Company news in brief
AngloGold Ashanti Q3 production falls
South African miner AngloGold Ashanti said on Monday that it expects its full-year production will be at the low end of its forecast range after output fell in the third quarter from a year ago and costs rose sharply.
The miner said its output in July-September fell 3% from a year earlier, hit by lower ore grades at its Mponeng mine in South Africa, as well as a planned reduction in output at the Cerro Vanguardia mine in Argentina and at its open-pit mining at Kibali in Democratic Republic of Congo.
AngloGold's total costs rose 12% year-on-year in the third quarter. However, its free cash flow also jumped 12% from a year earlier thanks to higher gold prices, and it said its Obuasi project in Ghana would start by year-end.
Gross profit jumped 52% from the same quarter last year to US$281 million, helped by the rise in gold prices, and the higher free cash flow helped bring debt down and take the company's net debt to EBITDA ratio to 1.06, close to its target of 1.
AngloGold Ashanti said its planned asset sale in South Africa, including the Mponeng mine, was progressing at a steady pace, adding the market could expect an update by the end of this year. – Nampa/Reuters
Sasol joint CEOs step down
The joint chief executives of South African petrochemicals group Sasol will step down this month after the company's review of the difficulties that beset its Lake Charles Chemicals project (LCCP) in the United States.
The cost of the Louisiana plant, which converts natural gas into plastics ingredient ethylene, is expected to reach as high as US$12.9 billion - up from an originally envisioned US$8.9 billion - hit by poor weather conditions, delays and oversights including duplicate credits and procurement back-charges.
Bongani Nqwababa and Stephen Cornell will step down at the end of this month to restore trust in Sasol, the company said on Monday, adding that the decision was made after talks with the two executives and that neither were found to have been guilty of misconduct or incompetence.
The company, which twice delayed the release of its annual results because of possible "control weaknesses" at the project, on Monday reported a 5% rise in full-year profit and shelved its final dividend to help to strengthen its balance sheet.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 9% year on year, it said, citing lower chemical product prices and higher operating costs at LCCP. – Nampa/Reuters
Renergen commissions helium plant in SA
Energy company Renergen said on Monday it had commissioned South Africa’s first commercial liquefied natural gas (LNG) and liquid helium plant, the Virginia Gas Project.
The gas project will position South Africa as the only African commercial helium producer and one of eight countries in the world exporting the natural resource alongside the United States and Qatar.
Renergen said it had appointed Chinese equipment company Western Shell Cryogenic Equipment Co. (WSCE) to supply technology and equipment for the plant and EPCM Bonisana to install the pipeline and manage the interface.
The US government’s Overseas Private Investment Corporation (OPIC) approved a US$40 million loan in February this year to provide capital for the project after the company announced it had discovered reserves of up to 11% helium concentrations in the Free State province.
The project is planned to be operational from 2021, with a planned daily production of 645.3 tonnes of LNG and 350 kg of helium. – Nampa/Reuters
Virgin Galactic soars, crashes in NYSE debut
Richard Branson-backed Virgin Galactic Holdings Inc fetched a valuation of around US$2.3 billion on its market debut on Monday, after shares in the first publicly traded space tourism company popped before fizzling out.
The listing for Branson's Virgin Galactic is a crucial step for the Brit as he competes with fellow billionaires Elon Musk and Jeff Bezos in the budding space tourism market.
UBS, an investment bank, has estimated that the business of outer-orbit travel will become a US$3 billion industry by 2030.
The stock rose as much as 9.7% to US$12.93 before paring gains to close at US$11.75 per share.
Virgin Galactic has yet to turn a profit and incurred net losses of US$86.7 million in the first six months of 2019.
Some of Virgin Galactic's ticket holders have been waiting over 14 years for their trip. A 90-minute flight, which allows passengers to experience a few minutes of weightlessness, costs about US$250 000. – Nampa/Reuters
Africa rescues Orange's sales
Strong demand in Africa and the Middle East helped telecoms company Orange offset a fall in its two main European markets, France and Spain, where heavy promotions dented quarterly sales.
France's biggest telecoms firm, which has bet on bundling offers for broadband and mobile and high investments in its networks, has been struggling with cut-price competition since Iliad started to offer low cost mobile services in 2012 in the country.
A new round of promotions in Spain, where competitors include Vodafone and Masmovil, saw Orange's third-quarter sales there fall by 2.5% on a comparable basis. The fall was 0.4% in France.
However, the group benefited from 7.6% growth in Africa and the Middle East, helped by strong growth in subscriber numbers and the success of its money transfer services.
Overall, third-quarter group sales rose 0.8% on a comparable basis to 10.6 billion euro, while core operating profit climbed 0.2% to 3.62 billion euro, in line with expectations. – Nampa/Reuters
South African miner AngloGold Ashanti said on Monday that it expects its full-year production will be at the low end of its forecast range after output fell in the third quarter from a year ago and costs rose sharply.
The miner said its output in July-September fell 3% from a year earlier, hit by lower ore grades at its Mponeng mine in South Africa, as well as a planned reduction in output at the Cerro Vanguardia mine in Argentina and at its open-pit mining at Kibali in Democratic Republic of Congo.
AngloGold's total costs rose 12% year-on-year in the third quarter. However, its free cash flow also jumped 12% from a year earlier thanks to higher gold prices, and it said its Obuasi project in Ghana would start by year-end.
Gross profit jumped 52% from the same quarter last year to US$281 million, helped by the rise in gold prices, and the higher free cash flow helped bring debt down and take the company's net debt to EBITDA ratio to 1.06, close to its target of 1.
AngloGold Ashanti said its planned asset sale in South Africa, including the Mponeng mine, was progressing at a steady pace, adding the market could expect an update by the end of this year. – Nampa/Reuters
Sasol joint CEOs step down
The joint chief executives of South African petrochemicals group Sasol will step down this month after the company's review of the difficulties that beset its Lake Charles Chemicals project (LCCP) in the United States.
The cost of the Louisiana plant, which converts natural gas into plastics ingredient ethylene, is expected to reach as high as US$12.9 billion - up from an originally envisioned US$8.9 billion - hit by poor weather conditions, delays and oversights including duplicate credits and procurement back-charges.
Bongani Nqwababa and Stephen Cornell will step down at the end of this month to restore trust in Sasol, the company said on Monday, adding that the decision was made after talks with the two executives and that neither were found to have been guilty of misconduct or incompetence.
The company, which twice delayed the release of its annual results because of possible "control weaknesses" at the project, on Monday reported a 5% rise in full-year profit and shelved its final dividend to help to strengthen its balance sheet.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 9% year on year, it said, citing lower chemical product prices and higher operating costs at LCCP. – Nampa/Reuters
Renergen commissions helium plant in SA
Energy company Renergen said on Monday it had commissioned South Africa’s first commercial liquefied natural gas (LNG) and liquid helium plant, the Virginia Gas Project.
The gas project will position South Africa as the only African commercial helium producer and one of eight countries in the world exporting the natural resource alongside the United States and Qatar.
Renergen said it had appointed Chinese equipment company Western Shell Cryogenic Equipment Co. (WSCE) to supply technology and equipment for the plant and EPCM Bonisana to install the pipeline and manage the interface.
The US government’s Overseas Private Investment Corporation (OPIC) approved a US$40 million loan in February this year to provide capital for the project after the company announced it had discovered reserves of up to 11% helium concentrations in the Free State province.
The project is planned to be operational from 2021, with a planned daily production of 645.3 tonnes of LNG and 350 kg of helium. – Nampa/Reuters
Virgin Galactic soars, crashes in NYSE debut
Richard Branson-backed Virgin Galactic Holdings Inc fetched a valuation of around US$2.3 billion on its market debut on Monday, after shares in the first publicly traded space tourism company popped before fizzling out.
The listing for Branson's Virgin Galactic is a crucial step for the Brit as he competes with fellow billionaires Elon Musk and Jeff Bezos in the budding space tourism market.
UBS, an investment bank, has estimated that the business of outer-orbit travel will become a US$3 billion industry by 2030.
The stock rose as much as 9.7% to US$12.93 before paring gains to close at US$11.75 per share.
Virgin Galactic has yet to turn a profit and incurred net losses of US$86.7 million in the first six months of 2019.
Some of Virgin Galactic's ticket holders have been waiting over 14 years for their trip. A 90-minute flight, which allows passengers to experience a few minutes of weightlessness, costs about US$250 000. – Nampa/Reuters
Africa rescues Orange's sales
Strong demand in Africa and the Middle East helped telecoms company Orange offset a fall in its two main European markets, France and Spain, where heavy promotions dented quarterly sales.
France's biggest telecoms firm, which has bet on bundling offers for broadband and mobile and high investments in its networks, has been struggling with cut-price competition since Iliad started to offer low cost mobile services in 2012 in the country.
A new round of promotions in Spain, where competitors include Vodafone and Masmovil, saw Orange's third-quarter sales there fall by 2.5% on a comparable basis. The fall was 0.4% in France.
However, the group benefited from 7.6% growth in Africa and the Middle East, helped by strong growth in subscriber numbers and the success of its money transfer services.
Overall, third-quarter group sales rose 0.8% on a comparable basis to 10.6 billion euro, while core operating profit climbed 0.2% to 3.62 billion euro, in line with expectations. – Nampa/Reuters
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