HWANGE COLLIERY COMPANY LIMITED

(Incorporated in Zimbabwe under registration number 381/1954) ZSE Share Code: HCCL

JSE Share Code: HWA

LSE Share Code: HWA

ISIN: ZW0009011934 ("Hwange" or "the Company")

TRADING UPDATE FOR QUARTER ENDED 31 MARCH 2022

The Administrator of the Company wishes to advice that the Company remains under administration in terms of the Reconstruction of State-Indebted Companies Act [Chapter 24:27] of Zimbabwe. The Company's listing on the Zimbabwe Stock Exchange also remains suspended.

Economic environment

The operating economic environment for the quarter under review was fairly 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 that positively pushed sales.

Trading performance for the 3 months ended 31 March 2022

Total coal mined for the year-to-date increased by 74% compared to same period last year.

  • Production volumes of Hwange Power Station (HPS) coal increased to 412 528 tonnes in comparison to 112 207 tonnes in the same period in 2021.
  • Productions volumes at Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC) decreased to 236 041 tonnes in comparison to 260 677 tonnes in the same period in 2021.

Total tonnes sold for the 3 months increased from 354 888 to 683 896 tonnes compared to same period last year.

  • HPS sales volumes increased to 360 698 tonnes compared to 148 957 tonnes for the same period in 2021.
  • HCC and HIC sales volumes increased to 295 755 tonnes compared to 204 816 for the same period in 2021.

Financial Performance for the 3 months ended 30 March 2022

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The year-to-date revenue for the 3 months ended 31 March 2022 increased by 64%, in inflation adjusted terms when compared to the same period last year. This was largely due to a combination of an increase in production and high value coking coal sales and regular product price adjustments in line with market value.

Outlook

The company is currently on an export drive to improve export earnings. The company is increasing in-roads in regional markets such as Zambia, DRC, Malawi, Mozambique, Botswana and South Africa which is however negatively affected by poor logistics.

By Order of the Administrator

Chrispen Ncube (Mr)

Company Secretary

18 July 2022

JSE Sponsor to Hwange

Questco Corporate Advisory Proprietary Limited

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Disclaimer

Hwange Colliery Company Ltd. published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2022 12:53:07 UTC.