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MINING giant Kumba Iron’s share took an almost 4 percent dip after it warned that heavy rains and lower iron ore prices had impacted its interim performance with earnings likely to drop up to 53 percent. Kumba, majority owned by Anglo American, said its headline earnings for the 12 months would be between R10.9 billion and R12bn representing a 48 to 53 percent year-on-year decrease. The shares traded at about R450 on the JSE yesterday after the company released its production and sales report, and trading statement for the six months ended June 30, 2022. The shares closed at R450.81, 3.47 percent lower. Total production decreased by 13 percent to 17.8 million tons (Mt), compared to 20.4Mt of the first half year of…
THE SOUTH African Reserve Bank (SARB) yesterday delivered a shocking increase in the repo rate in a bid to curb supply-drive inflation and the depreciating rand – the biggest hike in borrowing costs in almost two decades. Consumers will have to tighten their belts further as they will be paying more on their monthly credit instalments after being dealt a double whammy of elevated inflation and interest rates. Borrowing costs in South Africa have risen the highest in 20 years due to rising prices of everyday goods which have been pushed higher by the ongoing war in Ukraine. The SARB’s Monetary Policy Committee (MPC) increased its benchmark interest rates for a fifth time in a row since November 2021, this time by 75 basis points to 5.5 percent per…
LOCAL markets ended the day on a positive note yesterday in spite of the South African Reserve Bank (SARB) delivering the biggest interest rate hike in 20 years, with the rand ending the day higher. The SARB yesterday delivered a hawkish 75 basis points hike in interest rates due to persistently elevated headline inflation and the rand’s weak exchange rate. This was the fifth hike in a row since and the SARB has now hiked rates by a cumulative 200 basis points since November 2021 in a bid to tame price pressures. In spite of this, the rand moderated to R17.06 to the US dollar at 5pm as speculators had already priced in the SARB’s hawkish monetary policy stance. Ashburton Investments fixed income strategist Michael Grobler said the SARB’s…
VODACOM Group increased its customer contract base by 5.1 percent to 6.5 million in the quarter to June 30, boosted by a strong performance in the financial services operations as cellphone banking continues to grow in Africa. Group revenue increased 5.2 percent to R26.1 billion – group service revenue was up 5.2 percent, supported by growth in data revenue and new services such as internet of things (IoT). For contrast, MTN South Africa, Vodacom’s bigger rival in this country, saw a 7.4 percent uplift in contract subscribers to 7.5 million in the year to March 31. Vodacom’s South Africa service revenue grew 3 percent with an improved performance in consumer contracts. International service revenue increased 10.4 percent, supported by…
STRONG demand for Oceana Group’s canned fish, driven by strong demand for affordable protein through its Lucky Star brand, and good catches in the US, saw the group report a strong operational third quarter. Chief executive Neville Brink said yesterday’s trading update for the nine months to June 26 had confirmed indications of a second-half recovery that had been anticipated at the release of the interim results. Canned fish sales volumes for the third quarter were 14.5 percent higher than in the comparative period, with a 50 percent increase in more profitable local production. African fishmeal and fish-oil production volumes were 28 percent higher than in the third quarter of 2021. Sales volumes year to date were in line with the prior period, having recovered from the…
ANGLO American yesterday reported a 9 percent fall in its quarterly group production while it forecast a higher annual output of rough diamonds from its De Beers’ business, bolstered by demand for natural diamonds and recovery from the Covid-19 pandemic. Its 2022 full-year production guidance was unchanged for platinum group metals, copper and iron ore, and decreased for steelmaking coal due to longwall ramp-up timing. Anglo American chief executive Duncan Wanblad said: “Our production performance started to pick up in the second quarter of 2022, with operational momentum and our focus on asset resilience positioning us well for a stronger second half of the year.” However, he flagged that in the second quarter, production was 9 percent lower compared with the same quarter in 2021, due to expected…
