Wescoal earnings slide 62% in 'disappointing' results
JOHANNESBURG - Mining company Wescoal on Tuesday reported a 12 percent increase to R3.965 billion in revenue for the year ended March 31, while headline earnings per share dropped 62 percent to 17.5 cents.
Mining volumes decreased by 13 percent to 5.9 million tonnes in what Wescoal said was a tough and challenging year for it and the mining sector as a whole.
"The second half performance was weaker than the first half and overall, we are disappointed with the results," CEO Reg Demana said. "The Vanggatfontein mining contractor changeover announced late last year subsequently led to labour disruptions with an adverse impact on production and overall performance.
Demana said the company continued to manage the operational risk through continuous engagement with new mining contractor Stefanutti Stocks to aid in ramping up production for the financial year ending 2020.
He said the suspension of the underground mining section in Elandspruit and above-average seasonal rainfall also contributed to the drop in group performance.
"Our commitment is to stabilise and optimise operations which is already well advanced. We have made positive strides to reach our target of eight million tonnes per annum run-of-mine as we look at both organic and inorganic growth opportunities," he said.
Wescoal said power utility Eskom remained "a consistent and reliable customer" and the company was committed to maintaining strong and supportive relations with it in the future.
- African News Agency (ANA)