The past week was dominated by the war raging in Europe and I spoke with Wandile Sihlobo of the Agricultural Business Chamber of SA about the impact on food prices, as Russia and Ukraine are both significant producers. Wheat, maize and sunflower oil will be the hardest hit, but even our citrus exporters have a problem, as they export about 6% of supply to Russia and need to find a new market. (Read the transcript)
Platinum group metals (PGMs) have been one of the main gainers as Russia is a large supplier of palladium. I spoke with Bruce Williamson from Integral Asset Management. He pointed out that if we include recycling then Russia is the source of about a quarter of palladium supply. And while there are not yet sanctions against its commodities, markets are skittish about counterparty risk when buying Russian commodities. (Transcript)
I discussed Sibanye-Stillwater* and FirstRand results with Gary Booysen of Rand Swiss. He likes and has both companies in his local portfolios, seeing them as the best in their respective sectors. FirstRand is back above pre-pandemic levels, while Sibanye-Stillwater paid record dividends.
I spoke with Alex Stanic, portfolio manager within the JP Morgan Asset Management International Equity Group, about its investment strategy of value creative growth. The aim is to manage risk and deliver returns of around 13% a year, doubling investors’ money every five years.
Also this week:
Sea Harvest CEO Felix Ratheb discusses its full-year results (Transcript)
Peter Little of Anchor Capital discusses the market’s responses to the Russia-Ukraine war (Transcript)
*The writer holds Sibanye-Stillwater shares.