Cape Times 2023-11-13

THE SOUTH Africa Israel Chamber of Commerce (Saicc) has warned that the US government could remove South Africa from the African Growth and Opportunity Act (Agoa) due to the country’s stance on the ongoing geopolitical conflicts. Saicc on Friday said that it was concerned that the South African government’s decision to depart from its policy of non-alignment and openly side with Russia and more recently, Iran, could have a negative impact on its relationship with the US. Agoa is currently valid until 2025, but its extension depends on opinions within the US Congress. “We speak on behalf of a group of prominent South African business leaders and urge President Cyril Ramaphosa and Minister (of International Relations) Naledi Pandor to reassess the situation as a matter of urgency, in light of…

Quantum Foods Holdings said on Friday that the highly pathogenic avian influenza (HPAI) outbreak will push the company into the red in the year to September 30. The company, the largest egg producer in South Africa and an animal feed and poultry product producer for several African markets, had said in September that an HPAI outbreak had been detected at several of its farms in Gauteng and in North West Province, but at that point the full financial impact on the company was unknown. At that stage, the outbreak appeared to be confined to the northern parts of the country, and Quantum’s farms in the Western Cape and Eastern Cape were unaffected. By that time, the financial impact was expected to be at least a 100 percent decline in headline…

EASTERN Platinum said Friday that it intends to raise capital for its projects following a sharp surge in revenues in the third quarter from its chrome mining operations. Revenue increased by a massive 505.6% to $21.8 million ($3.6m) in its third quarter to September 30, with the year-on-year increase driven mainly by an increase in chrome prices. Year-to-date (YTD) revenue increased 94% to $80.5m from $41.5m, the miner said on Friday in a statement about its third quarter results. “Although chrome production decreased this quarter, we are still encouraged by revenue generated from the tailings storage facility. “As we have started blasting activities at the Zandfontein underground section of the Crocodile River Mine, (CRM) we expect to process the underground ore in the first quarter of 2024,” chief executive…

Grid expansion will cost R210bn THE DEVELOPMENT Bank of Southern Africa (DBSA) will be taking lessons from neighbouring Mozambique on how to finance the expansion of South Africa’s required 14 000km transmission network, in partnership with other stakeholders, to plug the electricity deficit. This comes as the Minister of Electricity has stated that the expansion of the transmission grid will cost South Africa R210 billion, money that the struggling power utility Eskom does not have. As a result, the government is unbundling Eskom and has established the National Transmission Company of SA, over and above lobbying the private sector to finance the lion’s share of the required spend in order to evacuate energy generated by Independent Power Producers (IPPs). DBSA group executive for transacting Mpho Mokwele on Friday…

RICHEMONT shares tumbled 5.5% on Friday after the Cartier owner reported a 2% slow-down in operating profit from continuing operations for the half year to end September, a period in which the company faced “uncertain macroeconomic and political environment” and “adverse foreign currency movements” in some of its major markets. Operating profit at ¤2.7 billion (about R54bn) for the six months was 2% lower compared to the year earlier, on an actual exchange rate basis, although this was 15% firmer on constant exchange rate basis. Stronger sales and gross profit that was up by 5% for the period, coupled with controlled operating expenses, was not enough to stem the slide in operating profit at actual exchange rates for the company. Against the backdrop of stronger capital expenditure of €378…

THE Foschini Group achieved record turnover in the six months to September 30, up by 12.9% to R28.4 billion, and declared an interim dividend of 150 cents (170c) per share. The pleasing performance over the six months was in an environment of tough trading conditions and against a comparative high base in the same period a year before due to the resumption of clothing demand after the Covid-19 pandemic. The period was also impacted by rising interest rates, high inflation and, in South Africa, taxi strikes and flooding in the Western Cape, as well as sustained load shedding. Earnings per share fell 15.4% to 393.6c a share. Trading expenses as a percentage of group retail turnover improved to 41.9% from 42.3%. Gross profit was up 7.7% to R12.5bn. TFG Africa’s…