Companies in the news: Altron, Redefine, Sappi, Northam, Sibanye, Anglogold Ashanti, Jubilee, Murray & Roberts, Truworths, Pan Af, Firstrand, Grindrod, Goldfields

Companies in the news!

**Altron (AEL) Sees Massive Profit Growth, Maintains Strong Dividend**

Altron Limited (AEL) has posted impressive growth in profitability for the first half of FY25. Headline earnings per share (HEPS) increased by 101% to 79 cents, while earnings per share (EPS) surged by 400% to 75 cents compared to 1H FY24. Operating profit rose to R477 million, reflecting a 101% growth, while EBITDA climbed 49% to R905 million. Revenue decreased slightly by 2% to R4.9 billion. The company also declared a 60% higher dividend of 40 cents per share.

This strong performance was driven by Altron’s platform businesses, particularly Netstar and Altron FinTech, which showed significant growth. Additionally, ADS returned to profitability, bolstering overall results. Altron invested R330 million in growth capital expenditure, with a focus on enhancing its digital transformation offerings. Management is optimistic about continued strong performance, particularly in Altron Digital Business and Altron Nexus.

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**Redefine Properties Reports Solid Growth Amid Property Cycle Recovery**

Redefine Properties Limited (RDF) has delivered solid growth in its audited results for FY24, with HEPS increasing by 57.3% to 33.06 cents and EPS rising by 174.5% to 58.79 cents. Revenue grew by 7.5% to R10.656 billion, although distributable income per share and dividends per share both decreased by 2.9%, to 50.02 cents and 42.52 cents, respectively. The company’s South African REIT NAV per share grew by 2.9% to 788.28 cents.

Looking ahead, Redefine is optimistic about a property cycle recovery in FY25, driven by improved market confidence, lower interest rates, and better operational performance. The company has forecasted distributable income per share for FY25 to be in the range of 50-53 cents, maintaining a dividend payout ratio of 80-90%. Despite the challenges, Redefine is focused on creating value and “living the upside.”

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**Sappi Faces Profit Decline, But Pulp Segment Drives Recovery**

Sappi Limited (SAP) has reported a decline in its full-year results for FY24, with HEPS dropping by 98% to just 1 US cent and EPS falling by 87% to 6 US cents. Revenue also declined by 6% to $5.458 billion, while EBITDA decreased by 6% to $684 million. The company declared a dividend of 14 US cents per share.

Despite these setbacks, Sappi’s pulp segment performed well, contributing to record profitability in South Africa. The demand for packaging and specialty papers recovered, although the graphic papers market continued its structural decline. Looking to FY25, Sappi is optimistic about the dissolving pulp market and expects a strong outlook for packaging and specialty papers.

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**Northam Platinum Reports Profit Decline Amid PGM Price Volatility**

Northam Platinum Holdings (NPH) has posted a significant decline in its full-year results for FY24. HEPS dropped by 81.6% to 445.0 cents, while EPS fell by 29.6% to 461.0 cents. Operating profit decreased by 68.8% to R4.824 billion, with revenue also down 22.2% to R30.766 billion. EBITDA dropped by 62% to R6.270 billion, and the dividend was cut by 71.7% to 170 cents per share.

The company has seen renewed interest in the platinum group metals (PGM) sector, driven by demand for hybrid vehicles and the growing hydrogen economy. Northam has increased its revolving credit facility to R11.335 billion to support financial stability and is progressing with a solar power plant project to reduce costs and carbon emissions. The company remains well-positioned for the long-term growth of platinum demand, particularly in the automotive and hydrogen sectors. The consensus analyst target price for Northam is R149.95, indicating a 7% upside, with earnings expected to grow at an 81% CAGR over the next three years.

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Companies in the news!

**Sibanye-Stillwater Delivers Solid Performance, Despite PGM Pricing Challenges**

Sibanye-Stillwater (SSW) reported a solid financial performance for 3Q FY24, with EBITDA increasing by 9% to R3.3 billion (US$184 million) year-on-year. The company’s South African PGM operations saw a 5% increase in production to 473,938 ounces (14,045 kg 4E), while its US PGM operations experienced a 5% decrease. The Century zinc retreatment operation produced 27,000 tonnes of zinc, a 9% increase from the previous year. Gold production from South African operations also rose to 179,465 ounces.

Sibanye-Stillwater’s strong performance was driven by its gold and zinc operations, although US PGM operations faced pressure from lower prices. Management remains positive about the outlook, citing restructuring efforts and support from US authorities for critical minerals supply chains.

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**AngloGold Ashanti Sees Strong Performance in Q3 FY24**

AngloGold Ashanti (ANG) reported impressive results for Q3 FY24, with HEPS improving to 56 US cents (compared to a headline loss of 46 US cents in Q3 2023) and EPS rising to 53 US cents (from a basic loss of 53 US cents in Q3 2023). Revenue surged by 32% to $1.466 billion, while gross profit increased by 89% to $541 million. EBITDA soared by 339% to $746 million.

Gold production reached 657,000 ounces, with total cash costs per ounce rising by 8% to $1,172/oz. AngloGold also reported a 17-fold increase in free cash flow to $347 million, highlighting the strong operational performance and favorable gold prices. The company is well-positioned for continued growth in the remainder of FY24.

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**Jubilee Metals Continues to Scale Up Production in FY25**

Jubilee Metals (JBL) has set ambitious production targets for FY25, with copper production expected to reach between 5,850 and 7,500 tonnes, chrome production forecasted at 1.65 million tonnes, and PGM production targeted at 36,000 ounces. The company successfully commissioned and ramped up operations at its Roan Concentrator and Munkoyo Open-Pit mine, despite some challenges with power interruptions.

Jubilee’s South African chrome and PGM operations delivered strong results, and the company has completed the construction of two new chrome processing modules at Thutse. With these expansions, Jubilee anticipates significant growth in copper production in the coming years.

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**Murray & Roberts Reports Strong Improvement, But Faces Operational Challenges**

Murray & Roberts (MUR) has posted a dramatic improvement in FY24, with HEPS rising by 99% to R0.38, following a significant reduction in its net debt and attributable loss. The company’s liquidity constraints in South Africa, particularly at OptiPower, impacted results, and prospects for FY25 remain challenging due to the descoping of the Venetia contract. However, Murray & Roberts is focusing on rightsizing its costs, deleveraging, and seeking refinancing opportunities.

The company’s order book has grown despite these challenges, reflecting its operational quality and customer trust. New mining contracts, including potential work in Zambia’s copper sector, offer opportunities for future growth. Management is committed to restoring profitability and resolving liquidity issues.

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**Truworths Reports Positive Sales Growth Amid Challenging Retail Conditions**

Truworths International (TRU) has reported a 2.8% increase in retail sales for the 18-week period ended November 3, 2024, reaching R7.2 billion. The company’s African segment, Truworths Africa, saw a modest 0.2% growth, while the Office UK division showed a strong performance, up 9.7% in local currency (8.1% in rand terms).

While trading conditions in South Africa remain difficult, the company is optimistic that the country’s economic outlook, including potential GDP growth and lower inflation, will support consumer spending. Truworths UK continues to face subdued trading, though it remains resilient.

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**Pan African Resources Acquires Tennant Consolidated Mining Group for $54.2 Million**

Pan African Resources (PAN) has completed a 92% acquisition of Tennant Consolidated Mining Group (TCMG) for US$54.2 million. The transaction is fully funded, with a development capital of US$35.7 million earmarked for project growth. The acquisition is expected to yield an annual production of 50,000 ounces of gold at an all-in sustaining cost (AISC) of approximately US$1,300 per ounce. Commissioning of the project is slated for June 2025.

In addition to the acquisition, Pan African has suspended its exploration activities in Sudan’s Red Sea state due to ongoing political instability in the region.

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**FirstRand’s MotoNovo Resumes Operations After UK Legal Compliance**

FirstRand Limited (FSR) has announced that its UK-based motor finance subsidiary, MotoNovo, has resumed new business origination following a pause to comply with a recent UK Court of Appeal ruling on motor commission cases. MotoNovo has updated its systems to fully disclose commission amounts and obtain informed customer consent. The company will also assess dealer compliance as part of its revised operational procedures.

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**Grindrod Temporarily Suspends Port Operations in Mozambique**

Grindrod (GND) has temporarily suspended operations at the Maputo and Matola ports in Mozambique due to disruptions caused by the Lebombo Border closure, rail issues, and safety concerns for employees. The company is closely monitoring the situation and will assess the feasibility of resuming operations as conditions evolve.

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**Gold Fields and AngloGold Ashanti Await Government Approval for Ghana JV**

Gold Fields (GFI) and AngloGold Ashanti (ANG) are still awaiting government approval for their proposed joint venture involving the Tarkwa and Iduapriem gold mines in Ghana. The deal, which is pending regulatory review, aims to combine the two companies’ operations in the country, enhancing efficiency and creating significant value.