Latest news with #TawandaKarombo
IOL News
12-05-2025
- Business
- IOL News
South32 appoints Matt Daley as new CEO amid significant operational changes
Matt Daley will initially join South32 as deputy CEO starting February next year before assuming the CEO role later in the year when Kerr steps down. Image: Supplied Tawanda Karombo South32, which operates in South Africa, Mozambique and Australia, has picked Anglo American technical and operations director Matt Daley as new CEO with effect from next year when incumbent Graham Kerr steps down. In South Africa, South32 operates the Hillside Aluminium project although in January it temporarily shut down the Wessels manganese mine in the Northern Cape before re-opening it. In March this year, Hillside was the subject of a claim by an Australian company that charged that the South32 subsidiary had improperly used intellectual property related to metal transportation at the South African operation. Daley will initially join South32 as deputy CEO starting February next year before assuming the CEO role later in the year when Kerr steps down. '(Daley) is a highly accomplished executive with extensive operational and leadership experience, including in copper and in the Americas, and the board is confident he is the right successor for Graham,' said South32 chairperson, Karen Wood. Anglo American has also appointed Tom McCulley as technical director with immediate effect. Duncan Wanbald, CEO of Anglo American said in the eight years that Daley served at the company he had 'brought his considerable energy and passion for mining to his teams' and the company as a whole. Wanbald said Daley had recently helped to drive 'operational excellence and nowhere more so than in the extensive safety improvement' work. Meanwhile, Wood said Kerr had contributed immensely to the company through the demerger from BHP and the subsequent transformation of South32's portfolio. 'As inaugural CEO, Graham Kerr has been instrumental in establishing South32's values-based culture, building a quality leadership team, and implementing our strategy, underpinned by a disciplined approach to capital allocation and cost management,' said Wood. Daley said he was delighted to be joining South32. He said South32's portfolio had evolved substantially in recent years and that the company was 'well positioned for potential future growth with a strong balance sheet, an attractive commodity mix, and a pipeline of options' in highly prospective regions. Daley's appointment will be of greater significance for South32's South African operations especially at a time of rising costs and other operational dynamics. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Global trade upheavals could also affect supply and demand dynamics as well as pricing for commodities such as aluminium and manganese that the company produces from South Africa. South32 has been reducing capital expenditure for its South African aluminium operations but expects to ramp up over the next year while it has received the approvals from the Competition Commission to divest the Metalloys local manganese alloy smelter. Its South African aluminium operations at Hillside raised saleable production by 1% to 362 000 tons in the half year period to December 'as the smelter continued to test its maximum technical capacity, despite the impact of load shedding'. Aluminium sales from Hillside firmed up by 10% in the December 2024 quarter as inventories at the mine returned to normal levels. Hillside Aluminum's costs at $2 135 per ton were expected to rise to $2 351 over the full year. During the half year, the operation had higher higher sales volumes of 362 000 tons, with lower raw material input prices for coke and pitch offset by higher alumina and energy prices, and a stronger South African rand. South32's South African manganese operations consists of two manganese mines in the Kalahari basin, and the Metalloys manganese alloy smelter that was placed on care and maintenance in 2020 is now being disposed of. Visit:
IOL News
07-05-2025
- Business
- IOL News
DRDGold reports increased revenues as gold prices soar despite production dip
DRDGold said that as a result of the reduction in gold production, cash operating costs per kilogram of gold sold increased by 10% from the previous quarter to R964 235/kg. Image: Supplied Tawanda Karombo A 10% surge in average gold price boosted DRDGold's revenues for the quarter ending 31 March by 4% despite a dip in gold produced and sold during the period. Gold prices for the quarter averaged R1 685 760 per kilogram, representing a 10% surge compared to the previous quarter ended December 2024. Revenue for the quarter subsequently firmed up by 4% compared to the previous quarter to about R1.8 billion amid gold sold for the period declining by 169kg to 1 109kg. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) decreased by 2% from the previous quarter to R761.7 million. 'Gold sold and produced decreased by 13% and 12% respectively, due to a 5% decrease in tonnage throughput and a 7% decrease in yield to 0.181g/t,' said DRDGold on Wednesday. 'Tonnages decreased mainly due to unprecedented wet weather conditions, which inhibited access to certain sites and consequently impacted the desired blend of reclamation material.' The wet weather conditions experienced for the period also affected average yields achieved for the period. Yields for the quarter to end March 31 fell by 7% to 0.181g/t. DRDGold, however, said cash operating costs remained under control, decreasing to R1 044.2 million, leaving it with cash and cash equivalents of R950.5m as at the end of the reporting period. It said that as a result of the reduction in gold production, cash operating costs per kilogram of gold sold increased by 10% from the previous quarter to R964 235/kg. Cash operating costs per tonne subsequently increased by 5% to R175/t as a result of the decrease in ore milled quarter on quarter. All-in sustaining costs per kilogram for the period amounted to R1 074 493/kg, increasing by 8% quarter-on-quarter mainly due to the decrease in gold production and sustaining capital expenditure. DRDGold paid an interim cash dividend of R258.7m for the six months ended 31 December 2024 during the quarter period under review. It said cash generated during the current quarter will be applied towards the company's extended capital expenditure programme. 'This coupled with the recent surge in the gold price and barring any unforeseen events, places the Company in a favourable position to consider declaring a final dividend in August 2025,' it said. However, DRDGold has had to review downwards its production targets for the year to June 2025 despite indicating in January that it remained on track to achieve the production guidance for the financial year ending 30 June 2025 of between 155 000 ounces and 165 000 ounces. 'Due to the decrease in tonnages and decrease in yield that has been observed during the quarter ended 31 March 2025, the company may fall marginally short of its production guidance,' said DRDGold. 'As a result of the expected decrease in gold production, the company may exceed the revised cash operating unit cost guidance of R870 000/kg as published in the HY1 FY2025.' Despite this, DRDGold said it continued to explore further renewable energy initiatives in line with its commitment to sustainability as well as investing in capital infrastructure developments that underscore its throughput and output targets under its Vision 2028 strategy. For the half year period to December 2024, interim headline earnings in DRDGold grew 65% to R970.1m, equating to 112.6 cents in headline earnings per share. BUSINESS REPORT
IOL News
07-05-2025
- Business
- IOL News
South Africa's M&A landscape sees renewal as capital markets rebound
In South Africa, there has been stronger interest in capital markets as M&A activity remains prevalent. Tawanda Karombo South Africa's mergers and acquisitions landscape (M&A) is being shaped up by cross-border consolidation, portfolio optimisation by multinational corporations, and renewed private equity interest at a time there is fresh impetus across the African continent's capital markets. In an interview with Business Report this week, Yvonne Ike, head of Sub Saharan Africa at Bank of America Merrill Lynch, said capital markets in Africa 'entered 2025 with cautious optimism'. Ike said this was due to the confluence of stabilizing macroeconomic fundamentals, greater foreign exchange flexibility in some economies, and improving debt sustainability. All this was 'helping rebuild investor confidence' across regional markets, Ike said. 'At the same time, governments are re-engaging with international capital markets after a prolonged hiatus, and local listings are regaining traction, particularly in sectors tied to infrastructure, telecoms, and energy transition,' said Ike. 'There's also rising interest in privatizations and public-private partnerships, which is helping to deepen capital markets across key economies.' In South Africa, there has been stronger interest in capital markets as M&A activity remains prevalent. Bank of America's country executive for South Africa, Anthony Knox, emphasised that local M&A activity was currently 'being shaped by cross-border consolidation, portfolio optimization by multinationals, and renewed private equity' interest. He said deal flows were increasing in South African sectors such as fintech, commodities, industrials and renewables. 'There's also a clear push among corporates to simplify group structures, unlock trapped value, and pursue carve-outs — which is driving strategic M&A, IPOs and secondary sell-downs,' explained Knox in an interview with Business Report. He added that South Africa remains 'active in both debt and equity capital markets, supported by a robust institutional base and a pipeline of state and corporate funding' needs. He said though that activity in South Africa's equity capital markets while more selective, has seen stronger secondary flows and growing block trade interest in the past few months. In the outlook, analysts at Bank of America is expecting a renewed push for the restructuring of South African State-owned enterprises and possibly reforms as well as private sector-led infrastructure investment. Ongoing activity in tech and energy M&A is also anticipated, with the overall outlook for South Africa's capital markets remaining constructive although further impetus will be hinged on local and international economic stability. On regional markets, Ike believes that there will be continued return by sovereigns to the global bond markets under more disciplined frameworks. Privatization and strategic IPOs are also seen entrenching in North and East Africa while greater foreign exchange flexibility and macro reforms is projected to unlock new capital flows. As of the first quarter of 2025, about $6.7 billion has been raised through African Eurobond and dollar-denominated instruments. Sovereigns such as Côte d'Ivoire, Benin and Egypt have led this charge, marking 'a meaningful recovery from the subdued levels of 2023, as frontier issuers cautiously return to the market amid easing global rates and improving macro economic' conditions. 'South Africa remains the most sophisticated and liquid capital market on the continent, supported by its deep domestic institutional investor base, active M&A environment, and regulatory strength,' said Knox. Since the formation of the GNU, there has been a marked improvement in the sentiment toward South Africa, pushing CDS and government bond spreads tighter and valuations higher.' Investors focused on South Africa and Egypt had already showcased growing appetite for investment-grade local corporates in telecoms, utilities, and infrastructure. BUSINESS REPORT
IOL News
07-05-2025
- Business
- IOL News
Industry urges South Africa to curb illicit trade as report reveals economic losses
South Africa ranked 60th out of 158 countries, 'indicating moderate resistance to illicit trade, but with notable vulnerabilities in areas such as supply chain control and enforcement' capacity. Image: Supplied Tawanda Karombo Industry players are urging the South African government to prioritize policies to curb illicit trade through the crafting of an anti-illicit trade strategy, strengthening border controls and utilising technology in securing supply chains. This follows the release of the Transnational Alliance to Combat Illicit Trade (TRACIT) report reviewing South Africa's fight against illicit trade this week. The report, released in conjunction with Business Unity South Africa (Busa), highlights how South Africa's economy continues to be threatened by illegal trade, specifically in sectors such as alcohol, tobacco, food items, pharmaceuticals, agri-chemicals, counterfeiting, mining, and wildlife trafficking. It notes that illicit trade in tobacco and alcohol alone was costing South Africa as much as R30 billion a year in lost revenue. 'Illicit trade deprives the government of critical revenue, fuels organised crime, and puts legitimate businesses at a disadvantage,' said Philippe Van Gils, director of illicit trade prevention at Philip Morris International on Tuesday. Philip Morris International is thus urging the South African government to consider crafting of a national anti-illicit trade strategy, integrating smart tax policies, robust regulatory enforcement, and corruption safeguards. It also believes that strengthening border control and customs capacity, particularly at high-risk points such as ports and Free Trade Zones will help to curb illicit trade. Moreover, securing supply chains with digital track-and-trace systems and enhanced due diligence requirements for manufacturers and logistics providers is also seen improving measures to reduce illicit trade in substances such as alcohol, wildlife, tobacco and others.; 'The TRACIT Index reminds us that a comprehensive approach is required, one that addresses corruption, strengthens enforcement, and ensures regulatory frameworks are both appropriate and effectively implemented,' added Van Gils. South Africa ranked 60th out of 158 countries, 'indicating moderate resistance to illicit trade, but with notable vulnerabilities in areas such as supply chain control and enforcement' capacity. 'The country performs strongly in trade, customs, and borders, reflecting progress in cross-border enforcement and customs modernization. However, performance remains weak in supply chain intermediaries , criminal enablers and sectoral illicit trade, highlighting systemic gaps in oversight, regulation, and inter-agency coordination,' notes the report. TRACIT director general, Jeffrey Hardy, said that 'now is the time for bold policies and strong enforcement to dismantle illicit networks' in South Africa and across the world. 'South Africa stands at a crossroads,' said Hardy, noting the continued threat illicit trade posed to South Africa's economic recovery, public safety, and institutional integrity. 'Despite authorities' efforts a to address illegal trade, corruption, and money laundering, illicit trade remains deeply entrenched and highly damaging,' said Esteban Giudici, TRACIT director of programs. 'If left unchecked, it will continue to rob the government of vital revenues, distort legal markets, and deter both domestic and foreign investment.' Alongside other industry players, Philip Morris South Africa said it remained committed to playing its part in combating illicit trade through 'collaborating with law enforcement and customs agencies; investing in digital authentication and track-and-trace technologies; running consumer awareness campaigns on the dangers of illicit products and supporting regional cooperation' efforts. 'The TRACIT Index gives South Africa and other nations a playbook for action. We urge all stakeholders—public and private—to align, act, and protect our economies from the corrosive effects of illicit trade and corruption,' added Van Gils. BUSINESS REPORT
IOL News
24-04-2025
- Business
- IOL News
South African fund managers adopt cautious optimism as gold positions rise
Consequently, noted the SA Fund Managers Survey report, growth and reform perceptions have turned negative, with recession risks number of surveyed managers who think 'a recession is unlikely' has fallen to 38% from 67% last month. Tawanda Karombo South African fund managers are preferring a high gold positioning as the country's economic growth outlook and confidence in reforms dim, Bank of America (BofA) data showed on Wednesday. Confidence in South Africa's economic growth prospects has been dimming on the back of disagreements within the government of national unity (GNU). Geopolitical risks were also weighing in as the US and China tariff wars entrench although President Donald Trump this week hinted at a climb-down. BofA's latest South Africa Fund Manager Survey nonetheless reflected a 'high positioning relative to history in gold, banks and bonds. This comes as a 'growth and reform hopes dim' with the top risk being 'political shifts' to the left. BofA noted 'a net 38% see 'reform slowing' (against peak reading of a net 56% September 202)' against the backdrop of local and global mis-steps. Consequently, noted the SA Fund Managers Survey report, growth and reform perceptions have turned negative, with recession risks rising. The number of surveyed managers who think 'a recession is unlikely' has fallen to 38% from 67% last month. A net 38% of surveyed managers expect the economy to get 'a little weaker' compared to a net 67% who expected 'a little stronger' economy last month. More than half of surveyed South African fund managers expected inflation to come in slightly higher and an exchange rate of R18.44 to the US dollar. A lowly 8% of surveyed fund managers were overweight on OW equities, neutral bonds and cash while no manager wanted to sell local equities or bonds. 'For the first time in five years, they (SA fund managers) are net offshore sellers. For +12 managers, the preferred sectors are banks, software and apparel retail,' noted the report. Domestic defensives and miners gained ground over domestic cyclicals. Regarding South African bonds, SA fund managers showed neutrality despite varying views to the outlook. Overall, the managers 'want to buy bonds' while 'no manager wants to decrease exposure' to bonds. Over a 12-month view, industrials and financials appeared to lose ground to resources, especially on the back of gold prices rallying to record levels of above $3 500 per ounce this week. Surveyed managers reflected a 'a less bearish resource tone' overall. 'Prior bearishness across all the resource sectors in previous surveys pointed to a resource index at or nearing a bottom,' noted the report. Over the next 12 months, 'all sectors lose ground except life insurance' as banks turned to be the favourite sector and real estate the least preferred In the industrial sector, the apparel retail sector lost its sizzle from the heights of the prior nine months although its still the second most preferred sector after software. Still, domestics lost ground relative to the rand hedges. 'The current gap in favour of domestics has happened 38% of the time since 2006. The extreme gap in December 2024 had only happened 6% of the time.' Although fund managers have exhibited growing concern over the outlook, Bank of America economists and analysts said earlier this month that South African corporates were optimistic of a positive earnings outlook. Michael Jacks, head of South Africa research at BofA Merill Lynch, said that South African firms have exhibited resilience 'despite a host of headwinds' such as logistics logjams they have had to deal with over the past few years. Nonetheless, South African banks and chief financial officers were now 'generally more cautious on the economy' than others. 'Companies are (also) still hesitant to invest due to global uncertainty, global reforms and lack of consumer growth (although) they are seeing investment in energy infrastructure,' said Michael Jacks, head of South Africa research at BofA BUSINESS REPORT
