JOHANNESBURG- Zimbabwe coal producer Hwange Colliery said on Friday its revenue for the half year to June increased by 62 percent to $30.5 million (R400 million) from $18.8 million for the same period last year.
Hwange attributed the increase to a 51 percent rise in sales volume and increased prime grades in the sales mix.
The company reported a six percent decrease in loss to $23 million from $24.5 million in 2017.
It said production improved significantly to 819 859 tonnes from 565 298 tonnes, an increase of 45 percent.
"Though (more) favourable than the comparable period in 2017, the company’s production performance for the period under review fell 22 percent short of a budgetary target of 1 047 026 tonnes," it said, attributing this to working capital constraints.
Hwange said its half year performance demonstrated that it could achieve increased production and this would be complemented by targeted efficiency interventions which were expected to boost sales.
It said it would -- as it increased its focus on the core business of mining -- look at ways of weaning non-core activities such as road maintenance, electrical power distribution and sewage treatment.
"The adoption of enterprise resource planning systems to automate the administration of the business will also improve efficiencies and lower the cost per ton of coal produced," the coal producer said.
In view of the loss position, Hwange did not propose an interim dividend.
- African News Agency (ANA)