Don't forget Unlock the Stock this week! You're spoilt this week, with PPC coming to you at midday tomorrow and CA Sales Holdings scheduled for Thursday at midday. Click here to register for PPC and here for CA Sales Holdings.

Sparkles, dividends and risks - welcome to mining in Africa

Gemfields is a fascinating business. With an emerald mine in Zambia and a ruby mine in Mozambique, it's never bo ring. Add to this the fabulous (and fabulously loss-making) business of Faberge and you have yourself a group that looks like nothing else on the local market. Perhaps that's why it tends to trade at modest multiples, as investors either don't understand it or aren't prepared to take the risk.

With the underlying mines running at around a 50% EBITDA margin and after reporting a 32% increase in revenue in 2022, that's a pity. There are reasons for caution though, like an expected increase in capital expenditure off a high base in 2022 and the risk of a global slowdown in demand. Of course, there is also the truly frightening risk of the insurgents in northern Mozambique breaking down the gates of the ruby mine.

The other major mining sector update was from Northam Platinum. Earnings are much higher, yet there's no dividend because of the offer to Royal Bafokeng Platinum shareholders and the uncertainty around the final mix of cash and shares.

For these updates and the latest from AYO, Eastern Platinum and Grand Parade as well, read your Ghost Bites this morning>>>

It's a wrap!

I know. By the time Monday rolls around, the previous week is a hazy memory at best. To kick your brain into gear and remind you of the biggest stories from the prior week, the Ghost Wrap podcast takes less than 10 minutes of your time. Brought to you by Mazars, this week I covered Remgro, Steinhoff, York Timber, RFG Holdings, CA Sales Holdings, Master Drilling, Bell Equipment, Gemfields and Astoria. For my signature mix of facts and opinions, listen to it here>>>

Banking on banks?

International banks have been dominating the headlines for mostly the wrong reasons recently. Friday was no exception, with Deutsche Bank turning the mood from sweet to sauerkraut. If Swiss and German banks aren't safe, what can we still trust in this world?!?

Not the rand, apparently. TreasuryONE notes that the rand touched R18.29 at its weakest point o n Friday as risk-off sentiment moved across the market. With the potential for ongoing hikes by central banks, other major commercial banks with questionable balance sheets could get into trouble. Volatility is probably here to stay, with a jump in the gold price above $2,000 per ounce giving further evidence of the current move. Brent Crude traded below $74.70 a barrel.

Put some magic into your Monday

If you're ready for a macroeconomic and geopolitical podcast that will make you think, then Rachel Ziemba as our guest on Episode 117 of Magic Markets is for you. We covered a wide variety of themes, including a global view on South Africa's grey listing. Fi nd it here>>>

If you prefer a more detailed look at a specific industry or stock, then you can always go back to Episode 116 with Barry Dumas of Trive South Africa. We looked at Aston Martin and discussed the luxury automobile industry more broadly. You can find that discussion here and you can also visit the research section of the Trive South Africa website for interesting trade ideas.

And for a really detailed view on a different global stock each week, Magic Markets Premium is for you. Our latest report covered Spotify, a streaming platform that has a surprisingly weak business model that plays in an unatt ractive part of the value chain. To understand what I'm talking about here, join us in Magic Markets Premium and get access to the full library of 70+ research reports for a single subscription fee>>>

Have a great start to your week!