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Simon’s weekly wrap: Coal price boom not waning yet

This week MoneywebNOW looked at bank shares, PGMs, offshore stocks and more.
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Coal as an energy source is certainly on its way out, but for now it remains the dominant input for electrical grids the world over. I spoke with Andries Rossouw of PwC Africa Energy on what’s driving price and how long it can remain elevated. He thinks we’ll see some softening, but not much and the good times could last a decade at least.

Coronation Fund manager Neil Padoa was talking about one of his preferred offshore stocks: Chinese tech stock JD.com. He commented that when the regulator is cracking down on anti-competitive behaviour the second place business is likely to benefit and hence being second to Alibaba actually helps JD.com.

PGMs have had a great rally in the last ten days and I spoke with Tharisa CEO Phoevos Pouroulis about the medium-term potential for PGMs. We also spoke about their newly-commissioned chrome plant that moves them further down the cost curve, earning more profits.

Banks have all resumed dividend payments, and the pandemic was not as bad for them as many feared. I spoke with Kokkie Kooyman of Denker Capital about the recent results and which of the bank stocks he prefers. He likes FirstRand but on valuation he actually prefers Absa and Investec as they’re a lot cheaper and have some catching up to do.

Also this week: Strong Coronation update with 10% dividend yield, Sasfin’s Nesan Nair talks Long4Life and PSG results and the Coronation update.

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Coal is in demand and will be so for the next 10 to 20 years.

The question is why the price of Coal is going up if there are so many Coal mines in South Africa?

There are actually many closed Coal mines in South Africa.

Simon it would interesting to discuss the Boatmans report on BD TV.
Where are these guys? they said that Thungela was worth R 0.00

Simon – good to see you and the other passionat about share trading chaps and ladies on BD TV.

Banks – STDBK was stinker, FNB and Nedbank did well. They have a big debt book.

PGM(s) – Unlike your colleagues on BD TV I love them, we have the best mining houses in South Africa but I cannot compete against big players shorting these.

Coal – Europe is getting punished for too forward thinking, you can only move away from Coal once you have many good Nuclear power stations.

Please discuss the Boatmans report about Thungela on BD TV – it will provide lots of fun

End of comments.

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