Tancoal fails to list shares after missing profit target

Dar es Salaam. Tancoal Energy Limited has failed to list its shares at the Dar es Salaam Stock Exchange (DSE) main market segment due to lack of profit record.

The company says it has failed to qualify for floating Initial Public Offering (IPO) and listing at the bourse due to failure to record profit in two consecutive years. The company Chief Executive Officer, Mr James Shedd told The Citizen that Tancoal Energy Ltd had failed to attain profit for two consecutive years, which is a necessary criterion for listing DSE’s main market.

Owned by the Intra Energy Corporation, which is listed at Australian Stock Exchange, the company expects to break even this month, said Mr Shedd. “What we have to do is to continue raising productivity to reap more profits for two years, because this is an important requirement of the DSE for listing of shares,” said the CEO.

The company say is currently in a better condition to expand production as the minimum life span of the coal mines is 40 years depending on the quantity and quality of coal extraction. The coal mining company is jointly owned by the government the National Development Corporation and Intra Energy Corporation, whereby the government owns 30 per cent of shares, while the latter owns 70 per cent of shares.