Shoprite has released a trading statement for the six months ended 2 January 2022. HEPS is expected to increase by between 18.1% and 24.1%. If you strip out exchange rate differences and some other distortions, adjusted HEPS is up between 27.2% and 33.2%. On a tough day on the market, the share price shrugged off this strong update and closed flat for the day.
Nedbank has issued a further trading statement, which means it has tightened the earnings guidance for the year ended December 2021. In a huge bounce vs. the Covid-infested year, HEPS will be between 108% and 118% higher.
Grindrod is enjoying a period of positive newsflow around its ports in Mozambique. The Maputo and Matola Drybulk Terminals are sub-concessioned to Grindrod and an expansion of the footprint is being considered. This will significantly increase the throughput capacity of the terminals, which would increase South Africa's mineral exports. For this to succeed, road and rail bottlenecks need to be unlocked along the corridor.
Irongate Group has been a target for potential acquirers for a while now. Charter Hall has made a proper bid of AUD1.90 per stapled security and the board is pursuing the opportunity. Charter Hall has been given a period of exclusivity of approximately 6 weeks to undertake a due diligence and move the process from an indicative proposal to a binding proposal. If that goes well and if an independent expert opines that the offer is fair and reasonable, then the Irongate board intends to recommend that securityholders vote in favour of the transaction.
MC Mining Limited (previously Coal of Africa) has received a notice from shareholders of around 6.8% of the company asking for a general meeting to be held. The proposal is to remove two directors of the company and appoint Nhlanhla Nene (our ex-finance minister who was re moved and replaced with Des van Rooyen for just a few days) and Godfrey Gomwe as directors. The company has been raising capital and negotiating with the IDC regarding its loan funding, so one wonders about the boardroom manoeuvring that might be going on in the background.
Kibo Energy has a 65% stake in Sustineri Energy. That company has signed a deal with a business park developer for a powerplant that converts non-recyclable plastics to syngas, which then feeds gas engines and generates both electricity and heat. I'm no scientist, but that sounds fantastic to me. The internal rate of return on the project is expected to be between 11% and 14% per annum. Unsurprisingly, the company has received high levels of interest for the debt funding needed for the project.
Transcend Residential Property Fund has released results for the year to December 2021. Debt has been significantly reduced in the past year which is critical and the distribution per share has increased by 1.15%. Occupancies at the end of the year were 89.53%, slightly down from the average during 2021 of 91.24%.
Deutsche Konsum REIT announced its results for the quarter ended December 2021. Net rental income was up 20%. Funds from operations increased 6% due to higher net financial expenses.
Sibanye shareholders will have to be more patient for the 2021 results to come out, with the date moved from 17 February to 3 March. Completion of the year-end results is taking longer than planned.
Retailer Choppies released a trading statement that HEPS from continuing operations for the six months to December 2021 will increase 60% - 79% vs. the prior period. Detailed results are expected on 23rd February.
Tharisa Plc is now trading under cautionary. The company has kicked off negotiations to acquire the minority shareh oldings in Tharisa Minerals (Pty) Ltd, in which Tharisa Plc currently owns 74%.
If you're tired of reading and feel like a podcast to add some variety, then
listen to the latest episode of
Magic Markets. We had a chat with
Afrimat CEO Andries van Heerden about the company's incredible track record.
Have a good day!
The Finance Ghost
