Star 2022-12-06

IN AN effort to drive transformation in the diamond sector, the De Beers Group yesterday announced that Molefi Letsiki Diamonds (MLD) would become its first majority black-owned sightholder, effective from January 1, 2023. A sightholder is a company on the De Beers Global sightholder sales list of authorised bulk purchasers of rough diamonds. De Beers Group sells its rough diamonds through two channels: global sightholder sales, and auctions. The diamond miner said Molefi Letsiki was an alumnus of the De Beers Enterprise Development Project for diamondbBeneficiators launched in 2016 to facilitate growth and transformation of diamond beneficiation in South Africa. According to the world’s biggest diamond producer by volume, Letsiki formed part of the first cohort of the Diamond Beneficiators Project and was a second-generation diamantaire, whose father worked…

Currency’s partial recovery aided by China’s easing of Covid-19 restrictions THE RAND has strengthened as financial markets calmed down yesterday following last week’s fears that President Cyril Ramaphosa could resign, while China’s reconsideration of its strict Covid-19 restrictions buoyed international markets. The rand yesterday pulled back to R17.19 to the US dollar during early trade, away from a near one-month low of R18 on Thursday after speculation that Ramaphosa was considering resigning over accusations that he might have violated the Constitution. The JSE All Share Index also traded more than 1% higher above the 75 000-level, mainly pushed up by tech stocks and financials. Ramaphosa’s possible resignation rattled the markets, leaving investors jittery about the country’s economic policy and reform programme implemented by the Ramaphosa administration. Old Mutual Wealth investment…

THARISA Resources’s shares surged by almost 16% after the platinum group metals (PGM) miner said it delivered a strong annual financial performance driven by record PGM and chrome production. The shares rose by 15.6% to an intra-day high of R26, later closing the day flat. In its annual results released yesterday, Tharisa said annual PGM production was up 13.6% at 179.2 ounces compared with the previous year’s 157.8oz. Chrome production rose by 51% at 1 582.7oz compared with 2021’s 1 506.1oz at an average metallurgical grade chrome price of $209 (R3 628) per ton, up 35.7%. Average PGM basket prices during this period were at $2 564 an ounce down by almost 17%. Tharisa set its production guidance for the year at between 175 000 and 185 000…

THE more things change, the more they stay the same. For investors, with 2020 still fresh in their minds, this year has been yet another case in point. With so much having changed this year, it is easy to believe we’ve entered a new paradigm. But although much has changed, the future is no less certain than it was a year, or two, or even ten years ago. Investing today is equally challenging, because we’re still looking to make portfolio decisions in highly uncertain times. We still need to carefully review the opportunity set, try to put emotions aside and take calculated risks. The reward then lies in waiting to see whether we realise a return better than risk-free. This sounds simple, but it is far from easy. For most…

METAIR Investments’ auto part and battery manufacturing operations are performing well through the fourth quarter to December 31 in spite of a challenging operating environment that includes ongoing supply chain shortages. The group said in an operational update yesterday that key projects in the Automotive Component Vertical are on track. For instance, production of the major new model investment, the next-generation Ford Ranger, started on November 16 at Ford’s Silverton assembly plant, and Metair subsidiaries had entered production with peak production from January 2023. “The vertical expects to incur pre-production and engineering (project) cash costs of up to R475 million related to the new model in 2022.” Projects were still on track despite semiconductor shortages and shipping constraints, including Transnet port disruptions. The Energy Storage Vertical was delivering strong automotive…

PACKAGING group Nampak, which is planning a R2 billion rights issue, said yesterday that a R207 million profit crumpled into a R147m attributable loss in the year to September 30. This was in spite of a 21% increase in revenue to R16.9bn due to higher volumes and unusually high commodity prices. There was a 13% increase in trading profit to R1.6bn. Operating profit before net impairments, however, fell 4% to R1.2bn. Although trading profit was “pleasing”, an “increase in foreign exchange losses, higher interest rates and increased impairments contributed to a lower net profitability,” said CEO Erik Smuts in a statement. Nampak’s share price fell 2.63% to R1.48 yesterday, adding to a price that had already fallen from R202 since November 26, and since the rights issue was announced. The…