HomeBusiness DigestWankie seeks nod to charge in forex

Wankie seeks nod to charge in forex

Staff Writer

WANKIE Colliery Company Ltd (Wankie) says it intends to seek Reserve Bank of Zimbabwe approval to bill its customers who export their products in foreign currency.

FONT face=”Verdana, Arial, Helvetica, sans-serif”>Wankie chairman Munacho Mutezo this week said the RBZ’s new monetary policy statement announced in December presented the company with opportunities to access the requisite foreign currency through the auction system.

He said the 30% productive sector facility presented an opportunity to source low-cost resources to boost production capacity and this was being pursued.

“The export incentive schemes prescribed would augment the company’s effort to increase foreign currency generation,” Mutezo said in his report to shareholders. “Furthermore, the company intends to seek Reserve Bank approval to bill, in foreign currency, some of the customers who export their products.”

The loss-making coal firm’s turnover for the period ended December 31 increased by 544% to $54 billion, up from the $8 billion achieved in 2002.

Gross profit margin increased from 20% to 34% in 2003 and profit after tax rose by 481% to $1,88 billion from $324 million in 2002.

However, while the historical figures look quite impressive, Wankie’s inflation-adjusted report shows that the coal firm actually made a huge loss.

Historical cost figures were re-stated using the Consumer Price Index to reflect the changes in the general purchasing power of the Zimbabwe dollar.

Mutezo said organisations such as Wankie, which have a large asset base and have been operating for a very long time, unfortunately had to effect large inflation-adjusted depreciation charges.

A $8,7 million net monetary gain was made as compared to the net monetary loss of $11 billion for last year.

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