Business & Tech News
Malian Gold Miner Shares Slump: The Malian Junta Authorities have detained the CEO and other employees of Australian gold miner Resolute Mining Ltd, who had been in Mali to hold discussions with the government’s mining regulatori. Resolute Mining’s share price fell by 32% on Monday in their worst day of trade in 16 years. There was a flurry of share trades with over 38.5 million shares sold off – higher than the monthly average trade volume. This is the second time in a matter of months that the military Junta Government in Mali has arrested foreign mine employees, after they arrested four employees from one of Mali’s largest gold producing mines Barrick in September this year. There are clear indications that Mali Junta Government, that took control of the country via a coup in 2020, is targeting foreign mine investors to force them to abandon their investments or concede more income to them. One of the mine operations Resolute owns in Mali, the Syama mine, on its own, produced almost two-thirds of Resolutes annual sales of 329,061 ounces in 2023. Resolute owns an 80% stake in the project, while the Government of Mali holds the balance of a 20% stake.
Equity Holdings Boosts Earnings and Development: Equity Group Holdings in Kenya, on Tuesday reported pre-tax profit of $397 million for the first nine months of 2024. The African Banking giant, has also revealed an ambitious $6 billion initiative aimed at supporting Africa’s social and economic development. Dubbed ‘Africa Recovery and Resilience Plan’ (ARRP), the initiative will be seeking to create at least 50 million job opportunities in Africa within five key economic sectors to help African nations rebound more robustly and sustainably. The programme will address several issues including joblessness, poor agricultural production, business failures and poor health system among others. Some of economic pillars to be advanced under this programme includes; food and agriculture extractives, manufacturing and logistics, trade and investments, micro small businesses and social and environmental transformation.
Raubex Results Remarkable: Revenue for the Mining and construction company Raubex for the six-month period to August 2024, grew by 29.7% and operating profit was up by 34.7%. The improved margins for the period have resulted in an improvement of headline earnings per share (HEPS) of a significant 49.8%. The cash holdings declared were also up by 111.5% with a 49% increase in the interim dividend of 49%. Their order book however was slightly down from R25.55 billion to R24.50 billion. Management has however confirmed that it expects this to increase with a robust pipeline in place.
Market News
Markets: Indices in the US indices, were mostly flat with the NASDAQ down -0,05%, the S&P 500 up by 0,1% and the Dow Jones closing up by 0,69%. Asian markets this morning have been trending lower with the Nikkei down -0,4% and is at 39376 currently, while the Hang Seng has dropped by -1,45% this morning and currently at 20426 currently.
Currencies: The US Dollar has strengthened and is currently trading at 1.0631 against the Euro, at 1,282 against the Pound, and at 153.83 against the Yen. The rand has lost ground to a strengthening Dollar, dropping by over 2% and is currently trading at R17.99 to the US dollar.
Commodities:
- Gold has remains on a downward trend and is currently trading at $2,606 per ounce
- Platinum and Palladium have both taken a hit with poor manufacturing expectations out of China, with Platinum prices currently trading lower at $955, with Palladium prices currently -1,17% down at $970
- Brent crude is currently trading lower today and is at $71.71 with WTI also trading lower at $67.89 currently.
- Cocoa prices have jumped by 2,46% overnight and hit a new high above the 5900 mark and is currently trading at 5967 pounds per ton.
- Coffee prices are trading upwards and is at $2.56 currently
(All prices quoted at 09H00 – Central African Time)
Other News in Africa Today
Mauritian Election Result: Mauritian opposition Party leader, Navinchandra Ramgoolam, who previously served three terms as prime minister of Mauritius before being voted out a decade ago, is set to reclaim the Prime Ministers position in Mauritius. This after the incumbent, Prime Minister Pravind Jugnauth, conceded that his coalition was heading for a major loss at the polls yesterday evening. Jugnauth, had been prime minister since 2017, when his father stepped down from the post. The election campaign had been fiercely contested with a heated exchanges from the 68 political parties divided into five political alliances, with many focused on cost-of-living issues. Last week a wire-tapping scandal, followed by an ill-conceived social media ban changed the course of the election. Jugnauth, who had headed a ruling alliance since 2017, had negotiated an agreement for Britain to cede the Chagos Islands.
Kenyan National Assembly Shake-Up Anticipated: In further moves within the Kenyan parliamentary set-up, reports indicate that President William Ruto is planning a major shake-up in his parliament, including powerful Budget and Appropriations Committee boss Ndindi Nyoro, Nyoro, who is serving his second term as Kiharu MP is believed to be in the line of MPS to face the axe. The President is reportedly planning a radical shake-up to replace disloyal house committee chairpersons and vice-chairpersons with trusted allies. It is believed the President is also under pressure to reward allies who played a crucial role in the impeachment of former Deputy President Rigathi Gachagua. The changes are expected to be executed as early as before MPs break for Christmas next month
Botswana Seeking Strong Economic Growth: Duma Boko, Botswana’s newly elected president has appointed Botswana’s Vice President Ndaba Gaolathe, as his new finance minister. Boko’s Umbrella for Democratic Change coalition won the general election last month and ousted the ruling party who had ruled the country since its independence from Great Britain in 1963. The major priority for the new ruling coalition will be lifting economic growth, which the International Monetary Fund projects will drop to a low 1% this year, predominantly caused by lower diamond prices and production. “We are in a dire economic and financial situation. He has a huge job in his hands. He has to steer us through these choppy and turbulent waters,” Boko said during a press conference, referring to Gaolathe. Boko also named an opposition lawmaker as deputy health minister and an independent lawmaker as deputy agriculture minister.
