Wescoal Holdings Ltd., the South African miner that reported a return to profit yesterday, rose the most in seven months in Johannesburg trading after saying it’s in talks on two transactions with “large” companies.
Wescoal jumped 19 percent, the biggest one-day gain since Nov. 4, to close at 81 cents.
The coal producer may conclude talks on two deals with “large international companies” within six weeks, Chief Executive Officer Andre Boje told Johannesburg-based broadcaster Moneyweb yesterday. Wescoal, based in Krugersdorp, posted net income of 20.6 million rand ($2.5 million) for the year through March, after a 43.5 million-rand loss a year earlier.
Wescoal plans to increase annual output to 4 million metric tons by fiscal 2016 from 1.5 million tons, Boje said. The company expects to win a mining license for its Vlakvarkfontein project next month and start output at the end of 2012, producing 1.2 million tons a year, Wescoal said yesterday.