Company news in brief
Company news in brief

Company news in brief

Jo-Mare Duddy Booysen
AngloGold sees strong cash position

AngloGold Ashanti said on Friday costs and production are on track to meet its guidance, and expects the 2020 free cash flow generation to be the strongest in almost a decade, enabling the gold miner to double the dividend payout ratio.

The miner said selling its South African mines to Harmony Gold would drive its Scope 2 greenhouse gas emissions down by 45%. AngloGold Ashanti will set emissions targets in the second half of 2021, it said.

The miner, which has operations in Tanzania, Ghana, Democratic Republic of Congo, Guinea, Mali, Argentina, Australia, and Colombia, said its search for a new CEO is "in progress" with the board considering both internal and external candidates.

AngloGold Ashanti said the phase 2 of redevelopment of its Obuasi mine in Ghana is 82% complete and it plans to make investment decisions on its two Colombian projects in 2021.

The miner also said it has strengthened the balance sheet by reducing borrowings, increasing liquidity and extending the average maturity of its debt. – Nampa/Reuters

Tesla shares jump to record high

Shares of Tesla Inc rose to a record high on Friday in a frantic day of trading as investors geared up for the electric carmaker's much anticipated entrance into the benchmark S&P 500 index.

The company headed by billionaire Elon Musk today will become the most valuable ever admitted to Wall Street's main benchmark, accounting for over 1% of the index. The shares have surged some 70% since mid-November, when its debut in the S&P 500 was announced, and have soared 700% so far in 2020.

Tesla's shares ended up 6% at a record US$695.

Tesla's addition to the S&P 500 is forcing index-tracking funds to buy about $85 billion worth of the shares by the end of Friday's session so that their portfolios reflect the index, according to S&P Dow Jones Indices. Those funds simultaneously have to sell other S&P 500 constituents' shares worth the same amount.

Turnover in Tesla shares topped US$120 billion shortly after 2100 GMT, with volume exceeding 200 million as the stock traded after hours, according to Refinitiv data. Trading volume for Tesla has averaged 53 million shares over the past 10 sessions. – Nampa/Reuters

Nike quarterly revenue beats estimates

Nike Inc beat estimates for quarterly revenue on Friday, helped by a jump in online demand for sports shoes and apparel as more people engaged in fitness-related activities during the Covid-19 pandemic.

Shares of the world's largest sportswear maker were up 4.5% in trading after the bell. They have gained about 37% this year.

Nike said revenue rose to US$11.24 billion in the second quarter ended Nov. 30 from US$10.33 billion a year earlier, while analysts on average had expected US$10.56 billion, according to IBES data from Refinitiv.

The company reported a profit of US$1.25 billion, or 78 cents per share, up from US$1.12 billion, or 70 cents per share, a year earlier. – Nampa/Reuters

Cyberpunk 2077 pulled from PlayStation Store

Sony is pulling the much-hyped Cyberpunk 2077 from PlayStation stores around the world, the firm said Friday, after a flood of complaints and ridicule over bugs, compatibility issues and even health risks.

The dystopian-themed title is reportedly one of the most expensive video games ever made, and its December 10 release was hotly anticipated - but the rollout has been far from smooth.

Sony's gaming division SIE said it "strives to ensure a high level of customer satisfaction, therefore we will begin to offer a full refund for all gamers who have purchased Cyberpunk 2077 via PlayStation Store."

The game's Warsaw-based maker CD Projekt RED issued an apology and vowed to fix the bugs with patches in January and February, while also offering refunds to gamers not willing to wait.

The company has lost billions in stock value, sinking to 31 billion zloty (US$8.6 billion) by Friday, down from 42.7 billion zloty last week, prior to the game's launch. – Nampa/AFP

Strong online sales boost FedEx profits

FedEx reported Thursday that quarterly profits more than doubled as it cashed in on surging e-commerce deliveries, with revenue growth more than offsetting higher costs during the coronavirus pandemic.

The shipping giant, a player in deliveries of Covid-19 vaccines, scored second-quarter profits of US$1.2 billion, up from US$560 million in the year-ago period as revenues jumped by nearly one-fifth to US$20.6 billion.

FedEx pointed to volume growth in both domestic and international service. Mitigating the bounce was higher costs on employee safety and the need for additional personnel during the pandemic.

Chief financial officer Michael Lenz attributed the performance to investments that allowed it to meet demand. The company did not provide a specific forecast for the rest of fiscal 2021 or next year.

"While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities," Lenz said. – Nampa/AFP

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