Buy HWANGE Shares - View Live Share Price, Latest Earnings (2019)

Hwange Colliery Company Limited. JSE: HWA

Hwange shares

Background of Hwange

  • Hwange Colliery Company is a Zimbabwe-based company involved in the exploration, mining and processing of thermal and industrial coal, as well as coal and related by-products, in the Hwange District in the north west of the country. It is Zimbabwe’s largest coal producer. The company is split into various divisions, including opencast mining, underground mining, metallurgical operations, estates, medical and shared services.

  • The company has a history stretching back to 1899 and today employs around 2 600 people. Headquartered in the capital of Harare, Hwange has a primary listing on the Zimbabwe Stock Exchange and secondary listings on the Johannesburg Stock Exchange (JSE) and London Stock Exchange.

  • The company targets annual production of more than 5 million tonnes, with product for sale to domestic and export customers including South Africa, Botswana, Mozambique, Namibia, Zambia and Uganda. The company conducts its mining and exploration at the Hwange Coalfield and Chaba Mine, with combined estimated reserves totalling 90 million tonnes. Due to extremely challenging market conditions, the live online JSE stocks chart shows that Hwange Colliery share price has dropped sharply in recent years.

Hwange Shares Growth Driver

  • Hwange Colliery has been heavily impacted by stagnant economic conditions and steep erosion of commodity prices, which have threatened the company’s viability and impacted customers who traditionally buy the group’s coal.

  • For the 2015 year, the company incurred a loss of US$115.1 million, compared to a loss of US$37.9 million the previous year. In addition to the deteriorating coal prices, closure of ferrochrome, ferroalloy, copper and cobalt operations in the SADC region further worsened market performance and Hwange Colliery share price. Liquidity challenges also made it difficult for Hwange to secure critically required working capital and take advantage of rand declines against the US Dollar. Revenue was further impacted by low production and sales volumes due to persistent breakdowns of major mining equipment. The company’s liabilities totalled $287 million, with some creditors now taking legal action against Hwange.

  • In light of these challenges, the company has developed a short-term recovery plan involving more stringent cost management, strengthening corporate governance structures, restructuring the management team, reviewing supply contracts and setting up debt instruments to pay creditors.

  • This recovery plan will be the first step in achieving a long-term turnaround strategy to recapitalise mining operations and start development of several new concessions awarded during 2015.

Hwange Investor Tip

  • Hwange Colliery is a company in trouble, but investors can gain solace in the fact that it is still Zimbabwe’s leading coal producer. It remains to be seen whether the company will be able to recapitalise its mines and settle its extensive debt. There are certainly numerous huge hurdles to be overcome before investors can expect any profitability.

  • As with many coal mining companies, Hwange Colliery share price has experienced a sharp drop, declining from R4 in 2012 to 50 cents in August 2016. With very little positivity in the company’s prospects, it would be a foolhardy move to buy Hwange Colliery shares.

Hwange Major Shareholders

Zimbabwe Government, Messina Investments, Mittal Steel African Investments, London Register, National Social Security Authority.

  • Sector

    Energy

  • Industry

    Oil, Gas & Coal

  • Sub industry

    Coal

How to buy Hwange Shares

  • Hwange : How to buy Hwange Shares Online

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

  • Here are the steps you must follow to Buy / Purchase Hwange 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 Hwange.
    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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