Star 2023-11-15

MOODY’S Investors Service has placed troubled Transnet’s credit rating on review for a downgrade due to reflecting the credit agency’s “increasing concern” about the logistic parastatal’s weakening liquidity profile. A lower rating action can trigger stricter regulatory scrutiny, which can make lending to borrowers with downward-adjusted loans more costly. Moody’s said it would aim to conclude the review within the coming weeks. The review would focus on Transnet’s progress in securing new financing as well as assessing the likelihood and materiality of any government support. The review would also be used to reassess the positioning of Transnet’s Baseline Credit Assessment (BCA) in the light of its deteriorating operating and financial performance. A JSE Stock Exchange News Service notified investors yesterday that Moody’s had issued a ratings action on Friday. Moody’s…

More jobs created in finance, construction, community and social services THE UNEMPLOYMENT rate in South Africa surprised to the downside after falling to its lowest in a year in the three months to September as the economy continued to add more jobs, driven mainly by rising jobs created in finance, community and social services, domestic trade and construction sectors. However, industry experts warned that the country was not out of the woods yet as economic activity was still dependent on resolving unreliable electricity supply and logistical bottlenecks which have stifled South Africa’s exports prospects. The Quarterly Labour Force Survey released by Statistics South Africa (StatsSA) yesterday, revealed that the unemployment rate fell by 0.7 of a percentage point from 32.6% in the second quarter to 31.9% in the third quarter.…

SIBANYE-Stillwater says there is investment appetite towards green and battery metals such as lithium from banks and other funders, although penetration rates for electric vehicles could be overstated in light of global industry headwinds that could disrupt supply and muzzle demand. The JSE-listed precious metals miner has been making a big investment diversification into green and battery metals, especially lithium, a key component in the manufacture of electric vehicle batteries. Sibanye-Stillwater is progressing with the Keliber project in Finland as well as the Rhyolite Ridge mine in Nevada in the US. Rhyolite Ridge has large and shallow lithium-boron sedimentary deposits, with feasibility studies showing a mine plan of 2.5 million tons of ore mineable over 26 years as well as production of 22 000 tons per annum of…

THE RUSSIAN rouble soared to a 3½ month high against the dollar on Tuesday, buoyed by exporters’ foreign currency sales, high interest rates and recovering oil prices. By 2.30pm GMT, the rouble was 1% stronger against the dollar at 90.74, its strongest point since July 28. It was steady at 98.09 versus the euro and had firmed 0.6% against the yuan to 12.47. Month-end tax payments usually prompt exporters to convert foreign exchange revenue to pay domestic liabilities. The rouble has also been buoyed lately by a presidential decree requiring some exporters to convert a significant portion of forex revenue. The Russian currency has strengthened from beyond 100 to the dollar since that decree was announced last month. The central bank’s bigger than expected interest rate increase to 15%…

THE AFRICAN Export-Import Bank (Afreximbank) has entered into a framework agreement with a commitment of $2 billion (R37.45bn) for the Export Agriculture for Food Security (ExAFS) Initiative. Afreximbank, in a deal with Arise Integrated Industrial Platforms and the governments of Chad, Malawi, Zimbabwe and Egypt, aim to improve food security in Africa, seeks to boost production, processing and intra-African trade in agricultural products and provide African farmers and agribusinesses with opportunities to access larger markets across the continent. At a ceremony on the fifth day of the third Intra-African Trade Fair, Professor Benedict Oramah, President and chairperson of the Board of Directors of Afreximbank, signed the framework agreement on behalf of the Bank. The initiative is intended to help address food insecurity in Africa, which includes a…

SWISS commodities giant Glencore will acquire a majority stake in the steelmaking coal business of Canadian miner Teck Resources, the companies said yesterday, capping fraught negotiations between the groups. Glencore said it would take a 77% effective interest in Elk Valley Resources for $6.93 billion (R130bn) in cash. Japan’s Nippon Steel Corporation will acquire a 20% minority stake in Elk Valley, while South Korea’s Posco will grab 3%. Vancouver-based Teck Resources put the value of its steelmaking coal business at $9bn. Glencore’s coal strategy has attracted fierce criticism, including from some shareholders. Shareholders want it to separate coal from the rest of its activities in order to concentrate on its other resources, such as copper and cobalt, which are in high demand for the energy transition. Glencore, which is…