Latest news with #R18.5
IOL News
3 days ago
- Business
- IOL News
Tiger Brands reports 78% earnings jump while addressing listeriosis claims
Tiger Brands, a JSE-listed company, has reported a remarkable 78% increase in earnings per share for the first half of the year, driven by the sale of non-core units. As the company navigates the complexities of settling claims from the 2017 listeriosis outbreak, it remains committed to achieving a resolution 'as soon as possible' JSE-listed Tiger Brands, which recorded a 78% jump in earnings per share in its first half to the end of March on the back of sales of non-core units, reiterated its resolve to settle claims relating to 2017 massive listeriosis outbreak 'as soon as possible'. Tiger Brands has not disclosed the full value of the settlement, which it said it had presented as a total amount at the end of April, although it has stated it has enough insurance to cover the claims. In a recent statement, it also refused to accept liability. 'The offer is subject to certain conditions and has been made without admission of liability and in full and final settlement of the claims of the claimants,' it said. What has been called the largest listeria outbreak in South Africa's history happened in 2017. It was traced to Tiger Brands' Enterprise Foods facility in Polokwane and resulted in 218 deaths and close on 1,000 infections. The settlement process now moves quantifying individual damages for eligible claimants as well as attorneys taking those offers to the plaintiffs. 'Tiger Brands and its insurers remain committed to achieving a just resolution of the listeriosis class action as soon as possible,' it said. Africa's largest food producer posted a 17.6% jump in headline earnings per share, a figure that strips out profit from sales of units, to 951c for the interim period, despite ongoing inflationary pressure and a consumer base still watching every rand. Tiger Brands' price inflation of 2.1% helped offset the flat volumes, leading to revenue improving 1.9% to R18.5 billion. 'Despite early signs of economic recovery offering some much-needed relief, consumers remain under pressure and continue to seek value in their food basket,' said CEO Tjaart Kruger. The company is sticking to its cost-cutting plans, optimising logistics, engineering value into recipes and packaging, and squeezing more efficiency out of its factories, to protect margins and keep products affordable. Tiger Brands continues to focus on trimming non-core assets, with the sale of the Baby Wellbeing division and a 24.4% stake in Chile-based company, Empresas Carozzi bringing in R4.4bn during the period and another R600 million received in April. Having sold those entities, as well as its Langeberg & Ashton Foods business, it said it has entered into a deal to sell its Wheat Mill and Maize unit in Randfontein. Tiger Brands did not provide more details, although it noted that selling non-core entities to ensure it has a 'competitive edge' and can win market share. Shareholders are set to benefit from a special dividend of 1 216 cents per share, returning R1.8bn to investors, pending approval from, the South African Reserve Bank. Management says this strikes a balance between rewarding investors and maintaining the flexibility needed for sustainable growth. 'Tiger Brands has achieved growth in line with guidance, underpinned by a continued focus on driving value for consumers, execution of key strategic priorities, and implementing continuous improvement initiatives of logistics optimisation, value engineering and factory efficiencies,' it said. IOL
News24
24-04-2025
- Business
- News24
Gold Fields gets one-year extension at Damang Mine in Ghana
Gold Fields said it will be given a 12-month lease to continue operating the Damang mine in Ghana, after the government initially rejected its application to extend the rights. The Johannesburg-listed firm will "take all reasonable steps" to restart open pit mining at Damang, which it halted in 2023, Gold Fields said in a statement on Thursday. The subsidiary that owns the asset will be allowed to resume the processing of surface stockpiles, it said. Ghana's government, led by President John Mahama since January, took the unusual step of refusing to renew the lease, saying Gold Fields' application had failed to declare mineral reserves, outline future plans, or allocate any exploration budget for Damang. That reflected the new administration's "shift away from the neo-colonial posturing of automatic renewals of licenses," the land and natural resources ministry said 15 April, three days before the permit lapsed. The resolution, first announced by the presidency on Wednesday, will see Gold Fields complete studies on extending Damang's life by the end of the year. The miner and government will also establish a joint team "to ensure the successful transition of the asset to ownership by the people of Ghana," the company said. African governments, from Mali to Zambia, are pushing for a larger share of the revenues generated by their natural resources. Bullion's record-breaking rally this year has put a particular spotlight on the gold industry. At the same time, soaring prices have encouraged some large producers to sell smaller mines that, without fresh investment, are approaching the end of their lives. China'' Zijin Mining Group acquired the Akyem project in Ghana from Newmont Corp. for $1 billion (R18.5 billion), while Barrick Gold is seeking a buyer for its Tongon asset in the Ivory Coast. Gold Fields has previously said it's weighing up whether to offload Damang. Damang is a mature asset that contributed about 6% of Gold Fields' total output last year. The one-year extension requires ratification by Ghana's parliament, which will reconvene next month. The company also operates the much larger Tarkwa mine in Ghana, which it wants to combine with AngloGold Ashanti's Iduapriem asset. The two companies were unable to secure authorization for the merger under the previous administration, which was voted out of power in December. Gold Fields and the government have agreed to start discussions on the renewal of Tarkwa's lease, which expires in 2027, according to the presidency's statement. Ghana isn't the only West African gold producer acting more assertively over its resource assets. Mali's military leaders have been renegotiating mining deals with investors and have threatened to take over Barrick's vast Loulo-Gounkoto complex, which has been shuttered for three months amid a dispute over revenues and alleged back taxes. Burkina Faso nationalized a pair of small gold operations last year, while Ivory Coast is updating mining legislation, and Senegal is reviewing existing contracts.
