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Voluntary operational update
WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
ISIN: ZAE000069639
(“Wescoal” or the “Company” or the “Group”)
Voluntary operational update
Wescoal wishes to voluntarily update shareholders on its operational performance for the first
quarter of FY22 ended 30 June 2021 (“Q1’FY22”).
1. Overview
The Group delivered a solid overall Q1’FY22 performance with all operations performing in
line with production targets supported by an improving sales volumes environment. The
operationalisation of Moabsvelden project has contributed significantly to Q1’FY22 production
and sales volumes, relative to the preceding quarter, Q4’FY21 ended 31 March 2021.
2. Production and sales update
Quarterly production and sales report
The table below compares the Q1'FY22 to comparable Q1'FY21 ended 30 June 2020, as well
as to the immediately preceding quarter Q4'FY21 ended 31 March 2021.
Variance Variance
Q1’FY22 Q1’FY21 Q4’FY21
t’000 t’000 % t’000 %
Production tonnages
(ROM)
Vanggatfontein 827 1 120 -26% 685 21%
Elandspruit 761 777 -2% 715 6%
Khanyisa 243 308 -21% 241 1%
Moabsvelden 411 0 187 120%
2 242 2 206 -2% 1 828 23%
Sales tonnages
Vanggatfontein 599 725 -17% 533 12%
Elandspruit 554 545 -2% 522 6%
Khanyisa 199 269 -26% 297 -33%
Moabsvelden* 672 - 276 144%
2 024 1 538 32% 1 627 24%
*Moabsvelden sales consists of own-sales and buy-ins.
Mining Production: Group mining production was boosted by production from Moabsvelden
in Q1’FY22, but overall production was 2% lower than the comparable quarter due to
significantly lower production at Vanggatfontein and Khanyisa. ROM production from the
common box cut at Vanggatfontein pit five in Q1’FY21, which has now been completed, was
the reason for the higher volumes in the comparable quarter. However, compared to the
previous quarter, production was up at all operations, with an overall 23% increase in
production in Q1’FY22 compared to Q4’FY21.
Mining Sales: Mining sales were 32% higher than the comparable quarter and 24% higher
than the preceding quarter due to Moabsvelden own and buy-in sales. Although Q1’FY22
sales tonnages were down at Vanggatfontein and Elandspruit compared to the Q1’FY21, they
were higher than the Q4’FY21 sales. Vanggatfontein sales were again lower than the
comparable quarter due to lower sales from the common box cut. Khanyisa’s Q1’FY22 sales
volumes were lower than the comparable quarter and the previous quarter.
Trading: Trading sales in Q1’FY22 were only 5% higher than the previous quarter but 50%
higher than the comparable quarter due to the significant impact the lockdown had on Q1’FY21
sales volumes. The performance for the first quarter of FY22 has therefore been encouraging.
3. General Guidance
Moabsvelden’s contribution to the Group’s overall production and sales performance
continues to increase as the boxcut construction phase edges closer to completion. The
project is therefore expected to significantly improve the Group’s performance for the current
financial year, compared to FY21.
Arnot mine restart is imminent with first coal expected during 2021 calendar year. Both the
Wescoal and Arnot OpCo (Pty) Ltd management teams continue to work closely on ensuring
that this target is met, including securing long-term coal offtake contracts for both domestic
and export coal product.
The recently announced deployment of a sensor-based sorting technology at Wescoal
operations will also reposition the Company on the cost curve and is expected to provide
significant economic benefits to the Group.
The Group continues to implement various cost-cutting initiatives and is on track to achieving
the set targets.
The information in this announcement has not been reviewed or reported on by the Company’s
auditors.
28 July 2021
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
IR Advisor
Singular IR
Date: 28-07-2021 07:55:00
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