HWANGE COLLIERY COMPANY LIMITED - Abridged audited financial results for the year ended 31 December 2021

Abridged audited financial results for the year ended 31 December 2021

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”)


Abridged audited financial results for the year ended 31 December 2021

Introduction to the Company

The Company’s principal activities are exploration, mining, processing of coal and the production of
coke and related by-products in the north western part of Zimbabwe, Hwange District in the
Matabeleland North Province.

The Company remains under administration in terms of the Reconstruction of State-Indebted
Companies Act (Chapter 24:27). The appeal by the Minister of Justice, Legal and Parliamentary
Affairs to the Supreme Court in the matter of the confirmation of the Reconstruction Order remains
pending, and administration continues as normal.


Auditors Statement

These summary financial statements should be read in conjunction with the complete set of financial
statements for the year ended 31 December 2021, which have been audited by Grant Thornton
Chartered Accountants (Zimbabwe), in accordance with International Standards on Auditing and are
available for downloading on the following website:

https://www.zse.co.zw/wp-content/uploads/2022/05/HCCL.zw-2021-FY-Financial-Results-Audit-
Report.pdf.

The auditors have issued an adverse audit opinion (Opinion”) on the inflation adjusted financial
statements with respect to non-compliance with International Accounting Standard (IAS) 21 - The
Effect of Changes in Foreign Exchange Rates, International Accounting Standard (IAS) 29 – Financial
Reporting in Hyper-inflationary Economies, going concern, financial results of equity accounted
investments and inventory for some of the divisions in the Company. The Opinion is available on the
following website:

https://www.zse.co.zw/wp-content/uploads/2022/05/HCCL.zw-2021-FY-Financial-Results-Audit-
Report.pdf

The Auditors have included a section on key audit matters. The key audit matters were with respect to
the allowances for credit losses and, valuation of inventory and revenue recognition. The auditor’s
report on the inflation adjusted financial statements which form the basis of these financial results is
available for inspection at the Company’s registered office.

The Engagement Partner on the audit resulting in this auditor’s report is Farai Chibisa

(PAAB Number 0547).
Full Announcement

This short-form announcement is the responsibility of the Administrators of the Company and is a
summary of the information in the full announcement which is available for viewing on the following
website:

JSE website: https://senspdf.jse.co.za/documents/2022/jse/isse/hwae/hwa2022.pdf

Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement, copies of which are also available for inspection at our offices (ppfunye@dmh.co.zw) on
work-days during business hours, at no charge:


On behalf of the Administration Board


Zimbabwe
20 May 2022

JSE Sponsor to Hwange




Questco Corporate Advisory Proprietary Limited

Date: 20-05-2022 08:30:00
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