Five things making headlines in South Africa today

Eskom bailout conditions, Equites Property Fund and Vunani results, mining and manufacturing data and more.
Onerous T&Cs for Eskom bailout. Image: Waldo Swiegers, Bloomberg

Here’s what caught our attention on Thursday:

1. Eskom’s tough road to the money

The recently tabled Special Appropriation Bill will see Eskom granted a bailout of R59 billion but will also be subject to very stringent conditions. According to Moneyweb, Eskom must provide updates on its financial and liquidity positions, its restructuring progress and will be required to present monthly management reports among other responsibilities. 

Read: Eskom to get R59bn, but T&Cs are onerous

2. Equites Property Fund results

JES-listed Reit, Equites Property Fund is reporting a 147.9% increase in headline earnings per share to 70.9 cents for the six months ended August 31, 2019. Earnings per share increased 82.1% to 95.4 cents. The company’s gross property revenue amounted to R492.4 million, up 46.7%. The company’s distribution per share increased to 74.43 cents from 68.12 cents in 2018.

Read: Equites Property Fund raises R750m in oversubscribed bookbuild

3. Vunani Securities results

Fund management company, Vunani is reporting a 31% decrease in headline earnings per share and earnings per share to 10.8 cents for the six months ended August 31, 2019. Profit after tax fell 35% to R18.9 million and revenue is down 27% to R170.5 million for the period. The company attributes its results to the decline in the performance of the commodities trading segment, after the business faced disruption at its main community site. The disruption resulted in an 80% decrease in production, Vunani says in a statement. The company’s net asset value per share is up 298.8 cents for the period.

4. Mining and manufacturing data due

Data for South Africa’s mining production for August is due on Thursday. In July, mining output increased by 2.4% year on year, following a downwardly revised 4.1% fall in June, data shows. Output for coal, PGMs, iron ore, building materials and nickel increased while output for gold, chromium ore and copper decreased.

Manufacturing data for August is also due on Thursday. In July, manufacturing output decreased by 1.1% year on year, and from an upwardly revised 3.6% slump in June. Output fell for basic iron and steel, non-ferrous metal products, metal products & machinery, electrical machinery and furniture and other manufacturing. Production rose faster for food, beverages and tobacco and rebounded sharply for motor vehicles, parts, accessories and other transport equipment, data shows.

Updates to follow.

5. Amcu issues stern warning to corporates

The Association of Mineworker’s Union’s president Joseph Mathunjwa has issued a stern warning against corporate mining companies he says are taking advantage of workers’ salaries. The warning comes after the union accused Samancor Chrome of stealing money from workers to the tune of almost $1.9 billion. Amcu will be representing workers in the case.

Read: Amcu issues stern warning to corporates that ‘steal from workers’


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