This is a bet on rising oil and coal prices.

Sasol has a global distribution network, including China and Europe.

Sasol's cost of production for brent crude is $53.36 per barrel in 2019, produced in Gabon. This is below the current market price, which recently pushed $80/barrel.

Saleable coal was produced at a cost of $81.82/ton in 2019, and the current price is $241.50 per ton.

Most of Sasol's coal in South Africa (Sasol is a South African company) is low-grade, and is used to make liquefied fuels. They're also heavily invested in industrial fertilizers and other petroleum-based products. While they aren't a strict low-cost provider of hydocarbons like some other stocks, they still provide coal and oil, and the rest of their products will rise in price since they're made oil oil.

Sasol pipes gas from Mozambique to South Africa, but this looks like it serves South Africa's domestic energy market; not export.

Sasol had a catastrophic 2020, when it posted record losses and its stock price fell off a cliff. This provides a low baseline from which the stock can rise. Sasol has a long history of price fixing and corruption both in South Africa and abroad, which isn't unexpected for a South African firm. Hopefully nothing new comes to light in the next month, and Sasol can enjoy the benefits of rising fossil fuel prices.

www.sasol.com/sites/defaul...

-Jack