Wescoal Holdings Limited - Trading Update
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
(JSE code: WSL & ISIN: ZAE000069639)
("Wescoal" or "the Group")
In terms of the Listings Requirements of the JSE Limited, companies are required
to publish a trading statement as soon as they are satisfied that a reasonable
degree of certainty exists that the financial results for the period to be
reported on will differ by at least 20% or more from a profit forecast
previously provided to the market.
Shareholders are referred to the forecast financial information for the year
ended 31 March 2006, published in the prospectus to shareholders dated 7 July
2005, wherein it was advised that earnings per share ("EPS") and headline
earnings per share ("HEPS") would be 7.8 cents.
Shareholders are advised that Wescoal is currently finalising its results for
the year ended 31 March 2006 and that it is expected that EPS and HEPS would be
40% - 45% lower than those of the forecast financial information. The main
reasons for the lower earnings were difficulties experienced at Wesmine during
the second half of the year where, during this period, raw material supply to
Wesmine was interrupted for 3 months. This situation was addressed and rectified
during March 2006. In addition difficult trading conditions were experienced due
to the warm weather conditions during the 2005 winter and a low off take of coal
by seasonal producers.
Shareholders are however advised that since the beginning of March 2006, the
market conditions have improved resulting in Wescoal achieving record sales and
profits for the first two months of the financial year ending 31 March 2007.
Should the favorable market conditions continue as expected, management is
confident of achieving the forecast EPS and HEPS of 8,6 cents for the year
ending 31 March 2008.
The above information has not been reviewed or reported on by the company"s
auditors. The company"s results for the year ended 31 March 2006, are expected
to be published on SENS before the end of June 2006.
19 June 2006
Warning: The listing of ordinary shares in the company is on ALTx. Investors
are advised of the risks of investing in a company listed on ALTx. Investors are
advised that the JSE does not guarantee the viability or the success of a
company listed on ALTx. In terms of the Listings Requirements, the company is
obliged to appoint and retain a Designated Adviser, which is required to, inter
alia, attend all board meetings held by the company to ensure that all the
Listings Requirements and applicable regulations are complied with, approve the
Financial Director of the company and guide the company in a competent,
professional and impartial manner. If the company fails to retain a Designated
Adviser, it must make arrangements to appoint a new Designated Adviser within 10
business days, failing which the company faces suspension of trading of its
securities. If a Designated Adviser is not appointed within 30 days of its
suspension, the company faces the termination of its listing without the
prospect of an appropriate offer to minority shareholders.
Date: 19/06/2006 02:52:05 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department