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WSL - Wescoal Holdings Limited - Repurchase of securities reaches 6% mark

Release Date: 09/01/2009 09:29:37      Code(s): WSL
WSL - Wescoal Holdings Limited - Repurchase of securities reaches 6% mark       
WESCOAL HOLDINGS LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/006913/06)                                            
(JSE code: WSL    ISIN: ZAE000069639)                                           
("Wescoal" or "the company")                                                    
REPURCHASE OF SECURITIES REACHES 6% MARK                                        
1    INTRODUCTION                                                               
Shareholders are advised that a wholly owned subsidiary of Wescoal has          
repurchased 6% of its own shares on the open market of the JSE Limited ("JSE"), 
in accordance with the general authority granted by its shareholders at its     
annual general meeting held on 29 October 2008 ("the repurchase").              
2 IMPLEMENTATION                                                                
As at 5 December 2008, 4 377 940 Wescoal ordinary shares, equivalent to 3% of   
the issued share capital of Wescoal, had been purchased by Wescoal. A total of 8
608 851 Wescoal ordinary shares, equivalent to 6% of the issued share capital of
Wescoal, has now been purchased by Wescoal between 5 December 2008 and 7 January
Details of shares repurchased since the commencement of the repurchases are as  
Number of ordinary shares repurchased        8 608 851                          
Cost of ordinary shares repurchased*         R6 335 609                         
Highest price paid per ordinary share*       R0.89                              
Lowest price paid per ordinary share*        R0.65                              
Average price paid per ordinary share*       R0.74                              
* - excluding costs                                                             
3    EXTENT OF AUTHORITY OUTSTANDING                                            
The extent of the authority outstanding is 20 577 421 ordinary shares,          
equivalent to 14% of the total issued ordinary share capital of Wescoal. This   
authority is valid until the next annual general meeting scheduled for October  
4    SOURCE OF FUNDS                                                            
The repurchases have been funded from available cash resources.                 
5    DIRECTORS` STATEMENT                                                       
The Directors have considered the effect of the repurchases and are of the      
opinion that:                                                                   
5.1  the company will be able in the ordinary course of business to pay their   
    debts for the period of 12 months after the date of this announcement;      
5.2  the assets of the company will exceed liabilities for a period of 12 months
after the date of this announcement, measured in accordance with the        
    accounting policies used in the company`s financial statements for the      
    financial year ended 31 March 2008;                                         
5.3  the share capital and reserves of the company will be adequate for ordinary
business purposes for the period of 12 months from the date of this         
    announcement; and                                                           
5.4  the working capital of the company will be adequate for ordinary business  
    purposes for the period of 12 months from the date of this announcement.    
The directors confirm that the repurchase of securities was effected through the
order book operated by the JSE trading system and without any prior             
understanding or arrangement between the company and the respective             
6    FINANCIAL EFFECTS OF THE REPURCHASE                                        
The directors of Wescoal are responsible for the preparation of the unaudited   
pro forma financial information, which has been included for the purposes of    
illustrating the effect of the repurchases on Wescoal`s earnings, headline      
earnings, net asset value and net tangible asset value per share on the relevant
reporting date. Due to their nature, the unaudited pro-forma financial effects  
may not be a fair reflection of Wescoal`s financial position after the          
implementation of the repurchases or of Wescoal`s future earnings.              
Before               After       Change (%)    
                                 (cents) (1) (2)      (cents)(3)                
Earnings per share (cents)       10.40                11.20       7.33%         
Headline earnings per share      10.50                10.70       1.61%         
Fully diluted earnings per       10.30                11.00       7.24%         
share (cents)                                                                   
Fully diluted headline earnings  10.40                10.5        1.53%         
per share (cents)                                                               
Net asset value per share        106.61               113.29      6.27%         
Tangible net asset value per     66.49                70.65       6.27%         
share (cents)                                                                   
Weighted average number of       126 068              117 459                   
Fully diluted weighted average   127 466              118 857                   
shares in issue                                                                 
Total number of shares           145 931              137 322                   
Notes and Assumptions:                                                          
1    The unaudited pro forma financial effects on the results were prepared on  
the basis that the repurchase of 6% of the company`s shares was completed   
    on 1 April 2008 for income statement purposes and 30 September 2008 for     
    balance sheet purposes.                                                     
2    The "Before" column has been extracted without adjustment, from the        
reviewed interim results of Wescoal for the six months ended 30 September   
3    The "After" earnings and headline earnings per share have been calculated  
    on the assumption that the repurchases were financed by excess cash on hand 
and interest was calculated at the prevailing interest rates. Tax was       
    calculated at a rate of 28%.                                                
7    REPURCHASED SECURITIES                                                     
The repurchased shares will be used to settle the purchase consideration for the
acquisition of the Prospecting Rights extending over Portions 16 and 12 of the  
Farm Vlakvarkfontein 213 IR district of Witbank as referred to in the SENS      
announcement dated 19 November 2008.                                            
9 January 2009                                                                  
Designated Adviser                                                              
Exchange Sponsors                                                               
Date: 09/01/2009 09:29:37 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

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