Star 2024-08-22

Sibanye-Stillwater has struck a R1.8 billion gold prepayment arrangement and concluded a refinancing transaction for its R5.5bn rand-denominated revolving credit facility from Nedbank CIB and RMB that it has now resized to R6bn. Hard done by currently depressed platinum group metals (PGM) prices, and bracing for intense capital requirements for its lithium projects, Sibanye-Stillwater has also been roiled by a $2 billion loss (R35.6bn) in 2023. The company has had to cut capital and retrench from its South Africa operations. Sibanye-Stillwater CEO, Neal Froneman, said yesterday the gold prepayment arrangement it had secured would be helpful for the company from a strategic financing perspective. The gold prepayment is a proactive, strategic financing alternative that improves the group’s liquidity and strengthens the balance sheet, while retaining leverage to potential increases in…

The non-profit Localisation Support Fund (LSF) aims to fast-track growing jobs in the local retail-clothing, textile, footwear and leather (R-CTFL) manufacturing sector by 172% through helping companies in the industry leverage relationships, improve growth, and become more efficient through technology. Speaking at an event held at clothing manufacturer Karma Factory in Johannesburg yesterday, the executive head of the LSF, Thami Moatshe, said “South Africa used to have manufacturing, and we lost it. And that led to the sector being de-industrialised.” Between 2000 and 2008, anywhere between 10 000 and 15 000 jobs were lost a year, with many factory closures. Moatshe told Business Report that the industry currently provided employment for 121 000 people. She said the LSF also aimed to help fast-track a Department of Trade, Industry and Competition…

Blue Label Telecoms’s share price shot up 13.6% to R5.00 yesterday after the holding company of Cell C said its headline earnings per share was expected to increase by between 73% to 77% for the year to May 31. Headline earnings per share was expected to be between 72.80 and 74.48 cents a share, from 41.97 cents a share. The share price is well up from R3.33 a year ago on the same date. Core headline earnings amounted to R679 million compared with R402m at the same time last year, equating to core headline earnings of 76.08 cents per share compared with 45.55 cents per share the previous year. Excluding the positive contributions of R66m in the current year, and negative contributions of R523m in the comparative year, primarily resulting…

RCL Foods said yesterday it expected its headline earnings per share (Heps) from total operations for the six months to June 30 to increase by between 102.6% and 112.6%. The group said it expected Heps to be between 138.4 cents and 145.2 cents when compared to the reported Heps of 68.3 cents from total operations for the comparative period. Earnings per share from total operations were expected to more than double to between 178.4 cents and 185.4 cents when compared to the reported Eps from total operations of 69.3 cents for the comparative period. The improvement in headline earnings was attributable mainly to Rainbow and the Groceries division. This was further supported by a strong end to the current period in Sugar, RCL said in a trading statement. Recently listed…

Consumer activity in South Africa is expected to ramp up significantly in the final three months of this year on the back of the central bank easing the cost of borrowing as the rate of inflation comes down much faster than expected. This comes as the headline inflation has cleared the path for the SA Reserve Bank (SARB) to begin its interest rates cut cycle, after four years of restrictive policy decisions. The SARB is expected to cut rates by 25 basis points to 8.00% per annum next month for the first time following a cumulative 425 basis points increase since the beginning of the hiking cycle in November 2020 as it has raised rates to a 14-year high of 8.25% per annum. Old Mutual Group chief economist, Johann Els,…

In recent years, the “shop local” movement has evolved from a mere consumer preference into a powerful strategy for fostering economic growth and promoting sustainable practices. By supporting local businesses, consumers invigorate their community’s economic vitality and champion environmentally responsible practices and innovative supply chain solutions. Shopping local is more than a transaction – it’s a catalyst for economic rejuvenation. When consumers choose local businesses over national chains, they contribute to a cycle of reinvestment within their community. Local businesses are more likely to spend their earnings on local suppliers, creating a ripple effect that enhances overall economic health. This local spending translates into job creation, supports other small enterprises and nurtures a robust, interconnected economic ecosystem. While the benefits of supporting local businesses are numerous, the enterprises often face…