About Wescoal

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.

Wescoal Mining

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
Wescoal Mining Plant

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