Buffalo Coal Corporation. JSE: BUC

Buffalo Coal shares

Background of Buffalo Coal

  • Registered in Ontario, Canada, Buffalo Coal is a coal producer with a history of operations in Kwazulu Natal, South Africa, with Buffalo Coal shares for sale on the Toronto Stock Exchange (TSX) and the Johannesburg Stock Exchange (JSE). In December 2015 the company delisted from the main boards of both stock exchanges, and now trades on the TSX Venture Exchange and the JSE AltX.

  • The company was formed in 2010 when Forbes & Manhattan Coal acquired the Magdalena and Aviemore mines in the Klipriver coalfield near Dundee, through a move to buy out South African company Slater Coal.

  • The mines produce high quality bituminous coal and anthracite, with a substantial resource base of 50 million tonnes of measured and indicated bituminous/thermal coal and 35 million tonnes of anthracite. Buffalo Coal has easy access to 204 000 tonnes of annual export capacity at the Richards Bay Coal Terminal. Various major issues have dragged down Buffalo Coal share price.

Buffalo Coal Shares Growth Driver

  • Instability in South Africa’s mining sector has weighed heavily on Buffalo Coal’s performance, with the company forced into making retrenchments and cutting operations. The company’s latest financial report showed a loss of R12 million for the three months ended March 2016. This followed a massive loss of R561 million for the 2015 year, with the live online stocks chart showing a huge decline in Buffalo Coal share price.

  • The company has not been able to effectively control the high degree of risk associated with mining and exploring minerals in the current market, and is still trying to verify titles to the properties on which it is conducting its exploration, development and mining. The company continues to incur operating losses, with performance at Magadalena deteriorating significantly. This prompted a restructuring of Buffalo Coal in March 2015 and further restructuring in October 2015. The company has however secured a contract mining service from STA Coal Mining, as well as funding from Resource Capital Funds and Investec Bank.

  • The group has been marred by controversy, having been taken to court over retrenchments and also breaching borrowings covenants from Investec. The company has a shareholders’ deficiency and working capital deficiency, and there is significant doubt as to whether it can continue as a going concern in future, especially without the buy in of investors.

Buffalo Coal Group Investor Tip

  • Following the huge troubles faced by the company, Buffalo Coal share price is at devastatingly low levels, trading at around 20 cents per share. The company is swimming in debt and it looks unlikely that it will continue as a going concern, unless management decides to buy into significant new initiatives. The forecast is that Buffalo Coal share price will not make any forward strides in the near future. Buffalo Coal shares have therefore all but been ruled out as a potential buy.

Buffalo Coal Major Shareholders

Resource Capital Fund VLP.

  • Sector


  • Industry

    Iron & Steel

  • Sub industry

    Steel Raw Material Suppliers

How to buy Buffalo Coal Group Shares

  • Buffalo Coal : How to buy Buffalo Coal Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Buffalo Coal Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Buffalo Coal Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Buffalo Coal Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Buffalo Coal Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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