Star 2024-05-15

LOWER mining production and a plunge in mineral sales in the first quarter of this year is dragging down South Africa’s gross domestic product (GDP) growth, and is reflecting reduced profitability in the sector despite a rally in the price of gold. Data released by Statistics SA (StatsSA) yesterday showed mining production in South Africa declining by 1.7% on a quarter-on-quarter and year-on-year basis in the first quarter of 2024 compared with the fourth quarter of 2023, dragged down by platinum group metals (PGMs), coal and surprisingly gold, whose output volumes lowered by 2.9%. The data by StatsSA showed South Africa’s seasonally adjusted mining production decreasing by 5% on a monthly basis in March compared with February. On an annual basis, mining production plunged the most in 13 months, falling…

BHP IS LIKELY to make another revised and firm offer for Anglo American after the London and Johannesburg-listed resource firm yesterday announced a strategy to spin-off De Beers and Anglo American Platinum (Amplats), but retaining Kumba Iron Ore, ahead of the May 22 deadline stipulated by London listing rules. This comes as Anglo American on Monday rejected BHP’s revised offer, which raised the company’s valuation to nearly $43 billion (R805.5bn), leaving BHP CEO Mike Henry disappointed. Anglo American yesterday laid out its defensive strategy in light of an expected second revised offer by BHP, which entails massive slowdown in crop nutrition, nickel care and maintenance, selling diamond steel-making iron ore and platinum units. Market analyst Simon Brown told Business Report that demerging Amplats “would be real bad for the…

THE NEW GOVERNMENT administration that will take over the running of South Africa post the elections this month will have its hands full in developing a job-creating economy with the high unemployment in the country. This comes as South Africa’s official unemployment rate rose to its highest in a year, rising by 0.8 of a percentage point to 32.9% in the first quarter of this year, up from 32.1% recorded in the fourth quarter of 2023. Yesterday, Statistics South Africa (StatsSA) said the number of unemployed persons increased by 330 000 to 8.2 million, up from 7.9 million in the previous quarter, marking the highest figure since comparable records began in 2008. Additionally, the number of people who were not economically active for reasons other than discouragement…

JSE-LISTED firms with healthcare exposure tumbled on the exchange yesterday after it was announced that President Cyril Ramaphosa was set to sign the National Health Insurance (NHI) Bill into law today. Business groups slammed the signing of the bill into law, saying in its current form the NHI Bill was fundamentally flawed, would damage the economy and dent confidence in investing in South Africa. Insurance firms with medical exposure fell. Discovery slid 8.07% to R107.21, Momentum Metropoli- tan slid 3.84% to R21.29, Sanlam was down 1.07% at R70.42, while Old Mutual fell 2.16% to R10.89. Private healthcare provider Netcare slid 3.59% to R11.27 and Life Healthcare fell 1.2% to R10.72, while AfroCentric Group, a JSE-listed investment holding company providing services and products to the healthcare sector, shed 1.89% to R2.60.…

MANTENGU Mining has finalised the acquisition of Birca Copper and Metals (BCM), which mines and processes high-grade chrome ore in the North West province, for R29.9 million. This has paved the way for BCM to expand its production while also enabling Mantengu to grow its footprint and portfolio. As at the end of February this year, BCM had an unaudited net asset value of R102m and posted an unaudited attributable profit of R2m for the year ended February 29, 2024. “The acquisition, valued at R29.9m in Mantengu shares, positions Mantengu to double its chrome operations, enhancing its market presence and reinforcing its commitment to sustainable growth,” the company said in a statement. The acquisition of BCM has helped Mantengu to secure “a substantial increase in chrome ore…

OLD MUTUAL Property, a real estate property group owned by financial services giant Old Mutual, is set to bolster its presence in Europe following a significant investment boost. In South Africa, Old Mutual Property manages prime assets, including Gateway Theatre of Shopping in Durban, Cavendish Square in Cape Town, and The Zone @ Rosebank in Johannesburg. Through its joint venture with AG Capital, known as Lion’s Head, the company has secured a €150 million (R3 billion) sustainability-linked investment from the World Bank’s International Finance Corporation (IFC). The group said in a statement yesterday that this strategic move aligned with Old Mutual Property’s vision to expand its operations in Europe, particularly in the logistics sector. Sakina Nosarka, the CEO of Old Mutual Property, said: “This investment is set to…