Cape Times 2023-05-16

THE IMPACT of South Africa’s energy crisis that has resulted in mining companies failing to sustain production is dimming the outlook for global platinum output. According to the World Platinum Investment Council (WPIC), “refined mine production declined 8%” or by 96 000 ounces in the first quarter of 2023 compared to the same period last year. Compared to the fourth quarter period demand, the global refined platinum output is down by as much as 11% or by about 151 000 ounces. “Output in South Africa declined 14% (or by 119 000 ounces) year-on- year as smelter maintenance and the impact of the ongoing electricity shortages hampered output,” the WPIC said in a quarterly report released yesterday. For South Africa, the Eskom power deficiency is casting an uncertain…

AS HIGHER stages of power cuts intensify due to constrained supply, Business Unity South Africa (Busa) has urged indus- tries to stay updated with information from their electricity service providers and keep abreast of system outlooks. This comes as Eskom yesterday implemented stage 6 load shedding an hour before schedule, due to the cold weather and the failure of two generating units. The struggling power utility has alluded to higher stages of load shedding in the winter months from June to August on the back of severe cold weather and deteriorating generation capacity. Eskom has put in place protocols up to stage 16 load by updating the third edition NRS048-9 document which would, in unforeseen emergencies, allow the system operator to implement drastic load shedding beyond stage…

Husband and wife team step down from country-wide billion-rand business DIS-CHEM Pharmacies is facing a new era as it yesterday announced that Ivan Saltzman, who co-founded Dis-Chem with his wife Lynette in 1978, would step down as CEO at the end of June, 2023. Under the Saltzmans, the drug group has grown from a start-up in 1978 to a major health products retailer, which listed on the JSE in November, 2016. It is now valued at roughly R20.3 billion, and competed with rival Clicks Pharmacies, which is valued at R62.5bn, trading as the largest dispensaries in the country. In a trading update yesterday, the group said Saltzman would remain an executive director on the board and continue to serve as an active member of the executive management team. “His…

SOUTH Africa needs to invest in building between 5 000MW and 6 000MW of renewable energy every year until at least 2030, while slowly decommissioning ageing coal-fired power plants at a reasonable pace to deal with the ongoing power crisis. These are some of the recommendations of the Presidential Climate Commission (PCC), which could appear in the upcoming energy-mix policy that is being reviewed currently in the Integrated Resource Plan (IRP2019). The PCC yesterday released two reports on South Africa’s Just Energy Transition Investment Plan (JET IP) following extensive public consultations and stakeholder engagements within the first three months of this year. PCC executive director Dr Crispian Olver said the focus of solving the dire energy crisis should be getting as much public and private investment in renewables…

CALGRO M3 exited 2023 as a more sustainable business with a robust balance sheet and strong earnings growth off continuing demand for its lifestyle-focused housing developments and memorial parks. Revenue has increased by 15.4% to R1.5 billion. Headline earnings per share increased 45.01% to 153.18 cents in the year to February 28, the highest ever achieved by the group. The gross profit margin improved to 23.5% from 21.3%, within the target range of 20% to 25% Net debt to equity decreased to 0.62 from 0.71. “We learnt some hard lessons from previous cycles. These results are based on our sustainable, well-diversified project rollout, a robust balance sheet featuring the lowest liabilities in seven years, and a net debt-to-equity ratio at an impressive 10-year low,” said group CEO…

ALTRON Group’s strong annuity and defensive earnings-base saw it raise its dividend 17% to 35 cents for the year to February 28, in spite of increasingly tough trading conditions. Results for continuing operations were impacted by non-cash provisions relating to the City of Tshwane exposure and for excess inventory from the Gauteng Broadband Network contract that was not renewed. Continuing revenue increased 19% to R9.5 billion, while earnings before interest tax depreciation and amortisation rose 2% to R1.2bn. Continuing adjusted headline earnings per share was up 19% to 89c. A final dividend of 19c was declared, “The company has a strong balance sheet and remains highly cash generative with low gearing ratios, providing flexibility to pursue its growth strategy,” CEO Werner Kapp said. He said in a statement…