Star 2024-02-09

The company posted a headline loss of R1.8bn for the full year ended December 2023 ARCELORMITTAL South Africa (Amsa) has deferred the closure of its Newcastle, Vereeniging steel mills by six months, but will revert to its original decision to shut down the longs steel businesses if there is no progress in government commitments to fix Transnet, other infrastructure and policy framework bottlenecks. Amsa, which yesterday posted a headline loss of R1.8 billion for the full year ended December 2023 against a profit of R2bn in the year earlier, announced yes- terday that it had agreed to postpone the shutdown of its longs steel mills at Newcastle and Vereeniging by six months. This followed a series of meetings and engagements with the government, labour, suppliers and other key stakeholders.…

ANGLO American, hit by suppressed platinum prices, muzzled productions across key metals and heightened bottlenecks in Transnet’s rail capacity is considering an impairment for diamond producer De Beers as it aligns its iron ore operations with Transnet’s crippled rail capacity. The company’s output of nickel increased by 9% during the quarter to the end of December, “reflecting improved operational stability” while steel-making coal production was also 2% higher. However, a 16% decrease from the Chile copper operation suppressed overall output of the metal by 6% despite higher output from the Quella- veco project in Peru. With rough diamond output down by 3% for the quarter and primarily due to the planned reduction at Venetia, which is transitioning to underground operations, Anglo American is evaluating an impairment hit from De Beers.…

PSG ASSET Management has advised investors to look at the glass as half-full than half-empty as it remained optimistic about the economic outlook and while business confidence rose to a one-year high. The asset manager, with more than R50 billion of assets under management, yesterday presented its 2024 Outlook for South Africa, including possible market scenarios post-elections. PSG head of equities Justin Floor yesterday said South African assets were under-owned and were ripe for outperformance, with institutional South African equity weights at lows while retirement funds were close to maximum offshore allocations. Floor acknowledged a number of risks in local assets, but said the existing opportunities far outweighed the risks, adding that investors could balance this by diversifying globally and look for opportunities in smaller companies. He said as…

CURRO Holdings said a creditable operating performance and strong cash flows saw headline earnings per share (Heps) increase between 14.1% and 23.1% for the year to December 31. “The group’s high schools continue to grow in line with expectations but the challenging effects of higher interest rates on constrained consumers impacted young families particularly negatively and resulted in a reduction in enrolments of learners in the youngest grades of primary schools,” the group said in a trading statement yesterday. Curro had 73 159 learners on February 5, 1.9% more from the 71 809 learners on November 30, 2023. The group had 73 047 learners on February 20, 2023. Earnings per share figure for the year was expected to fall due in the main to the need to…

BRITISH American Tobacco’s (BAT’s) share price increased 6.1% on the JSE yesterday after it reported a financial performance in line with guidance, and in spite of a non-cash £27.6 billion (R659bn) impairment charge. Revenue fell 1.3% for the year ended December 31, 2023, but was up 3.1% at constant rates, driven by the groups’ New Categories products. The group loss from operations came to £15.751 million, impacted by the non-cash impairment charge which mainly related to the acquisition of US combustibles brands. The dividend grew 2% to 235.52 pence. The share traded at R691.30 yesterday afternoon, slightly below R645 a year ago on the same day. In the US the growth of illicit single-use vapour products and uncertainty around a potential menthol ban contributed to reasons for…

Impala Platinum Holdings’ earnings for the six months to December 31 decreased mainly due to lower revenue from 37% lower dollar revenue per 6E ounce sold, partially offset by an 8% weaker rand. The miner said in a trading statement yesterday that sales volumes were 12% higher, benefiting from the maiden interim consolidation of Impala Bafokeng and improved operational momentum. Cash costs were hurt by the consolidation of the cost base of Impala Bafokeng, and the weaker rand on the translated costs of Zimplats and Impala Canada. Implats’s headline earnings were expected to decline between 75% and 82% to between R2.5 billion and R3.5bn, while headline earnings per share (Heps) were expected to fall between 76% and 83% to between 279 cents and 391c. Headline earnings and Heps for the…