Market Review JSE Africa All Share index surged 2.3% to close at a three-week high, following the US Federal Reserve’s comment about continuing monetary stimulus for the foreseeable future. Market breadth was positive, with 119 gainers and 38 decliners; 9 stocks remained unchanged. Corporate News Sibanye Gold amended the terms of an existing bridge loan with its lenders, allowing the company to declare an interim dividend and a larger final dividend for the year ending 31 December 2013. According to the amendment, the loan structure has been revised to a revolving credit facility of R3bn and a term loan facility of R3bn, from the original revolving credit facility of R2bn and term loan facility of R4bn. Iliad Africa announced plans to sell its Ferreira’s Northriding ceramics business as a going concern to Portion 140 Springs Properties for R49.6m. Proceeds from the sale would be used to fund working capital requirements and future growth. The effective date of the transaction is 12 July. New Europe Property Investments stated that it has not received any formal notification of legal proceedings in relation to Sibiu Shopping City (SSC), initiated against the company by Argo Real Estate Opportunities Fund. As announced on 25 April 2013, NEPI agreed to acquire the rights under the debt financing agreements for a portion of the distressed debt in relation to SSC, subject to approvals. Witwatersrand Consolidated Gold Resources (Wits Gold) received an approval to purchase the Burnstone mine in Mpumalanga through acquisition of Sale Shares in and Sale Claims against Southgold. Earnings Announcements Kibo Mining stated that its joint venture with Votorantim, the Tanzanian Haneti Project, undertook a comprehensive soil geochemical sampling programme over key target areas. For the period ending 25 June 2013, 238 samples were collected from the Mwaka hill target and 76 rock samples were collected for multi-element analyses as part of the 2013 exploration field programme. Initial laboratory results are expected towards end-August. Gold Fields expects Q2 2013 group production to be 451,000 gold-equivalent ounces, with cash costs and notional cash expenditure of approximately USD860/oz and USD1,250/oz respectively and continues to be on track to achieve its 2013 production guidance of between 1,825,000 and 1,900,000 ounces and cash cost and NCE of USD860/oz and USD1,360/oz respectively. Results due: 22 August. Economic Review Manufacturing production for May rose 2.2% y/y, compared with a revised 7.1% y/y increase in April due to slowing domestic demand and weak export demand. Economists estimated an increase of 2.9%. Factory production fell 1.7% m/m in May. Mining production fell 0.7% y/y in May, following a revised 0.7% y/y rise in April, with the largest decrease in the category of other metallic minerals (down 32.3%). Diamonds fell 19.7%; gold was down 14.6%. Seasonally adjusted mining production grew 4.5% m/m in May 2013. Mineral sales increased 13.5% y/y in April with the highest growth rates recorded for other non-metallic minerals (89.6%), PGMs (54.2%) and manganese ore (39.1%). Seasonally adjusted mineral sales decreased 0.1% m/m at current prices in April 2013.
Posted on: Fri, 12 Jul 2013 07:06:09 +0000
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