The condensed interim financial results for the six months ended 30 June 2020 have been reviewed by Grant Thornton Chartered Accountants (Zimbabwe). A report on the review has been issued and has an adverse conclusion with respect to the following:
- Non-compliance with International Accounting Standard (IAS) 21 – The Effect of Changes in Foreign Exchange Rates and International Accounting Standard (IAS) 29 – Financial Reporting in Hyperinflationary Economies.
- Fair value determination of transactions, assets and liabilities.
The review report on these condensed interim financial results is available for inspection at the Company’s registered office.
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 was placed under administration by a Reconstruction Order made by the Minister of Justice, Legal and Parliamentary Affairs in terms of the Reconstruction of State-Indebted Companies Act on or about 26 October 2018. The reasons for this include:
- Gross losses;
- Persistent losses over a long period;
- Negative cash flow;
- Obsolete and antiquated plant and equipment;
- Technical insolvency with liabilities significantly exceeding assets;
- Non-payment of creditors as they fell due; and
- Non-payment of employees over a long period of time.
Owing to the above mining had stopped in August 2018.