STILL REEL­ING

Finweek English Edition - - INVESTMENT -

The In­victa trad­ing up­date was a shocker, with HEPS ex­pected to be 20%-30% lower as a re­sult of the se­ri­ous strikes the coun­try saw in the first six months of this year. It is not only a case of In­victa’s clients los­ing rev­enue dur­ing the strikes but also cur­tail­ing of capex spend (wit­ness Lon­min) clos­ing down and/or scal­ing back op­er­a­tions. Our min­ing and man­u­fac­tur­ing sec­tors have been un­der pres­sure for years and con­di­tions are un­likely to im­prove any­time soon, and In­victa is go­ing to find it tough for a while. This is why they’ve stated a move to off­shore as­sets, but that is go­ing to take some time. I think we can ex­pect a tough five or so years while they find and bed down in­ter­na­tional ac­qui­si­tions.

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