|Revenue||Up 28% to R2.1bn||(HY18: R1.6bn)|
|Gross profit||Up by 3% to R276m||(HY18: R267m)|
|Total comprehensive income||Up 23% to R108m||(HY18: R88m)|
|Operating costs||Reduced by 21% to R104m||(HY18: R131m)|
|HEPS||Up 16% to 23.5 cps||(HY18: 20.2 cps)|
|Cash generation||Up 41% to R291m||(HY18: R206m)|
Disposal of non-core assets Leeuw Braakfontein and Intibane Collieries.
Conservative gearing ratio of 18% (HY18: 32%)
Johannesburg, 13 November 2018 – The JSE listed coal miner, trader and supplier, Wescoal Holdings Limited, reported solid results for the six months ended 30 September 2018. Despite challenging market conditions such as Rand volatility, a technical recession and policy uncertainty, Wescoal performed exceptionally well with revenue increasing by 28% to R2.1 billion (HY18: R1.6 billion).
CEO Waheed Sulaiman says: “We are pleased with the operating performance, production and sales from the broader asset base in the first half. The management team has consistently progressed the disposal of non-core assets and actively sought out acquisitive value enhancing opportunities in line with our strategy. The company is solidly on track to meet its production targets and is well positioned for steady sustainable growth.”
As announced on 26 October 2018, Wescoal is in advanced negotiations with Ata Resources to join the consortium which intends to acquire the entire issued share capital of Universal Coal. The company disposed of Leeuw Braakfontein and Intibane Collieries as non-core assets in line with their strategy. R45 million has been spent on capital expenditure with the main focus areas being mine development, deferred stripping and maintenance of plant and equipment.
Cash generation is up 41% to R291 million (HY18: R206 million) which helped to reduce the gearing to a conservative ratio of 18% (HY18:32%). The operating expenses were significantly reduced by 21% to R104 million (HY18: R131 million) as a result of synergies realised from efficiencies and the successful integration of Keaton Energy.
Gross profit increased by 3% to R276 million (HY18: R267 million). The increase is attributable to the consistent strong operational performance of the mining and trading divisions. HEPS were up by 16% to 23.5 cents per share (HY18: 20.2 cents per share). The total comprehensive income increased by 23% to 108 million (HY18: 88 million).
Wescoal’s executives believe that the improved performance in both mining and trading divisions is an indication of the group’s progress as an effective mid-sized mining company and coal sector consolidator that is well poised for long-term success.