Wescoal surges on earnings outlook

Over 350% jump expected

JUNIOR coal producer Wescoal rose as much as 11.63 percent on the JSE yesterday to trade at R2.40 a share on news that earnings for the half year ended September would jump by more than 350 percent.

The share price rose after the company, which supplies coal to Eskom and provides support to the coal sector through its subsidiaries Chandler and MacPhail, declared a gross special dividend.

Wescoal said its earnings a share for the period would be between 24.1 cents and 28.9c, compared with the 5.3c declared during the corresponding period last year. Headline earnings a share for the period would increase more than 350 percent to between 23.2c and 27.8c, compared with the 5.1c reported for the prior comparative period.

“Wescoal solid performance is on the back of strong sales from Elandspruit, the company’s flagship mine and further operational efficiencies,” the company said in a trading statement yesterday.

Elandspruit, which is 200km from Johannesburg, is expected to produce about