WESCOAL HOLDINGS LIMITED - Trading Statement, Executive Appointments, BEE, Operational Update and Site VisitRelease Date: 22/03/2016 07:10:00 Code(s): WSL
WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
(?Wescoal? or "the Group" or ?the Company?)
22 March 2016
Wescoal Trading Statement, Executive Appointments, BEE, Operational Update and Site Visit
In terms of paragraph 3.4 (b) of the JSE Limited ("JSE") Listings Requirements, companies are
required to publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on will differ by more than 20% from the previous
Shareholders are advised that the Company expects, with reasonable certainty that the earnings
per share (EPS) for the year ended 31 March 2016 will be approximately 50% more than the 15.7
cents per share reported for the prior comparative period.
Headline earnings per share (HEPS) for the period will be approximately 50% more than 15.4 cents
per share reported for the prior comparative period.
The November 2015 equity injections of R52-million were sufficient to initiate crucial de-risking and
optimisation projects across the Wescoal Group. Wescoal is fully funded from an operational
Once the Company has clarity on the actual range of the increase, a further trading statement will
be released on SENS.
The financial information on which this trading statement is based has not been reviewed or
reported on by Wescoal`s auditors. The Company`s financial results for the year ended 31 March
2016 are expected to be released early in June 2016.
Waheed Sulaiman, who has been acting CEO since April 2015, has been appointed as CEO of
Wescoal Holdings Limited with effect from 1 April 2016.
The Wescoal Board has identified a candidate to fill the role of CFO and the appointment is being
finalised, an announcement will be made as soon as possible within the regulatory frameworks.
The management team will be further strengthened through the appointment of Thivha
Tshithavhane as Business Development Director from 1 April 2016. Thivha has a degree in chemical
engineering and a Management Development Programme qualification. He is currently the General
Manager at United Manganese of Kalahari.
Dutch Botes? contract as Head of Wescoal Mining, has been extended for a further three years.
According to Wescoal?s recent share register, the Company?s BEE shareholding has grown to
approximately 42% as at end of February 2016.
Eskom?s requirement of 50% plus can be achieved through a BEE trust and/or partnerships with BEE
ownership entities, as well as current BEE shareholder?s increasing their holdings or combinations
of all of the above. The Company is confident it will meet this requirement by the 31 December
Operational and Market Update
Since the voluntary update on SENS dated 25 January 2016 the Wescoal Group has steadily
maintained its progress in extremely difficult local and international market conditions, making
headway across all facets of the operations.
Mining Operations Update
Wescoal?s flagship mine, Elandspruit Colliery, is now producing at a steady state and meeting its
production target of 165kt Run of Mine (?ROM?) per month on a continuous basis. Elandspruit has
met expectations and is delivering on its promise.
Work at the Wescoal Processing Plant to implement cost-saving and debottlenecking projects is on
track. The facility is capable of producing a range of product grades and sizes. This versatility allows
Wescoal to produce product which is suitable for Eskom, domestic and export customers.
The Intibane Colliery is at an advanced stage of preparation for coal production, which will be
suitable for sale to Eskom and other domestic customers.
The Khanyisa Colliery resource extension and water use license is still subject to approval from
The Trading Division continues to meet expectations in challenging business conditions.
Management is focussed on debtor book quality and driving down operating costs.
Institutional investor and analyst Operational Site Visit
Wescoal Mining will be hosting an institutional investor and analyst site visit at its Elandspruit
Colliery and at the nearby processing plant in Mpumalanga later today.
The Company?s most recent investor and media presentations are available together with
additional biographical details of the Executives on the Company?s website: www.wescoal.com.
These investor presentations contain no new material information on current trading or future
Sponsor: Nedbank Corporate and Investment Banking
Investor Relations: Jacques de Bie, Singular Systems, 082 691 5384
Media Relations: Wren Mast-Ingle Mi5 072 663 3926
Date: 22/03/2016 07:10:00 Supplied by www.sharenet.co.za
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