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Wednesday, 13 April 2011 - 20:00
Sharenet is pleased to announce the launch of our new publication, The Sharenet Daily. We have built on the success of our Daily Equity Report, while adding more content and helpful information. The result is a publication that gives readers a quick, easy to read and informative synopsis of market activity, company results and news on the JSE for the day, as well as an overview of what transpired on important overseas markets.The Sharenet Daily includes helpful charts that give a graphical impression of events, and our news content is sourced from a number of contributors, including Reuters. In addition, Sharenet's popular price information is available in our Spot Price format which provides a snapshot of the JSE and world indices, currencies and commodities.
All the JSE trading statistics; major movers; latest dividends; upcoming AGM dates and more are provided to insure that you keep abreast of market developments. The Sharenet Daily is published at 8pm each day on the website and also distributed via email for your convenience. As always, we welcome your comments, feedback and suggestions at support@sharenet.co.za
Charts
Listing of major mining company Glencore
Commodity prices have moved up very steeply over the last two years. At the same time diversified miners that have access to these commodities have escalated in value. It i at these times that investment bankers encourage unlisted companies to take their companies public in order to maximise the value raised.
Essentially an IPO or initial public offering is a partial sale of the business from existing shareholders to institutional and private demand. When investment bankers gauge that demand from institutional investors will be strong, they encourage specific private companies to come to the market.
A potentially large new IPO was announced last week - Swiss based Glencore is looking to float some of its equity via an IPO. The indicative numbers are that Glencore will be valued at around $60 billion and will look to list around 20% of its equity – i.e. raise some $12 billion.
Glencore describes itself as “one of the world's leading integrated producers and marketers of commodities that industries around the world need. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products.”
In an article in the FT, the CEO of Glencore, Ivan Glasenberg said ““The interest from the cornerstones was a lot stronger than we envisaged. Markets are in our favor, too. We have a strong commodities market.”
Clearly the current market for this type of business has moved to that of a sellers’ market, which is exactly why Glencore management are looking to capitalise on the current demand, raising the maximum amount of cash for giving up the least amount of shares.
Glencore was founded in 1974, originally as the notorious Marc Rich and Co in Switzerland, headed by commodity trader Marc Rich.
Now valued at around $60 billion it is one of the world’s largest privately held companies and so the IPO will attract a lot of attention. Current shareholders are management and employees. It has its headquarters in Switzerland and has marketing operations in 50 offices across 40 countries.
Its 3 main business groups are metals and minerals (aluminium, ferroalloys, cobalt and zinc etc), energy (oil and coal), and agriculture products (grains, oils, cotton).
In 2010 the company reported turnover of $145 billion, net income of $3,8 billion and total assets of $79,8 billion.
Some of the world’s largest mining companies include
• BHP Billiton
• Rio Tinto
• Vale SA
• Anglo American
• Xstrata
Glencore has a 34,5% stake in London listed Xstrata. This original Swiss company was transformed from 2001 when new management took over, headed by South African, Mick Davis. At that stage it had a market capitalisation of just$500million. Today with a market capitalisation of GBP45 billion, it describes itself as the world’s largest producer of export thermal coal, the largest producer of ferrochrome, and one of the top five producers of coking or metallurgical coal (used in steel making). Glencore CEO, also a South African, Glasenberg sits on the board of Xstrata.
Chart of copper
So time will only tell when the top of the current cycle will be for commodity prices. A major listing like this – if it comes through – gives some sign.
Kind regards
Ian de Lange
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Top News
![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-04-13T090334Z_01_AJOE73C0P6100_RTROPTP_3_OZABS-MINING-SAFRICA-20110413.JPG "Mineworkers work deep underground at Harmony Gold Mine's Cooke shaft near Johannesburg") South Africa will launch an online mineral rights application system next week that aims to ensure transparency and end administrative blunders, the Department of Mineral Resources said. Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-04-13T101539Z_01_AJOE73C0SI500_RTROPTP_3_OZABS-MAIZE-SAFRICA-DELIVERIES-20110413.JPG "-PHOTO TAKEN 23FEB06- Black South African commercial farmer Motsepe Matlala inspects the maize growi..") Maize deliveries to South African silos rose to 11.921 million tonnes in the week to April 13, up from a revised 11.909 million tonnes in the week before, data showed on Wednesday. Full story |
 The operator of Japan's crippled nuclear plant said on Wednesday it was still working on a detailed plan to end the country's nuclear crisis a month after it began, as tests showed radiation levels in the sea near the complex had spiked. Full story  Hosni Mubarak was ordered to be detained for 15 days on Wednesday, winning the ruling army generals a respite from protesters suspicious that they were shielding their former commander from investigation. Full story  A group of Western powers and Middle Eastern states called for the first time on Wednesday for Muammar Gaddafi to step aside, but NATO countries squabbled publicly over stepping up air strikes to help topple him. Full story |
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Markets |
The Dow and S&P slipped on
Wednesday as JPMorgan Chase & Co's strong profit growth was not
enough to convince investors that quarterly. . . Full story |
European shares rose on
Wednesday, with banking stocks boosted by forecast-beating
results from Wall Street bank JPMorgan and strategists suggested
there was further upside. . . Full story |
Global stock markets
recovered on Wednesday from a sharp sell-off, and the yen
slipped after Japan scaled back its economic outlook due to
last. . . Full story |
Britain's FTSE 100 share index
extended gains on Wednesday, with banks among the top gainers
after results from U.S. investment banking giant JP. . . Full story | |||
Gold rose in Europe on
Wednesday, recovering after its biggest one-day drop in nearly a
month as the dollar retreated amid expectations the. . . Full story |
Australian stocks recouped
early losses and ended 0.3 percent higher Wednesday, with
investors taking profits on miners, following weak production
reports, and switching into. . . Full story |
Tokyo shares nudged higher on
Wednesday, recouping some of the previous day's losses, but the
futures-led upward move on thin volume suggested the. . . Full story |
Gold bounced higher on
Wednesday after posting its biggest decline in a month in the
previous session, shrugging off falls in exchange traded. . . Full story | ||||
SA Business |
South African power utility Eskom said on Wednesday it had sold 300 million rand of its 2023 bond at a clearing. . . Full story |
South African communications group Telkom considers Africa as a growth region and will look at acquisitions after two to three years,. . . Full story |
The Johannesburg Stock Exchange said on Wednesday it was aiming to speed up trades by offering "co-location" services to its members. . . Full story |
South Africa's rand steadied near one-week lows against the dollar on Wednesday, with dealers expecting the currency to remain under pressure. . . Full story | |||
Higher metal prices and a recovery in production could lift South Africa's mining industry this year but rising labour and power. . . Full story | BlackRock, the world's largest
asset manager, favours platinum over other metals because of
production constraints and said the plentiful supply of silver
will number. . . Full story | In terms of its economic
might, South Africa hardly deserves a seat at the table when the
leaders of the BRIC group of. . . Full story | Higher oil prices are the main risk to South Africa's inflation outlook but the central bank will deal with this threat. . . Full story |
FirstRand, South Africa's number 2 banking group, is in advanced discussions with Nigeria's Sterling Bank about making a strategic investment, the Nigerian lender said on Tuesday.. . . Full story |
Company News |
Adjustment Event. . . Full story |
Shareholders were advised that Mr Terry William Rensen has been appointed as interim group financial director of Howden. Terry's appointment is. . . Full story |
Anglo American plc announced that 9 637 ordinary shares were transferred from treasury shares on 8 April 2011, in respect of. . . Full story |
Further to the announcement of 18 February 2011, the equivalent of the dividend in UK sterling is GBP24.3908 pence per share. . . Full story | |||
Shareholders are referred to the voluntary business update published by Altron on SENS on 10 December 2010. Pursuant thereto, Altron's sub-holding operations have experienced the following trading conditions:
* Bytes has performed well over the financial year, exceeding expectations and achieving. . . Full story |
Aquarius Platinum Ltd ("Aquarius" or the "company") announced the acquisition of platinum group metal ("PGM") mineral rights by way of the purchase of Afarak Platinum (Pty) Ltd ("Afarak"), a private company incorporated in South Africa (the "transaction"), following the fulfilment of. . . Full story | ||||||
Company Results | Revenue for the interim period ended 28 February 2011 improved to R680 million (R629.1 million) and gross profit jumped to R172.5 million (R165.3 million). However, earnings before interest, tax, depreciation and amortisation ("EBITDA) dropped to R76.5 million (R79.1 million). Profit for. . . Full story | Income more than doubled to R73.6 million (R22.7 million). Net attributable profit surged to R355 million (R179.6 million). However, headline earnings fell to 34.5cps (43.9cps).
Outlook
Paladin's investments in the construction and manufacturing sectors in particular did not escape the aftermath of. . . Full story |
World Markets (Spot Prices)
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The JSE Today
Trading Statistics| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 13/04/2011 | 173 | 149 | 74 | 396 | 287,045,805 | R12,191,506,387 | 87265 | 1930759 |
| 12/04/2011 | 86 | 265 | 80 | 431 | 266,083,945 | R12,023,754,615 | 98390 | 2054868 |
| 11/04/2011 | 138 | 172 | 90 | 400 | 261,279,957 | R13,981,320,906 | 102090 | 1616361 |
| 08/04/2011 | 200 | 144 | 81 | 425 | 335,609,147 | R15,198,842,076 | 116888 | 1809367 |
| 07/04/2011 | 140 | 205 | 84 | 429 | 260,190,578 | R13,173,671,789 | 109418 | 2075935 |
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Index Summary
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Stock Exchange News Service
| Date | Time | Headline |
| 13/04/2011 | 17:05 | Invicta Holdings Limited - Cautionary Announcement |
| 13/04/2011 | 17:04 | Conduit - Change to the board of Directors |
| 13/04/2011 | 16:14 | Wits Gold intersects further shallow reefs in the De Bron - |
| 13/04/2011 | 16:00 | Anglo American plc - Notice of adjustment to the conversion price of the |
| 13/04/2011 | 15:55 | Paladin Capital Limited - Reviewed results for the year ended 28 February |
| 13/04/2011 | 15:29 | Hyprop Investments Limited - Hyprop`s proposed acquisition of 100% of the |
| 13/04/2011 | 15:15 | British American Tobacco p.l.c - Notification of transactions of |
| 13/04/2011 | 15:00 | Pinnacle Technology Holdings Limited - Cautionary Announcement |
| 13/04/2011 | 14:45 | The Don Group Limited - Change to the board of directors |
| 13/04/2011 | 14:20 | Howden Africa Holdings Limited - Appointment of interim financial director |
| 13/04/2011 | 14:00 | British American Tobacco p.l.c - Annual information update for the |
| 13/04/2011 | 12:48 | Harmony Gold Mining Company Limited - Harmony`s guidance for March 2011 |
| 13/04/2011 | 12:16 | Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of |
| 13/04/2011 | 12:00 | Anglo American Plc - Treasury Shares - Transfers |
| 13/04/2011 | 11:50 | Anglo American plc - Final Dividend of 40 US cents per ordinary share |
| 13/04/2011 | 10:54 | ELB Group Limited - Dealing in securities by director of a major |
| 13/04/2011 | 09:48 | FFA/FFB - Fortress Income Fund Limited - Dealing in Securities |
| 13/04/2011 | 09:35 | Ingenuity Property Investments Limited - Trading Statement |
| 13/04/2011 | 09:01 | ATN/ATNP - Allied Electronics Corporation Limited - Voluntary Business Update |
| 13/04/2011 | 09:00 | Allied Technologies Limited - Trading Statement |
| 13/04/2011 | 08:58 | Aquarius Platinum Limited - New issue announcement, application for |
| 13/04/2011 | 08:57 | Aquarius Platinum Limited - Acquisition of mineral rights |
| 13/04/2011 | 08:50 | Consolidated Infrastructure Group Limited - Unaudited condensed |
| 13/04/2011 | 07:10 | British American Tobacco P.l.c - Transaction in own shares |
| 13/04/2011 | 07:05 | BHP Billiton Plc - Transaction in Shares |
Click here for more SENS news