Cape Times 2022-03-04

Tawanda Karombo DESPITE a 52 percent year to date strengthening of its share price, Siban- ye Stillwater chief executive Neal Froneman still believes the company is undervalued given its strong cash flow position and record dividend declaration for the second half-year period to the end of December. Sibanye operates across precious metals such as gold, platinum as well as nickel and zinc in key markets such as South Africa, the US, Finland and Brazil. Its shares traded 0.99 percent weaker at R7.46 on the JSE in afternoon trade yesterday, largely in line with other resource groups such as Impala Platinum and AngloGold Ashanti that traded 1.59 percent and 1.89 percent weaker, respectively. Froneman said during a conference call yesterday after the release of the company’s second-half…

Edward West edward.west@inl.co.za SHORT-TERM insurer Santam, which paid out R24.5 billion in claims last year, the highest in its history, also paid its shareholders an 800 cents special dividend on top of a 790 cents final dividend. The share price reacted strongly to the annual results and dividend announcement, rising 8.37 percent to R300.19 by yesterday afternoon. Chief financial officer Hennie Nel said they had paid the special dividend because capital had built up from no dividend payments due to the uncertainty surrounding the Contingent Business Insurance (CBI) claims that arose through the pandemic. However, the court had ruled on these claims and good progress had been made to settle the claims, which had left the group with higher than optimal levels of capital, thus a…

Tawanda Karombo EXXARO Resources – which benefited from stronger coal prices to lift revenues, core headline earnings per share and earnings before interest, taxes, depreciation and amortisation (Ebitda) for the full year to end December 2021 – sees huge demand potential for its coal in Europe and Asia. This is despite anxieties emanating from Russia’s invasion of Ukraine that could distort supply and demand. Mxolisi Mgojo, the outgoing chief executive of Exxaro and who is retiring from the company in July, said demand and prices for coal would likely remain stronger despite the Russia/Ukraine stand-off. “We do see robust demand in the outlook as coal markets are currently tight owing to supply chain constraints from the Russia-Ukraine conflict. De- mand is still good in Europe and Asia, but in…

Siphelele Dludla siphelele.dludla@inl.co.za RUSSIA’S rouble hit a new record low yesterday with investors risk averse to emerging markets (EM) in the wake of Russia’s invasion of Ukraine, while keeping an eagle eye on spillover effects on South Africa’s economy. Surging oil prices fanned worries about global inflation. The rouble hit a record low of 118.15 against the dollar in Moscow intraday trading, extended declines for the fourth consecutive day, while the interbank rate tumbled more than 20 percent. The rouble was hit by a double whammy after its sovereign bond rating was downgraded to junk and as MSCI Emerging Market (EM) equities index and FTSE Russell pulled the plug on Russia equities in their indexes – a move that has far reaching consequences for EMs, wherein South Africa resides.…

Edward West edward.west@inl.co.za FIRSTRAND, the financial services group comprising FNB, RMB and WesBank, lifted normalised earnings a robust 43 percent in the six months to December 31, but has warned a worsening Ukraine crisis has the ability to derail growth in the months ahead. Most of the growth was attributed to the low base of the prior period that included impairments raised during the Covid-19 pandemic, but which had since been lowered by about R3 billion due to improving conditions, including a 12 percent reduction in non-performing retail loans (excluding Aldermore in the UK). Local banks had to raise steep provisions to cope with higher non-performing loans due to the effects of the pandemic on consumers and businesses, which dampened bank earnings through the pandemic, but this…

Marsha Dean Marsha.Dean@inl.co.za THE family of little Zion Goliath had reason for celebration on World Hearing Day yesterday, as the toddler adjusts to a new world of sound following the activation of his cochlear implant in his right ear last month. Zion, from Ravensmead, was born at Tygerberg Hospital on March 6, 2020, and developed severe neonatal jaundice after birth. This placed him at risk for possible hearing loss. A hearing screening test was conducted when he was just five days old. Zion did not pass the test in his right ear, and he was referred for further diagnostic testing at Tygerberg Hospital’s Audiology Clinic. “We were at first shocked to hear that Zion had lost his hearing. It was a tough time at the beginning, because we were new…