Wescoal posts maiden dividend

SOUTH African coal junior Wescoal has posted a maiden dividend of 3cps on the back of revenue of 676.9 million rand ($US67.5 million).

Noel Dyson

The company’s earnings before interest, tax, depreciation and amortisation was up just 0.2% on its result for the 2012 financial year at 45.3 million rand.

The company posted headline earnings for the year of 19.3 million rand.

Cash reserves grew 7.3% to 21.4 million rand.

The company produced 1.31 million tonnes of coal, up from the 1.18Mt it produced in 2012.

Better yet, the inland coal price increased over the period, although the company expects this to remain static.

The company also began underground mining at Khanyisa.

Keeping a rein on the cost of production will be one of the company’s challenges.

There is the threat of more strike action in the transport sector and the price of diesel continues to rise.

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