COMPANY NEWS IN BRIEF

Vodafone mulls selling off Vodacom stake

Vodafone Group is exploring options for its African business as investors ramp up pressure on the UK telecom company to boost performance, people familiar with the matter said.

The London-listed firm is working with advisers to study ways to extract more value from its 65% holding in Vodacom Group, the people said, asking not to be identified as the matter is private. The early-stage considerations range from merging the business with other operators or divesting some assets in certain markets, to selling a stake in the company, the people said.

Vodacom has a market value of about $14.4 billion (R259 billion) on the Johannesburg bourse after declining about 17% in the last 12 months. Vodafone is down almost 30% in that time period, valuing it at £26.8 billion (US$32.2 billion).

While Vodafone has always seen the African unit as a core part of the group, the exercise shows that it’s willing to study a wide range of alternatives as it casts around for a way to stem a decline in its shares. Billionaire John Malone’s Liberty Global Plc disclosed a 4.9% stake in Vodafone on Monday, joining other strategic investors French billionaire Xavier Niel and state-backed Emirates Telecommunications Group Co., formerly known as Etisalat and now called e&.-Fin24

Glencore pays out R127 billion

Glencore will return more than US$7 billion (R127 billion) to shareholders in dividends and buybacks after the commodities giant reported another blockbuster profit driven by its coal and trading divisions.

While Glencore and its rivals have been positioning themselves to take advantage of rising demand for metals linked to the energy transition — such as copper for wiring and nickel for batteries — the commodity giant’s profits last year were overwhelmingly driven by mining and trading fossil fuels.

Glencore’s core profit rose 60% to a record US$34.1 billion, of which more than half — US$17.9 billion — came from coal production, the company said in a statement on Wednesday. The commodity trading unit earned US$6.4 billion in core profit, also its highest ever.

Glencore has been one of the biggest beneficiaries from the chaos in commodity markets caused by Russia’s invasion of Ukraine.

The company’s decision to keep mining coal while rivals exited has paid off massively, as the dirtiest fuel surged to a record last year, while its sprawling trading business has benefited from sharp price swings and dislocations in energy markets across the world.-Fin24

Pan African's interim profits slide

Pan African Resources, a mid-tier gold producer, reported a plunge in interim profits as production slid and costs climbed. And while the full-year production outlook remains steady, the miner said it is subject to the consistency of Eskom's power supply.

For the six months ended in December, the group's profit after tax of $28.9 million (R520.3 million) plunged 37% from US$46.1 million in the comparative period in 2021.

Following record production in the previous reporting period, interim gold production dropped 15% to 92 300 ounces, down from 108 085 ounces - primarily due to the performance of Barberton Mines' underground operations. Meanwhile, all-in sustaining costs of $1 291 (R23 245) per ounce climbed 10% from $1 173 per ounce.

The average gold price received was 4.4% lower at US$1725 an ounce.

The Barberton underground operations have experienced a number of headwinds in maintaining and increasing gold production, which include above-inflationary increases in labour and energy costs; increasing depth and underground travel times at Fairview Mine, reducing available face time; and the depletion of a high-grade block at the Consort Mine.

To mitigate these challenges, a detailed review of the operations was completed, and following intensive engagement with stakeholders, including the representative employee unions, an agreement was reached to restructure the underground operations. Consort Mine is to be converted to a contractor mining operation, and both Fairview and Sheba Mines will implement a continuous operating cycle, while still allowing for ongoing maintenance and other support activities.-Fin24

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