Heavy December rains push Wescoal into a loss
Unprecedented rainfall in December weighed on the junior coal producer in its year to end-March
Junior mining company Wescoal slipped into a loss in its year to end-March after heavy rainfall in December hit production.
The group posted a loss of R136.6m, from profit of R88.2m previously, with rainfall of 343mm in December resulting in as much as 15 days’ equivalent production loss at each of its operations.
The underperformance of mining contractors also negatively affected coal production, the group said, as well as community and industrial unrest.
“The year has been challenging for Wescoal, but we have also been relatively successful in achieving some of the corporate objectives that were laid out last year,” CEO Reginald Demana said.
“The strategy and core ideology of stability, scalability and sustainability has been well established, and it lays a foundation upon which we intend to return the company to profitability and to grow operationally in the year ahead,” Demana said.
In morning trade on Tuesday, Wescoal's share was unchanged at 70c, giving the group a market capitalisation of R294m.
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