CEMENT manufacturing firm, Lafarge Cement Zimbabwe Limited has said assessments by management have indicated that it is a going concern as there are no material uncertainties related to events and conditions prevailing within the country’s economic environment that could cast significant doubt on its ability to continue as a going concern.
It noted that various responses put in place by management are adequate stressing that there are no uncertainties which can hinder the ability of the Company to continue operating as a going concern.
Said the firm in its unaudited preliminary financial results for the year ended December 31, 2022: “In preparing the financial statements, the Directors and management are required to make an assessment of the Company’s ability to continue as a going concern.
“At the time of preparing the financial statements, there were no material uncertainties related to events and conditions prevailing within the country’s economic environment that could cast significant doubt on its ability to continue as a going concern.”
It added that directors and management are continuously monitoring and evaluating the company’s operating landscape to re-assess and appropriately adapt its strategies around the current economic environment.
“This is to ensure the continued operation of the company into the foreseeable future. Such strategies include taking advantage of Government policies and initiatives intended to support the continued operation of the company and continuously engaging other related parties to ensure inter-company obligations are managed and settled in a manner that does not negatively impact operations.”
However, it said the influx of cheap imported cement posed a serious threat to the domestic industry which has enough capacity to meet national demand.
“Constructive engagement continued with the regulatory authorities in an endeavour to obtain the required support.”
In the period under review, the company resumed production of cement at both mills in mid-February 2022 following the October 2021 incident which resulted in the roof over both cement mills collapsing.
During the second-half of the year, the firm successfully commissioned the Vertical Cement Mill (VCM) and subsequently decommissioned Mill 1 which had the least capacity.
The VCM doubled the company’s milling capacity to 1 million tonnes per annum and bolstered its ability to supply high strength cement of improved quality and at the same time reduced the production costs.
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