JSE-listed Wescoal expects its headline earnings per share (HEPS) for the year ended March 31 to be in excess of 45.5c, which is a 303% increase on the HEPS of 11.3c reported for the 2017 financial year.
Earnings per share (EPS) will be in excess of 46.5c, which is a 301% increase compared with EPS of 11.6c for 2017.
Wescoal reported in a trading statement on Tuesday that the significant increase in group profitability was driven by continued strong production from mining operations, as well as from synergies realised from the Keaton Energy acquisition.
The 2017 acquisition of Keaton Energy strengthened Wescoal’s balance sheet and free cash generation and further diversified the asset base, realised economies of scale and synergies, as well as enhanced optionality in contracts and offtake negotiations.
The enlarged business now has coal resources well in excess of 300-million tonnes, four operating mines, three processing plants and significant interests in coal supply chain infrastructure.
The group is now better positioned to meet increased demand, both from State-owned power utility Eskom and other domestic and export customers.
Wescoal is in the process of finalising its results for the financial year.