WESCOAL’S shares surged 21% on Tuesday to a five-month high of 127c, after it said earnings and headline earnings a share for the year to March would be about 50% more than a year ago.
Wescoal’s shares have tracked steadily downwards from 236c in the past year, reflecting negative sentiment towards coal companies and the departure of founder and long-serving CEO André Bojé last April after a fallout over strategy. A firmer share price will help the company’s plans to introduce new black shareholders.
Waheed Suleiman, who has acted as CEO since Mr Bojé’s departure, would become CEO from April 1, the company said.
Wescoal has three collieries — Khanyisa, Intibane and Elandspruit, and a coal-trading division. Its biggest customer is Eskom, which requires 50%-plus one share black ownership for long-term contracts.
Wescoal is 42% black-owned, and is supplying Eskom on short-term contracts. It said it was confident of meeting Eskom’s condition by the end of December deadline. This could be achieved through a black empowerment trust, or partnership with black entities, or the current black shareholders increasing their stakes, or a combination of all three.
Elandspruit, which produced its first coal in the current financial year, is meeting the target of 165,000 tonnes of run of mine coal a month. Intibane Colliery is being brought on stream to supply Eskom and others.
Wescoal’s trading division was meeting expectations, and focusing on the quality of the debtors book and bringing down operating costs, the firm said.
Picture: THE TIMES
WESCOAL’S shares surged 21% on Tuesday to a five-month high of 127c, after it said earnings and headline earnings a share for the year to March would be about 50% more than a year ago.
Wescoal’s shares have tracked steadily downwards from 236c in the past year, reflecting negative sentiment towards coal companies and the departure of founder and long-serving CEO André Bojé last April after a fallout over strategy. A firmer share price will help the company’s plans to introduce new black shareholders.
Waheed Suleiman, who has acted as CEO since Mr Bojé’s departure, would become CEO from April 1, the company said.
Wescoal has three collieries — Khanyisa, Intibane and Elandspruit, and a coal-trading division. Its biggest customer is Eskom, which requires 50%-plus one share black ownership for long-term contracts.
Wescoal is 42% black-owned, and is supplying Eskom on short-term contracts. It said it was confident of meeting Eskom’s condition by the end of December deadline. This could be achieved through a black empowerment trust, or partnership with black entities, or the current black shareholders increasing their stakes, or a combination of all three.
Elandspruit, which produced its first coal in the current financial year, is meeting the target of 165,000 tonnes of run of mine coal a month. Intibane Colliery is being brought on stream to supply Eskom and others.
Wescoal’s trading division was meeting expectations, and focusing on the quality of the debtors book and bringing down operating costs, the firm said.
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