Wescoal returns to profitability
Wescoal Holdings in its update before declaring interim results for the six months ended 30 September 2020 says the return to Group profitability was driven by an improved performance from the mining operations.
The Company was able to maintain a positive cash generation from operations with EBITDA expected to be between R300 million and R320 million.
PRODUCTION
Group mining production for the six months ended 30 September 2020 is in total 62% higher than the comparable period of September 2019. Vanggatfontein Mine saw the biggest increase in production of more than 200% compared to the comparable period, with Elandspruit also achieving a significant increase, with only Khanyisa’s production being down from HY 2020.
Vanggatfontein production was steady throughout HY 2021, except in August 2020 when the onboarding process of a new mining contractor affected ROM production performance. Production from VG5, an internal project brought online during the period, also contributed to the significant increase in ROM production at the Vanggatfontein complex, compared to HY 2020.
The Vanggatfontein increase in production compared to the Comparable Period would have been 148% higher if VG5 production was excluded compared to the total increase of 210% that was achieved for the complex.
Elandspruit also saw strong ROM production throughout HY 2021, averaging above 250 thousand tonnes a month from the opencast operation. This translated into a 21% higher production level than the Comparable Period. The restart of the underground mining section has been deferred due to the current low demand environment brought about by COVID-19.
Khanyisa was the only operation that experienced lower production than the Comparable Period, mainly due to safety stoppages. A 21% decrease in HY 2021 production compared to HY 2020 was recorded at the operation.
