| Tuesday 07 September 2021 Good morning Voornaam,
Yesterday was an unhappy day for resource counters, with PGM players taking a particularly hard knock. PGM bulls are scratching their heads as they looked at screens showing drops of over 4% in leading companies.
There has been a significant drop in prices of PGM metals, but some have pointed out that the current levels aren't different to the average prices achieved in the previous reporting period. There are many investors who have been scarred by platinum counters, so one can expect volatility and low valuation multiples in this space.
As is sadly so often the norm in African politics, power in Guinea appears to have changed hands through a military coup. It's rather ironic that AngloGold divested from South Africa as an unattractive region, yet the company's mine in Guinea contributed 10% of group production in the s ix months to June 2021. AngloGold confirmed over SENS that the mine is 850km northeast of the country's capital and is operating normally, but a coup isn't exactly encouraging.
As a final note on mining, African Rainbow Minerals has declared a final dividend of R20 per share. That's an 8.4% yield on yesterday's closing price.
Trellidor joined the dividend party with a final dividend of 11 cents per share, a more typical yield of 3.2% on yesterday's closing price. Potential investors should note that liquidity in Trellidor's share is a major challenge.
Bell Equipment has confirmed that earnings have recovered to pre-pandemic levels. HEPS will be between 170 and 180 cents for the six months to June 2021, which is between 3.7% and 9.8% higher than the interim 2019 performance. There's still no clarity on the controlling family's intention to take the company private and Bell is trading on an annualised P/E of just over 3x.
Under the Company Notices and Announcements section in this mail, you'll find my thoughts on the latest results from RCL, a reformed chicken business that is reaping the benefits of a strategy to diversify into other products like sugar and baking goods. The latest results really are impressive.
At the other end of the investment spectrum, I've written an update on Steinhoff and Ascendis. The reference to "digging in the dustbin" tells you everything you need to know about the kind of day they both had yesterday.
AVI's product range may be sweet and delicious, but earnings have only inched up in the 2021 financial year. It's a resilient result but certainly not a spectacular one. There's an article to help you learn more.
For those interested in carbon trading, we've included an article on the latest news from the European U nion and China on the pricing of emissions. Putting a price on carbon is a fascinating overlap of financial concepts and environmental imperatives.
There's also an update from Currency Assist on the latest forex rates.
Finally, if you missed it yesterday, the latest episode of Magic Markets features a discussion on the commodity economy - a handy portfolio weapon for investors worried about inflation. Listen to it here.
That's it for today. Have an excellent Tuesday!
The Finance Ghost
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Local and Offshore Market News |
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