JOHANNESBURG (miningweekly.com) – Now that junior miner Wescoal has moved its listing from the AltX to the main board of the JSE, it has set itself a target to grow its market capitalisation to R1-billion.
Speaking at the transfer of its listing to the main board on Thursday, Wescoal CEO André Boje said that the company, which had a current market capitalisation of about R182-million, had not set an exact timeframe for achieving this goal.
He told Mining Weekly Online that Wescoal would not focus its attention on the company’s share price.
Instead, it would focus on the business and on delivering a good performance and earnings. That way, the market would take care of the share price, said Boje.
In the five years of being listed on the AltX, Wescoal had moved from being only a coal trading company to a coal miner, with its flagship Khanyisa colliery already delivering results.
Both Boje and Wescoal chairperson Robinson Ramaite agreed that the AltX was a “wonderful springboard” for small, entrepreneurial businesses to go to the public domain.
Boje said that the company had learnt many lessons from being listed on the AltX, including lessons around corporate governance, how to report to the public domain and how to raise capital.
However, Wescoal would now be entering an “exciting growth phase”, said Ramaite.
Wescoal’s listing on the main board would expose the company to a broader range of investors, some which would not look at companies listed on the AltX, said Boje.
Further, it would also allow the company to benchmark itself against fellow coal-mining companies, and not against a number of industries, as is the case with the AltX.
The company had bought its first coal asset, the Khanyisa colliery, in 2008 and, earlier this year, had made a R45-million all-share offer to buy South African Coal Mining Holdings.
However, it would not stop there and the company planned to continue looking for potential asset acquisitions.
Boje explained that Wescoal was looking at small, but good quality reserves of between three-million tons and four-million tons of coal that the major mining houses would not necessarily be interested in.
If it acquired a number of these small reserves, it would have sustainable production for the next 20 years, he added.
Wescoal’s focus would also remain on acquisition targets in South Africa.
The company’s share price opened at R1,29 a share at 09:00 on Thursday morning.