Star 2023-02-20

Energy availability of 53.8% sees utility implement Stage 4 load shedding SOUTH Africa’s energy crisis deepened further over the weekend as Eskom’s generating capacity was battered by breakdowns of five generating units, while heavy rains in the east of Mpumalanga and the Vaal left coal stockpiles temporarily unusable. This electricity supply capacity was in spite of Eskom burning at least 2.4 million litres of diesel per day last week at its emergency Open-Cycle Gas Turbines to keep the lights on. The power utility on Saturday implemented Stage 4 load shedding indefinitely, following the breakdown of a generating unit each at Koeberg, Medupi, Kriel, Arnot and Lethabo power stations. Eskom’s energy availability factor (EAF) has deteriorated further and is currently at 53.8%. It is anticipated to increase when some…

THE VISION of Sibanye-Stillwater’s CEO Neal Froneman to make a big play in electric battery metals has finally born fruit as the precious metals miner on Friday declared a maiden lithium reserve of 193 600 tons of lithium carbonate equivalent (LCE) at its 85%-owned Keliber project, in Finland. The diversified miner also an- nounced a 133% increase in lithium mineral resources to 452 900 tons of LCE. The declaration of a mineral reserve at Keliber follows the completion of a positive feasibility study on the project, as well as approval for its construction. Earlier this month, the miner announced that it had received a key environmental permit for its Keliber lithium mining and processing project in Finland, clearing the path for a facility to supply the European battery…

MARKETS gave Dis-Chem Pharmacies the cold shoulder and sent its share price lower on Friday after the pharmaceutical group reported revenue growth of 8.7% in a trading update and said that its diesel costs across its stores increased 54% over the past six months. Its diesel bill came to R36m as it tried to mitigate load shedding in its stores. South African companies are all feeling the fallout of an unprecedented period of load shedding in the country, which is adding to firms’ increasing costs. Dis-Chem said: “The group’s strategic early investment in generator capacity has resulted in minimal disruption to its ability to trade.“ Dis-Chem shares closed on Friday at R28.60, 2.95% down. They have decreased by 21.04% in the past six months. For the period September 1, 2022,…

DISCOVERY, the JSE-listed private healthcare group, said on Friday that it expected normalised headline earnings a share to increase by between 27% and 22% after a period of good trading in the six months to December 31. The group said in a trading statement on Friday that the “strong performance” would see normalised profit from operations likely increase by between 20% and 23%, while headline earnings are expected to decline by between 7% and 12% for the period. The share price rose 1.6% to R145.45 on Friday, 11% below the R164.96 that it traded at on the same day a year previously. Profit from the South African operations were expected to increase by between 20% to 25%, while profit from the UK Composite, including new initiatives, was expected to increase…

BARLOWORLD, the international heavy equipment and vehicle distribution group, said on Friday that its financial results from its businesses were “pleasing” in the four months to January 31. The group said in a trading statement that the Industrial Equipment and Consumer industries verticals traded well despite operating challenges in its Eurasia division. “Favourable group revenue growth has been achieved as a result of better trading performance in Equipment southern Africa, Equipment Mongolia and Ingrain,” the group said. The car rental and leasing business, Zeda, was unbundled and separately listed on the JSE on December 13, 2022, and its assets and liabilities had been de-consolidated from the group financial statements. Equipment Southern Africa saw stronger turnover on the back of high demand in the mining sector across all its regions. “Machine…

RELIABLE, efficient, affordable and sustainable electrical infrastructure is as key to investment and growth as oxygen is to our lungs. We cannot drive investment and grow an equitable and inclusive society without energy to fuel economic activity. The frequency and the intensity of load shedding in recent months has increased the cost of doing business in South Africa to unsustainable levels, likely to result in reduced production and a contraction in the size of our economy. We, therefore, cannot hope to grow investment without addressing security of energy supply as the main driver to the cost of doing business. Consequently, incentives to unlock renewable energy opportunities and build electricity supply resilience in the economy are a priority. The government announced in 2021 a $8.5 billion (R153.3bn) climate finance package…