Coal of Africa. JSE: CZA

Coal shares

Coal of Africa. JSE: CZA

  • Coal of Africa Limited is an emerging coal company primarily focused on the acquisition, exploration, mining and responsible development of thermal and coking-coal projects in South Africa. Operating mostly in the Limpopo province, Coal of Africa owns three operating collieries, including one in build-up phase, as well as coking and thermal coal resources in evaluation phase.

  • Projects include the Vele Colliery, the Makhado Project (and the contiguous Tshipise Energy Gas Exploration Project) and the Greater Soutpansberg Project (consisting of four exploration stage coking and thermal projects).

Coal of Africa Shares Growth Driver

  • As with many mining companies in South Africa, Coal of Africa’s performance has suffered due to weakening of the rand and declining commodity prices. The company recorded a loss of $84 million in 2014, but managed to reduce losses to $6.7 million in the 2015 financial year after being forced into a five point turnaround strategy. The strategy involved attracting the buy in of new investors, reducing overheads, closing non-core operations, disposing of non-core assets and securing BEE funding and regulatory approvals. The Vele Colliery was put on care and maintenance, and will only resume operations after coal prices improve. A successful $65 million capital raise, along with cash conservation measures, has enabled Coal of Africa to mitigate losses.

  • The group has also put the Mooiplaats Colliery up for sale. On a positive note, the flagship Makhado Project has been granted mining rights and secured funding, with construction expected to commence in 2016.

  • In another important milestone, shareholders voted in favour of the purchase of Universal Coal, in line with Coal of Africa’s goal of acquiring a cash generating project to boost cash flow while construction takes place at Makhado. The transaction is seen as a value-enhancing investment providing the group with immediate coal production and a diversified portfolio of development and exploration projects.

Coal of Africa Group Investor Tip

  • Coal of Africa’s future performance will be largely dictated by commodity prices, the success of the new Universal acquisition, sale of the Mooiplaats Colliery and speedy construction of the Makhado Project. Without current functioning operations, the live online stocks chart shows that Coal of Africa share price is currently dormant at around 50 cents.

  • The company has forecast that its leaner structure will enable it to better assess merger and acquisition opportunities. Coal of Africa is still aiming to be the premier hard coking coal producer in South Africa, producing approximately 6.7 million tonnes of coal per year by 2020.

  • As things currently stand, it will take monumental effort to reach this goal and boost Coal of Africa share price. The final production profile will be dependent on access to capital, health of the commodity markets and predictability of the regulatory environments. Should the company successfully overcome these challenges, then investors may have the chance to buy a low-priced share with significant upside. The forecast however looks highly unpredictable, and purchase of Coal of Africa shares is a prospect only for bold investors.

Coal of Africa Major Shareholders

Haohua Energy International (Hong Kong) Co. Ltd., M & G Investment Management Ltd., TMM Holdings (Pty) Ltd., Yishun Brightrise Investment PTE Ltd., Investec Ltd., Africa Management Ltd and ArcelorMittal S.A.

  • Sector


  • Industry

    Oil, Gas & Coal

  • Sub industry

    Coal operations

How to buy Coal of Africa Group Shares

  • Coal of Africa : How to buy Coal of Africa Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Coal of Africa 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 Coal of Africa Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Coal of Africa 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 Coal of Africa 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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