Wescoal at a glance
Wescoal Holdings Limited mines, processes, supplies, sells and distributes coal and coal-related products through its two divisions – Mining and Trading. The Mining Division consists of four mines and a processing plant located in the Mpumalanga province. The Trading Division is made up of three depots countrywide and a logistics network covering southern Africa. The JSE-listed Group’s FY17 revenues were R2.11-billion with total coal sales approaching 4-million tons on an annualised basis.
Operational highlights
- Khanyisa to produce 290kt in first half of 2018 with life of mine extended to around 2020
- Maintains a high safety record
- Five-year agreement with Eskom for some 7.8million tons of coal
- Five-year 51% direct BEE deal
- Export contracts for more than 1m tons a year for three years,
- CSI programme expanded
- Processing Plant operation upgraded
- Mining ROM Production 3.371kt
- Gross profit increased to R251.7m (2015: R219.6m)
- EBITDA up 42%
- R1.9m for Enterprise Development
Milestones
- Eskom – 7.8 million tons of coal over a 5 year period
- Exports – 3 million tons of coal over a 3 year period
- Increased revenue from other domestic coal sales and business initiatives as we continue to diversify revenue streams
Transformation agenda spearheaded by BEE transaction concluded
- Guaranteed black shareholding in excess of 50% for the next 5 years
- R178m in equity injected into the business
Keaton acquisition now unconditional – enlarged group to benefit from
- Diverse asset and shareholder base
- Economies of scale and synergies
- Scale of production and resource size
- Balance sheet and free cash generation
- Operational EBITDA before the impact of non-recurring costs R294.3m (R152.1m 2016) up 94%
- Operating Profit R122.7m (R99.9m 2016) up 23%
- Dividend declared R12 m