Robinson Ramaite Interim chief executive officer in his Condensed consolidated results for the interim period ended 30 September 2021 said “The group managed to deliver another consistent production performance in HY22 on the back of a solid production performance in FY21. The investment and effort that has been put into stabilising the current operations and the diligence exercised in operationalising our greenfield Moabsvelden project, have put Wescoal on track to produce the 8mtpa of ROM which we have been targeting since 2019. As we enter the second half of the financial year, our key focus will be on maintaining profitability to get the group back in the green in FY22.”
Group mining production for HY22 was in total 7% higher than the comparable period, with production from Moabsvelden offsetting the lower production from the other operations.
Vanggatfontein’s production was lower than the comparable period due to the contribution from the VG5 common box cut in the year ended 31 March 2021 (“FY 2021”) which boosted the output from the operation in HY21. ROM production at Vanggatfontein has also been closely managed to avoid stock build-up due to lower than planned sales to Eskom in HY22.
Elandspruit remains a consistent performer for the Group although production in HY22 was also lower than the comparable period. Production was steady throughout HY22 except for a decline in output during September 2021 due to violent protests in certain parts of Mpumalanga resulting in increased operator absenteeism, affecting production in that month. Coupled with a mine plan strategy to manage production in line with Eskom demand this resulted in a reduction of 10% compared to the comparable period. Production at Elandspruit is expected to increase in the coming months with the recent restart of the underground section at the operation.
Production from Khanyisa has been steady in HY22 and in line with the production plan.
Production has been steadily increasing at Moabsvelden since first coal was blasted at the greenfield project in January 2021. While still in the box cut construction phase which is edging closer to completion, the project contributed almost 24% of the Group’s total ROM production for HY22.
- Revenue increased to R2.666 billion (HY21: R2.089 billion)
- Gross profit increased to R342 million (HY21: R252 million)
- Operating profit increased to R190 million (HY21: R102 million)
- EPS increased to 19.72 cents (HY21: 2.62 cents per share)
- HEPS increased to 20.69 cents per share (HY21: 3.32 cents per share)
- No dividend declared for the period (HY21: nil cents per share)