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
There are a number of fundamentals suggesting the time is nearing to start buying miners.
This includes the large diversified miners like Anglo American, BHP Billiton and Glencore Xstrata.
So what's changed? Why are these companies now looking like good investments?
Read on to find out…
The mining sector has went from excess supply to famine
The mining sector as a whole is very cyc... ››› more
Earlier today, the government said the quality of coal supplied to Eskom's coal-powered power stations must improve. Eskom blamed wet coal for load shedding last Thursday. And the power utility has since asked BHP Billiton for a quality report on the coal supplied last week. Let's take a closer look at what's going on…
Government gives mining sector an ultimatum
Yesterday, the spokesman for... ››› more
As things stand now, mines can't control their labour costs.
Things are difficult for mining companies in South Africa thanks to the power struggle between various labour unions.
In fact, the negative effect of labour unions on the mining sector cannot be overstressed.
And now, even the big mines in South Africa are on a slippery slope.
They're struggling to survive!
And none more so than ... ››› more
The South African resource sector took a hard hit from the actions of government and labour unions over the past year or so.
With the endless stream of strikes, rising costs and threats of nationalisation…
The government and the unions are making it harder and harder to make money from the resources sector.
But that doesn't mean you should give up all hope of making a proﬁt…
The exper... ››› more
Investing in oil drillers or gold miners is a risky business.
I mean, whether it's mining for gold thousands of feet underground here in the Wits basin or drilling for oil in the North Sea, it's not always easy to make profits in the mining business.
And picking the right investments in the mining sector is just as tricky.
But there is a safer approach to resource investing.
... ››› more
“Buy the rumour, sell the fact”. This is one of the more popular ‘rules' traders use and the market's reaction to last week's Fed meeting seemed to back it up. On the run up to the meeting, we saw stock markets hit new all-time highs in anticipation that tapering will put off yet again. Yet when the Fed delivered the preferred verdict, markets reacted rather negatively. Here's why…
The ... ››› more
Shares of major global mining companies like BHP Billiton, Rio Tinto and Vale peaked in early 2011. These miners produce important commodities like coal, iron ore, copper etc... However, the US economy struggled, the European economy fell into recession and the growth in China slowed. Read on to discover one big sign the bear market in mining is finally over...
Those economies are the engine tha... ››› more
Earlier today, the Department of Labour released data about strike action in South Africa last year. It showed that strike action reached a five year high. Let's take a closer look at what the data showed…
The Industrial Action Report from the Department of Labour covering 2012 revealed some staggering statistics, reports Fin24.
Over 2012, strikes in the period, according to Fin24:
... ››› more
Following last week's strike action in the gold mining sector, gold stocks rallied today as miners returned to work. But several large companies went ex-dividend, dragging the JSE down. Let's take a closer look at how the JSE performed today…
The JSE “fell slightly” today after many large companies traded ex-dividend, reports Fin24. This included Barclays Africa Group (formally Absa) and S... ››› more
Workers in the gold mining sector downed tools on Tuesday night. After much anticipation of a drawn out strike, it appears miners are heading back to work on the back of a new wage deal. Let's take a closer look at what's going on…
Strike action over wage disputes in the “gold mining sector appears to be drawing to a close,” reports FT.com. Gold producers forecast “that the majority of m... ››› more
Earlier today, the Minister for Mining, Susan Shabangu warned that a lengthy strike in the mining sector would be bad for the economy. Strike action is set to begin tonight after wage talks failed. Let's have a closer look at the impact of a lengthy strike in the gold mining sector…
Susan Shabangu, Minister of Mines, warned earlier today that a “protracted strike in the gold industry” will... ››› more
This morning, 30,000 workers in the auto manufacturing sector went on strike. This follows wage talks between the car makers and workers breaking down. Let's have a closer look at what's going on…
With the economy still feeling the effects of strikes in the mining sector, now car makers have nearly ground to a halt.
Among the car makers affected are General Motors and Nissan, reports IOL. T... ››› more
Last week the JSE hit new all-time highs as fears of a severe Chinese slowdown diminished. This cause a rebound in all sectors but resources in particular benefitted. Let's look at why it happened and what we can expect from the market next week…
The JSE resource sector has been trending lower for some time, but it’s exhibited rather extreme levels of volatility. As a whole, this sector has... ››› more
Moody's Investor Services upholds its credit rating of South Africa at BAA1, the lowest level of investor grade. The agency cites concerns about the level of government debt and mining sector unrest, but there is room for an upgrade should the government pay down debt. Let's have a look at what's going on…
Yesterday, Moody’s confirmed the South African government’s “investment grade cred... ››› more
The much anticipated pact, which seeks to bring stability to South Africa's troubled mining sector, was finally signed yesterday. But, the Association of Mineworkers and Construction Union (AMCU) has yet to sign on the dotted line. Already there are questions about whether the pact will do anything to improve the current issues afflicting the mining sector. Let's have a look at what's been going o... ››› more
The rand has felt the wrath of the markets over the past couple of weeks. After the US Federal Reserve announced it was going to step down its stimulus programme, the already weak rand felt the strain. But the local currency is starting to show glimmers of strength…
The rand’s had a tough time of it. Since Ben Bernanke’s address about the US Federal Reserve’s stimulus programme, emerging... ››› more
In preparation for pay discussions at the beginning of next month, AMCU has called for entry-level workers pay to be more than doubled. This in the wake of NUM's rather paltry demands ahead of the review. Let's have a look at what's been going on…
The Association of Mineworkers and Construction Union (AMCU) “filed its tough demand ahead of annual wage negotiations, also requiring increased h... ››› more
The battle to keep the mining sector free from labour unrest heats up today. This after, the Association of Mineworkers and Construction Union (Amcu) gave mining giant Lonmin until the end of the day to sign a recognition agreement or face the consequences of yet another costly strike at the mine…
Amcu is holding the platinum industry hostage.
This, after it threatened world’s third-lar... ››› more
“Will mining sector unrest spill over into other sector?” That's the question many corporations, including healthcare giant Adcock Ingram, are fearfully asking at the moment. But are their fears warranted?
Yesterday, Adcock Ingram CEO, Jonathan Louw went public with his fear that the uncertain labour market could spread into a ‘contagion effect’ for the rest of the market it a major uni... ››› more
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