Junior coal miner Wescoal is a fairly unique investment in the listed space. Being black-owned and managed gives it an advantage in deal making. It’s helped the group to fund acquisitions in the past and also been a reason behind its ability to secure long-term coal supply agreements with Eskom, to which 65% of its production goes, while the rest goes largely into the domestic market.
That means Wescoal is not subject to the volatile price movements of the export market, and rather has a steady stream of income from its long-term contracts...
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