Cape Times 2024-11-25

CEO Henry Laas says group remains solvent, with high-quality assets in underground mining Murray & Roberts Holdings, which first listed on the JSE in 1948, said on Friday that while it was solvent, a subsidiary and its local trading companies had gone into business rescue, and the listed shares have been temporarily suspended. The share price was suspended at R1.10 on Friday, a sharp decline in value from trading at R14.35 per share three years ago, mirroring a steady decline in the financial position of the international, specialised contracting and engineering group over the period. Headwinds for the group include liquidity constraints, especially in South Africa; the loss of contracts, with the descoping of the Venetia diamond mine a big problem as it accounts for more than 50% of the…

A bitter dispute between Liberty Coal and Kego Mining has spilled into the Mpumalanga High Court over the control of some mining rights at Optimum Coal Mine that re-opened earlier this year. The re-opening of Optimum Coal Mine under the control of Liberty Coal in April, with potential to produce 13.5 million tons of the energy commodity, was expected to boost Eskom’s generation capacity. The Optimum Coal Mine was previously controlled by the controversial Gupta family and former resident Jacob Zuma’s relative. However, the National Prosecuting Authority (NPA) obtained a court application for two forfeiture orders on the grounds that the Guptas bought the mine from Glencore with proceeds from corruption. Now, Liberty Coal has approached the Mpamalanga High Court to institute proceedings against Kego Mining “in relation to the…

Following the end of several high-level summits on climate change and Just Energy Transition, there is still no single standard against which companies can report their environmental, social, and governance (ESG) progress, even as governments call for more to be done to tackle climate issues. At the conclusion of the United Nations’ COP29 held recently in Azerbaijan, UN Secretary-General António Guterres urged all attendees work together to deliver an ambitious and balanced package on all pending issues, including a new ambitious climate finance goal. “The need is urgent. The rewards are great. The time is short,” he said. This was preceded by the 19th G20 Summit in Brazil that culminated in a Leaders’ Declaration, which sets out aims that include action towards sustainable development, energy transitions and tackling climate issues,…

Stocks on the JSE ended the week marginally higher on Friday, with the All Share Index just 0.1% higher to 85 608 index points after a choppy session, achieving its seventh consecutive day of gains and a weekly rise of 2.1%. Gains on Friday were driven by the resource-linked sector, boosted by rising gold prices, which helped offset weakness in financials, industrials, technology, and retail stocks. The JSE’s advance had been supported by strong performance in the retail and financial sector just a day before, with Mr Price posting a 9% surge following robust earnings. Montauk Renewables led the rally on the JSE on Friday, rising 8.0% to R79.00 per share followed by Anglo American at 5.5% to R470.02 per share, and PowerFleet, which rose 4.9% to R123 per share.…

The past five years have seen various funds and managers come to the fore in the annual Raging Bull Awards, which recognise outstanding performance by asset managers offering unit trust funds to retail investors. While large established firms such as Ninety One (previously Investec Asset Management) and PSG featured strongly, smaller, so-called “boutique” managers stole the limelight in many instances. 2020 The 2020 ceremony, for performance to the end of 2019, saw Cape-Town-based boutique manager Mi-Plan clinch the South African Manager of the Year title ahead of Investec Asset Management. Mi-Plan director Anton Turpin said the awards gave smaller firms a platform to show off their investment skills: “It’s an opportunity for smaller managers to reach investors and tell them about the rewards they can get through good stock selection,…

The South African banking sector is experiencing a wave of M&A activity, driven by a combination of competitive pressures and a more favourable economic outlook, renewed optimism in South Africa following the formation of the Government of National Unity (GNU). Challenger banks are seeking to expand their market share, while established incumbents aim to diversify and defend their positions. Capitec: Shooting the lights out Capitec’s business model is evolving beyond traditional banking. This reporting season, Capitec posted strong results, far-exceeding the big-four banks, printing stellar revenue growth, both from lending and non-lending activities. Net Interest Income (NII) continued to benefit from higher interest rates, while Capitec’s Non-Interest Revenue (NIR), particularly net commission fee income, was up 29% as customers continue to adopt value-added services, reflecting the benefit of Capitec’s 23…