On A Date with Hwange Colliery Company Limited (Currently Suspended from trading on the ZSE)

Wed Mar 23 08:17:53 CAT 2022

 <mailto:marketing at zitf.co.zw> 

On A Date with Hwange Colliery Company Limited (Currently Suspended from
trading on the ZSE)

Dating is a critical stage to any investor considering to take a position on
any asset class even shares.

#1. History,

1893, Albert Giese a German prospector discovers coal in Wankie District and
a year later pegs land close to Kamandama River.

1894, British South Africa Company (BSAC) sell concession rights to
Mashonaland Agency Limited (MAL).

1901, MAL sells its concession rights to Wankie (Rhodesia) Coal, Railway and
Exploration Co

1902, No.1 Colliery shaft reaches coal a year later rail is used to
transport coal to Bulawayo.

1909, company changes name to Wankie Colliery Company Limited (WCCL).

1927, No.2 Colliery is commissioned

1950, a British company Powell Duffryn Limited (PDL) takes over the
operations of WCCL.

1953, Anglo American Corporation takes over WCCL adding No.3 Colliery and
list it 5 years later primarily on ZSE and on JSE plus LSE.

1961, No.1 Colliery is decommissioned

1972, A total of 427 miners die at the Kamandama mine (No.2) disaster. The
Colliery is closed.

1976, No.4 mine shaft is commissioned but is decommissioned 4 years later.

1982, JKL Opencast mine is developed to increase supply to ZESA's thermal
station.

1983, 40% of WCCL is bought by the Government of Zimbabwe

1993, WCCL acquires a stake in Zimchem Refineries a chemicals maker.

1994, +6 million tonnes of coal produced

1998, 49% of Clay Products is snapped up by WCCL and a year later No.3
Colliery is decommissioned.

2004, WCCL changes name to Hwange Colliery Company Limited.

2017, suspended from all the stock exchanges whilst working on a scheme of
arrangements.

#2. Operations,

HCCL is a business that explores, mines, processes and markets coal, coke
and its associated by-products.

Coal products are marketed in 3 categories,

° Thermal Coal

° Industrial Coal

° Coking Coal

Coke is marketed in 4 distinct categories.

Thermal Coal

It is also known as steaming coal widely used as the principle means of
generating electricity.

Industrial/Coking Coal

Metallurgical coal or coking coal is used to create coke. Coke a key input
for the production of steel.

Uses of Coal

#3. Customers, 

Zimbabwe Power Company

ZPC operates the 930 MW Hwange Thermal Power Station

ZIMASCO

A ferro-chrome producer which runs smelters in Kwekwe to process chrome

Afrochine 

A subsidiary of Tsingshan a conglomerate which produce stainless steel

#4. Competitors,

Makomo Resources

A privately owned coal producer which supplies ZPC, industries and
agriculture.

Zambezi Gas and Coal

A wholly owned Zimbabwean held company operating in coal mining and coal-bed
methane.

South Mining

Chilota Colliery

#5. Management,

Dr C. Zinyemba - MD

A holder of an Executive Masters in Business Administration

Started out in the medical field but has proved businesses just like people
get sick thereby need a doctor to identify the trouble and deal with it.

#6. Share Price,

HCCL closed its last trading day (Thursday 11th of October 2018) at 0.0425

Issued shares 183,720,699

#7. Shareholding,

36,77% of the business is controlled by the Government of Zimbabwe.

16,61% is controlled by Nicholas van Hoogstraten through his investment
vehicle Messina.

#8. Thoughts

Do you see any prospect of this business returning to the stock market?

What should be done to improve the operations of this business?

Do you thing the government should dispose its shareholding in HCCL?

What is the future of fossils given drive towards clean energy?

Each week will be on a DATE with a company listed on the ZSE with Martin
Mataga Twitter @MartinMataga. 

The purpose of this thread is to assist investors to have a minimum
appreciation of listed firms. 

Disclaimer: Do not misconstrue this thread as investment advice. DATE
companies before you buy their shares.

Invest Wisely!

Bulls n Bears 

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