Hits&Misses
Oceana sees rich pickings, but Ster-Kinekor’s silver screens fades
OCEANA’S strategy to prioritise volumes over margins in pursuit market share is paying off, with the food producer expecting half-year earnings to almost double, bolstered by improved Lucky Star sales over the Easter period. Headline earnings per share for the six months to end-March are forecast to be 89%99% higher at 565c595c, while earnings per share are seen rising as much as 104%. Oceana also attributed the growth to Cape Townbased
Daybrook Fisheries reporting higher fishmeal and fish oil sales volumes.
JUBILEE Metals, which as operations in SA and Zambia, produced a record 408,710 tonnes of chrome in its third quarter, despite the period traditionally falling in the January holiday period. Record monthly production of 145,102 tonnes of chrome concentrates was achieved in March. In SA, its platinum group metals production slid to 8,339oz from 10,131oz in the second quarter, mainly as a result of using more lower-grade feed material.
PSG Financial Services reported a 15% increase in assets under management (AuM) to R406.9bn in the year to end-February, bolstered by its cash-generating wealth management business. The Cape Town-based company attracted more clients in the period, leading to net client inflows of R23bn. PSG Wealth, which contributes more than 60% of group earnings, reported the strongest growth in AuM — an increase of 16% to R355.1bn.
STER-KINEKOR plans to retrench almost a quarter of its staff and close as many as nine cinemas in Gauteng, KwaZulu-Natal and the Western Cape as it battles declining audiences. The company said the Hollywood actors and writers strike led to fewer film releases and affected the industry globally. Locally, persistent and intense load-shedding also affected its performance, as did cash-strapped consumers cutting back on discretionary spending. Online video streaming options have also dented cinema attendance.
JSE and Australian-listed Orion Metals requested a halt in trading of its shares ahead of “a material announcement” in relation to exploration results at its Okiep Copper Project. The trading halt was requested until April 22, “or such earlier time as Orion makes an announcement to update the market in relation to the exploration results”. The company said on Wednesday it has made further progress in its acquisition of the Okiep Copper Project, which was first announced in 2021, including the signing of agreements.
THE IMF has maintained its growth forecasts for South Africa and the global economy, saying the risk of a hard landing worldwide has faded though medium-term prospects are the weakest in decades. It warned commodity prices could slide further, with slowing growth in China and Europe weighing on base metals. The IMF in January slashed its 2024 and
2025 growth forecasts for South Africa, citing the effects of rail and port constraints.