Pretoria News 2022-10-14

MINING activity in South Africa has been plunged into a crisis by more than a week-long strike at Transnet, and could remain depressed for the remainder of the year weighed down by deteriorating domestic and global economic conditions. This comes as mining output in the country shrank for the seventh months in a row year-on-year in August, dragged down by heavy-weights platinum group metals (PGMs), gold and iron ore. Data from Statistics South Africa (StatsSA) yesterday showed that mining production fell by 5.9% year-on-year in August, slowing from a downwardly revised 8.2% slump in July. This subdued mining print in August marked the seventh consecutive month of falling mining activity, with January being the only exception since the beginning of the year. Although this was the softest contraction observed so…

THE RAND took a hammering on the markets yesterday, breaching the R18.50 mark to the dollar as the greenback strengthened on the back of an expected interest rate hike as US inflation remained elevated. The annual inflation rate in the US slowed for the third month running to 8.2% in September, the lowest in seven months, compared with 8.3% in August, but above market forecasts of 8.1%. As the latest US inflation print came in above expectations, investors feared this might fuel further hawkish rhetoric by US Federal Reserve officials to keep up with hefty rate increases. This saw emerging markets currencies suffering losses in the financial markets yesterday, as these fears drove risk-averse investors to safer havens, with the dollar again approaching its highest levels in 20 years. The…

SOUTH Africa’s already-tarnished reputation for logistics risked long-term damage if the Transnet strike dragged on, the Minerals Council South Africa, Business Unity South Africa and Business Leadership South Africa warned yesterday as they called for a speedy resolution. This follows Transnet Port Terminals, an operating division of Transnet, declaring a force majeure to its customers due to a wage dispute, which is deadlocked. Workers yesterday rejected Transnet’s revised pay offer. Business Unity South Africa (Busa) and Business Leadership South Africa said business was concerned if the strike lasted more than a few days, cargo ships would not just skip slots at South African ports, but start taking South African ports out of schedules in the months ahead. Cas Coovadia, chief executive of Busa, said: “We need a quick, sustainable…

PSG KONSULT, the wealth management group, lifted its dividend 10% to 11 cents per share in the six months to August 31 under challenging market conditions and it remains well capitalised with zero debt. Chief financial officer Mike Smith said in an interview yesterday that their capital allocation during the period was an indication of the confidence that the group has in its future. During the period the group also bought back some of its shares, and it spent 14% more than the same time a year before on IT and technology. It also increased its staff complement by 7%. On the share buybacks Smith said they were able to do share buybacks considering the robust and debt-free balance sheet, and it was undertaken only during periods when there…

GRINDROD’S share price increased sharply after reporting continued strong growth in its import and export services, this despite thousands of trucks, many vessels and warehouses were being forced to idle after a Transnet strike closed local ports. Grindrod’s share price increased 6.53% to R9.30 yesterday afternoon. The group is invested in the Maputo Port Development Company (MPDC) with other partners – the MPDC holds the concession to operate, develop and maintain Mozambique’s biggest port. The port provides the shortest route to sea from the Gauteng industrial hub and from Limpopo and Mpumalanga mining areas and has seen volume growth in recent years due to inefficiencies and delays at the Durban port, such as for example, the resumption this year of citrus exports through Maputo. Grindrod said in a trading statement…

KAROOOOO, which owns 100% of multinational real-time data analytics and business intelligence firm Cartrack, continued its trend of solid growth in turnover and earnings in its second quarter to August 31 while simultaneously scaling up operations. Chief executive and Founder Zak Calisto said in an interview yesterday that the revenue and profit growth cemented a decade-plus track record, and their offering extends beyond connected vehicles and equipment to assisting more than 95 000 diverse enterprise customers, up from 83 000 at the same time last year, in solving their day-to-day challenges. He said technological development in the group was continuous, with 32 versions developed in the half year alone. Calisto said they were confident of meeting the group’s guidance for the year, this after an already strong performance…