Star 2024-08-28

BHP IS INVESTING $10 billion (R177bn) in capital and exploration expenditure over the next year, although it will be keeping an eye on market dynamics for its key commodities which have the potential to impact on capital spend and project scheduling after profits from operations for the year to June fell 24% to $17.5bn. After withdrawing its bid for Anglo American, BHP yesterday said it was focusing on growing its copper portfolio which saw production increase by 9% in the full year to June 2024. The company is now expecting capital and exploration expenditure to amount to $10bn for its full year to June 2025, with half of this being invested in exploration. From its 2026 full-year period onwards, BHP intends to invest $11bn per annum in capital…

The COMPETITION Tribunal has approved the proposed merger wherein Sanlam Life Insurance intends to acquire Assupol Holdings, subject to an employment-related condition. This comes after Sanlam in February announced it intends to acquire 100% shareholding in Assupol, pending shareholder and regulatory approval, for R6.5 billion. The transaction will see Assupol become part of Sanlam’s retail mass cluster and together with Sanlam Sky, Safrican and the Capitec JV, which will close at the end of October 2024, it will place Sanlam in a strong position to service the financial services needs of South Africans. This transaction followed the announce-ment last year that Bidvest Proprietary Limited, which holds 46.02% of Assupol’s securities, as well as the International Finance Corporation (IFC), holding 19.41% of Assupol, that it intended to dispose of their…

Pick n Pay chairperson Gareth Ackerman would step down once the supermarket group’s recapitalisation was complete and the turnaround was in place, and the board would announce a successor in due course, he said at the annual meeting yesterday. He said also that long-standing board members would be replaced over the next 12 to 18 months, the gradual approach being adopted because of the “extent of the change required and the work needed to execute that change” in the turnaround of the group. At the meeting the required majority vote from shareholders on its two remuneration-related resolutions was not met, and the board intended to engage with shareholders on the resolution. “Part of looking to the future is the role of the Ackerman family. We have recognised that this was…

PICK N PAY’S company-owned grocery stores reported weak sales and store closures in the 21 weeks to July 31, as a new management team began to execute a turnaround plan – discount store chain Boxer traded strongly. Pick n Pay sales grew 0.1% (-1.1% like-for-like), with Pick n Pay segment sales increasing only 0.6% (1.7% like-for-like). Sixteen supermarkets were closed, 4 corporate stores and 12 franchise stores. Group sales increased 4.5% for the period (3.7% like-for-like), a trading update said yesterday. As indication of how badly the group is faring in the local market, its major com- petitor Shoprite reported 12% growth in revenue for the 52 week period to June 30, and it opened 292 stores in that period. The Spar Group’s South…

The AFRICAN Rail Industry Association (Aria) said yesterday the future of South Africa's rail industry hinged on the successful imple- mentation of rail reform, which aims to address both the current shortage of trains and the need for improvements in network infrastructure. “Rail reform, as outlined in the National Rail Policy, is fundamentally about fostering investment from the private sector,” said Aria CEO, Mesela Nhlapo. “We face two significant challenges: the shortage of trains and the quality of our network. These issues must be tackled concurrently.” While the policy framework is in place, pri- vate sector participation in the rail network is contingent upon investment. “To meet the demand for rail freight capacity in South Africa, we require an investment of more than R100 billion in trainsets,” Nhlapo emphasised.…

AS SOUTH Africans, we stand on the brink of significant economic change. The recent signing of the Public Procurement Act, 2024 (Act No 24 of 2024) into law by President Cyril Ramaphosa is not just a legal milestone; it is a beacon of hope for our economy. The legislation, which reinstates crucial localisation efforts through mandatory local content requirements, comes at a time when South Africa desperately needs to boost job creation and sustain the livelihoods of millions. The Quarterly Labour Force Survey for Q2 2024, recently released by Statistics South Africa, paints a stark picture of our economic reality. With the unemployment rate standing at a staggering 33.5%, the implications are clear: our economy is in dire need of revitalisation. The youth unemployment rate is even more alarming…