 507 | 80 075 274 |
Other income | 431 802 | 56 843 | 31 426 | 520 071 |
Cost of sales | (48 457 074) | (1 815 284) | (4 300 111) | (54 572 469) |
Marketing costs | (373 051) | - | - | (373 051) |
Other gains and losses | (30 706 544) | (10 446) | (25) | (30 717 015) |
Administration expenses | (12 988 076) | (120 439) | (1 125 886) | (14 234 401) |
Gain on net monetary position | 14 262 814 | - | - | 14 262 814 |
Segment operating (loss) | (5 617 114) | (1 157 574) | (605 450) | (7 380 138) |
Segment assets | 82 574 979 | 531 162 | 3 749 456 | 86 855 598 |
Segment liabilities | 50 012 211 | 1 514 720 | 979 151 | 52 506 083 |
2021 | ||||
Revenue | ||||
From external customers | 29 298 025 | 589 596 | 2 531 438 | 32 419 059 |
From other segments | - | 28 271 | 781 032 | 809 303 |
Segment revenues | 29 298 025 | 617 867 | 3 312 470 | 33 228 362 |
Other income | 84 727 | 22 901 | 72 355 | 179 983 |
Cost of sales | (21 955 663) | (1 049 932) | (2 353 724) | (25 359 320) |
Marketing costs | (169 587) | - | - | (169 587) |
Other gains and losses | (3 108 200) | - | - | (3 108 200) |
Administration expenses | (6 627 046) | (114 682) | (936 839) | (7 678 566) |
Impairment of assets | - | - | - | - |
Gain on net monetary position | 3 915 058 | - | - | 3 915 058 |
Segment operating loss | 1 437 314 | (552 116) | (686 771) | 198 427 |
Segment assets | 59 539 505 | 46 559 | 263 097 | 59 849 161 |
Segment liabilities | 29 718 940 | 1 100 795 | 1 014 632 | 31 834 367 |
Page 3 of 7
The carrying amount of the investments is increased or decreased to recognise the Company's share of the profit or loss and other comprehensive income of the associate or joint venture. These changes include subsequent depreciation, amortisation or impairment of the fair value adjustments of the assets and liabilities.
Unrealised gains/losses on transactions between the Company and its associates or joint ventures are eliminated to the extent of the Company's interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.
3.4 Revenue recognition
Revenue comprises revenue from the sale of goods and the rendering of services. Revenue is measured by reference to the fair value of consideration received or receivable by the Company for goods supplied and services provided, excluding sales taxes, rebates, and trade discounts.
-
Sale of goods
Revenue represents sales of coal and related products and is recognised after the following: To determine whether to recognise revenues, the Company follows a 5 step process: - Identifying the contract with the customer
- Identifying the performance obligations
- Determining the transaction price
- Allocating the transactional price to the performance obligations
- Recognising revenues when/as performance obligation(s) are satisfied.
-
Dividend income
Dividend revenue from investments is recognised when the Shareholder's right to receive payment has been established. - Interest income
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts, through the expected life of the financial asset to that asset's net carrying amount.
3.4.4 Rendering of services
Revenue from the rendering of services from the hospital, estates and investment property is recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin. Expenditure for warranties is recognised and charged against the associated provision when the related revenue is recognised.
INFLATION ADJUSTED | HISTORICAL COST |
Mining | Services | Estates | Total | |
HISTORICAL COST | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 |
2022 | ||||
Revenue | ||||
From external customers | 55 609 582 | 559 797 | 3 848 466 | 60 017 845 |
From other segments | - | - | 2 341 361 | 2 341 361 |
Segment revenues | 55 609 582 | 559 797 | 6 189 827 | 62 359 206 |
Other income | 360 987 | 43 742 | 19 531 | 424 260 |
Cost of sales | (35 927 375) | (1 162 807) | (3 068 658) | (40 158 840) |
Marketing costs | (281 141) | - | - | (281 141) |
Other gains and losses | (22 841 621) | 7 552 | 25 | (22 834 044) |
Administration expenses | (12 235 945) | (90 032) | (639 689) | (12 965 666) |
Segment operating (loss)/profit | (15 315 513) | (641 748) | 2 501 036 | (15 797 586) |
Segment assets | 27 974 055 | 449 396 | 1 885 675 | 30 309 127 |
Segment liabilities | 38 259 530 | 1 514 720 | 979 151 | 40 753 401 |
2021 | ||||
Revenue | ||||
From external customers | 6 819 229 | 134 207 | 551 758 | 7 505 194 |
From other segments | - | 8 224 | 227 203 | 235 427 |
Segment revenues | 6 819 229 | 142 431 | 778 961 | 7 740 621 |
Other income | 21 787 | 5 333 | 17 058 | 44 178 |
Cost of sales | (5 124 096) | (249 748) | (553 563) | (5 927 407) |
Marketing costs | (40 878) | - | - | (40 878) |
Other gains and losses | ( 781 117) | 322 | - | ( 780 795) |
Administration expenses | (1 686 885) | 6 832 | (179 843) | (1 859 896) |
Segment operating loss | (791 960) | (94 830) | 62 613 | (1 059 604) |
Segment assets | 10 671 000 | 13 544 | 76 535 | 10 761 079 |
Segment liabilities | 6 706 760 | 320 222 | 295 157 | 7 322 139 |
The Administrator currently identifies the Company's three business lines as its operating segments. These | ||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
operating segments are monitored by the Company's Administrator and strategic decisions are made on the | ||||||||||||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||||||||
basis of adjusted segment operating results. | ||||||||||||
4 | REVENUE | The Company's revenues from external customers are divided into the following geographical areas: | ||||||||||
Mining | 72 213 015 | 29 298 025 | 55 609 582 | 6 819 229 | Sales within Zimbabwe | 75 304 097 | 31 495 215 | 57 934 713 | 7 278 985 | |||
Medical services | 731 752 | 589 596 | 559 797 | 134 207 | Sales elsewhere in Sub-Saharan Africa | 2 429 816 | 923 844 | 2 083 132 | 226 209 | |||
Estates | 4 789 146 | 2 531 438 | 3 848 466 | 551 758 | Total revenue | 77 733 913 | 32 419 059 | 60 017 845 | 7 505 194 | |||
77 733 913 | 32 419 059 | 60 017 845 | 7 505 194 | |||||||||
Hwange Colliery Company Limited
ABRIDGED AUDITED | Proudly Providing |
FINANCIAL RESULTS | More Than Just Coal |
For the year ended 31 December 2022
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
6 | OTHER INCOME | INFLATION ADJUSTED | HISTORICAL COST | ||
2022 | 2021 | 2022 | 2021 | ||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||
Insurance claims | 62 693 | - | 56 335 | - | |
Rental income | 31 430 | 72 355 | 19 536 | 17 061 | |
Sale of scrap metal | 84 038 | 12 860 | 47 102 | 2 662 | |
Hire of Equipment & Labour | 232 121 | - | 224 736 | - | |
Sundry income | 109 789 | 94 768 | 76 551 | 24 455 | |
520 071 | 179 983 | 424 260 | 44 178 | ||
7 OTHER LOSSES AND GAINS
Fair value adjustment on investment
property | - | - | - | - | |
Foreign exchange loss | (30 717 015) | (3 108 200) | (22 834 044) | (780 795) | |
(30 717 015) | (3 108 200) | (22 834 044) | (780 795) | ||
8 | FINANCE COSTS | ||||
Interest on loans and overdrafts | 1 490 016 | 436 210 | 932 240 | 108 862 |
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
INFLATION ADJUSTED | HISTORICAL COST | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
ZW$ 000 | ZW$ | 000 | ZW$ | 000 | ZW$ | 000 | |||||
11.4 | Deferred tax Liabilities: | ||||||||||
Capital allowances and other | |||||||||||
Balance at 1 January | 24 377 607 | 17 050 951 | 2 831 348 | 700 019 | |||||||
Movement | 2 081 055 | 7 326 656 | 2 081 055 | 2 131 329 | |||||||
Balance at 31 December | 26 458 662 | 24 377 607 | 4 912 403 | 2 831 348 | |||||||
11.5 | Deferred tax assets: | ||||||||||
Assessed loss | |||||||||||
Balance at 1 January | (3 018 381) | (1 918 875) | (802 189) | (441 157) | |||||||
Movement | (319 847) | (1 099 506) | 671 790 | (361 032) | |||||||
Balance at 31 December | (3 338 228) | (3 018 381) | (130 399) | (802 189) | |||||||
Page 4 of 7
Interest on loans and overdraft comprise of interest charged on the Government of Zimbabwe treasury bills at a rate of 7% per annum , ZAMCO and EXIM loan and finance lease facilities at an interest rate of 7% and LIBOR + 3.5% per annum respectively.
9 SHARE OF PROFIT/(LOSS) FROM EQUITY ACCOUNTED INVESTMENTS
Included in this amount is the Company's share of profit/(loss) after tax from:
INFLATION ADJUSTED | HISTORICAL COST | |||||
2021 | 2021 | |||||
2022 | 2022 | |||||
Notes | ZW$ 000 | ZW$ | 000 | ZW$ 000 | ZW$ | 000 |
Clay Products (Private) Limited | 4 645 | (19 | 326) | 4 645 | (1 | 414) |
Zimchem Refineries(Private) Limited | - | - | - | - | ||
Hwange Coal Gasification Company | - | - | - | - | ||
4 645 | (19 | 326) | 4 645 | (1 | 414) |
Audited financial information for Hwange Coal Gasification Company, Zimchem (Private) Limited and Clay products (Private) Limited were not available at the date of publication.
10 LOSS BEFORE TAX
Profit/(loss) before tax for the year has been arrived at after charging the following:
INFLATION ADJUSTED | HISTORICAL COST | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||||
Expected credit losses | 431 542 | (127 651) | 431 542 | (37 134) | |||||
Amortisation | - | 22 757 | - | 53 | |||||
Audit fees | 58 195 | 58 126 | 41 528 | +13 894 | |||||
Depreciation on property, plant and | |||||||||
equipment (note 13) | 529 184 | 1 871 457 | 462 062 | 429 356 | |||||
Impairment of assets (note 13) | - | 52 454 | - | 9 040 | |||||
Admin fees | 2 332 017 | 972 573 | 1 800 535 | 225 156 | |||||
- Executive Directors | 608 434 | 86 858 | 176 994 | 15 122 | |||||
Employee benefits expense | 21 817 401 | 9 236 063 | 12 013 356 | 1 454 739 | |||||
Employee benefit expense amounting to ZWL 3 898 104 160 (2021: ZWL 781 316 000 ) was charged directly | |||||||||
to cost of sales. In the inflation adjusted accounts, an amount of | ZWL 13 400 121 097 (2021: ZWL 1 078 156 | ||||||||
000 ) was charged to cost of sales. | |||||||||
INFLATION ADJUSTED | HISTORICAL COST | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |||||
11 | INCOME TAX | ||||||||
11.1 | Current tax: | ||||||||
Current tax | - | - | - | - | |||||
Deferred tax | (236 817) | (355 431) | (130 399) | (80 125) | |||||
Income tax credit | (236 817) | (355 431) | (130 399) | (80 125) | |||||
11.2 | Tax reconciliation: | ||||||||
Profit/(Loss) before tax | (8 865 509) | (257 109) | (16 725 361) | (1 169 880) | |||||
Notional tax thereon at a rate of 24.72% | (2 191 554) | (63 557) | (4 134 509) | ( 289 545) | |||||
Tax effect of: | |||||||||
Non deductible/(taxable) items | |||||||||
- Income not subject to tax | (218 564) | (48 467) | (118 058) | (13 678) | |||||
- Expenses not deductible in determining tax | 2 617 161 | 1 282 406 | 4 191 177 | 300 327 | |||||
Effect of assessed loss on taxable income | (443 860) | (1 525 813) | (75 434) | (77 229) | |||||
Income tax (credit)/expense | (236 817) | (355 431) | (130 399) | (80 125) | |||||
11.3 | Deferred tax movement | ||||||||
Balance at 1 January | 13 990 428 | 14 345 859 | 2 131 329 | 2 211 454 | |||||
Movement through other comprehensive | |||||||||
income | - | - | - | - | |||||
Movement through profit/loss | (236 817) | (355 431) | (130 399) | (80 125) | |||||
Balance at 31 December | 13 753 611 | 13 990 428 | 2 000 930 | 2 131 329 |
As at year end, the Company had cumulative historic assessed tax losses amounting to ZWL 156 987 000 (2021: ZWL 34 697 000 ).
12 | EARNINGS/(LOSS) PER SHARE | |||||
12.1 | Basic | |||||
Profit/(loss) attributable to shareholders | (8 628 692) | 98 317 | (16 594 562) | (1 089 755) | ||
Weighted average number of ordinary | ||||||
shares in issue | 183 721 | 183 721 | 183 721 | 183 721 | ||
Basic earnings/(loss) per share | (46.97) | 0.54 | (90.33) | (5.93) | ||
Basic earnings/(loss) per share is calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the Company and held as treasury shares.
12.2 Diluted
For earnings/(loss) per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares being share options granted to employees.
The earnings/(loss) used in the calculation of all diluted loss per share measures are the same as those for the equivalent basic loss per share measures, as outlined above.
In the diluted earnings/(loss) per share the share options calculation is done to determine the number of shares that could have been acquired (determined as the average annual share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. This calculation serves to determine the "unpurchased" shares to be added to the ordinary shares outstanding for the purpose of computing the dilution; for the share option calculation no adjustment is made to earnings/(loss).
INFLATION ADJUSTED | HISTORICAL COST | ||||
2022 | 2021 | 2022 | 2021 | ||
Notes | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | |
Earnings/(loss) used to determine diluted | |||||
earnings/(loss) per share | (8 628 692) | 98 317 | (16 594 962) | (1 089 755) | |
Weighted average number of ordinary | |||||
shares in issues | 183 721 | 183 721 | 183 721 | 183 721 | |
Diluted(loss)/earnings per share | (46.97) | 0.54 | (90.33) | (5.93) |
Headline earnings/(loss) per share excludes all items of a capital nature and represents an after tax amount. It is calculated by dividing the headline earnings/(loss) shown below by the number of shares in issue during the year:
IAS 33 -Loss for the year | (8 628 692) | 98 317 | (16 594 962) | (1 089 755) |
Non - recurring items: | ||||
Proceeds on sale of scrap | (84 038) | (18 120) | (47 102) | (2 662) |
Impairment of assets/(reversal) | - | - | - | 9 040 |
Tax effect of the above | 20 799 | 4 485 | 11 858 | (1 579) |
Headline (loss)/earnings | (8 691 931) | 84 682 | 16 630 406 | (1 084 956) |
Weighted average number of ordinary | ||||
shares in issue | 183 721 | 183 721 | 183 721 | 183 721 |
Headline earnings/(loss) per share | (47.31) | 0.46 | (90.52) | (5.91) |
12.3 Diluted headline earnings/(loss) per share
Profit/(loss) used to determine diluted | ||||
headline loss per share | (8 691 931) | 84 694 | (16 630 406) | (1 084 956) |
Weighted average number of ordinary | ||||
shares in issue | 183 721 | 183 721 | 183 721 | 183 721 |
Diluted headline loss per share | (47.31) | 0.46 | (90.52) | (5.91) |
Hwange Colliery Company Limited
ABRIDGED AUDITED | Proudly Providing |
FINANCIAL RESULTS | More Than Just Coal |
For the year ended 31 December 2022
ABRIDGED NOTES TO THE FINANCIAL STATEMENTS | ABRIDGED NOTES TO THE FINANCIAL STATEMENTS | |||||||||||||
FOR THE YEAR ENDED 31 DECEMBER 2022 | FOR THE YEAR ENDED 31 DECEMBER 2022 | |||||||||||||
13 PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||
INFLATION ADJUSTED | 14 INVESTMENT PROPERTY | |||||||||||||
Plant, | ||||||||||||||
INFLATION ADJUSTED | HISTORICAL COST | |||||||||||||
Freehold land | machinery and | Motor | Capital work | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
and buildings | & movables | vehicles | in progress | Total | ||||||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||||||||||
ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ZW$ 000 | ||||||||||
Valuation at 1 January | 4 102 360 | 3 989 895 | 458 433 | 442 075 | ||||||||||
Year ended 31 December 2022 | ||||||||||||||
Reclassification of assets | - | 112 465 | - | 16 358 |
Cost/gross carrying amount
Balance at 1 January
Additions
Reclassification of assets
Balance as at 31 December
Depreciation and impairment Balance at 1 January Depreciation charge for the year
Balance as at 31 December
Carrying amount as at 31 December
Year ended 31 December 2021
Cost/ gross carrying amount Balance at 1 January Additions Reclassification of assets
Balance as at 31 December
Depreciation and impairment Balance at 1 January Depreciation charge for the year Impairment
Balance as at 31 December
Carrying amount at 31 December
Year ended 31 December 2022
Cost/gross carrying amount Balance at 1 January
Additions
Reclassification of assets
Balance as at 31 December
Depreciation and impairment Balance at 1 January Depreciation charge for the year
Balance as at 31 December Carrying amount at 31 December Year ended 31 December 2021
46 190 599 | 19 481 062 | 1 063 937 | 640 473 | 67 376 071 | |
8 618 | 132 272 | 303 081 | 112 308 | 556 279 | |
24 453 | 1 014 | 507 | (32 870) | (6 896) | |
46 223 670 | 19 614 348 | 1 337 525 | 719 911 | 67 925 454 | |
2 813 817 | 4 318 453 | 283 908 | 110 732 | 7 526 910 | |
533 535 | 216 275 | 79 374 | - | 829 184 | |
3 347 352 | 534 728 | 363 282 | 110 732 | 8 356 094 | |
42 876 318 | 15 079 620 | 1 004 243 | 609 179 | 59 569 360 | |
14.1 | |||||
46 190 599 | 19 493 881 | 965 433 | 620 690 | 67 270 603 | |
- | 76 751 | 98 504 | 20 598 | 195 853 | |
- | (89 570) | - | (815) | (90 385) | |
46 190 599 | 19 481 062 | 1 063 937 | 640 473 | 67 376 071 | |
1 558 340 | 3 832 129 | 154 252 | 58 278 | 5 602 999 | |
1 255 477 | 486 324 | 129 656 | - | 1 871 457 | 15 |
- | - | - | 52 454 | 52 454 | |
2 813 817 | 4 318 453 | 283 908 | 110 732 | 7 526 910 | |
43 376 782 | 15 162 609 | 780 029 | 529 741 | 59 849 161 | |
HISTORICAL COST | |||||
15.1 | |||||
10 395 555 | 849 851 | 178 491 | 87 950 | 11 511 847 | |
4 199 | 64 450 | 147 677 | 47 827 | 264 153 | |
24 453 | 1 014 | 507 | (25 974) | - | |
10 424 207 | 915 315 | 326 675 | 109 803 | 11 776 000 | |
379 784 | 319 985 | 39 608 | 11 391 | 750 768 | |
297 312 | 120 519 | 44 231 | - | 462 062 | |
677 096 | 440 504 | 83 839 | 11 391 | 1 212 830 | |
9 747 111 | 474 811 | 242 836 | 98 412 | 10 563 170 |
At 31 December | 4 102 360 4 102 360 | 458 433 | 458 433 |
Investment property is comprised of as follows:
Land situated at Lot 7 of Stand 2185, Salisbury Township Harare with an administration building thereon.
Land situated at Stand 555, Bulawayo Township Bulawayo with an administration building thereon.
Land situated at Stand 701 Bulawayo Township with a residential building thereon.
Land situated at Stand 690 Bulawayo Township with a residential building thereon.
Land situated at Stand 384, Marvel Township, Bulawayo with a residential building thereon.
Note 29.1 sets out how the fair value of the investment properties has been determined.
The following amount has been recognised in the statement of comprehensive income:
INFLATION ADJUSTED | HISTORICAL COST | |||||
2021 | 2021 | |||||
2022 | 2022 | |||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||
Rental income | 31 430 | 72 355 | 19 536 | 17 061 | ||
INVESTMENTS ACCOUNTED FOR USING | ||||||
THE EQUITY METHOD | ||||||
Investments in associates (note 15.1) | 4 645 | - | 4 645 | - | ||
Investments in joint venture (note 15.2) | 2 271 348 | 2 271 348 | 14 753 | 14 753 | ||
2 275 993 | 2 271 348 | 19 398 | 14 753 | |||
Investments accounted for using the | ||||||
equity method (continued) | ||||||
Investments in associates | ||||||
Carrying amount as at 1 January | - | 2 252 | - | 1 414 | ||
Share of profit/loss | 4 645 | (2 252) | 4 645 | (1 414) | ||
Carrying amount as at 31 December | 4 645 | - | 4 645 | - | ||
The Company holds a 49% voting and equity interest in Clay Products (Private) Limited. Hwange Colliery Company Limited also holds a 44% voting and equity interest in Zimchem Refineries (Private) Limited. The investments are accounted for under the equity method.
The shares are not publicly listed on a stock exchange and hence published price quotes are not available. The aggregate amounts of certain financial information of the associates can be summarised as follows:
Page 5 of 7
Cost/ gross carrying amount Balance at 1 January Additions Reclassification of assets
Balance as at 31 December
Depreciation and impairment Balance at 1 January Depreciation charge for the year Impairment
Balance as at 31 December
Carrying amount at 31 December
10 389 096 | 847 212 | 154 414 | 82 195 | 11 472 917 | 15.2 | Investment in joint venture | |||||
6 459 | 18 760 | 24 077 | 5 992 | 55 288 | |||||||
Carrying amount as at 1 January | 2 271 348 | 2 271 348 | 14 753 | 14 753 | |||||||
- | (16 121) | - | (237) | (16 358) | |||||||
10 395 555 | 849 851 | 178 491 | 87 950 | 11 511 847 | 16 | MINING RIGHTS | |||||
91 748 | 208 411 | 9 862 | 2 351 | 312 372 | The Company has four (4) mining concessions, Hwange option area, Hwange Concession, Lubimbi East and | ||||||
288 036 | 111 574 | 29 746 | - | 429 356 | Lubimbi West. The special grants, Lubimbi East and Lubimbi West measure 9 648, 4 200 and 10 995 hectares | ||||||
- | - | - | 9 040 | 9 040 | of minable area respectively and were awarded by the Government of Zimbabwe on 31 July 2015. These | ||||||
379 784 | 319 985 | 39 608 | 11 391 | 750 768 | Concessions will increase the life of the mine by an estimated 50 years. | ||||||
10 015 771 | 529 866 | 138 883 | 76 559 | 10 761 079 | 17 | INVENTORIES - NON CURRENT PORTION | |||||
Balance at 1 January | 1 098 488 | 1 453 915 | 4 945 | 6 545 | |||||||
Sales | (57 312) | (355 427) | (258) | (1 600) | |||||||
Balance at 31 December | 1 041 176 | 1 098 488 | 4 687 | 4 945 |
Balance at end of year is classified as follows:
Non-current portion | 1 041 176 | 1 098 488 | 4 687 | 4 945 | |
Current portion | |||||
(included in inventories note 18) | 350 317 | 293 227 | 1 577 | 1 320 | |
1 391 493 | 1 391 715 | 6 264 | 6 265 | ||
The Company accumulated coal fines over the years for which an active market was identified in 2009. Coal fines in excess of the average annual uptake of the product have been classified as non-current assets.
No coal fines were written down in 2022: ZWL nil (2021: ZWL nil).
18 | INVENTORIES | |||||
Raw materials/consumables | 2 032 407 | 1 347 862 | 612 530 | 191 493 | ||
Finished goods | ||||||
- Coal | 8 283 195 | 3 313 557 | 8 283 195 | 963 916 | ||
- Coal fines (note 18) | 350 317 | 293 227 | 1 577 | 1 320 | ||
10 665 919 | 4 954 646 | 8 897 302 | 1 156 729 | |||
During the year ended 31 December 2022, a total of ZWL nil (2021: ZWL55 962 918) worth of inventories was included in profit and loss as an expense resulting from write down of inventories to net realisable value.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Hwange Colliery Company Ltd. published this content on 09 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2023 11:17:04 UTC.