Maimane, The Bear; Piet Viljoen; Taxi mafia; Hezbollah

This episode of the BizNews Briefing provides an update on the two big news stories of the moment; the political maneuvering in Tshwane and the assassinations of Hezbollah leadership by Israel. We hear from Mmusi Maimane, Neil de Beer and Piet Viljoen about the consequences of the collapse of the Tshwane coalition; and from the FT on what’s next for Hezbollah. Plus Johann Ferreira of InterCape, whose opposition to South Africa’s taxi mafia has made headlines around the world; and Viljoen’s insights into York Timber and Renergen, who reported today.

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Business News Headlines – September 30

• Renergen, the Free State-based gas company that positions itself as one of the world’s largest helium producers, reports that its production chain is now fully operational. Quarterly results released today through the end of June show that the company’s liquefied natural gas production remained stable at 1,249 tonnes, despite system outages due to the commissioning of the helium system. Two high helium exploration wells were completed, with geological data confirming a new gas-bearing fault for future drilling. The share price was stable following the results release – at the current R10.84c it is down 36% in the last twelve months.

• The 4,500 retail investors in Sabie-based York Timber have seen its share price rise 40% in the past year, but their wait for a dividend continues as the company passes payment again in the year to the end of June. But there is room for optimism after earnings per share recovered from a loss of 77 cents to a profit of 29 cents; but a sharp increase in working capital saw net debt increase by R70 million to R406 million. The auditors approved an 11% increase in the value of the forests, raising the net asset value to 608 cents per share – more than doubling the current share price of 225 cents.

• Cement manufacturer PPC, which is in a turnaround process, today reported that group revenues for the four months ended July fell 2% on 5% lower volumes. Zimbabwean sales fell 4.5%, but the subsidiary reiterated its US$4 million dividend, although this was announced in September and therefore outside the reporting period. The company says that despite improving local sentiment and falling interest rates, large-scale infrastructure and retail developments in South Africa remain scarce. PPC’s outlook for its South African and Botswana group remains subdued as the company focuses on turning around its cement business to boost profitability. Shares of PPC are down 2% after the update, but are up 26% over the past year.

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