Major International Business Headlines Brief::: 08 February 2023

Wed Feb 8 09:25:46 CAT 2023

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com         <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 08 February 2023 

 <https://wwww.nedbank.co.zw/> 

ü  Zoom cuts 15% of staff in post-pandemic 'reset'

ü  Microsoft unveils new Bing with ChatGPT powers

ü  UK economy likely to avoid recession - think tank

ü  US-China trade hits record high despite rising tensions

ü  Cost of living: Big banks' bosses defend savings rates and branch closures

ü  Nigeria Could Become Africa's Biggest Oil Refinery By 2025 - Report

ü  South Africa: Energy Minister Outlines Plans to End Power Cuts -  

ü  Kenyan Startups Raise a Record Sh71.85bn in 2022

ü  Nigeria: Outlook for Nigeria's Upstream Oil, Gas Sector Positive for 2023 - Report

ü  Serial Dealmaker Froneman Lured by Zambian Copper Mine Assets

ü  Sibanye-Stillwater studying start-up in nuclear reactors as signals return to dealmaking

ü  Zambia’s mining minister expects Mopani Copper Mines deal by end-March

ü  Wanblad says Anglo must “stick to the plan” after year of “unprecedented” weather events

ü  B2Gold CEO says firm is close to next deal after targeting single asset companies

ü  Mantashe to stay as mines minister? Ramaphosa banter suggests solid support

 <mailto:info at bulls.co.zw> 

Zoom cuts 15% of staff in post-pandemic 'reset'

Zoom, the video conferencing company that became a household name when remote work spiked during the Covid pandemic, is laying off 1,300 staff.

The move affects about 15% of its workforce, which has seen user growth slow and profits fall recently.

Boss Eric Yuan said he and other leaders would also take big pay cuts, as the company focuses on making sure it can weather the slowdown.

It is joining a large number of other tech firms making similar adjustments.

"As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom," Mr Yuan wrote in a message to employees shared by the company.

"But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard - yet important - look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom's long-term vision."

Amazon and Salesforce are among the other heavyweights to have announced big job cuts, saying the boom in business they saw during the pandemic was ending.

More than 300 tech firms have laid off nearly 100,000 workers globally since the start of the year, according to Layoffs.fyi, which tracks such announcements.

Zoom especially has faced challenges as rival tech firms upgrade their video offerings.

The firm's revenue more than tripled in 2020 and grew about 55% in 2021. But last year, the gains slowed to the single digits and its profits dropped sharply.

Shares in the company have plunged more than 80% from their 2020 peak.

Mr Yuan said the cuts would affect every part of the organisation and were aimed at reducing duplicative roles and refocusing on the firm's top priorities.

Zoom said it expected the restructuring to cost $50m to $68m, with affected staff to receive 16 weeks of salary and health care coverage, as well as other support.

Mr Yuan said he would also reduce his salary in the coming fiscal year by 98% and forego his bonus. Other members of the executive leadership team will see their base salaries fall by 20% and lose bonuses, he added.

"We worked tirelessly.. but we also made mistakes. We didn't take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities," Mr Yuan said.

"As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today - and I want to show accountability not just in words but in my own actions."

Shares in the firm jumped more than 8% following the announcement.-BBC

Microsoft unveils new Bing with ChatGPT powers

Microsoft has announced a new version of its search engine Bing, which incorporates the latest in artificial intelligence.

The overhaul deploys OpenAI's ChatGPT technology, which has taken the world by storm since its launch last year.

The move is by far the biggest threat Google has seen to its dominance in web search - and marks the beginning of an AI arms race between the companies.

"The race starts today," Microsoft boss Satya Nadella said.

Developed by Microsoft-backed OpenAI, ChatGPT uses deep learning techniques to generate human-like responses to search requests.

Mr Nadella said he thought it was poised to change the nature of online search - and interactions with many other software.

"This technology will reshape pretty much every software category that we know," he said.

Bing will now respond to search queries with more detailed answers - not just links to websites.

Users are also able to chat with the bot to better tailor their queries. More contextual answers will be added on the right hand side of a search page.

The new Bing search engine will be live right away - with a limited number of searches for each person.

The announcement comes a day after Google revealed details of its own new chatbot, Bard.

Both companies are scrambling to get their products to market.

In a note to investors after the announcement, analyst Dan Ives of Wedbush Securities said he thought that Microsoft's investment would "massively boost" the firm's ability to compete.

"This is just the first step on the AI front ... as [the] AI arms race takes place among Big Tech," he said.

Microsoft, an early backer of San Francisco-based OpenAI, has been investing billions in artificial intelligence.

Last month it announced it was extending its collaboration with OpenAI in a "multiyear, multibillion dollar investment".

It has since announced a new premium tier of Microsoft Teams - its messaging software - that will feature ChatGPT, including a feature that automatically generates notes and highlights of meetings.

Microsoft said Bing will use OpenAI technology that is even more advanced than the ChatGPT technology unveiled last year. The powers will also be incorporated into its Edge web browser.

Analysts say ChatGPT - which has been used by students to pass exams and tests - has the potential to be incredibly disruptive to multiple professions, including journalism.

But it has been criticised for confidently giving answers that are wrong. It also works on datasets that are generally scraped from 2021 or earlier - so many of its answers can feel outdated.-BBC

UK economy likely to avoid recession - think tank

The UK is likely to avoid a recession this year, an economic think tank has predicted.

The National Institute of Economic and Social Research (NIESR) said the economy will grow marginally despite high prices hitting household budgets.

But it warned while the UK may not fall into recession, it will feel like one for at least seven million households.

The forecast comes ahead of figures showing how well the UK economy is doing, which are due on Friday.

An economic recession is defined as when the economy shrinks for two consecutive three-month periods. If a country's economy shrinks, it means it's performing badly and typically, companies make less money and cut jobs leaving the government with less tax revenue to spend on public services.

What is a recession and how could it affect me?

NIESR has predicted the economy will grow by 0.2% this year, with growth rising to 1% in 2024. The forecast paints a more optimistic picture than others, such as the Bank of England's.

However NIESR still warned the rising cost of living would mean for millions, particular in the North East of England and in parts of Scotland, Wales and Northern Ireland, it would feel like a recession.

Inflation, which is the rate prices rise at, has been hitting the budgets of UK households, with energy and food costs high.

NIESR said one in four UK households - some seven million families - would be unable to meet in full their planned energy and food bills from their post-tax income in the 2023-24 financial year, up from around one in five in 2022-23.

Middle-income households would face a hit to their disposable income ranging from 7% to 13%, reaching up to £4,000 in this financial year, its researchers added.

It said as many people examine their finances, fewer will be able to retire early, meaning more workers between the ages of 50-64 will return to work.

The government has been considering plans to coax retired middle-aged workers back into jobs to boost the economy, with 300,000 fewer people in employment than before the pandemic.

A Treasury spokesperson, in response to the research by the NIESR, said the UK was not immune to global challenges of high inflation and slow growth.

The government reiterated it's a plan to halve inflation, which is at 10.5%, this year, but many economists expect this to happen anyway largely due to a slowdown in energy price rises and as post-pandemic supply problems ease.

NIESR's forecast comes after several others, which have not gone as far as suggesting the UK economy will avoid recession.

The Bank of England said last week the UK is set to enter recession this year but one which will be shorter and less severe than previously thought. The Bank has raised interest rates to 4% - their highest level in 14 years - in a bid to curb inflation.

The Bank's governor Andrew Bailey explained that the slump it predicts is now expected to last just over a year rather than almost two, due to energy bills falling and price rises slowing down.

UK recession expected to be shorter and less severe

IMF: UK to be only major economy to shrink in 2023

Meanwhile, the International Monetary Fund (IMF), which works to stabilise economic growth, has predicted a more gloomy picture for the UK economy. It has forecast it to shrink and perform worse than other advanced economies, including Russia.

Economic forecasters are not always right when it comes to predicting the future. For example, the IMF's forecasts have picked up fewer than 10% of recessions a year ahead of time, according to an analysis it conducted of recessions around the world between 1992 and 2014.-BBC

US-China trade hits record high despite rising tensions

Trade between the US and China hit a record high last year even as their diplomatic relations reach new lows.

Imports and exports between the two countries totalled $690.6bn (£572.6bn) in 2022, official figures show.

Tensions rose between Washington and Beijing in recent days after a Chinese balloon travelled across the US.

The world's two biggest economies have been locked in a bitter trade war since 2018 when then-President Donald Trump started imposing tariffs on China.

The new figures show that US imports from China increased to $536.8bn last year as American shoppers spent more on Chinese-made goods, including toys and mobile phones. In the same period, US exports to China increased to $153.8bn.

While some of the increase in trade between the two countries is a result of the rising cost of living, the figures also point to how reliant the US and China still are on each other even after years of trade conflict between them.

"I think it's an important indication of the difficulties of actually decoupling," Deborah Elms, the founder of Asian Trade Centre, told the BBC.

"Even if governments, firms and consumers wanted to separate, the economics make it difficult to deliver products in a decoupled world at a price that firms and consumers are willing to pay," she added.

High-altitude spying marks new low for US-China ties

Biden moves to halt US exports to Huawei - reports

In 2018, the Trump administration started to ramp up trade measures against Beijing.

After decades of rising Chinese imports, Mr Trump began imposing tariffs on a total of more than $300bn worth of Chinese goods. China hit back by placing import levies on about $100bn of American goods.

Most of those measures remain in place more than two years after Joe Biden became president.

This month, US Secretary of State Antony Blinken had been due to visit China in what was seen as a thawing of relations between the two country's.

America's top diplomat was set to visit Beijing from 5 to 6 February to hold talks on a wide range of issues, including security, Taiwan and Covid-19.

However, the trip was abruptly postponed after the discovery of a suspected Chinese surveillance balloon that drifted across America.

Chinese officials have repeatedly said that the "airship is for civilian use and entered the US due to force majeure - it was completely an accident".

In his State of the Union address on Tuesday, US President Joe Biden made no direct mention of the Chinese balloon but said that his administration will always protect its sovereignty.

"I am committed to work with China where it can advance American interests and benefit the world. But make no mistake: as we made clear last week, if China's threatens our sovereignty, we will act to protect our country. And we did," he said.-BBC

Cost of living: Big banks' bosses defend savings rates and branch closures

Savers have access to a host of competitive savings deals, bank bosses have argued, as they faced criticism over poor rates of interest.

The chief executives of four of the biggest banks in the UK were hauled before MPs who questioned the generosity of their savings rates.

The UK chief executives of Lloyds, NatWest, HSBC and Barclays said deals had improved as savers shopped around.

They also said branch closures were a response to consumers' changing habits.

Savers' choice

The Bank of England's benchmark interest rate was at historically low levels for a decade until December 2021, since when it has risen consistently. It is now at 4%, having risen from 0.1%.

MPs on the Treasury Committee said their constituents complained that mortgage rates rose more rapidly than the returns offered to savers when the base rate went up.

Described as the highest-paid panel which had sat before the committee for some time - collectively earning more than £10m a year - the quartet of bank bosses argued that this debate incorrectly centred on the interest rate offered on easy-access savings accounts, which typically have a return of less than 1%.

They argued that regular saver deals offered market-leading rates of interest, and that instant-access products were often a "gateway" to higher interest deals.

Matt Hammerstein, from Barclays, Charlie Nunn, from Lloyds Banking Group, Ian Stuart, from HSBC, and Dame Alison Rose, from NatWest, argued that they were also encouraging customers to begin a savings habit.

"Only one in four people have £100 of savings in their account," said Dame Alison. "There is a real concern about financial confidence in young people. We have targeted savings for young people's accounts as well."

What the rise in interest rates means for you

Millions have less than £100 saved as prices soar

Savings levels built considerably during the pandemic, as consumers' ability to spend was curtailed. The soaring cost of living has since dampened some of this saving.

However, the bosses - whose banks control 60% of the market - argued that many people were actively searching for better deals as interest rates rose. Mr Nunn said price comparison websites had become highly developed in this area.

While some were shopping around, millions were still low on confidence in making good financial decisions, and so needed good guidance.

Graphic showing interest rates rising to 4%

Many households are also facing the prospect of having to pay more on their mortgage repayments in the coming year.

Mr Stuart pointed to a new fixed-rate deal, launched by HSBC on the same day as the hearing, which was the first five-year deal with an interest rate of less than 4% since early October.

He argued that this showed that mortgage rates were falling, despite the Bank rate still rising, and was far lower than the rates that had been predicted after the mini-budget.

Yet, he said that the "headwinds are ahead of us, not behind us" when analysing the number of people who were falling behind on mortgage repayments.

HSBC to close 114 UK branches as more bank online

The bank chief executives were also pressed on branch closures, with all accepting they had shut a host of premises in recent years.

Mr Stuart said that this was a response to the changing ways people were managing their money.

"Customer behaviours started to change in 1982 with the advent of the cash machine, and it has been on a journey from that point and it has sped up," he said.

He said that 98% of transactions in December were digital, displaying how the needs of customers from a branch had changed in recent decades.

The bosses gave examples of cash pods, bank hubs, mobile banking vans, and smart ATMs as alternatives, with specialists often using different channels to talk to customers in their own homes.-BBC

Nigeria Could Become Africa's Biggest Oil Refinery By 2025 - Report

Nigeria is the market to watch this year not only because of the opening of the Dangote refinery but because of its upcoming change of administration, an expert said.

Nigeria has the potential to become Africa's biggest oil-refining hub by 2025, a report has said.

Hawilti, a Pan-African investment research firm, disclosed this in its recent report titled "Refineries watch Q4 2022" released on Monday.

The report said Africa is poised to witness significant transformations in its fuel supply security in 2023, adding that West Africa houses the largest refining capacity on the sub-continent, but only 23 per cent of it is currently operational.

For Nigeria, the report said that the prospect of a new private refinery becoming operational could help redefine the nation's local refining capacity.

"Both the opening of the Dangote refinery and the rehabilitation of state-owned refineries have the potential to make Nigeria Africa's biggest refining hub by 2025," it said.

The report added that the market is also driven by private oil producers and asset developers who are building modular refineries next to oilfields in the Niger Delta.

Historically, it said crude theft throughout 2022 has provided additional incentives for field owners to develop refining facilities and monetise their oil themselves instead of injecting it into third-party export pipelines.

"2023 could see movement on several of them, including expansion plans at existing facilities," it said.

According to the report, the long-awaited Dangote Refinery, a 650,000 bpd single-train crude refining facility that has been a decade in the making, is finally expected to start production this year. It added that its commissioning is already sending hopes that it could finally start rebalancing Nigeria's trade deficit.

"With all state-run refineries undergoing rehabilitation, Nigeria imports all its petroleum products, and heavily subsidizes gasoline. It needs the Dangote Refinery to decrease imports, generate currency savings, fight inflation, and ultimately improve its macroeconomic outlook.

"Africa's biggest oil producer has also embarked on the rehabilitation of its three state-owned refineries in Port Harcourt, Warri, and Kaduna totalling some 445,000 bpd of refining capacity.

"Tecnimont continues to make progress on bringing Port Harcourt's complex back to 90 per cent of its capacity while Daewoo E&C was selected in 2022 to execute two "quick fix" projects at both Warri and Kaduna," it said.

Regional Outlook

Like many other African countries, the report said Ghana is currently faced with a worsening fiscal crisis as global oil prices put pressure on its finances.

It said Ghana is a net importer of petroleum products, just like most African markets, despite producing crude oil and housing refineries.

"With the prices of petroleum products reaching historic highs this year, the country is faced with an increasing import bill that puts pressure on its ability to meet budget requirements," the report said.

It added that Ghana will also play its role in shaping the region's outlook this year as it expects to finally re-open its 45,000 bpd Tema Oil Refinery.

"A Chinese developer is also commissioning a 40,000 bpd refinery this year, which will be the first phase of a much larger complex expected to reach 100,000 bpd by 2025 at a cost of $3bn," it said.

Meanwhile, it said Southern Africa is also expected to see supply constraints easing this year.

"This will especially be the case in South Africa, where Astron Energy is in the process of re-opening the 100,000 bpd CALTEX Refinery after it was shut down in July 2020 following a deadly explosion," the report noted.

However, most South African refineries are closed (Engen, Sapref, Mossel Bay) and the country's refining outlook remains heavily uncertain, it said, adding that by 2025, Angola could have overtaken South Africa as the region's biggest refiner based on existing and upcoming projects.

"Angola intends to leverage its future refining capacity to position itself as a regional supply hub, with several pipelines in discussions with its neighbours, including Zambia. Further north, a strategic investment decision is expected in Uganda where the 60,000 bpd Albert Graben Refinery needs to reach FID if it is to be commissioned on time to process domestic oil in 2025," it said.

Speaking on the report, Mickael Vogel, director & head of research at Hawilti, said "Nigeria is the market to watch this year not only because of the opening of the Dangote refinery but because of its upcoming change of administration and the strategic decision that must be made on ending fuel subsidies.

"A politically courageous move to lift gasoline subsidies would have a profound impact on Nigeria's economy and fuel supplies across the whole sub-region."

Sustainability

However, the report said Africa must also put its downstream industry on the path of sustainability and ensure that existing and new facilities can meet increasingly stringent clean fuels requirements.

According to the report, this cannot be done without costly upgrades, many of which are deemed uneconomical by refiners.

It explained that the ability of African refineries to restructure their debt and raise fresh capital will dictate their future and their role in the African energy transition.

"Modular technology solutions are on the rise in Africa, and especially in Nigeria because they offer producers the opportunity to set up a refinery in approximately 13+ months from inception to start of refining.

Buhari inaugurates Nigeria's 'largest' modular refinery

"Modular refineries also have a quick return on investment of approximately 2 years, enabling developers and their investors the ability to recoup their invested capital in a short period of time.

"In Nigeria, modular refineries also mitigate the risk of pipeline sabotage as these refineries become an evacuation system that is completely independent of pipelines," Souheil Abboud, managing director of modular process equipment manufacturer VFuels LLC, said.

-Premium Times.

South Africa: Energy Minister Outlines Plans to End Power Cuts  

Mineral Resources and Energy Minister Gwede Mantashe has said that there are plans to resolve continuous blackouts within a year, reports eNCA. Speaking at the Investing in African Mining Indaba in Cape Town, Mantashe said that the plans include maintaining power stations, buying electricity from neighbouring countries, and hiring more skilled personnel at power utility Eskom. According to Mantashe, the country lost an estimated R1 billion a day last year due to rolling blackouts (called load shedding). Mantashe said load shedding had led to a decline in mineral production across all commodities. He added: "As a Department of Mineral Resources and Energy, we've put four points that we think need attention if we're going to overcome  load shedding  within the next 12 months. The first one is improving electricity availability factor through a focus funded plan maintenance at existing power stations. Procurement of emergency and short-term power from existing facilities in other private power plants and purchase additional electricity in neighbouring countries...and lastly to improve the skills capacity at Eskom."

Kruger National Park Sees A Drop in Rhino Poaching  

The fight against rhino poaching is yielding results as incidents decreased in the Kruger National Park by 40% in 2022 compared to the previous year, reports TimesLive. Minister of Forestry, Fisheries and the Environment, Barbara Creecy, has said that "the steady decline in rhino poaching in national parks is related to the war that has been waged by our anti-poaching personnel and a comprehensive dehorning programme. However, poaching has shifted to KwaZulu-Natal, which saw 244 incidents last year. Most of these, 228, were in provincial parks and 16 were in private game reserves. Private owners lost 86 rhinos across the country, but the Hluhluwe iMfolozi Park in KZN has been hard hit," Creecy said. At least 132 people were arrested in 2022. Twenty-six rhino horn traffickers and 13 other people were arrested for money laundering and bribing rangers. These arrests were a result of a collaboration between the department, police and NGOs and included syndicate members focusing on KZN, adds TimesLive.

SABC to Launch an Indigenous Languages News Channel

The South African Broadcasting Corporation (SABC) has announced that it will launch a 24-hour news channel in local languages, reports SABCNews. SABC's Group Executive for News and Current Affairs, Moshoeshoe Monare, said that the channel will cater to the more than ten million South Africans who depend on SABC channels for news in their own language every day. To improve their news provision for all South Africans, the channel will cater to indigenous languages, including Afrikaans, isiZulu and IsiXhosa, which are widely spoken in South Africa, and will be available on Digital Terrestrial Television (DTT), the broadcaster's new streaming platform,  SABC Plus  as well as current free to air channels.

Kenyan Startups Raise a Record Sh71.85bn in 2022

Nairobi — Kenyan startups raised a record Sh71.85 billion last year, boosted by recording funding in .

Latest data from Disrupt Africa, an online news platform for startups, shows that funding increased from Sh36.49 billion in 2021, to Sh71.85 billion in 2022, representing a 96.9 percent jump.

Fintech led with the number of deals at 26 (28.6 percent) with retail-tech 16 (17.6 percent).

"However, the total amount of funding Kenyan startups secure yearly is snowballing. The US$574,809,000 raised this year is up 96.9 per cent on the 2021 total of US$291,983,000," The African Tech Startups Funding Report shows.

"That in turn was up 52.6 per cent on the year before (US$191,381,000); and 2020's total was 28.3 per cent higher than the preceding year," the report added.

In Africa, Kenya was ranked third behind Nigeria (122 billion) and Egypt (Sh101.5 billion).

"Ninety-one (91) startups were backed in Kenya (14.4 percent of Africa's total), and combined they secured US$574,809,000 - 17.2 per cent of the continent's funding," it added.

"The number of funded startups was up only marginally, by 4.6 per cent, in 2021 - as elsewhere on the continent, the growth in the number of startups receiving investment has slowed in 2022."

Of 91 rounds, seed was the most prevalent stage of funding at 20 rounds (47.6 percent) followed by pre-seed 26.2 per cent (11 rounds).

"There were three rounds reported in each of the pre-Series A, Series A, and Series B stages; and two Series C rounds. As with everywhere on the continent, Kenya remains an early-stage ecosystem, although the solid number of later stage rounds account for a higher percentage of the country's rounds than elsewhere."

The number of startups that raised funds with at least one female co-founder declined to 24 ventures (26.4 percent) from 28 ventures (32.2 percent) in the period.

"Local founders are listed at 73 (80.2%) of the Kenyan startups, up from 63 (72.4%) in 2021. Kenya has a higher than average prevalence of international founders, at 27 startups (29.7%), although this is substantially down from 42.5 per cent in 2021."

-Capital FM.

Nigeria: Outlook for Nigeria's Upstream Oil, Gas Sector Positive for 2023 - Report

Abuja — Nigeria's oil and gas industry experienced historic crises throughout 2022 as the sector struggled with severe crude thefts and pipeline vandalism constraining output, but will do relatively well this year, a new report has said.

Resumption of operations at onshore export terminals at the end of 2022 coupled with fresh offshore drilling activity have turned the outlook positive for 2023, according to a new report by investment research firm Hawilti.

The research agency released its Nigeria Upstream Oil & Gas Report for 2023 , forecasting a recovery of onshore volumes and incremental growth coming from shallow water projects.

The company estimated that Nigeria's onshore production stood at only some 400,000 bpd last year, against more than 725,000 bpd in 2020. Its initial analysis forecast a strong but not full recovery of onshore production in 2023, although it noted an uptick in drilling activity from a wide range of onshore operators.

It also noted the potential of field owners who have recently secured Petroleum Prospecting Licences (PPLs) under the country's last Marginal Fields Bidding Round to raise output.

These new entrants, it said, will seek to make the best of their new three-year licenses to start producing as soon as possible, providing they can secure the funding and technical expertise to redevelop their assets.

The report pointed to increased investment from onshore operators into midstream and downstream infrastructure to minimise their exposure to third-party export pipelines.

"The market is witnessing a strong appetite for additional storage capacity and refining infrastructure from both large and marginal fields operators," Hawilti said.

The report noted real growth potential from Nigeria's shallow water segment, where it highlighted several brownfield and greenfield projects by operators such as General Hydrocarbons, Sunlink Energies, Oriental Energy Resources, West Africa E&P, Yinka Folawiyo Petroleum, and AMNI International that could drive output in the short and medium-term.

"Nigeria's shallow water segment remains attractive because of its existing and reliable export infrastructure and its widely de-risked geology," said the Director and Head of Research at Hawilti, Mickael Vogel.

"However, its attractiveness can also be a double-edge sword because a lot of discovered fields are sought after by stakeholders, generating strong but lengthy Mergers and Acquisitions (M&A) activity that ultimately delays projects' development," he added.

-This Day.

Zambia’s mining minister expects Mopani Copper Mines deal by end-March

Mopani Copper Mines will secure a new investor by the end of this quarter, Zambia’s mines minister Paul Kabuswe said on Monday, calling the complex owned by state mining investment firm ZCCM-IH a “critical asset” for the country’s copperbelt.

There are 10 suitors for the mine and smelter complex, including South Africa-listed mining firm Sibanye-Stillwater and “one or two” Chinese mining firms, Kabuswe said in an interview on the sidelines of the Mining Indaba in Cape Town.

Sibanye CEO Neal Froneman in October told Reuters the company was interested in Mopani.

“There is interest from all over, including the Arab world,” Kabuswe said, declining to name any of the other interested parties.

Asked about the competition for African metals and minerals pitting the United States and Europe against China, Kabuswe said Zambia did not differentiate between investors provided they brought value into the country.

“We are dealing with the Arab world, we are dealing with the US, we are dealing with China, we are not biased towards anyone,” Kabuswe said. “We are friendly to everybody.”

Zambia is also aiming for an agreement with Konkola Copper Mines owner Vedanta Resources by the end of the first quarter, Kabuswe said. Zambia last year decided to seek an out-of-court settlement with Vedanta after a lengthy dispute over KCM.

Increasing Zambia’s copper production is necessary to reduce the country’s debt burden, Kabuswe said, as growth in the mining industry will trigger investment in infrastructure and other sectors.

Zambia has set a goal of increasing copper production to 3 million tonnes a year by 2032. The country is struggling to cut debt after becoming the continent’s first covid-era default in 2020.

Sibanye-Stillwater studying start-up in nuclear reactors as signals return to dealmaking

SIBANYE-Stillwater CEO Neal Froneman said the precious metals producer could return to its deal-doing ways this year.

Speaking on the sidelines of the Mining Indaba, Froneman told Miningmx the company was interested in more acquisitions in lithium as well as gold and copper.

It was also studying the supply of uranium it mined to small nuclear reactors that could help solve South Africa’s power deficit. Eskom, the state-owned power utility, needs R1.2 trillion in new investment over the next 10 years, according to its outgoing CEO, André de Ruyter.

“Last year was a focus on organic growth and that’s because we were concerned about froth in the market and a recessionary environment, so we were careful with our balance sheet,” said Froneman. “But looking forward, I think you could see some movement in 2023 (on acquisitions).”

In 2022, Sibanye-Stillwater approved the €588m development of the Keliber lithium deposit in Finland after increasing its shareholding in the project to 85%. Then in January this year, Sibanye-Stillwater’s partner in the US-based Rhyolite lithium-boron project – ioneer – received a $700m loan from the country’s department of energy.

A lithium hydroxide smelter approved for Keliber could be quadrupled in size to treat third party resources, said Froneman. “We are also investing in exploration in Finland and that can be expanded.”

Sibanye-Stillwater started acquiring battery minerals projects because it wanted to diversify from its South African base, and owing to the upside associated with the large supply deficits of minerals such as lithium, nickel and copper. But Froneman also said he remained interested in adding to the firm’s gold assets.

The group expected to produce about a million ounces of gold annually, including output from its 51%-owned DRDGold, for the next 10 years. But the mines are deep, labour intensive, and riskier than shallower gold mining.

“You need to be bigger and more relevant,” he said of gold production. “The bigger you are, the greater the premium in your share price.” His comments came on the day Newmont bid for Australian gold producer, Newcrest Mining.

“It’s ballsy and it’s exactly the way to go,” said Froneman of Newmont’s proposed transaction. “It is exactly what we’ve been saying.”

He remained committed to the concept he raised in 2021 of a three-way merger with AngloGold Ashanti and Gold Fields, which have remained headquartered in Johannesburg along with Sibanye-Stillwater, but Froneman said there had been no active attempts to give fresh momentum to the transaction.

However, the company’s gold mines also come with significant reserves of uranium. Froneman was quoted recently as saying the company could extend jobs at the Beatrix mine in South Africa’s Free State by converted it back to a uranium mine when a shaft and infrastructure were first developed, then known as Beisa.

While uranium mining was not a priority this year, Sibanye-Stillwater was considering mining the mineral provided it could be supplied to a generating business.

“We have a uranium strategy that involves Beisa and the Cooke tailings dam and will form the basis of a vehicle to get us back into the uranium business,” he said. “But at the same time, producing uranium is not a competitive edge.

“Becoming involved in energy solutions that involve small modular reactors is, and that’s part of our pivot,” Froneman said. “Uranium is a green metal that is readily available and uranium is part of our strategy.”

This new business could be kickstarted through BioniCCube, a R1.7bn venture capital fund the group established in March last year by investing €25m in a French electric vehicle battery manufacturer.

“Our BioniCCube is the vehicle that allows us from a structural point of view to invest in those types of startups, and that large scale grid storage is the focus for levering off the metals we produce. That’s our competitive edge. These metals are in short supply.”

Serial Dealmaker Froneman Lured by Zambian Copper Mine Assets

Sibanye Stillwater Ltd. boss Neal Froneman is interested in acquiring Mopani Copper Mines Plc in Zambia as he pushes to secure metals key to the green-energy transition.

The asset would give Johannesburg-based Sibanye a springboard into Africa’s second-largest copper producer, after the company pulled out of a Brazilian deal a year ago. Sibanye is among the investors involved in a sales process organized by Rothschild & Co. South Africa on behalf of state-owned ZCCM Investments Holdings.

Mantashe to stay as mines minister? Ramaphosa banter suggests solid support

IN the week where president Cyril Ramphosa is expected to reshuffle his cabinet, his mines minister made sure he was aware of his gravitas in cabinet and the ruling ANC.

Introducing Ramaphosa as the keynote speaker on the second day of the Mining Indaba investment conference in Cape Town Mantashe said: “We are proud of the fact that he (Ramaphosa) is president of the ANC and president of the country”.

Perhaps Mantashe was reminding Ramaphosa, and the audience, of his powers of persuasion and influence in the ruling party. It was Mantashe who led the charge in convincing Ramaphosa to not tender his resignation as country president in November last year.

According to news reports, Ramaphosa’s resignation speech was already written on Thursday, 1 December, a day after the publication of the potentially damning Phala Phala report. A panel, headed by former Chief Justice Sandile Ngcobo, found there might be enough prima facie evidence for Parliament to impeach Ramaphosa in light of a burglary at his game farm Phala Phala in 2020.

However, Ramaphosa’s confidants, most notably Mantashe, swayed him to take the findings of the panel on legal review and not tender his resignation.

Ramaphosa was subsequently re-elected as party president at the ANC elective conference in mid-December. At the same conference, Mantashe was again elected as the party’s national chairman.

ANC insiders told journalists there was unhappiness about Mantashe’s bullying tactics when he had reportedly forced the party’s NEC members to toe the line and throw in their weight behind Ramaphosa.

It’s fair to say Ramaphosa owes his re-election largely to Mantashe’s lobbying behind the scenes. Analysts warned this puts Ramaphosa in a difficult position and that he will probably not move Mantashe from the minerals and energy portfolio when he changes his cabinet.

Industry players have called for Mantashe’s removal, accusing him as an impediment to securing additional power supply in the country through various stalling tactics. Mantashe has also frequently contradicted Ramaphosa on the country’s transition to clean energy, consistently emphasising his preference for coal.

However, if Ramaphosa’s keynote address today at the Mining Indaba is anything to go by, Mantashe is going nowhere and will remain in his portfolio.

Responding to Mantashe’s sugary introduction, the president said: “He (Mantashe) was being boastful, but I too can be boastful. Mr Mantashe is minister of minerals and energy resources, but he is also the national chairperson of the ANC. I have a national chairperson who guides the people of the ANC and sometimes misguide them,” Ramaphosa bantered, most likely referring to Mantashe’s role in his re-election.

In his speech, Ramaphosa admitted things move slowly at government level and that government often wants to go it alone, but that time has taught that things cannot get done without the involvement of the private sector.

However, he also asked the private sector to “stop standing on the rooftops” and complain. “We’re not saying, don’t be critical. But stop moaning. Get into the ring with us. Let’s find a solution.”

B2Gold CEO says firm is close to next deal after targeting single asset companies

TORONTO-listed B2Gold is looking for new takeover targets and expects to do a deal fairly soon, said the firm’s CEO Clive Johnson

“There’s lot of opportunities for us to do friendly takeovers as we have done all along in our history. Let’s watch this space for the next three months or so,” he said in an interview with Miningmx on the sidelines of the Mining Indaba conference.

Johnson formed B2Gold in 2007 and has grown aggressively through deal-making. The company currently produces just over one million ounces of gold annually of which some 570,000 oz comes from the Fekola mine in Mali which B2Gold acquired when it took over Papillon Resources in 2014. Its other operations include the Otjikoto mine in Namibia and the Masbate mine in the Philippines.

Said Johnson: “Because we are actually producing gold and making good money, we tend to get a better rating in the market than development companies which are trying to build or finance a project.

“We are always looking and we are looking for some more geographical diversification. We are a Canadian-based  company and we would love to do something in North America.

“We have so far not found the right opportunity at a reasonable price. Part of the problem is that other companies have been prepared to overpay for projects but we just won’t do that”.

He added: “We have shown time and again the ability to go to someone who cannot raise money on reasonable terms to build their mine or has never built a mine before. Their shares are often not performing well as a result.

“That provides the opportunity to pay them a premium. Sometimes people in the M&A space get obsessed over paying premiums. I don’t care about premiums, I care about value”.

Johnson said he was “excited” about “a few potential opportunities” such as single asset companies that investors are unconvinced will be able to finance their projects on “reasonable terms”, especially in an inflationary environment, he said.

But could B2Gold itself become a takeover target in the current market environment where M&A activity seems to be picking up dramatically judging by recent deals like Gold Fields play for Yamana which was trumped by Agnico Eagle and Newmont’s current $16.9bn offer for Australian major Newcrest?

“It’s up to shareholders if someone makes an offer,” Johnson replied. “It’s possible for any public company to get taken over but in our case I think it would be unlikely.

“I don’t tend to worry about B2Gold being a takeover candidate. I think we have a very loyal shareholder base which is paying attention to what we do,” he said.

Johnson thinks another owner would struggle to replicate his success while accepting the shares of a larger predator would take away the potential growth in B2Gold.

“I think we have a lot of very happy shareholders who believe in our ability to keep increasing the value of the company not just because gold is going to go higher but because of the projects we have,” he said.

Wanblad says Anglo must “stick to the plan” after year of “unprecedented” weather events

ANGLO American CEO Duncan Wanblad said he was hoping for an improved operational performance in 2023 in which the group could “stick to the plan” better than in 2022 when “unprecedented weather” overwhelmed it.

“We have some severe weather impacts that were beyond the capability of any of the planning systems,” he said in an interview on Monday. “In Anglo the planning is quite good, but pretty much across the group we saw mega impacts in every operating region. That is stuff that happens and it happened at a scale that is quite unprecedented,” he said.

“We were unable to stick to the plan and we need to do some work on our own front to impove that.”

While Wanblad identified Brazil, Chile, and Peru as regions where assets could perform better, it was in South Africa where there were a number of planning setbacks extending beyond the publicised problems of its failing infrastructure.

Anglo pushed back two major projects: the expansion of Mogalakwena by its 80% owned listed subsidiary, Anglo American Platinum, and a project at Kumba Iron Ore aimed at improving yield called the ultra high density separation plant (UHDMS).

“A lot of stuff happens associated with coming out of Covid,” said Wanblad. “No one realised how severe that was in terms of where we were and where we planned to be in terms of an execution point of view.”

Wanblad said he was optimistic there would be less volatility affecting world markets. “It looks like China is going to stimulate [its economy]. The big issue is whether Covid [last year’s lockdown regime] has had a material affect on their ability to come out and whether that slows it down,” he said.

“Russia hasn’t gone away and interest rates haven’t come down as yet, but it will be a little less volatile in 2023,” he said.

Backlogs on supply chains had improved but continued to pose problems. “Where you would plan a large maintenance event with a two week horizon it now becomes closer to a month.”

“Copper, nickel and platinum group metals are still likely to be fairly robust in the short run. The shortness in the market will be evident in the next few weeks. There are still deep growth aspirations and you will feel the tightness as there’s not a lot of metals coming on stream,” he said.

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Robert Mugabe National Youth Day

February 21

Cafca 

AGM

virtual 

February 23  - (12pm)

Ariston 

AGM

Centenary Room, Royal Harare Golf Club

February 24 - 3:30pm

Good Friday

April 7

Easter Saturday

April 8

Easter Sunday

April 9

Easter Monday

April 10

Independence Day

April 18

Workers’ Day

May 1

Africa Day

May 25

Companies under Cautionary

CBZH

TSL

Fidelity

Willdale

FMHL

ZBFH

GetBucks

Zimre

Seed Co

 <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.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell: +263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65563 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 29047 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 29258 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image010.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230208/44fa5f24/attachment-0005.jpg>