Higher prices and improved grades help Harmony almost double its free cash flow in SA

Higher prices and improved grades help Harmony almost double its free cash flow in SA

The production of higher grades of gold, particularly from the Mponeng mine, has helped Harmony Gold almost double its free cash flow from its SA operations for the nine months ended in March.

In an operational update on Wednesday, Harmony reported a 49% increase in group operating free cash flow to R3.2 billion from R2.17 billion, supported by higher recovered grade from South African underground operations which experienced a 94% surge in cash flows.

In particular, the Mponeng mine contributed 39% towards group operating free cash flow.

The Johannesburg operation is the deepest gold mine in the world and was acquired from AngloGold Ashanti in 2020.

"Our investment in quality ounces is paying off as Mponeng delivered a 192%increase in operating free cash flow of R1.27 billion for this reporting period from R437 million in the previous nine-month period ending 31 March 2022," Harmony said in Wednesday's update.

The group reported a 2% increase in total gold production to 33 785kg and a 5% increase in underground recovered grades overall – with a 7% improvement from South African operations.

Harmony also enjoyed a 13% increase in average gold price received but experience an 8% increase in group all-in sustaining costs. The group reported a 11% increase in gold revenue to R33.9 billion, up from R30.66 billion for the nine months under review.

Harmony's shares were up almost 2% in afternoon trade on Wednesday, having risen almost 62% so far in 2023.

Southern Sun flags return to profit as tourism recovers

Hotel operator Southern Sun has flagged a return to profit for its year to end-March, boosted by a return of travellers after the end of Covid-19.

Revenue is expected to more than double with headline earnings per share expected to jump to as much as 57.1c, from a loss of 8.2c previously.

Valued at about R6.6 billion on the JSE, the group operates a number of brands and hotels, including 54 on Bath, the Sandton Convention Centre, Sandton Towers and Bevery Hills Hotel.

Trading levels continued to recover, particularly during the second half of the year, as local and international travel patterns normalised and demand for conferencing and events increased, the compnay said.

All regions performed well and exceeded pre-Covid-19 levels except the Sandton node, reflecting the delayed recovery in corporate transient travel exacerbated by many companies in the node still operating a hybrid remote working model.

This performance is particularly encouraging considering group occupancy for the 2023 year of 51.5% (from 30.6% in 2022) is well below the 59.3% achieved in 2020, it said.

Shares in Southern Sun were up marginally on Wednesday, but have gained almost 40% over the past one year.

Lesaka Technologies reports revenue surge, but increased costs

Lesaka Technologies, formerly Net1, said on Wednesday its revenue surged in its third quarter to end-March as it benefited from acquisitions, though it did face increased costs, such as for employees.

Group revenue surged to R2.4 billion from about R550 million to end March, but the group's net loss climbed to R104 million from about R52 million, though the company reported that its merchant division had outperformed.

Lesaka had rebranded from Net1 UEPS in 2022 when it acquired Connect Group for R3.8 billion, an acquisition aimed helping it build a fintech platform that will offer financial services and payment processing to both consumers and merchants across the formal and informal sectors in southern Africa. Connect's services include Kazang, which offers prepaid airtime services, data, electricity, and DStv payments to merchants.

The company said on Wednesday that group costs for 2023 increased compared with the prior period due to higher employee costs and an increase in directors’ and officers’ insurance premiums. Group costs primarily include employee related costs in relation to employees specifically hired for group roles and costs related directly to managing the US-listed entity, among other things.

 “Another quarter of growth and profitability for Lesaka driven by the transformational acquisition of the Connect Group in our Merchant Division and the successful turnaround in our Consumer Division, despite the persistently challenging economic environment," said Lesaka Group CEO Chris Meyer said in a statement.

"Lesaka is well positioned to benefit from the exponential secular demand for innovative fintech solutions that are transforming South Africa’s highly cash-driven informal economy."

PwC Australia boss quits over leak scandal

Accountancy firm PwC Australia says its chief executive has resigned following a scandal over the leaking of confidential government plans to crack down on tax avoidance by multinationals.

Tom Seymour stepped down "effective immediately", the firm said in a statement Monday that was provided to AFP.

PwC Australia, part of the Big Four global giant PwC, stressed "the immediate need for the firm to rebuild and enhance trust".

It has been embroiled in scandal since then international tax partner Peter Collins was found to have made "unauthorised disclosures" about the government's planned tax reforms.

Collins had shared details from confidential Treasury briefings -- held between 2013 and 2018 -- with PwC Australia partners and staff, Australia's Tax Practitioners Board said in January.

PepsiCo South Africa appoints Riaan Heyl as new CEO 

PepsiCo SA has appointed Riaan Heyl as its new CEO effective from 1 May to replace Tertius Carstens, who is retiring after almost 30 years with the company.

Heyl, a chartered accountant, joined the then Pioneer Foods in 2000 and has held senior leadership positions in finance and general management over the years.

He led the essential foods portfolio within Pioneer Foods from 2017, before taking on the role of vice president of go-to-market and commercial integration across the South African portfolio after PepsiCo's acquisition of Pioneer in 2020. 

Heyl had served as PepsiCo South Africa's COO since January this year.

Eugene Willemsen, PepsiCo's CEO of Africa, Middle East and South Asia, said Heyl had "proven himself to be an outstanding leader" over his long career at Pioneer, adding he had been at the "forefront of building one PepsiCo in South Africa commercially and culturally".

Heyl said his appointment was an "extraordinary opportunity to lead one of the best food and beverage businesses in South Africa".

Turkey fines JPMorgan citing disruptive equity transactions

The Turkish securities regulator fined JPMorgan Securities PLC over alleged irregularities in stock market dealings.

The regulator, known as SPK, said late Friday that it imposed a penalty of 32.8 million lira (R31 million) on the bank for violating an article covering “disruptive” equity transactions.

JPMorgan didn’t immediately respond to emailed requests for comment early Saturday.

In 2019, JPMorgan faced a previous investigation amid turbulence for the Turkish lira.

The Banking Regulation and Supervision Agency, known as BDDK, said at that time that JPMorgan analysts who recommended selling the lira against the dollar had issued a note featuring “misguiding and manipulative” content that resulted in volatility in markets and hurt the reputation of Turkish banks. - Bloomberg

Terence Goodlace resigns from Southern Palladium due to multiple other positions

Former Impala Platinum CEO Terence Goodlace has resigned as Southern Palladium's chairman with effect from Friday due to his holding of other positions at different companies.

Goodlace is also a non-executive director at Gold Fields and is chair of Kumba Iron Ore, and he said on Friday the decision was solely motivated by a recommendation from an advisory service, and not due to his lack of confidence in Southern Palladium's future.

Valued at about R260 million on the JSE, but also listed in Australia, Southern Palladium's primary focus is a 70% stake in Bengwenyama, a large shallow advance exploration and predevelopment platinum group metal (PGM) opportunity in Limpopo.

In a presentation to investors in June 2022, Southern Palladium's managing director, Johan Odendaal, said the project was one of the last remaining undeveloped PGM projects on the Eastern limb and was situated among tier one, platinum and chrome producers.

“It is with great disappointment that I must resign from the Board of Southern Palladium Limited despite my continued support for the Bengwenyama Project," said Goodlace in a statement.

"I have made this decision reluctantly, based solely on the advice of a proxy advisory services company regarding the number of board positions that they believe I should hold. My belief in the Bengwenyama Project ... is unchanged and I will maintain my keen interest in the continued development of this project.”

Shares in Southern Palladium were unchanged in midday trade on Friday.

MTN Rwanda reports profit slump from interest rate hit, loses market share

MTN Rwanda said on Friday its profits fell almost a third in its first quarter to end March, with the company hit by higher interest rates and losing market share, even though it grew subscribers 7%.

Mobile subscribers increased by 7% year-on-year to 6.9 million and Mobile Money (MoMo) subscribers grew almost 18%, but the company said increased competition in the industry saw its market share fall 0.5% to just over 64%. Data revenue grew more than a fifth however, while fintech revenue was up by more than a third.

Profit fell 31% to 2.8 billion Rwandan Francs (about R46 million) with business hit by a surge in interest rates, which pushed up finance costs almost 42%.

Rwanda's central bank has set a target of consumer inflation of between 2% and 8% for 2023, but inflation was at over 19% in March.

Famous Brands says earnings could jump almost half after lifting of Covid-19 restrictions

Restaurant group Famous Brands, owner of Steers, Debonairs and Wimpy among others, says its earnings could grow almost half as it benefits from an easing of Covid-19 restrictions.

Headline earnings per share are expected to rise in a range of 27% to 47% in the year to end-February, the company said in a brief trading update. Basic earnings per share are expected to rise as much as 75%, and include R75 million in a liquidation dividend following the closure of Gourmet Burger Kitchen in the UK.

The business continues to improve its financial performance after the lifting of the Covid-19 restrictions in June 2022 mainly due to a good recovery in quick service restaurant performance and casual dining, it said.

"The dramatic increase in the level of load shedding combined with difficult economic conditions, has however muted the growth prospects across the value chain of the group."

Shares in Famous Brands were up almost 5% on Thursday afternoon, and have risen about 10% over the past one year.

Mondi reports flat profits amid softening prices and weaker demand

Paper and packaging group Mondi said on Thursday its core profits were broadly flat in its first quarter to end March, with lower input costs being offset by lower selling prices.

Underlying earnings before interest, taxation, depreciation and amortization (ebitda) from continuing operations was  broadly unchanged at €351 million (about R7 billion) to end March, with wood prices starting to reduce, though fine paper demand in Europe fell from the prior quarter.

“We have seen a stable performance in the first quarter of 2023 compared to the final quarter of last year, with good pricing resilience from Flexible Packaging," CEO Andrew King said in a statement.

"So far in the second quarter, demand remains subdued with lower average selling prices and further input cost reduction across the business."

"We continue to invest in the future growth of Mondi and we are making good progress in executing on our pipeline of expansionary capital projects. We have a compelling product portfolio and a resilient business model, which positions us well to deliver attractive returns and sustainable value accretive growth.”

Shares in Mondi were down just over 1% on Thursday morning, having fallen a similar amount in the year to date.

Aveng lifts more than 10% after completing R1.2 billion sale of Trident Steel

Shares in construction and engineering group Aveng lifted more than 10% at one point on Wednesday, after it said it had successfully concluded the R1.22 billion sale of Trident Steel, something which has seen it extinguish its legacy SA debt.

Aveng has been battling a hefty debt pile that peaked at R3.3 billion in 2018, selling off non-core businesses, including its roads, water and rail units.

Valued at about R1.4 billion on the JSE, Aveng's core businesses are now Australian construction firm McConnell Dowell and mining services Moolmans, which is focused on Africa.

Shares in Aveng had pared gains but were still up almost 5% on Wednesday afternoon, but have fallen about 30% so far this year. In April the group flagged an operating loss for its year to end-June, as it counts the costs of delays at a gas project in the Philippines. It has, however, said previously it has significant work in hand, and due to the Trident sale, it expects to have surplus available cash.

"Having achieved this milestone of de-risking the balance sheet and settling legacy South African debt, management are now entirely focused on the operational performance of both Moolmans and McConnell Dowell," it said on Wednesday.

MTN Uganda reports almost 12% growth in first quarter subscribers

MTN Uganda said on Tuesday its subscriber base grew almost 12% to 17.8 million in its first quarter to end-March, with the company boosted once again by data and fintech revenue.

Profit after tax grew 20% to 120.6 billion Ugandan shillings (about R600 million) to end-March, it said in a quarterly update, with data revenue growing by just over a quarter.

The company has been pursuing a network rollout, and its 4G population coverage increased to 80.7% from 65.1% in the same period of 2022, driving better connectivity. In its mobile money (MoMo) business, merchants grew two-fold to 268 000 with an increase in transaction value of 35.5%.

MTN said its smart phone penetration improved to 34.7% from 31.4%, which also underpinned the growth in data traffic on the network of 53.5%, with 4G traffic making up 68.3%.

Impala Platinum reports production dip amid loadshedding hit

Mining group Impala Platinum said on Tuesday its production fell in its third quarter to end-March as it battled with the effects of load shedding.

Gross production of the basket of six metals (6E) it produces declined by 5% to 735 000 ounces to end March, Implats said in a trading update, with the company also hit by severe loadshedding across the Zimbabwean national grid in March 2023 due to generation constraints at Hwange Power Stations and the curtailment of power imports following payment challenges.

Implats said it responds to load curtailment requirements through several operational interventions including reducing power to group smelters and adjusting milling, hoisting and re-mining rates. The estimated impact of Eskom load curtailment on Group production in the quarter resulted in the deferral of about 16 000 6E ounces. Implats finished the period with circa 190 000 6E ounces of excess inventory.

The company's shares were down about 1.5% in afternoon trade on Tuesday having fallen almost a fifth so far in 2023.

Gold Fields inks joint venture deal for R15bn Canadian project

Miner Gold Fields said on Tuesday it has inked a deal for a 50-50 joint venture with Osisko Mining to develop the underground Windfall Project in Québec, Canada.

Under a feasibility study, the total capital expenditure of the project is about C$1.1 billion (R15 billion), with Windfall having an estimated life of mine of 10 years, mineral reserves of 3.2 million ounces, and average production of 294 000 ounces.

Gold Fields, valued at about R294 billion on the JSE, produced 2.4 million ounces in its 2022 year.

The transaction details include a cash payment of C$300 million paid upon signing, along with another payment of the same amount once key permits are secured from Canadian authorities.

Under the Partnership, Gold Fields has also acquired a 50% up-front vested interest in Osisko’s highly prospective Urban Barry and Quévillon district exploration camps, totaling approximately 2,400 square kilometers, which will be co-explored and co-developed under the partnership.

The group's shares were little changed on Tuesday, but are up almost by almost 54% so far in 2023.

Asian markets open higher as investors weigh Wall Street losses

Asian equities rose at the open on Tuesday following a holiday weekend, as investors digested losses on Wall Street after the takeover of First Republic Bank.

After a choppy session, all three major US indices finished in the red on Monday at the start of a news-jammed week that includes a policy decision by the Federal Reserve and a report on US employment figures.

Adding to investor uncertainty were raised fears about the banking sector after another US regional lender went under.

Regulators announced the seizure of First Republic on Monday and that it had been sold to JPMorgan Chase, making it the second biggest bank by assets to collapse in US history.

"The collapse of First Republic saw JPMorgan step up to the plate and squash the biggest market risk on the table," said Edward Moya of the OANDA trading platform in a note.

"It is looking like the stress for the smaller banks is over as we now have a playbook to help the next bank that runs into trouble."

The takeover of First Republic came after the collapse of three midsized lenders in March, including the high-profile failures of Silicon Valley Bank (SVB) and Signature Bank -- which rattled markets and raised contagion worries.

But Jack Ablin, chief investment officer at Cresset, added that the latest deal would go "a long way to calm investors' concerns" on the turmoil in the sector.

Multiple markets in Asia resumed trading after a holiday weekend.Tokyo, Seoul, Taipei, Kuala Lumpur, Singapore and Manila were all up, while Sydney, Wellington, Jakarta and Bangkok were down.

Tokyo stocks opened higher, helped by a cheaper yen.

"The Japanese market is seen starting with gains following the yen's depreciation," with a wait-and-see attitude expected to grow ahead of public holidays from Wednesday, Monex senior market analyst Toshiyuki Kanayama said.

Looking ahead, investors are closely eyeing the Fed's next interest rate decision due on Wednesday.

SVB's failure had come after it took on too much interest rate risk, among other issues.

The US central bank is widely expected to raise its benchmark lending rate for a tenth and possibly final time, this time by another quarter-point, as it continues its fight against high inflation.

For now, the market appears "primed" for the outcome of a rate hike and pause signal, according to Patrick O'Hare of Briefing.com.

JPMorgan to acquire failed regional bank First Republic

JPMorgan Chase & Co. won the bidding to acquire First Republic Bank in an emergency government-led intervention after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits.

JPMorgan will take over First Republic’s assets, including about $173 billion of loans and $30 billion of securities, as well as $92 billion in deposits. JPMorgan and the Federal Deposit Insurance Corp., which orchestrated the sale, agreed to share the burden of losses, as well as any recoveries, on the firm’s single-family and commercial loans, the agency said early Monday in a statement.

“Our government invited us and others to step up, and we did,” JPMorgan Chief Executive Officer Jamie Dimon said in a statement.

“Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimise costs to the Deposit Insurance Fund.”

Recession worries simmer beneath US stock market rally

Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. The S&P 500 is up 8.6% for the year after gaining 1.5% in April, thanks to roaring year-to-date rallies in shares of Microsoft, Amazon and Google-parent Alphabet and other growth and technology stocks that command heavy weightings in broader indexes.

Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming.

Investors cited growing caution among market participants faced with a thicket of concerns, from fears of a possible U.S. default this summer to worries that the Federal Reserve’s aggressive monetary tightening could bring on a recession.

“People are starting to more defensively position themselves,” said Aaron Dunn, co-head of the value equity team at Eaton Vance.

“The overall signal to me is there is still a lot of fear about recession and oncoming weakness in the back half of the year.”Areas of the market showing cracks include the Russell 2000 , an index populated by smaller, domestically focused companies, which was down 1.9% for the month. The Dow Jones Transportation Average, another bellwether of economic health, fell 2.9%.

- REUTERS

Mike Schmidt steps down as ARM CEO 

After 11 years at the helm, Mike Schmidt is stepping down as CEO and executive director of African Rainbow Minerals (ARM).  

His resignation is effective from 1 May 2023, although Schmidt will remain employed by ARM as executive of Growth and Strategic Development in the Executive Chair’s Office.  

After a comprehensive process to identify a successor, Velile Phillip Tobias – ARM’s current COO – has been appointed to the roles of new CEO and executive director. His appointment will still need to be formally approved by shareholders at the company’s next annual general meeting.  

Tobias is a mining engineer with more than 28 years of experience in the mining industry. He has been the COO of ARM since November 2021 where he worked closely with Schmidt and the executive management team. - Lisa Steyn

Remy Cointreau shares shaken as sales forecast to stall

Shares in Remy Cointreau fell Friday after the French spirits group forecast sales would stall this year, with the United States taking a hit before bouncing back.

The group, which includes Remy Martin cognac and Cointreau liqueur, saw sales rise by 17.9 percent in its 2022-2023 financial year that ended in March, as it was able to raise prices while volumes remained steady.

But it warned that sales would only remain stable this year, excluding currency effects and other exceptional changes, with a sharp drop in the United States in the first half before rebounding later.

Higher interest rates, strains in the banking sector and downbeat consumer confidence surveys have raised worries that the US economy may tip into recession.In a strong inflationary environment, stable sales would imply that Remy Cointreau, which also sells Metaxa brandy and Mount Gay rum, wouldn't be able to pass along cost increases.

Nevertheless, the company said it plans to maintain its profitability level via a combination of firm pricing and cost control.

The company will present its full results on June 1.Remy Cointreau's shares fell over seven percent in morning trading, while the Paris stock exchange's main index was down 0.6 percent. - AFP

Sanctions-battered Huawei posts slight rise in first-quarter revenue

Huawei announced on Friday a 0.8 percent increase in revenue from the same period last year as the sanctions-battered firm reorients its business layout.

The Shenzhen-based telecoms giant posted total revenue of 132.1 billion yuan ($19.1 billion) for the January-March period.

Huawei also announced that its net profit margin in the first quarter was 2.3 percent, down from 4.3 percent in the same period last year.

The firm said in the brief report that "overall operating results are in line with expectations".

The company, a leading supplier of telecom gear, smartphones and other advanced equipment, has been hit with tight trade restrictions by the United States as relations between Washington and Beijing sour.

Huawei was once the world's top smartphone maker but saw its sales slump after sanctions cut off access to key parts and barred it from using Google's Android operating system.

- AFP

Asian stocks rise after big gains on Wall Street

Asian stocks were up on Friday, tracking big gains on Wall Street fuelled by strong tech earnings and mixed, but manageable, macroeconomic data.

Fears of further turmoil in the banking sector, which had acted as a drag on global markets, also appeared to be dissipating as shares in troubled US lender First National Bank rose after two battering sessions.

Hong Kong was up nearly one percent in early trade Friday on the back of solid gains by Chinese tech giant Tencent and strong performances by commerce and industry stocks.

Tokyo also posted solid gains as investors kept their eyes on the Bank of Japan (BoJ), which will conclude its first meeting under new governor Kazuo Ueda during Tokyo trading hours.

"The BoJ is widely expected to hold firm," given that Ueda "defended the Bank's current ultra-easy policy stance in front of Parliament earlier this week," National Australia Bank senior analyst Taylor Nugent said in a note.

Traders will be also watching the BoJ's inflation forecasts, which will be released at the same time, he added.

Shanghai, Seoul, Sydney, Taipei, Wellington, Manila and Kuala Lumpur were all up, with Jakarta the sole loser. Singapore was more or less flat.

Back on Wall Street, a 14 percent surge in Meta shares -- along with strong performances by fellow tech titans Microsoft and Alphabet earlier in the week -- "helped foster a sense of relief that the mega-cap leaders are still performing relatively well from an operational standpoint", said Briefing.com.

Meanwhile, fresh US macroeconomic data was a mixed bag: though growth slowed more than expected in the first quarter, resilient employment and a bounceback in personal consumption offered a silver lining, pumping the brakes on recession fears.

"The consumer is still in too good of shape for the recession to start in the second quarter," Oanda's Edward Moya said in a note.

"GDP growth is about to flatline, but it might squeeze out a tiny gain this quarter."

Investors were also heartened by the performance of US regional banks, which had been at the centre of fears for the health of the sector.

After two straight routs, First Republic Bank -- which reported this week that it lost more than $100 billion in deposits in the first quarter -- mustered an 8.8 percent gain, while other regional banks also closed higher.

Art Hogan, an analyst at B. Riley Financial, said "the worst of the regional bank turmoil is likely in the rear mirror", noting that most US lenders released earnings that were reassuring.

"It doesn't feel like the market is expecting some contagion."With markets having digested the busiest stretch of earnings, the focus turns next to the US Federal Reserve's monetary policy meeting next week.

Yields on US government debt rose after the US data was released, suggesting that the market expects the Fed to consider strong consumer spending in the first quarter as well as a drop in weekly jobless claims on Thursday as evidence that the economy can take more interest rate hikes.

-AFP

US growth cools in fourth quarter as recession fears deepen

US economic growth lost steam in the first quarter this year, said the Commerce Department on Thursday, as the possibility of a mild recession brews while consumer spending weakens.

Consumption has provided a boost to the world's biggest economy, giving it a strong start to 2023, but recent banking sector turmoil and rising interest rates are likely to weigh on the outlook.

US gross domestic product rose at an annual rate of 1.1% in the January to March period, down from 2.6% in the fourth quarter last year.

"Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment," said the Commerce Department.

It added that this was partly offset by an acceleration in consumer spending and an upturn in exports.

The GDP growth figure "reflected increases in consumer spending, exports, federal government spending," along with some forms of investment, said the department in a statement.

Economic activity has been easing as the US central bank rapidly hiked the benchmark lending rate to tackle stubborn inflation, while the full fallout from recent financial sector unrest -- following the failures of three midsized lenders last month - is yet to be seen. - AFP

Mozambique okays resumption of $20bn Cabo Delgado gas project

Mozambique President Filipe Nyusi has said it is safe to restart the Cabo Delgado liquefied natural gas (LNG) project that was halted in April 2021 after rebel attacks on civilians.

Nyusi told a mining and energy conference in Maputo on Wednesday that Mozambique wanted to take advantage of the current high prices of LNG and the global shift towards cleaner sources of energy.

Violence by armed groups affiliated with ISIL (ISIS) in the northern Mozambican province has claimed thousands of lives since 2017, disrupting multibillion-dollar investments, including the $20 billion (about R366 billion) LNG project in which TotalEnergies has a 26.5%.

“The working environment and security in northern Mozambique makes it possible for Total to resume its activities any time,” Nyusi said.

TotalEnergies spokesperson Stephanie Platat said a decision to restart the project depended on assurances of security and human rights in Cabo Delgado and “a clear vision of the costs of the project after an interruption of more than two years – which must be maintained and not increase”.

“The restart is a decision of Mozambique LNG, not a decision of TotalEnergies, which only owns 26.5% of the project. Given the context, the decision will have to be unanimous and TotalEnergies’ position is that it is appropriate to take the time to have the expected assurances before considering a possible restart,” Platat said.

The French oil company bought an operating stake in the project for $3.9bn in 2019.

Delays in the project had caused the International Monetary Fund to scale back its economic growth forecasts for the nation.

In February, TotalEnergies said the situation in Cabo Delgado had “improved significantly” after African countries deployed troops to help Mozambique security forces deal with the armed uprising in 2021.

The energy major’s Chairman and Chief Executive Patrick Pouyanne visited Mozambique two months ago to meet Nyusi and review the security and humanitarian situation in Cabo Delgado.

After Pouyanne’s visit, TotalEnergies announced the appointment of Jean-Christophe Rufin, who it said was an expert in humanitarian action and human rights, to independently assess the situation in Cabo Delgado province.

This assessment would help TotalEnergies and its partners to decide if the conditions were right to resume the project. - Al Jazeera

Teck pulls vote on coal split, handing momentum to Glencore

Teck Resources canceled a vote to spin off its coal assets hours ahead of its shareholder meeting, handing the initiative to Glencore in its attempt to buy the company.

The move caps a tense three weeks of lobbying investors by both Teck and Glencore, and suggests Teck may not have mustered the support it needed. The Canadian miner rejected a $23 billion takeover proposal from Glencore earlier this month, and said it would instead press on with the plan to spin off its coal mines, to focus on mining copper and zinc.The focus will now turn to Glencore — which has dangled the prospect of a higher offer — and whether Teck’s own investors will pressure the company to enter discussions. While the canceled vote is an embarrassing reversal, any takeover would still require the support of controlling shareholder Norman Keevil, who holds an effective veto through Teck’s "supervoting" A Class shares. Teck said in a statement it still intends to pursue the company split, and hasn’t changed its view on Glencore’s offer.

It will consider shareholder feedback and present a new proposal. Teck shares jumped as much as 11% in Toronto and traded 5.5% higher at 11:01 a.m.The vote on Wednesday had turned into a showdown over the future of Teck — Glencore said its proposal would be dead if the spinoff were approved, as it tried to persuade shareholders to vote "no" and pressure the company to engage. A Glencore spokesman declined to comment on Teck’s announcement. - Bloomberg

Just 0.01% of Jasco shareholders vote against delisting

Shareholders of technology group Jasco Electronics voted 99.99% in favour of delisting the group on Wednesday, with the company now expected to depart from the JSE in late May.

Just under two thirds of shareholders voted on the resolutions at its annual general meeting on Wednesday, with the company still waiting for a compliance certificate from the Takeover Regulation Panel. The timeline in circular for an offer for its shares referred to a delisting date of 23 May.

Valued at about R55 million on the JSE, Jasco provides digital media equipment, components for energy and telecommunications equipment, and manufactures items such as electrical plugs, adaptors and extensions.

It recently reported it swung into a loss representing more than half its market value in the six months to end-December, hit by a series of internal and external blows, including strikes and the closure of one of its units after it uncovered alleged management misrepresentation.

In December, its biggest shareholder Community Investment Holdings had made an offer to minority shareholders of 16c per share, a 14% premium to the closing price on the date preceding a cautionary announcement.

Jasco's shares were unchanged at 15c on Wednesday, having more than halved over the past year. 

Grand Parade appoints Gasant Orrie as chair

Gaming and leisure group Grand Parade Investments (GPI) has appointed its long-standing lawyer Garant Orrie as its new chairman with effect from Tuesday.

An admitted attorney and a senior partner in global law firm Clyde & Co's corporate & advisory practice, Orrie has close to 30 years of corporate and commercial experience and has advised local and international clients on some of South Africa's largest transactions, including several public companies listed on the JSE and state-owned companies, GPI said in a statement.

Orrie has a long history with GPI, having advised GPI as external legal counsel for many years, it said.

The appointment comes amid a shakeup at the group, which will see Greg Bortz assume the role group CEO with effect from 2 May.

Bortz replaces Mohsin Tajbhai, whose resignation was announced in earlier in April, although he will remain on the board as a non-executive director.

The shakeup follows a mandatory offer from major shareholder GMB Liquidity Corporation with the effect of that company raising its stake by 4.49 percentage points to 53.65%.

Little-known GMB is headed by retired merchant banker and horse racing enthusiast Bortz, who is the sole director and chairperson.

Grand Parade also announced earlier in April that chairman Alexander Abercrombie had resigned with effect from 7 April, the day after the mandatory offer closed.

Valued at about R1.6 billion on the JSE, Grand Parade had been formed in 1997 as the black empowerment partner of Sun International in SA, then bulking up its gaming interests and getting into fast food.

It listed on the JSE in 2008, and has spent the past few years looking to unlock value for shareholders.

It sold its Burger King SA licence, closed unprofitable investments, and unbundled its stake in Spur to shareholders. The remaining assets consist of minority investments in SunWest International, the Golden Valley Casino and SunSlots, a minority investment in Infiniti Gaming Africa, and two investment properties.

Shares in Grand Parade were unchanged at R3.30 on Wednesday afternoon. 

Prosus stake in Tencent falls below 26% as selloff continues

Prosus NV continued its selloff of Tencent Holdings, bringing its stake in the Chinese internet giant to under 26%. 

The Amsterdam-listed tech investor sold 789 600 ordinary shares of Tencent on Tuesday, lowering its holding to 25.99%, it said in a regulatory filing.

Prosus bought its own shares worth €185 million between April 17 and April 21 as part of a repurchase program, according to the statement. Prosus, an early investor in Tencent through its Cape Town-based parent Naspers, first started its campaign to reduce its holdings in mid-2022 as a way to fund the buyback.

The selloff is an open-ended process and Chief Executive Officer Bob van Dijk has said that trades are being executed in small chunks of between 3% to 5% of daily volumes.Prosus deposited an additional 96 million Tencent shares, or about 1% of the company, in Hong Kong’s clearing and settlement system this month, typically a precursor to offload stock.

The Dutch firm has a regulatory requirement to disclose its interest in the Chinese company every time it decreases by a full percentage point. Prosus has cut its stake in Tencent from 29% in June 2022 in a move that could help it to bridge the gap between its market value and the value of the assets it holds. 

Prosus shares were down 1.1% in Amsterdam while parent Naspers declined 0.3% Tuesday in Johannesburg.

- BLOOMBERG 

Capitec audit committee chair Jean Pierre Verster to retire in 2024

Banking group Capitec said on Tuesday independent non-executive director and chairman of the audit committees of the group is set to retire from its board in 2024.

Verster, also CEO of Protea Capital, will see his nine-year term come to an end in March 2024, with the intention that he would retire at the group's 2024 annual general meeting, currently scheduled for the end of May of that year.

According to a directive pursuant to the Banks Act, independent non-executive directors are no longer considered independent after nine years.

Capitec also said on Tuesday that independent non-executive director Thetele Mashilwane will step down from the boards of the companies in September 2023, given the appointment of KPMG as an auditor for its 2025 year. This has given rise to a deemed conflict of interest due to a business relationship between KPMG and her companies. Mashilwane joined Capitec's board in 2020.

Quilter reports pick up in assets amid market improvement

London-based Quilter, Old Mutual's former wealth management business, said on Tuesday it benefited from a modest improvement in global equity markets in its first quarter to end-March, when net inflows almost doubled.

Assets under management and administration (AuMA) increased 2% to £101.9 billion (roughly R2.3 trillion) at the end of March from the prior quarter, while net flows were nearly double at £159 million.

“I am pleased with the trends we have seen in our first quarter flows," said CEO Steven Levin in a statement.

"From a low base around the end of the year, each subsequent month has demonstrated an improvement on the prior period."

"There is good momentum in our business. In-flows in the Quilter channel remain strong, with continued double digit net flows as a percentage of opening AuMA in both our high net Worth and affluent segments."

“We remain cautiously optimistic that, over the course of 2023, we will continue to see a gradual return of investor confidence and improving market levels. Our expectation is that this will support an improvement in flows over the course of the year."

Quilter's shares were up almost 1% on Tuesday morning but have fallen almost 40% over one year.

Asian stocks mostly down after mixed session on Wall Street

Asian stocks were mostly down on Tuesday following a mixed session on Wall Street, with investors still casting about for direction at the start of a week of major announcements.

Bourses in New York, London, Frankfurt and Paris dipped in and out of negative territory on Monday, ahead of earnings results from US tech behemoths such as Amazon, Microsoft, Facebook owner Meta and Google parent Alphabet.

Investors will also be watching important economic data from Australia and the eurozone, as well as a policy meeting of the Bank of Japan.South Korea on Tuesday announced better-than-expected economic growth of 0.3 percent for the first quarter of the year, dodging a technical recession.

But that, coupled with a surge in media stocks following a $2.5 billion investment announcement by Netflix, was still not enough to stave off losses in the broader Korean market.

"The (GDP) results were slightly stronger than expectations, but there is still a question mark over whether it will be sustained," Park Sang-hyun, an economist at HI Investment & Securities Co, told Bloomberg.

"Figures largely suggest the economy is still trying to find a bottom."

Hong Kong, Shanghai, Taipei, Singapore and Manila were also down.Tokyo, Wellington, Jakarta and Kuala Lumpur were up.-

US debt showdown 

The US calendar also includes readings on first-quarter gross domestic product and an update on consumer confidence, as well as a potential vote in the long-running political stalemate over the US debt ceiling.

Moody's Analytics said in a note Monday that a plan proposed by Republican US House Speaker Kevin McCarthy to raise the debt ceiling in exchange for cuts in government spending would slow growth and cut employment.

According to the ratings agency's research arm, if the draft presented by McCarthy on April 17 were passed as is, it would lead to a drop of 0.6 percentage points in US potential growth for 2024, as well as the elimination of 780,000 jobs.

On the corporate front, US lender First Republic Bank reported a more than 40 percent drop in deposits in the first quarter this year, but added that the situation had stabilised since late March.

Its shares fell more than 20 percent in after-hours trading following the earnings report, its first since the dramatic failures of Silicon Valley Bank (SVB) and Signature Bank last month shone a spotlight on regional lenders and their vulnerabilities.

Asian stocks mixed ahead of tech earnings results

Asian stocks were mixed on Monday following a muted finish on Wall Street last week, with investors holding their breath ahead of key earnings results from US tech behemoths.

Wall Street ended slightly up on Friday after a relatively calm week as a wait-and-see mood took hold of markets ahead of earnings data from the likes of Amazon, Microsoft, Google parent Alphabet and Facebook owner Meta.

"Mega tech earnings will be important this week for the rally in risk sentiment since the beginning of the year," Tapas Strickland of National Australia Bank said.

Traders will also be looking for clues about the US Federal Reserve's next steps on interest rates, with swaps markets suggesting they anticipate a peak around the corner, followed by a series of cuts in the coming months.

Analysts, however, warned that upcoming US data on growth, inflation and wages could see that forecast change."The thought that the Fed is going to aggressively cut into year end is misleading," Kim Strand, head of fundamental research and ESG integration for Franklin Templeton Investment Solutions, told Bloomberg Television.

"We believe what the Fed is saying: that it will hike and stay there until you see these areas of inflation coming down."

Tokyo was up on Monday, as was Wellington, while Taipei was relatively flat. Hong Kong, Shanghai, Sydney and Seoul were all down.

Still, Stephen Innes of SPI Asset Management said in a note that as investors waited for clues, "counterbalancing forces in the global economy are helping to keep the ship sailing on an even keel".

"A remarkably resilient US labour market, robust China data, and the lack of other crises from regional banks have all helped to keep stocks range-bound," he added.

In China, however, the rebound following the end of growth-sapping zero-Covid policies is likely to cool, he said, relying now on higher income growth and improved consumer sentiment.

"So the easy part is done; now, the consumer will need to do the bulk of the heavy lifting," he said.

Also this week, investors will be watching important economic data from South Korea, Australia and the eurozone, as well as Bank of Japan chief Kazuo Ueda's approach as he chairs his first key policy meeting.

-AFP

US giant Bed Bath & Beyond files for bankruptcy 

The Union, New Jersey-based home goods retailer filed for bankruptcy in a District of New Jersey court, listing both its estimated assets and liabilities in the range of $1 billion and $10 billion, according to a court filing.

Bed Bath & Beyond said that it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, according to a separate statement.

The company added that its 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as it begins efforts to effect the closure of its retail locations.

In February, the embattled retailer had planned to raise around $1 billion through the offering of preferred stock and warrants to avoid bankruptcy.

The company was able to raise $360 million from the complex deal helping it pay loan defaults and interest payments for senior notes.

But Bed Bath terminated the deal in late March and announced plans to sell $300 million worth of its shares while also once again warning it might have to file for bankruptcy if it could not secure the funds.

The Union, New Jersey-based home goods retailer, which shot to popularity in the 1990s as a go-to shopping destination for couples making wedding registries and planning for new babies, has seen demand drop off in recent years as its merchandising strategy to sell more store-branded products flopped.

Last year's moves to abandon that strategy, and to bring in more national brands that shoppers recognize, had not shown signs of working, with the company reporting a loss of about $393 million after sales plunged 33% for the quarter ending Nov. 26.

In January, the company raised doubts about its ability to continue as a going concern just months after it announced more than $500 million in new financing, as well as job cuts and 150 store closures.

Retailers in distress often look to bankruptcy protection after the holiday season to take advantage of the cash cushion provided by recent sales.

In February, according to a court filing, Bed Bath & Beyond's Canadian operations were going out of business. The Canadian division, which operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, is insolvent, the filing posted on the website of consultancy Alvarez & Marsal showed.

Bed Bath said in March it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10 and its board earlier in April urged shareholders to approve the split saying that if the plan fails, bankruptcy would be imminent.

US stocks end low-key session with slight gains

Wall Street stocks closed slightly higher on Friday, concluding a lacklustre week on a benign note ahead of next week's deluge of major earnings reports. Stocks traded within a narrow range for most of the day, extending a choppy period in a week with few major economic releases. The Dow Jones Industrial Average ended 0.1 percent higher at 33,808.96. The broad-based S&P 500 also edged up 0.1 percent to 4,133.52, as did the tech-rich Nasdaq Composite Index, which stood at 12,072.46. Investors mostly focused on corporate earnings, which were mixed. But analysts said this week's results were a warm-up for next week's heavy schedule involving tech giants like Apple and Microsoft, along with blue-chip companies such as Boeing and McDonald's."Markets are in wait-and-see mode ahead of the tech earnings next week," said Angelo Kourkafas of financial services firm Edward Jones. He also pointed to an upcoming Federal Reserve policy decision."These are going to be the next two catalysts," he said.

Royal Bafokeng Platinum reports production fall amid some operational difficulties

Mid-tier platinum group metals miner Royal Bafokeng has reported a production fall in its first quarter to end-March, amid operational difficulties at its Styldrift mine.

Total tonnes hoisted decreased by 2.4% to 1.085 million tonnes, it said, but added that it remains confident, and it has kept its full-year guidance unchanged at between 470 000 ounces and 490 000 ounces of the basket of four metals it produces.

"Despite the ongoing challenges at Styldrift, management remains confident that the operational strategies implemented will yield improved volume, grade and cost performance during the second quarter," it said.

Total cash operating costs increased by 20.2% to about R2.4 billion for the reporting period compared to 2022, attributable to, among other things, an increase in total tonnes milled and volumes and sustained inflationary pressures and abnormally high trackless fleet related costs at Styldrift. Trackless fleet refers to vehicles used in mining that don't rely on tracks.

Purple Group warns of loss as trades fall to historic lows

Purple Group, the owner of trading platform, has warned it swung into a loss in its half-year to end February, with tough economic conditions resulting in trades, relative to assets on the platform, falling to record lows.

The group expects a headline loss per share of between 0.82c and 0.91c, from earnings of 1.63c per share previously, a fall of as much as about 156%.

"Tough economic conditions have driven traded value, relative to client assets on platform, to historic lows."

"Nonetheless, over the last six months, R2.9 billion in deposits still flowed into new investments with us. Whilst the cyclical nature of markets and the economy will impact our client’s ability to save and invest, we remain determined to pursue our purpose, to democratise investing and empower financial dignity for all while building the world’s best investment platform."

"The core value drivers of the Purple Group continue to perform very well. We have more partners than ever before, new customers continue to arrive at a healthy rate and existing customers choose to stay the course and keep growing their assets with us," it said.

Shares in Purple Group were down almost 7% in late afternoon trade on Friday and have more than halved over the past year.

Oceana flags doubling earnings amid strong canned fish volumes

Fishing group Oceana has flagged a more than doubling of its headline earnings per share for its half year to end-March, amid strong volumes in canned fish and high levels of opening inventory.

The company, valued at over R9 billion on the JSE, expects headline earnings per share to rise by between 127% and 147% to end-March, it said in a trading update.

The results were partially offset by increased cost pressures and firm international pricing for fishmeal, fish oil and wild caught seafood, it said.

Oceana's shares were up almost 1% in morning trade on Friday, and have risen by more than a quarter over the past year.

Buffalo Coal to delist next Friday after shareholder approve going private

Junior coal miner Buffalo Coal, which has two mines in KwaZulu-Natal, will delist from the JSE's Alt X on 28 April after shareholder approved it going private.

Valued at about R75 million on the JSE, the company has now completed a transaction that valued its shares at about R103 million, with shareholders giving approval on 17 April, while the company will also delist from the Toronto Stock Exchange on 21 April.

The share consolidation saw the company purchase shares, other than that of its largest shareholder, Belvedere. Belvedere held 90% of the company, which offered about 13.4c for each of the remaining 10% of shares.

Standard Bank reports earnings growth amid higher interest rates, improved claims experience

Standard Bank, SA's largest bank by assets, said on Friday earnings in the first three months of its 2023 were up a quarter year on year, with it getting a boost from higher interest rates, 

In the three months to end-March, group earnings of R10.2 billion were higher than R7.4 billion in the prior year, which included a negative treasury share adjustment, the company said in a filing on behalf of shareholder the Industrial and Commercial Bank of China (ICBC).

If this this adjustment, which is no longer required under accounting rules, is excluded to create a more comparable base, then attributable earnings grew 28%, Standard Bank said.

The group’s performance was supported by higher average interest rates, good balance sheet momentum from 2022, continued growth in transactional volumes, a strong trading performance and an ongoing recovery in Liberty Holdings, which saw an improved claims experience, it said. A weaker rand exchange rate flattered earnings growth rates in rands.

Credit impairment charges in the first quarter were higher than in the comparative period, given balance sheet growth, client strain on the back of higher than anticipated interest rates and corporate and sovereign risk migration.

The group’s credit loss ratio for the first quarter was closer to the upper end of the group’s through-the-cycle target range of 70 to 100 basis points, it said.

Standard Bank's shares were up just over 0.3% in early trade on Friday morning.

Nu-World reports halving of profit as loadshedding prompts 'unprecedented' slump in TV sales

Nu-World Holdings, which imports markets and distributes branded goods, has reported a halving of profit for its half-year to end-February, saying loadshedding and a tough economy has prompted an 'unprecedented' decline in the sale of LED TVs.

Revenue fell just over 15% and profit fell 50.9% to R33.2 million to end-February, the company said on Thursday, with margins, particularly in SA, under pressure from increasing cost pressures, rising interest rates, high shipping costs, a weaker rand, and load shedding fuel costs.

Valued at about R500 million on the JSE, Nu-World is incorporated in SA, with subsidiaries in Australia, Brazil, Dubai, Hong Kong and Lesotho. The main business of Nu-World and its subsidiaries is made up of the importing, assembling, marketing and distribution of branded consumer goods.

The company said on Thursday it was optimistic about its international business continuing to grow, but said LED TV’s in particular, have had an unprecedented decline in volumes, due to the declining disposable income. Load–shedding in particular has directly reduced household demand for new TV’s, it said.

The company's shares were unchanged at R22.06 on Thursday and have fallen by almost a third over the past one year.

Purple group partners with GCash in the Philippines to offer US stocks

Purple Group, the owner of investment platform EasyEquities, said on Wednesday it had partnered with GCash, the largest mobile wallet in the Philippines, in order to offer managed portfolios of US shares.

Purple Group had announced in August it had entered into a partnership with and "e-wallet provider in the Asia Pacific Region."

GCash has over 70 million active clients, and the launch of the partnership will be preceded by a fantasy investing game in June which will run for a minimum of six weeks, and allow clients of the e-wallet to experiment with investing in the US stock market.

Along with the entertainment and educational value of the game, players have a chance of winning prizes for competing and providing feedback on the platform, the same strategy Purple Group had used ahead of its launch of EasyEquities in SA.

"The partnership of two market-defining fintech companies can help revolutionize the investment landscape in the Philippines by making it a more accessible, friendly and affordable activity for everyone,” said Martha Sazon, president and CEO of Globe Fintech Innovations, the owner of GCash, in a statement.

Shares in Purple Group were up just over 3% in afternoon trade on Wednesday, but have more than halved over the past year.

Raubex flags earnings jump amid boost from Breitbridge

Construction group Raubex has flagged a rise in earnings for its year to end-February, boosted by its Breitbridge project in Zimbabwe, while its also encouraged by tender activity from the South African National Roads Agency.

Headline earnings per share are expected rise by between 25% and 35% the company said, with the main contributor to earnings the upgrading and improvement of the Beitbridge Border Post in Zimbabwe which was awarded at the end of 2020.

The company also said that, in its roads and earthworks division, execution on all projects is progressing well.

"The group is encouraged by increased activity in tender awards in this sector over the last few months. The group has been awarded SANRAL contracts to the value of around R2 billion since October 2022 which will enhance the already solid order book."

Shares in Raubex had jumped 7.69% in early trade on Wednesday but have still fallen almost 30% over the past year.

Platinum shares rally, with Angloplat jumping 15% 

South African stocks and the rand strengthened on Tuesday after the resources index jumped on the back of higher platinum group metals (PGM) prices.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up 0.88%, while the broader all-share index ended 0.73% higher.

The resources index, which jumped over 4% from its previous close, drove the market's gains as platinum and palladium prices rose more than 3%.

Commodities prices hit low levels in March and have been rising since then, Wayne McCurrie, an FNB portfolio manager, said.

On Tuesday, Anglo Platinum's share price jumped almost 15% to R1 145.90, while Sibanye (+11%) and Northam (10%) all rallied.

Impala's stock also rose 10% after announcing it would buy more shares in Royal Bafokeng Platinum, strengthening its hold on a miner with high-grade assets that made it an attractive takeover target.

Impala was going head-to-head with rival Northam Platinum in a bidding war for Royal Bafokeng before Northam pulled out earlier this month.

Early evening, the rand traded at R18.1925 against the US currency, 0.67% firmer than its previous close.

On Wednesday, investors will turn their focus to the March consumer price index, which could affect whether the South African Reserve Bank hikes interest rates again in May.

The government's benchmark 2030 bond was flat at 10.050%. 

- REUTERS

AYO Technology appoints Louis Henry Fourie as interim chair

AYO Technology, which recently reached a controversial settlement with the Public Investment Corporation, has appointed Louis Henry Fourie as its independent and non-executive interim chair with effect from Monday.

Fourie, first appointed to AYO's board in July 20202, is currently an independent non-executive director, and his appointment follows the death of  chair Wallace Mqoqi shortly after its settlement.

Valued at R1.64 billion on the JSE, PIC reached a deal behind closed doors on March 24, abruptly ending a court case that still had at least two weeks to run. The company, however, has given some details of the deal, including that it had agreed to buy about a 5% stake back from the Government Employees Pension Fund (GEPF) for R619 million and grant it two seats on its board.

Copper 360 raises R152m ahead of Alt X listing

Emerging copper group Copper 360 says it has raised R152.5 million in an oversubscribed bookbuild as it looks to list on the JSE's Alt X on 21 April.

The private placement was 1.3 times oversubscribed, with the group placing about 38 million of its shares with invited investors at an issue price of R4 per private placement share.

The company was formed in November 2022 following a reverse takeover of copper producer Big Tree Copper and copper miner SHiP Copper, and is currently producing 1200 tons of A-grade copper cathode per annum and is aiming to ramp production up to 7 700 tons of copper production within 24 months.

The company is currently building three new copper floatation plants at a capital cost of R280 million. Copper 360 has said will be one of the lowest all-in sustaining cost producers in the world as a result of the surface and shallow nature of the copper deposits.

The company will also maintain a profit margin in excess of 60% as a result of the high copper grades of the deposits targeted.

Anglo secures environmental approval for mega copper mine expansion in Chile 

The Chilean government has approved the environmental permit application for Anglo American's Los Bronces Integrated Project, setting up the next phase of development for one of the world’s largest copper mines.

The integrated project is a multi-billion dollar project to develop the next phase of the existing open pit within Los Bronces’ operating site and replace future lower-grade ore by accessing higher-grade ore from a new underground section of the mine. 

The government originally denied Anglo the permit over insufficient information on whether the project posed risks to human health.

The miner appealed the decision and on Tuesday it said the project has been designed as an example of the very best of modern mining, "bringing not only investment and jobs, but extensive protection for the environment and a considerable improvement in air quality for the broader region of Santiago". 

The project uses the mine’s existing processing facilities, optimises water efficiency, has no impact on glaciers and requires no additional fresh water or tailings facilities, the miner noted. Ruben Fernandes, CEO of Anglo’s Base Metals business, said the group welcomed the decision which will support its ongoing investment in Los Bronces – "securing the long-term future of one of the world’s largest copper mines".

 Anglo will now continue to progress the project through its pre-feasibility stages towards submission for approval by the Anglo American Board in due course. 

Shares in Anglo were up 2.6% in morning trade.

Afrimat flags earnings fall, but it's encouraged by more consistent Transnet trains

Mining and construction materials group Afrimat has flagged a double-digit profit fall for its year to end-February, but says its encouraged by the allocation of trains from Transnet becoming more consistent.

Headline earnings per share are expected to fall in a range of 13% to 18% to end-February, the company said, without going into significant details.

Afrimat's interest include, among other things, iron ore and coal, and iron ore prices had come under some pressure in 2022, something that has been attributed to a fall in demand amid China's zero Covid-19 policy.

The group said its plans to fully ramp up the anthracite operation are progressing very well.

"This is  purposeful strategy to support greater diversification across the bulk commodities segment in both product range and income streams."

"The Demaneng iron ore mine continues to produce high quality iron ore for the export market, in line with its export allocation on the Saldanha rail line and with the allocation of trains fromTransnet becoming more consistent," it said.

Increased volumes from Nkomati and Jenkins, which are not exposed to the volatile pricing, effectively buffers the group against potential downturn sin export iron ore prices, it said.

The construction materials and industrial minerals segments were impacted by the economic slowdown, the company said.

"Cost reductions and efficiency improvement initiatives remain the cornerstone of the group to counter these economic impacts."

Afrimat's shares were unchanged at R50.50 on Tuesday morning, but have fallen almost a quarter over the past one year.

China’s economy grows 4.5%, beating expectations

China’s economy grew by 4.5 percent year-on-year in the first quarter of 2023, signalling that the world’s second-largest economy is firmly on the path to recovery after the end of Beijing’s strict “zero-Covid” policies.The growth figure falls slightly short of Beijing’s 5 percent growth target for 2023, set at the National People’s Congress meeting in March, but is still ahead of market expectations.Other official economic data released on Tuesday reinforced signs of an upward trend in the economy.Retail sales grew by 10.6 percent year-on-year, according to data from the National Bureau of Statistics, while value-added service output rose by 5.4 percent.Value-added industrial production rose by 3 percent year-on-year, although the Purchasing Manager’s Index, a measure of China’s manufacturing trends, dropped slightly to 51.9 from 52.6 in February. Any reading above 50 is considered an expansion.

- Aljazeera

AH-Vest reports slump in profits, presses ahead with its own power plan

Micro-cap food group AH-Vest, which manufactures sauces and condiments under the All Joy brand, says load shedding helped prompt a crash in profits for its half year to end-December, but its now reached agreement with Eskom to install additional power on a self-build basis after a frustrating delay.

Profit after tax fell 67.2% to R2 million in the six months to end-December, the company reported on Monday, describing the effects of loadshedding as "substantial and is not sustainable at current levels."

"The contracts for the building of a new power lines and approvals have finally been received from Eskom and the start of the project is now imminent though the approval process has been cumbersome, taking almost two years longer than expected."

"We have been disappointed at the bureaucratic bungling at Eskom which has substantially delayed this project," its results read.

The group said recently that, due to delays by Eskom in providing a single demand line and the continued high levels of loadshedding, the company’s production volumes were materially negatively impacted, resulting in significant lost sales.

Additional generator capacity has been installed during the month of April 2023 to reduce this impact going forward. In addition, the company has continued to face increased cost pressures on operating costs caused by increased fuel and distribution costs as well as import costs.

The shares of the group, which is valued at about R21 million on the JSE, were unchanged on Monday afternoon.

Sirius Real Estate flags 8% rental growth, performance in line with guidance

Sirius Real Estate, which owns and operates branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, said on Monday it expects to deliver full-year results in line with its market expectations.

In what has been a more challenging economic backdrop during the year, the group has achieved an 8.1% increase in overall rent roll, or 7.7% on a like for like basis, reflecting management's ability to capture rental growth in the current inflationary environment, it said in a trading update.

For the ninth consecutive year, the group has achieved like for like rent roll growth in excess of 5%, and cash collection has remained robust at above 98.5% on a rolling 12-month basis. 

Shares in Sirius, which is valued at over R21 billion on the JSE, had risen marginally on Monday morning, but have fallen more than a fifth over the past one year.