The International Copper Study Group (ICSG) in its recently released report on copper for 2018, estimated a global refined red metal deficit of 390,000 tons in 2018. The ICSG report, reveals a rise in copper productivity by circa 2.3% las year. “The increase in world mine production of about 460,000 metric tons copper was principally due to constrained output in 2017 (mainly in Chile, Indonesia and the DRC) and to an unusually low rate of overall supply disruptions in 2018,” the report stated. “Besides the restart of Katanga’s 300,000 tons per year copper mine in the DRC no major new copper mine started…
Author: The Editor
Johannesburg Stock Exchange listed Gemfields incurred a FY18 net loss of USD$60.4 million, compared with USD$45.1 million profit a year earlier, this was contained in a trading statement published on Friday 21 March. According to Gemfields group, the loss was attributed to impairment charges and fair value downward adjustments that eroded the miners EBITDA. Excluding the impairment charges and fair value losses, as well as dividends received and costs related to a settlement with law firm Leigh Day, the group’s profit for the year was USD$18 million, the trading statement said. Gemfields on 25 March reported a headline loss a share of…
Zambian Market conditions remain sluggish, Ethiopian operation on hold Johannesburg Stock Exchange (JSE) listed Gemfields mulls listing on the London Stock Exchange (LSE) this year. This will be a score board listing with zero capital raise, to address the gap of lack of broker research and share trading liquidity. Gemfields share price valuation was 40% lower for 2018 which was driven by operational hurdles in Zambia, Mozambique and Ethiopia, chairperson Brian Gilbertson said on 25 March. Despite the fall in its share price, the year was capped by Gemfields having achieved cumulative revenue from 41 auctions of Zambian emeralds and Mozambican rubies since June 2009, of over a billion dollars. Zambia…
Kabwe a mining town in Africa’s copper producer Zambia will receive an investment boost as dual listed (on London and Johannesburg Stock Exchange) Jubilee Metals Limited (JLP) bought a Zinc refinery from Glencore corporation for USD$22.5million. Jubilee will seek to process material from its Kabwe zinc project. The purchase of the Kabwe mine was through a rights issue of USD$14.5million and debt finance of USD$8million. Jubilee has already secured Zambian Ministerial approval for the transaction. The Minister also waived previous conditions placed on the Kabwe mining licences. “I am delighted that, after months of testwork, flowsheet design and refinery acquisition negotiations, we can announce the full implementation…
The Anglo dream team reunite as Christopher Sheppard once again reunited with Srinivasan Venkatakrishnan at Vedanta Vedanta Resources Ltd just head hunted Anglo Ashanti Chief Operating Officer – COO Christopher Sheppard to head its Zambian subsidiary Konkola Copper Mines (KCM). Sheppard brings to the table 35 years of experience in mining and quarry having worked at Anglo American, Anglo American Platinum, Lonmin and Murray & Roberts Cementation. Sheppard comes at a time when Zambia’s largest mine is grappling with operational challenges ranging from shaft outages and a new tax regime. Sheppard takes over from Naidoo Deshnee who was in…
Credit default spreads on dollar bonds in Africa’s copper producer Zambia widened 114bps on news of energy generation production haircuts at the Kariba. This follows lower than usual rainfall pattern that has impacted dam levels to 39% currently versus 54% same time a year ago. Yields on bonds maturing 2024 bearishly rose to 15.75% reversing gains earlier recorded in the year. Energy generation is linked to copper productivity especially that the mines consume 57% of the power grid. However, authorities had given assurance that Zambia’s energy generation capacity is still adequate from other generation sources which despite low rainfall…
A Bank of America Merrill Lynch, JPMorgan Chase & Co., Morgan Stanley, Standard Bank Group Ltd. and Standard Chartered Plc arranged dollar bond issue that attarcted USD$21 billion in book orders. Africa’s second largest cocoa producer, Ghana (B: S&P) won a global vote of investor confidence on 20 March after making a 6th appearance in the international capital markets. The West African giant sold USD$3billion in Eurobonds in a seven times (7x) deeply oversubscribed sale tranched in 7- year (7.875%), 12 year(8.125%) and 31 year (8.5%) tenors. Book orders totaled USD$21 billion symbolizing an ecstatic rise in confidence pulse in…
Africa Development Bank – AfDB advisors to the board are currently on a study tour to appraise the bank financed infrastructure projects and programs. This was established in a note shared by sources close to the matter. AfDB team led by former Angolan Finance Minister now Senior Advisor to African Development Bank Mr. Joao Luis Ngambi were treated to a cocktail by Zambia’s MinFin Minister Margaret Mwanakatwe in Lusaka on 19 March. I am confident that your recommendations from the study tour will assist in enhancing the banks portfolio in Zambia,” Mwanakatwe said in her speech. The AfDB has since…
Africa’s second largest copper producer Zambia is in the labyrinth of thoughts on how it can use its foreign policy to attain economic diplomacy. Think tank Economics Association of Zambia (EAZ) is spear heading the first ever regional summit dubbed the Future of Economic Diplomacy – Supporting inclusive growth and sustainable development in Africa. Association President Dr. Lubinda Haabazoka took some time to echo the needs for economic collaboration between Zambian and Israeli businesses during an interview at The Hebrew University of Jerusalem in the faculty of Business Administration on 16 March. Dr. Haabazoka pointed to Zambia’s prioritization of the…
Zambia’s energy distribution and transmission company Copperbelt Energy Corporation Plc (ISIN0000000137) had a good 2018 with earnings 27.2% stronger than previous year at K584 million from K459 million a year ago. The Lusaka Stock exchange listed entity’s revenues rose 19% to K4,405 million from K3,697 million propelled by increased energy demand following healthy 2017/2018 rainfall which had dams almost to the brim. CEC benefited from the mines recovery from the energy poverty era of 2015/2016 that saw a depressed mining activity. Mining productivity increases correlates with appetite for energy usage on the grid. What else fueled earnings boost? Other drivers…