Hwange post impressive results at JSE (06-09-07)

By Mthulisi Sibanda
JOHANNESBURG:
STRUGGLING Zimbabwe coal producer, Hwange Colliery Company, might be struggling to meet its set production targets as a result of the crisis unfolding in that country but it appears this   has not dampened trade on its shares.
 
The cr


oss-listed company is currently enjoying an impressive run in the Johannesburg Stock Exchange (JSE).
 
Marketwatchers said reports that magnate Billy Rautenbach was trying to revive the ailing coal producer might have prompted the trend.
 
Hwange was on Wednesday the biggest mover in the JSE as the counter changed hands at 400 cents, which represented a 45,5 percent gain.
 
“It could not be ascertained whether this rally in the share price was related to the news that Rautenbach is now trying to revive the dwindling fortunes of the cross-listed quoted coal miner or it was just due to a broader market recovery,” said an analyst.
 
“Hwange says he (Rautenbach) is providing contract mining at the colliery and had done so in the last nine months. It is a contract mining agreement that Hwange will utilise while it is organising its own equipment,” he said.
 
Hwange is also listed in the London Securities Exchange and the Zimbabwe Stock Exchange.
 
The company is facing a myriad of operational problems in Zimbabwe resulting in its failure to supply the market owing to a shortage of foreign currency that has led to its failure to refurbish broken down infrastructure, among other setbacks- CAJ News.


 

Post published in: Economy

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