Hwange sings the blues despite top line growth

Harare- A 62% topline jump at Hwange Colliery Ltd did very little to narrow a loss at the coal miner in the half year to June 2018.
The company’s revenue increased from $18.8mn in H117 to $30.5mn in H118. The increase in revenue is owing to an increase in sales volume of 51% and increased prime grades in the sales mix.

Although the group said its financial performance for the period under review had improved in comparison to the same period in the 2017 financial year, the loss decline was only 6%.

The loss for the year decreased by 6% from US$24.5 million recorded in 2017 to US$23 million during the period under review.

The company did not comment on what it was doing to narrow its loss. A look at its income statement shows that Hwange paid out $10.8 mn in administrative costs and another $8 mn in finance costs.

Hwange’s total assets stood at $181 mn against non-current liabilities amount to $348 mn and current liabilities of $67 mn.

The company has current borrowings amounting to $12.6mn from non-current borrowings of $154mn and debentures of $123mn.