Net reserves rise as mining output falls

SOUTH Africa’s net gold and forex reserves were higher at $44.8billion (R479-billion) in June from $44.5-billion in May, according to Reserve Bank data. However, gross reserves fell to $48.6-billion from $49.2-billion. ANGLO American’s intention to sell its 50% stake in Lafarge Tarmac to Lafarge would be “credit positive for both issuers”, Moody’s Investors Service said. Anglo will sell its share for at least £885-million (R16.2-billion). BARCLAYS Africa Group said it expected first-half earnings to rise as much as 11% above the restated 655.7c a share it posted a year ago. It will post results for the six months to June on July 30. HOPES of Gauteng motorists rose with premier David Makhura’s announcement that an advisory panel had been appointed to assess the socioeconomic effects of the e-tolling system. A group led by Globeleq, a developer of power projects in Africa and the Americas, has completed the largest wind farm in the sub-Saharan region. The 138MW Jeffreys Bay wind farm has started operating, it said. SOUTH African mining production decreased by 6.5% year on year in May from an increase of 0.2% in April, Stats SA data showed. Platinum group metals recorded their largest decline on record, with output falling 48.5%. THE SA Chamber of Commerce and Industry’s business confidence index edged up slightly to 89.7 last month from 88.9 in May but was still below the 90 mark that separates negative sentiment from positive. MANUFACTURING output contracted by 3.7% year on year in volume terms in May after shrinking by a revised 1.9% in April, Stats SA said. On a month-on-month basis, factory production was down by 3.3%. MEMBERS of Numsa, SA’s biggest union, turned down a new pay offer from metals employers and are continuing a strike involving more than 220 000 workers in the manufacturing and engineering industries. KUMBA Iron Ore expects headline earnings a share for its first half to June, to be released on July22, to fall by as much as 19% year on year to between R19.50 and R21.50, hurt by a drop in export prices.