Wescoal Holdings. JSE: WSL

Wescoal shares

Background of Wescoal

  • Wescoal Holdings is a coal mining company involved in the mining, processing, sale and supply of coal, with an intention to be a leading junior coal miner in South Africa. The company’s history stems back to the establishment of Chandler in 1996, a company involved in coal trade and logistics.

  • Today, Wescoal operates a portfolio of three collieries and a coal processing plant in the Mpumalanga Highveld, including the Khanyisa, Intibane and Elandspruit mines. Operational profits are split between the Coal Mining (92%) and Coal Trading (8%) divisions. The Coal Mining division is also responsible for drilling and exploration as well as benefication, while hauling by road and rail is done through outsourced partners. Coal Trading is responsible for sale of coal. Total mineable tonnes from the coal mines is just over 47 million tonnes.

  • Wescoal shares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of R581 million.

Wescoal Shares Growth Driver

  • Wescoal share price has enjoyed strong gains of late after the group recovered from a very difficult period when shares plunged and performance suffered. The mining division has performed well thanks to strong production and sales from operations at the flagship Elandspruit Colliery. The latest interim data for the six months ended September 2016 showed that revenue grew by 37.1% to R1.04 billion, and EBITDA rocketed up by 254% to R139.3 million. Shareholders enjoyed sharp increases in headline earnings per share and dividends.

  • Performance was particularly boosted by Wescoal’s concerned effort to buy into production ramp up at Elandspruit, with production volumes increasing by 167% to 1.6 million tonnes. The mine has secured a long term supply agreement with Eskom to ensure continuous sales volumes, as well as several significant export agreements which will diversify revenue streams. Elandspruit is now at a steady state of production, and efficiency and optimisation projects at the processing plant have been concluded.

  • Intibane produced 0.3 million tonnes to meet local sales demand secured, and production is being ramped up to match requirements of the take-off agreements secured by Wescoal. Mining activities have yet to take place at Khanyisa, pending the approval of several applications to the Department of Mineral Resources. Overall, Eskom sales for the period totaled 724 000 tonnes compared to 362 00 during the corresponding period in 2015. Additional mining opportunities are now being explored in the region to meet the company’s planned growth path.

  • Amidst difficult trade conditions, the Coal Trading division also performed well, delivering an 8.7% increase in sales tonnage and an 11.4% increase in EBITDA.

Wescoal Group Investor Tip

  • With mines successfully operationalised, Wescoal has said that it will continue to buy into improvement projects and acquire additional resources and strategic interests. Supply contracts have been successfully secured, restoring the strength of Wescoal share price. Wescoal share price is rising strongly up the live online stocks chart, and the forecast is for sustained growth in future, making Wescoal one of the JSE’s solid coal mining stocks to buy.

Wescoal Major Shareholders

Muthanyi Ramaite, Eric Mzimela, Andre Boje, Gujo Investments

  • Sector

    Basic Resources: Mining

  • Industry

    Coal Mining

  • Sub industry

    Coal Mining

How to buy Wescoal Group Shares

  • Wescoal : How to buy Wescoal Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Wescoal Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Wescoal Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Wescoal Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Wescoal.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/wescoal-shares">Credits: SA Shares™</a>
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