Pretoria News 2022-11-04

SOUTH Africa is unlikely to see further credit rating downgrades, while a rating upgrade is probable due to a big improvement in government finances and stronger fiscal path, say economists. International credit rating agency Moody’s Investor Service will assess its ratings on South Africa on November 18, as does Standard & Poor (S&P), while Fitch could also do so this month – it does not provide dates of its assessments, Investec’s chief economist Annabel Bishop said in a note. Her view was shared by Optimum Investment Group’s economic adviser, Dr Roelof Botha, who said yesterday: “I have no doubt our next credit reviews will be positive, barring any further surprises. “We might not get to investment grade, but it does not matter. The positive sentiment will drive investment, such as…

SIBANYE-Stillwater’s shares plummeted by almost 11% after it posted an operating update for the quarter ended September 30, which showed production volumes were down in a challenging third quarter as it faced flooding, load shedding, a strike and higher input costs. Earlier this week Sibanye an- nounced that it planned to restructure about 2 000 jobs at its Beatrix mine in Welkom, Free State. “We are committed to minimising the impact of the proposed restructuring and will engage with all relevant stakeholders in an effort to avoid job losses, while attempting to limit the impact on the remainder of the operations and employees at the SA gold operations and the sustainability of the group,” Sibanye said. The shares closed at R39.21 on the JSE yesterday and have decreased…

AEC calls for stronger action against company’s corrupt behaviour MINING and commodities conglomerate Glencore is unlikely to feel the pinch from the R5.7 billion (£276 million) fine imposed on its subsidiary, Glencore Energy UK, for bribery in African jurisdictions in cash-for-oil deals. Since the corruption was exposed the group has gone to the trouble of cleaning house and ousting former Chief excecutive Ivan Glasenberg, under whose watch the practice evolved. Glencore’s profits more than doubled to a record R342bn in the first half of the year, bolstered by a surge in coal prices and its commodity portfolio as Russia waged war on Ukraine, making the fine a mere drop in the ocean. “I thought the fine would be a lot higher. They are hardly likely to suffer reputational damage…

THE DEMAND for small-format logistics and industrial spaces continues unabated, with Inospace annual rental growth now in double digits and keeping ahead of inflation, according to Jacques Weber, chief operating officer of Inospace. He commented after Inospace, a leading owner and operator of serviced logistics parks, announced the acquisition of two last-mile logistics properties at Cape Town International Airport for a total cost of R35 million, from a private investment fund. Smaller industrial and last-mile logistics assets have been insulated from local and global economic shocks due to growing demand for smaller-format logistics warehouses and distribution centres. Coupled with e-commerce growth, the industrial property sector has outperformed other commercial property segments. Located in Airport Industria – across the road from the airport and less than 20km from the…

HIGHER ore grade across AngloGold Ashanti’s gold mining operations helped lift bullion production for the quarter period to the end of September, the company reported yesterday, with cash flows and earnings before interest, taxes, depreciation and amortisation (Ebitda) also spiking. AngloGold Ashanti has gold producing operations across Africa – in Ghana, Tanzania, Republic of Guinea and the Democratic Republic of the Congo – where its production jumped from 348 000 ounces in the same quarter in 2021 to 443 000 ounces for the quarter under review. In the Americas, production from Brazil and Argentina was higher at 152 000 ounces for the September quarter compared to 140 000 ounces in the same quarter last year. Output from Australia also firmed 125 000 ounces…

SUNRISE Energy said the Competition Commission’s recommendation this week that Vita Gas be fined for market dominance abuse would give other importers in the Western Cape an opportunity to utilise its terminal to import liquefied petroleum gas (LPG), which might lead to better gas prices. Responding to further questions from Business Report following the commission’s referral of the matter to the Competition Tribunal, Sunrise chief executive Monde Tyusha said yesterday that the decision might not necessarily lead to increased throughput at Sunrise’s import terminal, but it would ensure competition within the market. “Better pricing might result in increased market demand,” he said. Sunrise owns and operates the terminal on an open access basis, meaning that capacity must be shared among all users and prospective users in proportion to their needs.…