Wescoal Holdings Limited - Trading Statement
In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by at least 20% or more from the financial results for the previous corresponding period.
Shareholders are advised that Wescoal is currently finalising its results for the six months ended 30 September 2009. Wescoal’s earnings per share and headline earnings per share for the six month period are expected to be lower than that of the corresponding period:
earnings per share are expected to decrease between 40% and 55%; headline earnings per share are expected to decrease between 60% and 75%. Trading conditions have remained depressed during the six month period despite the general bullish view on coal for the long term. Volumes are down in line with the national decline in manufacturing activity and increased competition from producers who traditionally favoured exports over local sales. Although inland pricing levels decreased, these decreases were not as severe as the reduced free on mine prices experienced by the export market.
No improvement in trading conditions are expected until the later half of 2010. However the mining division will be boosted by the Khanyisa mine acquisition. The financial information on which this trading statement is based has not been reviewed or reported on by the company’s auditors. The company’s results for the six months ended 30 September 2009 are expected to be published on SENS by early December 2009.
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