JOHANNESBURG (miningweekly.com) – South African coal-mining and coal-trading company Wescoal expects double-digit earnings increases for the year ended March 31.
The company announced on Tuesday that its expected headline earnings a share for the period under review would be around 50% more than 15.4c apiece achieved the year before.
Earnings a share would also likely rise some 50% more than the 15.7c a share recorded in 2015.
Wescoal said that it was fully funded operationally and was able to initiate crucial derisking and optimisation projects across the company following the November 2015 equity injections of R52-million.
“Wescoal has steadily maintained its progress in extremely difficult local and international market conditions, making headway across all facets of the operations,” it said in a market update.
The coal miner’s flagship Elandspruit colliery had achieved steady-state output, continually meeting its targeted 165 000 t/m run-of-mine.
“Elandspruit has met expectations and is delivering on its promise,” Wescoal assured.
Meanwhile, cost-saving and debottlenecking initiatives at the Wescoal processing plant were on track, while the Intibane colliery reached an “advanced stage of preparation” for coal production suitable for State-owned Eskom and other domestic users.
The Khanyisa colliery resource extension and water-use licence, however, remained subject to approval from regulatory authorities.
Wescoal expected to publish its year-end results early in June.
MANAGEMENT
A year after being positioned as acting CEO, Waheed Sulaiman would now officially assume the role effective April 1.
Wescoal was also finalising the appointment of a candidate to take up the role of CFO.
Further, the company had appointed United Manganese of Kalahari MD Thivha Tshithavhane as business development director from April 1, while the contract of Wescoal Mining head Dutch Botes had been extended for another three years.