WESCOAL Holdings has delivered its first coal to South African power utility, Eskom, from its three million tons a year (Mt/y) Moabsvelden project, the company announced today.
“The operationalisation of Moabsvelden is in line with the scalability strategic pillar of the business,” said Robinson Ramaite, interim CEO of Wescoal Holdings. The delivery of the coal was in terms of a 10-year coal sales agreement with Eskom.
“Management’s priorities also remain to strive for safe and reliable operations, solid and predictable financial performance, and to maximise value from the existing asset base,” said Ramaite.
Wescoal announced on Monday the resignation of CEO, Reginald Demana. Demana was appointed CEO of Wescoal Holdings in February 2019, replacing Waheed Sulaiman who had left the company suddenly in the previous month.
Ramaite, a non-executive director and the firm’s former chairman. Ramaite is also a major shareholder in the company through Simeka Capital Holdings.
Simeka Capital Holdings is a member of a consortium that is buying up shares in Wescoal Holdings. In February, the consortium said it would buy about 85% of the firm, adding that it had full confidence in its future.
Wescoal reported interim gross profits of R251.9m (six months to end-September 2019: R195.4m) and got back into the black with a net profit of R10.8m (-R50.5m). Net debt dipped to R1.1bn (R1.2bn) while cash and cash equivalents rose to R205.4m (R132.6m).