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Simon’s weekly wrap: Promising potential in infrastructure, property, ETFs and mining

This week MoneywebNOW looked at PPC and capital raising, Balwin’s results, Orion Minerals’ plans, the state of SA’s ETF industry, Anchor Capital’s asset allocation report and much more.
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The president’s speech on the economic recovery plan talks a lot about infrastructure spend, as governments around the world use this to boost the post-pandemic recovery. Locally on the JSE we have a number of stocks that could benefit from this spend and I spoke with PPC on Monday about its results. It still has a $150 million debt risk from the DRC that needs to be resolved and then a large rights issue towards the end of the first quarter 2021. But any infrastructure plan will need a lot of cement and PPC could benefit if it can resolve its debt issues.

With the local prime interest rate at generational lows, home sales in the sub-R1.5 million space are booming and Balwin Properties has a number of developments set to benefit from this demand. Steve Brooks was on the show talking us through its interim results, how he sees the demand playing out and its ability to manage supply to meet increased demand.

The first exchange-traded fund (ETF) was listed in South Africa 20 years ago next month. Mike Brown, now of etfSA, was running Satrix back then and issued the Satrix 40 ETF as the JSE’s first ETF. I spoke to him about the growth over the last two decades and more recent developments such as the range of locally-listed offshore ETFs and the potential for further growth and innovation in the industry.

Junior mining is always a risky venture with regulation, financing and mineral prices all needing to be considered as any of these could trip up the best plans. Orion Minerals has its bankable feasibility study for its copper-zinc Prieska mine in the Northern Cape. On Friday CEO Errol Smart said it’s now securing the funding and once this is in place it’ll be some 30 to 33 months and it’ll be up and running. Base metals such as zinc and copper are not considered as exciting as the precious metals, but both have great fundamentals as copper is used in electric vehicle and power production and the majority of zinc globally is used for construction and infrastructure.

Read: Mining exploration finally gets some love from regulators

Also this week:

Wayne McCurrie of FNB Wealth and Investments talks OPEC+ production cuts and the latest on Standard Bank payment holidays. Stephan Engelbrecht of Anchor Capital on their Q4 asset allocation report and Rael Levitt, CEO of Inospace Properties, talks dark kitchens and stores changing the face of delivery.


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