Johannesburg-listed coal producer, Wescoal, expects earnings per share to increase by around 50% y/y for the year ending 31 March 2016, the company said in a recent trading statement.
Under JSE listing rules, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for a period to be reported will differ by more than 20% from the previous corresponding period.
“Once the company has clarity on the actual range of the increase, a further trading statement will be released,” the company added.
Wescoal also used the trading update to provide an update on its black economic empowerment (BEE) shareholding.
According to the company, its BEE shareholding stood at 41% at the end of February 2016. South Africa’s state utility, Eskom, require a BEE shareholding of at least 50% for its coal suppliers – a target that Wesccoal said it was confident of meeting by the 31 December 2016 deadline.
Wescoal recently announced that Waheed Sulaiman was to take over as CEO from 1 April 2016. Sulaiman has been acting CEO since April 2015.
Wescoal owns the Elandspruit coal mine, which has achieved steady-state production of 165 000 tpm ROM. Its Itibane coal mine is also “at an advanced stage of preparation for coal production, which will suitable for sale to Eskom and other domestic customers,” the company said.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/23032016/wescoal-release-trading-update-2016-456/