Cape Times 2023-08-15

NAMPAK, which has had to implement a turnaround strategy, says favourable terms with lenders have been agreed on, and a rights issue of up to R1 billion on August 31 is planned. In an update yesterday, the biggest packaging manufacturer on the continent that is struggling to deal with debt of R1.94bn – primarily associated with legacy expansion activities in Angola and Nigeria – said the finance restructuring meant the group was now well placed to hold a rights issue. Negotiations for a favourable financing package with lenders about the group’s revolving credit facility and term loan facilities, as well as with its US Private Placement Noteholders (USPP), had been successfully concluded, the group said. SmalltalkDaily Research analyst Anthony Clarke said the easy-to-read, factual and transparent announcement of what…

Currency has opened new trading week on a two-month low against the US dollar THE RAND OPENED the new trading week on a weaker footing and plunged to a two-month low against the US dollar yesterday as risk aversion continued to permeate the markets on the back of US inflation and China’s economic growth concerns. The domestic currency broke through the R19-mark again and weakened by 1% to R19.14 to the greenback by 4pm, its lowest since early June, as the dollar strengthened amid renewed worries about the US banking sector’s health, and more evidence of slow recovery in China. China’s sluggish economic recovery is expected to slow prices for industrial metals since the country is the world’s largest importer of commodities, which will inevitably impact South Africa’s exports momentum…

ABSA GROUP’S South Africa earnings fell 17% in the six months to June 30 due to rising credit impairments as consumers face increased financial pressure, but the group proved resilient after earnings from other African markets almost doubled. CEO Arrie Rautenbach said they remained well positioned for growth with the right strategy, an experienced and diverse leadership team and strong balance sheet. The group’s underlying performance was reflected by 16% higher pre-provision profit, which is profit before setting aside money for bad debts, tax and other items. The interim dividend was raised 5.4% to 685 cents. Group headline earnings increased 2% to R11.2 billion from a high base a year earlier, as strong revenue growth of 16% was offset by 60% higher credit impairments. South Africa is Absa’s…

THE DEPARTMENT of Trade, Industry and Competition (the dtic) has positioned Gauteng as the province that could work as the gateway for BRICS countries to expand market access, increased trade volumes, elevated investment flows into South Africa. The dtic deputy minister Fikile Majola yesterday said Gauteng served as the epicentre of national transformation, modernization, and re-industrialization, and said that it embodied a concentrated hub of people and economic vitality. Speaking at the Inward Buying and Investment Mission (Ibim) gathering, Majola said the several development corridors in Gauteng resulted in the province contributing an astounding 35% to the nation’s gross domestic product. “This mission holds the promise to unlock transformative opportunities by connecting with esteemed business delegates from the BRIC countries (Brazil, Russia, India, and China) and from our beloved…

COAL MINER Exxaro Resources yesterday said it expected its financial results for the six-month period ended June 30, 2023, to decrease up to 37% mainly due to lower coal sales prices and volumes. “The decrease in earnings at our own managed operations is largely attributable to lower coal sales prices and volumes, compounded by the impact of ongoing logistical challenges. Income from our equity-accounted investments at Sishen Iron Ore Company Proprietary Limited and Mafube Coal Proprietary Limited were also negatively impacted by lower prices,” it said. Its interim headline earnings per share were likely to decrease between 23% and 37%, while attributable earnings per share were also expected to decrease between 23% and 37% from the compar- ative corresponding period. Similarly, earnings before interest, taxes, depre- ciation and amortisation was…

HULAMIN’S share price fell more than 9% yesterday morning after it signalled softer trading conditions in the second half and did not declare an interim dividend, despite a strong first half. The share for the producer of semi-fabricated and other aluminium products such as cans fell 9.15% to R2.88 yesterday morning, well down on the price five years ago of R4.80. It last declared a dividend in 2019. It closed 7.98% lower at R2.92 on the JSE yesterday. The fall in share price was in spite of a 94% rise in normalised headline earnings per share to 70 cents for the six months to June 30. Earnings before interest and tax increased 112% to R473 million, despite volumes being down 7% at 95 588 tons. Local sales…