“Wescoal produced an excellent set of results clearly indicating the contribution from MacPhail, [which] was acquired in November 2013,” said the coal mining, processing, supply, sales and distribution company.
“This acquisition has breathed new life into the trading division and places the Wescoal group in the unique position of having a sophisticated trading division servicing the domestic market together with a mining division.”
The South African miner also stated that the division has been rebranded as one, under the banner Wescoal Trading and, with a few exceptions the integration of the operations is complete.
It also highlighted the finalisation of the Intibane phase 2 transaction and the acquisition of the Muhanga coal processing plant near Middelburg during the six-month period.
“The acquisition of the Intibane phase 2 mining right is a significant achievement in that it extends the life of this highly profitable operation to the end of 2016 and negotiations are taking place for a similar acquisition at the Khanyisa mining operation,” [DATA WSL:Wescoal] said.
“The division assumed ownership of the Muhanga coal processing plant on 1 November 2014 albeit that the Elandspruit project has not yet been commissioned. The plant will begin production on 6 November 2014 for the purpose of supplying the existing customer base.”
Group revenue increased 92.8 per cent to 897.7 million rand in the 2014 interim period from 465.6 million rand for the same period in 2013.
However, operating profit decreased from 97.9 million rand in the 2013 period to 48.4 million rand in 2014 and profit before taxation dropped to 39.9 million rand from 95 million rand.
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Wescoal’s fully diluted headline earnings per ordinary share grew to 15 cents in 2014 from 11.2 cents in 2013.
“There is immense excitement with regard to production starting at Elandspruit early in 2015. With the integration of MacPhail into Wescoal Trading, we believe the division will go from strength to strength,” the company said.
“Wescoal management will continue to build on the base of the trading division servicing the domestic market together with a mining division – a combination which warrants that Wescoal has sufficient products and diversity to ensure sustainability into the future.”