Wescoal has produced a solid performance as reflected in the coal mining and distribution group’s Integrated Annual Report for FY16 in the face of a period for the industry described as ‘uncertain policy’ and doubts about long-term sustainability.
Wescoal Holdings Limited CFO, Izak van der Walt points to a strong operational performance in the mining division underpinned by the flagship Elandspruit Colliery at steady state and the consistent performance from the trading division has seen group revenue increase by 33% from R1.59 billion in 2016 to R2.12 billion in 2017.
“The group improved its balance sheet strength through the BEE transaction which was completed in December 2016 injecting R178-million fresh equity into the business and locking in BEE equity ownership of 58.93%. The predictable financial performance and the equity injection provide a platform for us to advance our discussions with long term debt providers, culminating in the group securing long-term debt funding for the business post year end,” he points out.
Van der Walt says he is now able to align his sights on playing an active role in financial strategy formulation for the Group which has become solidly grounded in the coal mining and distribution sectors. “ Being an enabling ‘partner’ in the business allows for focussing on a healthy cash flow and a strong balance sheet which in turn present opportunities for consolidation of the coal mining space through acquisitions and other actions.
“The CEO and management team recently concluded the Keaton acquisition giving Wescoal a stronger asset base and additional experience in this arena. I have been part of this structure for nearly three years and draw on this for my contribution to a team dedicated to realising good results for all stakeholders in general and shareholders in particular.”
Chartered Accountant Van der Walt (BCompt, BCompt Honours and CTA qualifications (articles with Price Waterhouse Coopers) was recently appointed Chief Financial Officer for Wescoal Holdings Ltd. He joined Wescoal in 2015 as Group Financial Specialist and shortly after became Acting Chief Financial Officer for nearly a year providing high level guidance to the board and leadership to operations as part of the executive management team. Van der Walt currently serves as executive director to Wescoal subsidiary boards including Wescoal Mining (Pty) Ltd and the recently acquired Keaton Holdings Limited.
He says that the inclusion of IT, Property, Insurance and Enterprise Risk Management in his portfolio will not interfere with his independence as an objective voice to management and the Board. “I see added value in the diversity which this CFO role brings…a value that enhances the company and ultimately all our stakeholders.
“However, I am also cognisant of the difficult financial climate the mining industry is experiencing, the uncertainty of the legislative and political developments impinging on the economy and the need for investment devoted to transformation.”
Izak is a Chartered Accountant and member of the Public Accountants & Auditors Board and prior to joining Wescoal he gained over 14 years’ experience in the mining sector in various financial management roles locally and internationally.
Wescoal Holdings Limited mines processes and distributes coal. It is listed on the main board of the JSE and its key strategic thrust is to be a leading coal miner with a sustainable resource base and a coal trading operation.
Jacques de Bie, Senior Manager, IR
Singular Systems – 082 691 5384
Tel: 072 663 3926
Issued by Mi5 on behalf of Wescoal Holdings