In May 2018 I told investors about Eskom's impending coal supply shortage, the Eskom Coal Cliff.
For years Eskom hasn't invested in new coal mines, and it hasn't been willing to sign new contracts with large mining companies.
Whilst diversification of supply is a good idea, the fact remains there are only a handful of miners that can supply the massive volumes that Eskom requires to keep its... ››› more
On 13 August Wescoal, a small coal miner on the JSE, had sales equaling to 3.5 million shares for the day.
This is roughly equal to 18 times the average shares traded per day - for the last year!
Clearly there was major interest in the company…
And, considering that volume trade in the company is 30% higher since July than it has been for the past year you'd be right to guess there's so... ››› more
At the rate, the rand is weakening, and with a stronger oil price, we could see R20 petrol by end of 2018.
At least that's what some economists are saying.
But if it happens, it won't be due to the oil price.
In fact, I foresee that the oil price is in for a dip soon…
You my be interested in...
Get started with as little as R500 a month
And it... ››› more
Eskom said earlier this month at its State of the System update it got National Treasury approval to embark on a major coal procurement. All in all Eskom needs to lock in about 85% of its primary energy requirements, which is in excess of 100 million tons of coal per year.
At the same time, the price of export coal has soared.
In short, this situation is a massive positive for coal miners.... ››› more
There is only one way to profit from Eskom's Coal Cliff - and SA's new energy revolution and that is to invest in these three Penny Stock Eruptors:
Penny Stock Eruptor #1:
A coal miner that's set to quadruple production and come to Eskom's rescue
Penny Stock Eruptor #2:
The only such business in Africa, with the technology to turn refuse into electricity
Penny Stock Eruptor #3:
A So... ››› more
There are two approaches to making money from the markets.
The well-trodden path. The path almost everyone seems to take. The one that grinds out a decent return over the course of a life. Safety first.
If you're patient, if you're willing to wait 30 or 40 years for a meaningful return on your capital… that is the path for you. Go out today, buy an ETF and never look at an individual sha... ››› more
The JSE's Top40 index closed the first half of the year slightly positive at 0.8%. The Industrials were the leaders of the pack as the only major sector to rack up a positive return of 6.4% while resources were underwater by 9.6%.
The entire market has been propped up by a handful of top performing shares like Naspers, Richmont, BATS, BidCorp, Mondi and Capitec. The interesting thing to note i... ››› more
Mustek grew cash generation by 30% - Mustek is an IT services and wholesaler. The company grew cash generated by operations by a whopping 30.7% to R228 million for the year.
Revenue was flat, and profits grew from 74cps to 80.32cps.
These earnings figures put the company on a PE ratio of 5.97, with the JSE average around 20!
You'll also receive a dividend of 16cps (compared to 15cps la... ››› more
“Trump will be great for business”
“Trump will make you, and me, richer”
“15 industries that will be affected by a Trump presidency”
Trump. Trump. Trump.
It's the buzz word right now.
Everyday there's a new article on Moneyweb, News24 and Bloomberg telling us how Trump will affect business, the stock market and even the world.
They're telling you this, without a clue ... ››› more
On 29 September 2016 Wescoal announced it would issue 124,995,373 new shares to a BEE investor, for an amount of R211,410,862.
At the time Wescoal's entire market cap was R440 million. So this is a big deal - it is nearly 50% of Wescoal's total share capital being added.
Usually a deal that dilutes earnings as much as this one will, is a bad thing.
Shareholders don't like it.
But since... ››› more
South Africa sits with the ‘achievement' of having 8 out of the world's ten deepest mines.
While this is clearly an achievement in engineering - it's a problem specifically for our gold mining industry.
Production costs have skyrocketed, accidents in the deep mines make it even more difficult to profit.
In fact, in the 1970's South Africa produced as much as 80% of the world's gold,... ››› more
Between October 2015 and mid-January 2016 the JSE Resources index crashed 38%. Mining shares were out of favour more than they've ever been.
Since then, the index has recovered some of these losses, becoming one of the best performing sectors on the JSE for 2016.
In fact, since the resource index's January low, it's up 40% for the year so far!
But that doesn't mean you can just up and ... ››› more
You've heard the term ‘Buy when there's blood on the streets'.
This is contrarian investing at its hear. But it's been proven true time and again.
In fact, if you'd simply bought a simple ETF like Satrix 40 following the 2008 financial crisis, you'd have made around 70%.
Investing in individual shares following the same crisis would've made you 200%, 300% and in many cases, 600% or m... ››› more
The Rand has crashed to R16.70 a dollar.
On 30 November 2015 a Bloomberg report speculated the rand could hit R20 to a dollar.
Then on 8 January 2016 a Fin 24 report again reiterated the R20 to a dollar level for 2016 and Cees Bruggemans, a well known economist predicts we could see R22.50 to the dollar before 2018!
In short, if you're not investing in rand hedge shares you're losing mone... ››› more
Coal is a dirty resource. It releases a number of chemicals into the air when it's burned and it's understandable why many countries look to use cleaner resources for power.
But it's not over for coal. Demand for coal is set to rise. And this gives you an opportunity to make money.
Let's take a closer look…
Coal producers are struggling
Many companies that produce coal are... ››› more
Wescoal is a coal mining and trading company listed on the Johannesburg Stock Exchange. Its interests lie mainly in South Africa…
Full name: Wescoal Holdings Limited
Short name: Wescoal
Sector: Basic resources – mining
Five top facts about Wescoal Holdings
Wescoal Holdings has a listing on the Johannesburg Stock Exchange under ticker symbol WSL. The company... ››› more
“There is no crisis with the supply of coal to Eskom.”
These are the words of Brian Molefe, Eskom's new acting CEO in an interview with MiningMX.
Clearly he's unaware of the fact that Glencore is busy closing down its 10 million tonne a year Optimum Coal operations…
Or perhaps he's forgotten about the fact that a huge amount of Eskom's long term coal agreements are coming to an end ... ››› more
Buffalo Coal Corporation is a coal producer. The company has a listing on the Johannesburg Stock Exchange…
Full name: Buffalo Coal Corporation
Short name: Buffalo
Sector: Basic resources – mining
Five top facts about Buffalo Coal Corporation
Buffalo Coal Corporation’s headquarters are in Toronto, Canada. The company was previously known as Forbes Coal.
... ››› more
In October 2014 I warned investors reading my MoneyMorning column against investing in three specific JSE listed penny stocks.
Of those three Evraz Highveld Steel lost 66% of its value, you'd be lucky to sell the shares in Chempsec if you hold any.
And Firestone Energy is nearing bankruptcy…
It's closer than ever to close its doors. And still I get investors asking me whether they shou... ››› more
We all know mining companies are having a hard time these days. Through strikes, regulatory uncertainty and low commodity prices many mines are closing today.
But that's where the opportunity lies right now. It's in a sector that's hit rock bottom. Prices for this commodity are down 50% and more in the past three years. Mines are closing left right and centre and investors have all but given up... ››› more
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