The increased profit that junior coal miner Wescoal earned from its flagship Elandspruit mine in the year to March would be offset by once-off costs related to its black economic empowerment (BEE) transaction and acquisition of Keaton Energy, it said on Monday. Wescoal shares slipped almost 5% to 200c on the news, moving against the trend of the general mining index, which added almost 2%. The Richards Bay Coal Terminal index fell 3% to $78.40 a tonne last week. Wescoal, which will release its year-end report on June 28, said its headline earnings would halve to between 10.4c and 12.4c a share from 27.1c a year ago. Earnings were eroded by a non-cash discount of 32c per share from the BEE transaction, a 7c a share dilution effect from the issue of new shares to black shareholders and about 3c per share representing transaction costs on acquiring Keaton. In November, Wescoal agreed with its black shareholders, including chairman Robinson Ramaite, that they would increase their stake ...
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