WSL - Wescoal Holdings Limited - Trading Statement
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/006913/06)
(JSE code: WSL ISIN: ZAE000069639)
("Wescoal" or "the company")
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 the financial results for
the previous corresponding period.
Shareholders are advised that Wescoal is currently finalising its results for
the year ended 31 March 2010 and are advised that its earnings per share for the
year is expected to be between 4.6 and 5.4 cents per share and headline earnings
per share for the year is expected to be between 4.0 and 4.6 cents per share.
Earnings per share includes an impairment of R2, 1 million relating to the
briquette making business of Wescoal Mineral Recoveries (Pty) Limited, a
subsidiary of Wescoal and a profit on sale of assets for R3, 2 million.
Coal Trading division - despite the strengthening of international coal markets,
volumes are down in line with the national decline in manufacturing activity and
increased competition from producers who traditionally favored exports over
local sales. Margins continue to remain under pressure due to competitiveness
experienced in the pricing of coal.
Coal Mining and Washing division - during the last quarter of the financial year
the mining and washing division was boosted by the Khanyisa acquisition which
achieved excellent results for that quarter. The stated production target of 1,
2 million tons per annum will in all probability be exceeded and it is expected
that the mining division will be the major profit contributor to the group going
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors. The company`s results for
the year ended 31 March 2010 are expected to be published on SENS during the
week of 7 June 2010.
3 June 2010
Date: 03/06/2010 12:56:01 Supplied by www.sharenet.co.za
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