Jsedirect With Simon Brown

Simon Shares The Sasol (JSE code: SOL) share price has collapsed this week for three key reasons. Saudi Arabia has declared oil price war on Russia and sent Brent down to the low $30's as they try and get Russia to agree to production cuts. Sasol has not hedge the oil price. They usually hedge about a third pf production, but currently they only have ethane and ZAR hedges in place. Massive debt burden of some R150billion, now some 3x more than their market cap. This is spooking the market worried about a potential rights issue at current levels. I'd add that a right down on Lake Charles is surely a given and in time Sasolburg as well. All in this is a total mess and coupled with poor management the market is not happy. I fully expect Sasol to survive, but in what form or price have no idea and I would NOT be buying. Subscriber to our feed here Subscribe or review us in iTunes COVID-19 continues to create havoc with Italy shutting down the entire country of 60million people as deaths exceed 600 and confi