Capital-raise puts novel underpin on Northam Platinum’s funded R6.6bn BEE deal
Platinum mining company Northam on Wednesday concluded a fully funded ten-year R6.6-billion black economic-empowerment (BEE) equity transaction underpinned by a R4.6-billion capital raising, which has the potential to position the JSE-listed company as a fully integrated, fully empowered South African mine-to-market platinum group metals (PGMs) producer at a time of asset disposal in the previously tightly held platinum mining environment.
The innovative transaction, on which new CEO Paul Dunne has been working intensively since taking over the reins of the company from the retiring Glyn Lewis in March, locks in higher-than-required historically disadvantaged South African (HDSA) ownership for at least a decade and provides Northam with a net cash injection of R4-billion to fund its growth plans.
(Wed, 22 Oct 2014 10:11:00 +0200)
Eskom to receive R20bn injection, but no other SoC bailouts
Finance Minister Nhlanhla Nene confirmed a further direct allocation to power utility Eskom of at least R20-billion. But he also stressed on Wednesday that the injection would have no impact on the Budget deficit as the capital would be raised through the sale of “non-strategic State assets”. Nene gave no specifics on the assets in question, saying only that they “could include property, direct and indirect shareholdings in listed firms, non-strategic government shareholdings in State-owned companies (SoCs) and surplus cash balances in public entities”.
(Wed, 22 Oct 2014 14:05:00 +0200)
Spending ceiling lowered, taxes to be raised as Nene holds fiscal consolidation line
Fiscal consolidation could no longer be postponed, Finance Minister Nhlanhla Nene told lawmakers on Wednesday, while also announcing a R25-billion lowering of the expenditure ceiling and flagging plans to raise an additional R27-billion through higher taxes in the coming two years. Delivering a sobering maiden Medium-Term Budget Policy Statement (MTBPS) address in Cape Town, the Minister said the country had reached a “turning point”, whereby revenue was insufficient to cover expenditure, while debt levels had reached the limit of what was sustainable. Over the next three years, government’s gross debt stock was projected to increase by R590-billion, bringing total debt to R2.4-trillion.
(Wed, 22 Oct 2014 14:02:00 +0200)
BHP reports record production, says no major projects under way
Mining giant BHP Billiton has reported record production across four commodities and eight operations during the quarter ended September, including from its Pilbara iron-ore operations.
Iron-ore production for the three months under review increased by 1% on the previous quarter, and 17% on the previous corresponding quarter, to a record 62-million tonnes, as the ramp-up of the Jimblebar mine continued ahead of schedule.
(Wed, 22 Oct 2014 05:55:00 +0200)
Cape Lambert to fund Timis Mining’s Marampa buy
Resource investment company Cape Lambert on Wednesday announced that it had entered into a term sheet with Timis Mining to provide that company with about $20-million for its planned acquisition of the Marampa iron-ore project, in Sierra Leone, from the administrators of London Mining.
Under the terms of the agreement, Cape Lambert would provide an $8-million bridging finance facility, and some $12-million to purchase a royalty.
(Wed, 22 Oct 2014 06:43:00 +0200)
Shaw River signs offtake deal with Noble
ASX-listed Shaw River Manganese on Wednesday announced that it had secured an offtake agreement with Noble Resources International for up to 30 000 t of manganese from its flagship Otjozondu project, in Namibia.
The sales contract was structured for fixed pricing, at different product specifications, enabling Shaw River to sell various manganese ores with more certainty over revenue, and within a flexible time frame.
(Wed, 22 Oct 2014 09:04:00 +0200)
Waterberg JV PFS on track
The prefeasibility study (PFS) for TSX- and NYSE-listed Platinum Group Metals’ (PTM’s) Waterberg Joint Venture (JV) project on the northern limb of the Bushveld Complex is on track, with completion targeted for the second quarter of next year, PTM said on Wednesday. The company noted that an updated resource estimate for the project was scheduled to be completed by specialist professional services consultancy Coffey Mining prior to the completion of the updated mine and project designs for the ongoing PFS.
(Wed, 22 Oct 2014 16:24:00 +0200)
Nordgold Q3 production up 11% y/y, company on track to achieve upper end of full-year guidance
LSE-listed Nordgold on Wednesday reported a 11% year-on-year, and 2% quarter-on-quarter increase in production for the three months ended September 30, to 270 600 gold equivalent ounces. The company also noted that, for the nine months ended September 30, production had reached 746 900 oz, a 13% increase when compared to the same period in 2013.
(Wed, 22 Oct 2014 16:30:00 +0200)
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