Major International Business Headlines Brief::: 20 February 2018

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Major International Business Headlines Brief::: 20 February 2018

 


 

 


 <http://www.mbca.co.zw/> 

 


 

 


*  HSBC profits jump to $17.2bn on Asia growth

*  KFC shuts more stores in chicken crisis

*  Carillion: Regulator was warned over pensions deficit

*  More arrests in $1.8bn Punjab National Bank scam

*  Arsenal and Emirates in £200m shirt sponsorship extension

*  South African deputy finance minister says budget will be presented by
Gigaba

*  Egyptian firm to buy $15 billion of Israeli natural gas

*  S.African minister orders Transnet to report irregularities over
locomotive contract

*  IMF stopped Kenya's access to $1.5 bln standby credit after review delay

*  S.African minister orders Transnet to report irregularities over
locomotive contract

*  Dutch court rules Steinhoff must amend 2016 accounts

*  AngloGold posts lower FY earnings on lay-off costs, silicosis provision

*  U.S steel import tariff could hurt South African steel sector -industry
body

*  Vedanta seeks to expand zinc output after price rally

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

HSBC profits jump to $17.2bn on Asia growth

HSBC has posted a pre-tax profit of $17.2bn (£12.3bn) in 2017, saying its
focus on Asia was driving growth.

 

The results represent a 141% jump on the $7.1bn profit of the previous year.

 

But that comparison is flattering, given 2016 saw the bank incur a string of
one-off costs including the sale of its Brazil business.

 

Though well known on the British High Street, HSBC makes most of its money
outside the UK, with Asia accounting for the bulk of global profits.

 

And the bank said the prospect of regional Asian trade deals and lending
linked to China's Belt and Road projects "provided cause for optimism".

 

"A large increase in reported profit before tax reflected both a healthy
business and the non-recurrence of significant items from 2016," said group
chairman Mark Tucker.

 

While an stark improvement on 2016's results, the profit is still lower than
the $18.9bn reported in 2015.

 

 

HSBC, Europe's largest bank, has been focussing on a drive to streamline its
business and slash costs.

 

That has been spearheaded by chief executive Stuart Gulliver, who on
Wednesday will hand over the reins to John Flint after seven years at the
helm.

 

Mr Flint, HSBC's former head of retail banking and wealth management, has
said he wants to speed up the pace of change at the firm.

 

Important Asia

HSBC said its pivot to Asia in recent years was paying off, with wealth
management, commercial and retail banking becoming key drivers of growth.

 

The lender, which has its regional headquarters in Hong Kong, has also
beefed up its presence in China's heavily populated Pearl River Delta area,
lending to firms in the real estate and infrastructure sectors, and
increasing its staffing.

 

Across 2017, the bank said its pre-tax profits from Asia rose by 89.3% from
a year earlier to $15.3bn - the bulk of its global profits for the year.

 

That compares with a loss of $1.9bn recorded in Europe.

 

Despite the positive news on the bank's Asia-wide business, the firm's
shares in Hong Kong were down almost 2.5% in afternoon trade.

 

HSBC is also listed in London and New York.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

KFC shuts more stores in chicken crisis

KFC has closed more of its outlets in the UK after delivery problems meant
it ran out of chicken.

 

Its website shows that 575 of the fast-food chain's 900 outlets in the UK
and the Republic of Ireland were shut as of 21:00 on Monday night.

 

That compares with 562 that were closed at 15:45 on Monday.

 

Last week, the fried chicken chain switched its delivery contract to DHL,
which has blamed "operational issues" for the supply disruption.

 

It is not yet clear how many outlets will open for business later on
Tuesday.

 

How many KFCs are open?

By totting up the latest figures on the firm's website, it seems 325 of the
outlets were open as of 21:00 on Monday night, compared with 338 at 15:45 on
Monday.

 

KFC has set up a web page where "fans" can find their nearest outlet that is
still open.

 

What caused the problems?

Until last 13 February, KFC's chicken was delivered by specialist food
distribution group Bidvest.

 

But after the contract switched to DHL, many of the food giant's outlets
began running out of chicken products.

 

The GMB union said it had tried to warn KFC that switching from Bidvest to
DHL was a mistake. The change led to 255 job losses and the closure of a
Bidvest depot, said Mick Rix, GMB national officer.

 

He said: "Bidvest are specialists - a food distribution firm with years of
experience. DHL are scratching around for any work they can get, and
undercut them.

 

"KFC are left with hundreds of restaurants closed while DHL try and run the
whole operation out of one distribution centre. Three weeks ago, KFC knew
they had made a terrible mistake, but by then it was too late."

 

The distribution network uses software developed by the firm Quick Service
Logistics (QSL).

 

DHL said: "Due to operational issues, a number of deliveries in recent days
have been incomplete or delayed. We are working with our partners, KFC and
QSL, to rectify the situation as a priority and apologise for any
inconvenience."

 

How long are the problems likely to persist?

A spokesman for the firm said as of Monday, it was "too early to tell" how
long the problems would go on for.

 

How much is it likely to cost KFC?

KFC's spokesman said he did not have a figure, but any calculation is likely
to be complicated by the fact that 80% of KFC's outlets are run by
franchisees.

 

Some media reports say the crisis could be costing the chain £1m a day, but
any such figure at this stage is likely to involve a large amount of
guesswork.

 

What's happening to KFC staff?

Workers are being encouraged to take holiday, but would not be forced to do
so, the company has said.

 

"Our teams are working flat out all hours to get the rest back up and
running as soon as possible - but it's too early to say how long it will
take to clear the backlog."

 

It said that in the restaurants owned by the chain, staff on short-term
contracts would be paid the average hours worked per day over the past 12
weeks, while those on salaries would be paid as normal.

 

"Franchisees will be seeking their own independent advice, but we're
encouraging them to adopt this policy too," said the chain.--bbc

 

 

 

Carillion: Regulator was warned over pensions deficit

The Pensions Regulator was twice asked for help in getting Carillion to pay
more into its pension schemes in the years running up to its collapse.

 

Letters published by Parliamentary committees show the construction firm's
pension trustees wrote to the regulator in 2010 and 2013 to flag up
problems.

 

The regulator has been criticised for failing to take early action to
protect pensioners.

 

However, it said it did get Carillion to raise its pension payments in 2013.

 

Carillion went into liquidation last month. The construction giant - which
also provided services for schools, hospitals and prisons - had only £29m of
cash left, but a pensions deficit of hundreds of millions of pounds.

 

'Impasse'

In 2010, trustees had written to the Pensions Regulator saying that while
they had advised Carillion that it needed to pay a minimum of £35m a year to
help clear the pensions deficit, the maximum offered by the firm was £25m.
The trustees deemed this "not acceptable".

 

The 2013 letter said trustees wanted contributions of £65m a year over 14
years, but the company had offered £33.4m over 15 years. The trustees said
they had reached an "impasse" with the firm and wanted "intervention" from
the regulator.

 

*         Investor 'fled' as Carillion collapsed

*         Ex-boss takes blame for Carillion failure

*         Carillion collapse delays new £335m Liverpool hospital

*         Carillion: Six charts that explain what happened

The chair of the Work and Pensions Committee, Frank Field MP, said: "These
letters suggest the Carillion directors were contemptuous of their pensions
obligations.

 

"Their private pleading that the company could not afford more was in stark
contrast to the rosy picture - and bumper dividends - being presented to the
outside world.

 

He added: "With characteristic alacrity, the Pensions Regulator started its
arduous process of chasing money down from Carillion a few days after it was
formally announced there was no money left. I can only assume - and hope -
they are going after some of those very generous bonuses."

 

In response, the Pensions Regulator said: "When the trustees wrote to us in
2013 to say they could not agree funding plans with the company, we did
intervene by threatening to use our powers unless a funding plan was agreed.

 

"Our intervention resulted in a significant increase in the amount of money
the company was prepared to pay into the scheme. We believed this was
reasonable, based upon our understanding of the company's trading strength
as set out in its audited accounts.

 

"The investigation we have now launched is looking at whether there are
grounds to use our anti-avoidance powers."

 

On Monday, the Official Receiver - the body in charge of liquidating
Carillion - said a further 152 workers would be made redundant this week,
taking the total number of jobs lost to 1,141.

 

The failure has also led to job cuts and widespread disruption among
sub-contractors.--bbc

 

 

 

More arrests in $1.8bn Punjab National Bank scam

Another three employees of Punjab National Bank have been arrested in
connection with a $1.8bn fraud case.

 

Indian federal police said on Monday the latest arrests included two
managers of the bank's foreign exchange department.

 

Last week three people, including two bank staff, were arrested as part of
an investigation into the bank scam.

 

A billionaire jeweller, Nirav Modi, and others are accused of colluding with
employees at Punjab National Bank.

 

It is alleged they obtained fraudulent advances for payments to overseas
suppliers worth about $1.8bn (£1.3bn) from the Indian government-run lender.

 

Mr Modi has not commented on the case and no charges have been filed.

 

Three people have been arrested on suspicion of helping Mr Modi, who is
understood to have left India last month. His whereabouts are unclear and
the government has suspended his passport.

 

Reuters reported that a lone Punjab National Bank manager, later aided by a
younger subordinate, engineered fraudulent transactions totalling about $1.8
billion between 2011 to 2017.

 

The bank said it was still investigating how they were able to do so for so
long.

 

Shares in the bank fell more than 7% in Mumbai on Monday.

 

Mr Modi is one of India's richest people, and has also been the jeweller for
Hollywood celebrities such as Naomi Watts and Kate Winslet. One of the
biggest Bollywood stars, Priyanka Chopra, is his company's brand ambassador.

 

Police reportedly questioned more PNB employees over the weekend as well as
some executives from Mr Modi's group.

 

The first three arrests were former PNB managers Gokulnath Shetty and Manoj
Kharat, as well as Hemant Bhat, an associate of Mr Modi.

 

A spokesman told the AFP news agency that Mr Bhat was the "authorised
signatory" of several companies linked to Mr Modi.

 

The three are jointly suspected of making fraudulent lines of credit
available to companies linked to Mr Modi and his uncle, Mehul Choksi, the
spokesman said.

 

Mr Choksi is head of the Gitanjali Group, which has about 4,000 shops across
India.--bbc

 

 

Arsenal and Emirates in £200m shirt sponsorship extension

Premier League football club Arsenal and airline Emirates have signed a
five-year extension to their long-running shirt sponsorship deal.

 

The size of the deal is believed to be in excess of £200m ($280m).

 

The Emirates name will feature on the shirts and kit of all Arsenal teams
until the end of the 2023-24 season.

 

It is the largest sponsor deal signed by the London club, and will see the
Emirates shirt partnership, which began in 2006, run to at least 18 years.

 

That will surpass Arsenal's previous longest, 17-year, shirt deal with
Japanese electronics firm JVC from 1981 to 1999.

 

*         Manchester City - 12 years with Japanese electronics firm Brother,
from 1987 to 1999. This longevity is set to be surpassed by City's current
shirt deal with airline Etihad.

*         Manchester United - 18 years with Japanese electronics firm Sharp,
from 1982 to 2000.

*         Liverpool - 18 years with Danish brewer Carlsberg, from 1992 to
2010.

*         Chelsea - 10 years with South Korean electronics firm Samsung,
from 2005 to 2015.

*         Tottenham Hotspur - 13 years with German brewer Holsten, from 1983
to 1993 and again from 1999 to 2002.

Arsenal-backed campaigns

"Our shirt partnership is the longest running in the Premier League and one
of the longest relationships in world sport," said Arsenal chief executive
Ivan Gazidis.

 

He said that the new agreement would see "significantly increased
investment" from Emirates, which would help the club in its quest for
trophies.

 

As part of the extended deal, Arsenal will also fly on Emirates planes on
pre-season tours.

 

Meanwhile, the airline will retain marketing rights to develop campaigns and
initiatives featuring Arsenal around the world.

 

Arsenal's home will continue to be known as Emirates Stadium up to 2028, as
part of an extension agreed in 2012.

 

Emirates first signed its sponsorship agreement with Arsenal in 2004,
providing the airline with naming rights to the stadium until 2021 and a
shirt sponsorship that began in the 2006-07 season.

 

The current deal is one of the longest in English football, but still has
some way to go to match the 34-year partnership between Dutch club PSV
Eindhoven and electronics firm Philips.

 

However, that partnership is unusual in that PSV football club started life
as the company's works team.--bbc

 

 

 

South African deputy finance minister says budget will be presented by
Gigaba

CAPE TOWN (Reuters) - South African deputy finance minister Sfiso Buthelezi
said on Tuesday that Wednesday’s budget will be presented by Finance
Minister Malusi Gigaba, as speculation swirled about whether Gigaba would
keep his job.

 

“The question that is being asked of the minister, if he is going to present
the budget. That is why we are here. There is a budget that is going to be
presented tomorrow and it is going to be presented by nobody else but Malusi
Gigaba,” Buthelezi told reporters at a media briefing.

 

New President Cyril Ramaphosa is expected to reshuffle his cabinet and
Gigaba, seen as loyal to Zuma, is among ministers likely to be affected.

 

 

Egyptian firm to buy $15 billion of Israeli natural gas

TEL AVIV (Reuters) - An Egyptian company will buy $15 billion of Israeli
natural gas in two 10-year agreements announced on Monday, a major deal that
Israel hopes will strengthen diplomatic ties.

 

The partners in Israel’s Tamar and Leviathan offshore gas fields said they
would supply the private Egyptian firm Dolphinus Holdings with around 64
billion cubic metres of gas over a decade - with half coming from each
field, and the proceeds shared equally.

 

Israeli Prime Minister Benjamin Netanyahu said the agreements would
“strengthen our economy (and) strengthen regional ties”.

 

His energy minister, Yuval Steinitz, called it the most significant export
deal with Egypt since the neighbours signed their historic peace treaty in
1979.

 

Israel’s Delek Group Ltd and Texas-based Noble Energy Inc have led both gas
projects.

 

“Egypt is becoming a real gas hub,” Yossi Abu, CEO of Delek subsidiary Delek
Drilling LP , told Reuters. “This deal is the first deal of potentially more
to come.”

 

The partners have also been trying to finalise a long-term deal to supply a
Royal Dutch Shell Plc plant in Egypt.

 

Egyptian Petroleum Minister Tarek El Molla told the private Egyptian
television channel ON E that outstanding disputes would have to be resolved
for the deal to go through.

 

EXPORT DISPUTE

Molla’s comments refer to Egypt’s challenge to a 2015 ruling by the
International Chamber of Commerce ordering Egypt to pay $2 billion in
compensation after a deal to export gas to Israel via pipeline collapsed in
2012 due to months of attacks by insurgents in Egypt’s Sinai peninsula.

 

“We don’t mind importing gas from Israel, but we have terms in order (to
allow) something like this to happen ... most importantly, the settlement of
ongoing arbitration,” Molla said.

 

An Egyptian government official who declined to be identified said the deal
did not mean Egypt itself would import any gas from abroad.

 

“International private companies will import gas from abroad in the
framework of their own needs, and will liquefy and export them again,” the
official said, without elaborating.

 

Shares in Delek Drilling were up 28 percent on the news and Delek Group
shares were up 19 percent.

 

Gary W. Willingham, Noble Energy’s executive vice president of operations,
said the deals provided “further clarity and confidence in our expected cash
flow profile for 2018 and beyond”.

 

Noble Energy, which plans to sell its U.S. offshore exploration business,
said the prices under the agreements were linked to the Brent oil benchmark,
and promised more details when it releases results on Tuesday.

 

Barclays analyst Tavy Rosner said weakness seen in Israeli gas shares over
the past several months was due to investors’ doubts that gas exports would
ever take place. “We believe today’s announcement will pave the way to a
re-rating of the shares,” he said.

 

DELIVERY METHOD STILL OPEN

Leviathan, located about 80 miles (130 km) west of Haifa, was discovered in
December 2010 and is scheduled to start producing by the end of 2019.

 

Exports from Tamar, which began production in 2013, are expected to start
under the deal sometime between the second half of 2020 and the end of 2021.

 

Delek said Dolphinus was a natural gas trading company that plans to supply
large industrial and commercial consumers in Egypt. It added that Egypt had
amended regulations last week to allow private groups to import gas.

 

The companies did not specify when supplies to Egypt would start, and the
delivery method has yet to be settled.

 

One export option, Delek said in a statement, was to use the pipeline built
by East Mediterranean Gas (EMG) to send gas in the other direction in the
deal that collapsed.

 

Another option would be to use a pipeline being built as part of a separate
deal to sell gas from Leviathan to Jordan.

 

The export agreements are conditional upon receipt of regulatory and
government approvals in Israel and in Egypt.

 

Noble and Delek Drilling together control 85 percent of Leviathan, with the
rest held by Ratio Oil.

 

They are joined in Tamar by Isramco Negev, Tamar Petroleum - a spin-off of
Delek - and two other smaller partners.

 

 

 

S.African minister orders Transnet to report irregularities over locomotive
contract

JOHANNESBURG (Reuters) - South Africa’s Public Enterprises Minister Lynne
Brown on Tuesday ordered rail utility Transnet to report to law enforcement
officials irregularities in the awarding of a 54 billion rand ($5 billion)
contract to acquire locomotives in 2014.

 

Transnet, which operates nearly three-quarters of the African rail network,
the bulk of which is in South Africa, has been investigating allegations of
corruption in the procurement of 1,064 diesel and electric locomotives.

 

($1 = 11.7258 rand)

 

 

 

IMF stopped Kenya's access to $1.5 bln standby credit after review delay

NAIROBI (Reuters) - The International Monetary Fund stopped Kenya’s access
to a $1.5 billion standby credit facility last June after they failed to
agree with the government on a reduction of the fiscal deficit and a delayed
review due to a prolonged election, the fund said on Tuesday.

 

“The programme has not been discontinued but access was lost in mid-June
because a review had not been completed,” Jan Mikkelsen the IMF resident
representative in Kenya told Reuters.

 

“There was no agreement on the fiscal adjustment at the time and then I do
believe the lengthy election period made it difficult to have a review and
complete that in the period that followed.”

 

 

S.African minister orders Transnet to report irregularities over locomotive
contract

JOHANNESBURG (Reuters) - South Africa’s Public Enterprises Minister Lynne
Brown on Tuesday ordered rail utility Transnet to report to law enforcement
officials irregularities in the awarding of a 54 billion rand ($5 billion)
contract to acquire locomotives in 2014.

 

Transnet, which operates nearly three-quarters of the African rail network,
the bulk of which is in South Africa, has been investigating allegations of
corruption in the procurement of 1,064 diesel and electric locomotives.

 

($1 = 11.7258 rand)

 

 

 

Dutch court rules Steinhoff must amend 2016 accounts

FRANKFURT (Reuters) - A Dutch court has ordered Steinhoff International to
amend its 2016 accounts, handing victory to a former business partner in a
dispute over the ownership of discount furniture store chain POCO, the
crisis-hit retailer said on Tuesday.

 

The Enterprise Chamber of the Amsterdam Court of Appeals ruled that
Steinhoff must change its accounts to show it held a 50 percent controlling
interest in POCO, not 100 percent, to reflect the part-ownership of Andreas
Seifert, Steinhoff said on Tuesday.

 

The case brought by Seifert, the owner of German furniture chain XXXLutz,
predates Steinhoff’s admission in December that it had found “accounting
irregularities” - a revelation that helped to wipe out about 85 percent of
the South African retail group’s market value.

 

Seifert claims half-ownership of POCO, while Steinhoff says he had to be
bought out due to unspecified actions by his company, Seifert Enterprises.
Steinhoff said it would pay Seifert for his half of POCO as soon as a
separate ongoing legal case in Germany over the ownership of POCO was
settled.

 

The Amsterdam court also ordered Steinhoff to revise the contingent
liabilities in its 2016 accounts to remove a reference to the payable
liability to Seifert for the holding in POCO, according to Steinhoff.

 

“The company is in the process of studying the judgement (including whether
it provides grounds for appeal) and considering the impact of the decision
on the Group’s accounts and will update shareholders in due course,” the
group said.

 

The vast majority of POCO’s more than 100 outlets are in Germany, where the
brand generated sales of 1.52 billion euros ($1.88 billion) in 2016,
according to its website.

 

($1 = 0.8076 euros)

 

 

 

AngloGold posts lower FY earnings on lay-off costs, silicosis provision

JOHANNESBURG (Reuters) - Africa’s top bullion producer AngloGold Ashanti
posted lower annual earnings on Tuesday, hit by restructuring costs and $46
million in provisions for an expected settlement in a class-action suit
related to a fatal lung disease.

 

“Adjusted headline earnings for 2017 include the impact of retrenchment
provisions in the South Africa region of $71 million (post-tax) and the
provision for the settlement of the silicosis class action claims and
related expenditure of $46m (post-tax),” the company said.

 

As a result, adjusted headline earnings amounted to $9 million versus $143
million last year.

 

A class action suit brought against gold producers in South Africa is likely
to be settled “within months” with 9 billion rand ($755 million) going to
miners suffering from fatal lung disease, the chair of an industry group
said earlier this month.

 

The suit was launched almost six years ago on behalf of miners suffering
from silicosis, a fatal lung disease contacted by inhaling silica dust in
gold mines.

 

Almost all of the claimants are black miners from South Africa and
neighbouring countries such as Lesotho, whom critics say were not provided
with adequate protection during and even after apartheid rule ended in 1994.

 

Gold mining companies have made provisions amounting to about 5 billion rand
while close to 4 billion rand is available from a compensation fund which
bullion producers have been contributing to for years.

 

AngloGold also said it had signed an agreement with the government of Ghana
to ”provide the framework for the redevelopment of the Obuasi Gold Mine into
a modern,

 

productive mining operation.”

 

”The redevelopment will establish Obuasi as a mechanised underground mining
operation. The approach to redeveloping the Obuasi mine is a fundamental
departure from how the mine was

 

operated in the past.”

 

AngloGold Ashanti last year lifted a force majeure on Obuasi mine after the
removal of thousands of illegal miners who had invaded the operation.

 

The invasion by illegal miners, who at one stage numbered 12,000, had made
Obuasi a toxic asset and underscored the social and political risks of
Africa mining.

 

The company declared a dividend of 70 South African cents per share.

 

 

 

U.S steel import tariff could hurt South African steel sector -industry body

JOHANNESBURG (Reuters) - A tariff on steel imports to the United States
could hurt the South African sector which has battled against cheap imports
and slow economic growth dampening construction, an industry group said on
Monday.

 

The Steel and Engineering Industries Federation of South Africa (SEIFSA), an
employer federation representing the metal and engineering industry, said it
is concerned the implementation of the tariff could decrease local
production.

 

“The latest developments have the potential of further dampening production
in the local steel industry, reducing steel exports to the U.S., squeezing
margins and depriving the steel industry of much-needed foreign reserves,”
SEIFSA chief economist Michael Ade said in statement.

 

The U.S. Commerce Department has recommended steep curbs on steel and
aluminium imports ranging from global and country-specific tariffs to broad
import quotas, including a tariff of at least 53 percent on all steel
imports from 12 countries, including South Africa. [nL2N1Q60V8]

 

South Africa imposed a three-year emergency safeguard tariff on imports of
certain flat hot-rolled steel products last year to protect the local
industry. [nL8N1IA4XD]

 

 

 

Vedanta seeks to expand zinc output after price rally

LONDON (Reuters) - Vedanta may accelerate expansion of its African zinc
operations to take advantage of prices that have reached their highest
levels in a decade because of a shortfall following years of
under-investment, its international zinc head said.

 

The rally in zinc prices to their highest since 2007 has helped to boost the
overall profits of Vedanta, which has zinc projects in India, South Africa
and Namibia.

 

It also has licences in Ireland and is discussing possible joint ventures to
develop them following the closure in 2015 of the Lisheen mine it operated
in the country, Deshnee Naidoo, chief executive officer of Zinc
International, which groups Vedanta’s assets in Africa and Ireland, said.

 

She said she was bullish about zinc prices and bullish about South Africa
after Cyril Ramaphosa replaced Jacob Zuma as president last week.

 

“Some of the aged mines are starting to close, demand is growing. The market
is in deficit for both zinc concentrate and metal,” she said in a telephone
interview with Reuters.

 

Analysts also see a shortfall this year of the metal, which is used to
galvanise steel and which potentially can be used in batteries, although the
technology is still being researched.

 

Vedanta’s Zinc International complements the group’s Hindustan Zinc Limited,
which makes it India’s biggest zinc producer.

 

The group says its appeal for investors is the access it provides to the
huge potential of the Indian market, but it has also made clear its ambition
to diversify internationally and has long been enthusiastic about South
Africa.

 

Its chairman has acquired a roughly 20 percent stake in South
African-focused major Anglo American.

 

Vedanta is already bringing on new production at Gamsberg in the Northern
Cape region of South Africa, where output should start around the middle of
this year, ramping up to full production of 250,000 tonnes annually in
around a year’s time.

 

In view of the strengthened zinc price, Naidoo said a second phase to bring
production to around 400,000 tonnes per year could be accelerated. She said
a decision would be taken “over the coming months”.

 

Vedanta is also investigating whether it could mine underground in Namibia
when its open pit operations at Skorpion Zinc will be exhausted around 2020.

 

This year, Skorpion is expected to produce approximately 90,000 tonnes of
zinc, reaching approximately 130,000 tonnes by 2020.

 

If Vedanta decides underground operations would not be viable, Naidoo said
the company would convert the Skorpion refinery, whose current capacity is
150,000 tonnes per year, to treat different ores, meaning it could process
third-party material, thereby maintaining a foothold in Namibia.

 

“We really do not want to leave Namibia,” she said.

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

Robert Mugabe National Youth Day

21 Feb 2018

 


Mash 

AGM

Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Ave

22 Feb 2018 12PM

 


BAT

finals and analysts briefing

Head Office, 1 Manchester Road, Southerton

22 Feb 2018 10AM

 


ART

AGM

202 Seke Road, Graniteside

27 Feb 2018 14:00

 


Ariston

AGM

Centenary Room, Royal Harare Golf Club

27 Feb 2018 16:00

 


Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road
North, Graniteside

01 Mar 2018 11am

 


Proplastics

final dividend of 0.26c record date

 

02 Mar 2018

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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Invest Wisely!

Bulls n Bears 

 

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