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 The Sharenet Daily 
Tuesday, 26 August 2014 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

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Seed Weekly - EXXARO ? interim results

South Africa’s second largest coal producer Exxaro (EXX) released its interim results on Thursday 21 August. It was a good opportunity for the Exxaro executives to reflect on the recent acquisition of Total Coal South Africa as well as review their outlook for the year ahead.

History & Operations

Exxaro is the result of an empowerment transaction which involved the unbundling of Kumba Iron Ore in 2006, making it the largest BEE mining company in South Africa. As can be seen by the group structure below, they are a well-diversified company with interests in coal, titanium dioxide, ferrous (iron ore & steel) and energy with current operations in SA, Botswana, Congo, Inner Mongolia, and Australia.


Exxaro acquired Total Coal South Africa last month for R 5bn ($ 472m) and together with the interim results announced that the company had secured a bank guarantee from Absa.

The deal will be financed through cash and debt as well as a combination of dollar and rand funding. Almost all of Exxaro’s coal is currently sold to Eskom on contract but it is keen to increase coal exports, at better margins. One of the constraints has been limited access to the Richards Bay Coal Terminal (RBCT). The TCSA deal will give Exxaro access to an extra 4.09 million tons of coal through the Richards Bay terminal. There are still some concerns by analysts as to whether the high price paid for the asset is justified, given that there may still be some capital expenditure needed.


Exxaro has committed R 10.2bn to the Grootegeluk Medupi Expansion Project to supply Medupi, Eskom’s newest power station, which is at least three years behind schedule. The first unit is due to come on line only by the end of this year.

Though Medupi has started to take delivery of coal from Grootegeluk, it is taking far less than originally agreed (3.1 million tons compared to 6.2 million contracted).

Exxaro will be paid its fixed costs (but not its variable costs) resulting from this, with some analysts saying that not producing Eskom coal may even free Grootgeluk’s capacity to produce more coal for export resulting in a bigger profit margin.

Interim Results – for six months ended 30 June

Highlights include:
• Headline Earnings per Share: Up 11% to 793 cents – better than expected.
• Interim dividend of 260 cents declared. Up 11% compared to last year.
• Revenue increased by 19% to R 7.4bn on the back of an increase in exports.
• Capex decreased to R 1.6bn.
• Operating profit climbed 48% - again the coal business contributed the most.
• Earnings per share (EPS) were negatively affected by the R 5.8bn impairment of the Mayoko iron ore project. EPS fell 209% to a loss of R6.88.
• Market Cap R 50 825 million
• Share Price at 25 Aug R 147.99 (-6.03% 1 year return)

With the current economic outlook for SA being on the negative side with prolonged strikes, electricity supply constraints, and higher consumer debt levels, there are not a lot of opportunities on the JSE. The biggest risks for miners in general, and Exxaro in particular, are commodity price and currency risks and we will be looking forward to the next 6 months to see how the company positions itself during this challenging time.

Exxaro currently constitutes 2.9% of the Seed Equity Fund and is held as a result of its attractive valuation metrics.

Kind regards,

Renier Hugo

021 914 4966

Tue, 26 Aug 2014
Top News
South African stock prices ticked higher for a second straight session on Tuesday as news the economy had avoided sinking into a recession sent a sigh of relief through the markets.  Full story

Local markets  Full story
A ceasefire agreement between Israel and the Palestinians aimed at ending their seven-week conflict in Gaza went into effect on Tuesday and joyous Palestinians streamed into the streets of the battered enclave to celebrate.  Full story
One of two candidates competing to succeed Afghan leader Hamid Karzai threatened on Tuesday to pull out of a U.N.-backed audit of a disputed presidential election.  Full story
The operator of Japanese nuclear reactors that melted down in 2011 is responsible for the suicide of a woman who became depressed after the accident and it must pay $472,000 in compensation, a court ruled on Tuesday.  Full story
Worldwide stock indexes rose on Tuesday and European bond yields fell on expectations of more stimulus from the European Central Bank, while strong. . .  Full story
Euro zone blue chips recorded their biggest two-day gain in over a year on Tuesday, boosted by the prospect of further stimulus from. . .  Full story
U.S. stocks rose on Tuesday, with both the Dow and S&P 500 hitting fresh intraday records on the back of strong consumer data. . .  Full story
Britain's top equity index rose on Tuesday, with financial stocks outperforming, amid expectations of new economic stimulus measures from the European Central Bank.. . .  Full story

Gold rose on Tuesday after a pause in the dollar rally prompted a break above $1,280 an ounce that triggered chart-based buying, but. . .  Full story
U.S. stocks opened little changed on Tuesday, with investors finding few reasons to buy after a rally in the previous session that took. . .  Full story
The euro hit its lowest level against the dollar in nearly a year and euro zone government bond yields fell to record lows. . .  Full story
Hong Kong's benchmark share index finished lower on Tuesday, as weakness in a few heavyweight stocks cancelled out strength in oil companies.. . .  Full story
SA Business
South Africa avoided slipping into a recession in the second quarter as solid growth in the agriculture and financial industries outweighed a hammering in the strike-hit mining sector, economic data showed. . .  Full story
South Africa's rand held steady against the dollar early on Tuesday, as local investors braced for the release of domestic economic growth data later in the day.. . .  Full story
The chief executive of platinum producer Lonmin denied assertions from mining industry sources on Monday that the company aimed to cut around 5,700 jobs as part of a drive to restore. . .  Full story

South Africa avoided slipping into recession in the second quarter as solid growth in agriculture and finance outweighed a plunge in production in the strike-hit mining sector, data showed on Tuesday.. . .  Full story
Platinum producer Lonmin said it has not made a decision on the size and shape of any business restructuring and its immediate aim is to ramp up production after a crippling five-month platinum. . .  Full story
The central bank's monthly leading business cycle indicator rose 0.5 percent in June, largely driven by the manufacturing sector, a South African Reserve Bank report showed on Tuesday.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0051729.68292.100.57%
JSE Top 4017:0046478.78269.710.58%
JSE Gold17:001494.5512.350.83%
JSE Financial17:0038366.42218.300.57%
JSE Industrial17:0068171.73397.690.59%
JSE Indust 2517:0060256.85373.240.62%
JSE Resource17:0057900.68320.320.56%
DJ Futures19:4217105.0071.830.42%
DJ Ind20:0017124.5547.680.28%
SP 50020:002001.503.580.18%
FTSE 10017:356822.7647.510.70%
All Ords08:415634.501.700.03%
NZSE 5007:485195.6312.890.25%
NameTimeRPMove% Move
Gold $19:591284.388.550.67%
Gold R20:0013735.2973.450.54%
Gold R/kg20:0044159016470.37%
Silver $19:5919.4150.07100.37%
Platinum $19:581413.502.400.17%
Palladium $19:58883.00-5.50-0.62%
Brent Crude20:00102.44.150.15%
Rand / Dollar19:5910.6941-0.0141-0.13%
Rand / Pound19:5517.6635-0.0548-0.31%
Rand / Euro19:5514.0815-0.0488-0.35%
Rand / NZD19:588.9053-0.0294-0.33%
Rand / AUD19:559.9535-0.0076-0.08%
Yen / Dollar19:58104.14200.07600.07%
Euro / Dollar19:550.75910.00120.16%
Dollar / Euro19:581.3167-0.0023-0.18%
Pound / Dollar19:550.60400.00080.13%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 ZCI  69527766.27.%10263
2 VUNANI  1702920.57.%10000
3 SYCOM  28502358.99.%1136454
4 TRNPACO  19101206.70.%100
5 KAYDAV  160106.67.%95000
6 YORK  320206.67.%5000
7 ACCELERAT  590356.31.%977
8 WESCOAL  17984.68.%45750
9 INTEWASTE  15774.67.%7070
10 CALGRO  785354.67.%158789
11 ASCEN_B  255104.08.%71
12 DCENTRIX  415153.75.%4536
13 ONELOGIX  440153.53.%181970
14 SPURCORP  3000993.41.%77615
15 TELKOM  58331843.26.%1365037
16 BRAIT  79202423.15.%2392691
17 ASTRAPAK  670203.08.%384400
18 ASCENDIS  1680503.07.%21653
19 BRIMST-N  1580452.93.%25322
20 TRADEH  1698482.91.%10290

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Major Moves Down
SharenameSaleMove% MoveVolume
1 MAZOR  185-25-11.90.%519316
2 ILIAD  740-89-10.74.%7888
3 VALUE  425-49-10.34.%160115
4 HUGE  135-15-10.00.%21000
5 DAWN  950-70-6.86.%77824
6 STEFSTOCK  867-58-6.27.%9384
7 CAT  1505-60-3.83.%953855
8 TIMES  2073-75-3.49.%3620
9 ADAPTIT  619-21-3.28.%513029
10 RESGEN  160-5-3.03.%26055
11 BOWCALF  730-20-2.67.%478038
12 CONDUIT  158-4-2.47.%465939
13 RANGOLD  244-6-2.40.%2900
14 SEARDELN  165-4-2.37.%147000
15 AFRO-C  420-10-2.33.%75044
16 SIBANYE  2477-54-2.13.%1489623
17 JDGROUP  2222-48-2.11.%22017
18 RAUBEX  2482-53-2.09.%187059
19 BLACKSTAR  1225-25-2.00.%166
20 SANTAM  22264-391-1.73.%10760

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New Highs
SharenameSaleHighMove% MoveVolume
1 TELKOM  583358881843.26.%1365037
2 BRAIT  792079412423.15.%2392691
3 TRADEH  16981700482.91.%10290
4 MEDCLIN  930093251761.93.%853421
5 SANLAM  659565951191.84.%2901204
6 REMGRO  24454244542340.97.%1255236
7 NETCARE  32593290240.74.%1673652
8 MPACT  34603714100.29.%66841
9 NEPI  1052010550200.19.%151258
10 OASIS  152516000.727647

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New Lows
SharenameSaleLowMove% MoveVolume
1 MAZOR  185160-25-11.90.%519316
2 VALUE  425420-49-10.34.%160115
3 CAT  15051480-60-3.83.%953855
4 BOWCALF  730730-20-2.67.%478038
5 ZCI  69535127766.27.%10263

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Index Summary
Index NameRPMove% Move
Top 4046,478.78269.710.58%
Mid Cap66,449.88379.710.57%
Small Cap55,576.245.950.01%
Resource 2057,900.68320.320.56%
Industrial 2560,256.85373.240.62%
Financial 1514,811.8590.060.61%
Financial & Ind. 3064,127.51391.970.61%
All Share51,729.68292.100.57%
Oil & Gas 47,901.241028.422.19%
Mining 33,955.5040.430.12%
Gold Mining1,494.5512.350.83%
Platinum Mining45.05.611.37%
GENERAL MINING9,942.09-8.53-0.09%
Oil & Gas Producers 25,755.61552.962.19%
Basic Materials 30,003.4053.690.18%
Chemicals 24,454.65109.660.45%
Forestry & Paper 32,039.78318.851.01%
Industrial Metals 19,316.03-80.00-0.41%
Industrials 47,470.65124.630.26%
General Industrials 153.86.950.62%
Consumer Goods 60,727.3570.140.12%
Automobiles & Parts 7,995.80-43.03-0.54%
Household Goods364.4151.53%
Health Care 88,941.49591.260.67%
Beverages 200.53-.71-0.35%
Index NameRPMove% Move
Food Producers 80,169.57334.030.42%
Personal Goods 1,031.625.090.50%
Consumer Services 12,961.08161.191.26%
General Retailers 67,277.33242.350.36%
Travel & Leisure 5,904.632.080.04%
Media 306.555.021.66%
Support Services 2,772.74-5.20-0.19%
Telecommunications 11,707.29124.681.08%
Financials 38,366.42218.300.57%
Banks 66,496.87282.930.43%
Non-life Insurance 56,822.64-997.92-1.73%
Life Insurance 36,597.64370.261.02%
General Financial 3,750.5125.570.69%
Technology 45,442.13226.430.50%
SHARIAH TOP40 4,350.18280.65%
FTSE/JSE SHARIAH ALL4,497.21290.64%
COAL MINING18,583.38-125-0.67%
FTSE JSE Fledgling 6,759.20220.33%
FTSE/JSE Alt X 1,323.0010.05%
RESOURCE 31,540.631640.52%
DIVIDEND PLUS227.4210.22%
FTSE/JSE RAFI 4010,181.47720.71%
Capped Top 4024,660.571560.64%
Capped All Share26,204.051500.58%
JSE TABACO 7,988.57-48-0.59%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
27/08/2014BASREADJune 2014 (Interim)
27/08/2014GLOBALJune 2014 (Q)
27/08/2014IMPERIALJune 2014 (Final)
27/08/2014IMPERIALPJune 2014 (Final)
27/08/2014IMPPJune 2014 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ADVTECH25/08/1412/09/1422/09/14ZAR 0.1100
SUNINT25/08/1412/09/1422/09/14ZAR 1.5500
DISTELL25/08/1412/09/1422/09/14ZAR 1.8300
TEX25/08/1412/09/1422/09/14ZAR 0.4547
EXXARO21/08/1405/09/1415/09/14ZAR 2.6000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
MTN GROUP07/08/1422/08/1401/09/14ZAR 4.4500
RESILIENT05/08/1422/08/1401/09/14ZAR 1.6835
OCTODEC08/08/1422/08/1417/11/14ZAR 0.8684
PREMIUM08/08/1422/08/1417/11/14ZAR 0.8070
ADCORP28/05/1422/08/1401/09/14ZAR 0.8000

Upcoming AGMs**
CodeCompany NameDateStatus
VKEVukile Property Fund Ltd.26/08/2014Confirmed
TKGBTelkom SA SOC Ltd.27/08/2014Confirmed
TKGATelkom SA SOC Ltd.27/08/2014Confirmed
TKGTelkom SA SOC Ltd.27/08/2014Confirmed
ACPAcucap Properties Ltd.28/08/2014Unconfirmed

Stock Exchange News Service
26/08/201417:10MONEYWEB HOLDINGS LIMITED - Trading Statement
26/08/201416:30SUPER GROUP LIMITED - Dealing in securities by a director of major subsidiaries
26/08/201416:15FIRSTRAND BANK LIMITED - FRS97- full capital redemption
26/08/201416:10VUKILE PROPERTY FUND LIMITED - Dealings in securities by a director of Vukile
26/08/201416:10CAXTON CTP PUBLISHERS & PRINTERS LD - Reviewed Results for the year ended 30 Jun...
26/08/201415:25ABSA BANK LIMITED - Interest Rate Reset - ABFN04
26/08/201415:24INDWA INVESTMENTS LIMITED - Listing of tap issue -INA437
26/08/201415:13COAL OF AFRICA LIMITED - Notice of General Meeting and Explanatory Memorandum to...
26/08/201415:12COAL OF AFRICA LIMITED - Dispatch of Notice of Extraordinary General Meeting
26/08/201415:11TEXTON PROPERTY FUND LIMITED - Director's Dealings
26/08/201414:38IVUZI INVESTMENTS LIMITED - IVA01A-Full Capital Redemption
26/08/201414:30ECSPONENT LIMITED - Finalisation announcement of Salient Dates for the Rights O...
26/08/201414:17FORTRESS INCOME FUND LIMITED - FIFC07-Full Capital Redemption
26/08/201413:56LONMIN PLC - Statement on Press Speculation
26/08/201412:57VUKILE PROPERTY FUND LIMITED - Results of annual general meeting
26/08/201412:41INGUZA INVESTMENTS (RF) LIMITED - ING245-Full Capital Redemption
26/08/201412:30SABMILLER PLC - Notification of transactions of directors, persons discharging m...
26/08/201412:30OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
26/08/201412:21TRANSPACO LIMITED - Directors dealings
26/08/201412:20TRANSPACO LIMITED - Directors dealings
26/08/201412:00KAYDAV GROUP LIMITED - Unaudited interim results for the 6 months ended 30 June ...
26/08/201411:53BSI STEEL LIMITED - Dealing in securities
26/08/201411:13EFFICIENT GROUP LIMITED - Dealing in securities by a director of the company
26/08/201411:00OLD MUTUAL PLC - Change of Share Registrars
26/08/201410:54DISCOVERY LIMITED - Discovery Insure concludes partnership with leading US techn...
26/08/201410:35METROFILE HOLDINGS LIMITED - Trading Statement
26/08/201410:35MORVEST BUSINESS GROUP LIMITED - Trading Statement
26/08/201410:35CURRO HOLDINGS LIMITED - Interest Rate Reset Announcement - COH001
26/08/201410:28SAPPI LIMITED - Dealing in securities by directors of listed companies
26/08/201410:10NEW GOLD ISSUER LIMITED - GLD Partial Delisting-Partial Delisting of NewGold Deb...
26/08/201410:00AQUARIUS PLATINUM LIMITED - Appendix 3Y - Change of Directors Interest Notice
26/08/201410:00NEW GOLD ISSUER LIMITED - NGPLT-Partial De-listing of NewGold Platinum Debenture...
26/08/201409:35VUNANI LIMITED - Unaudited condensed consolidated interim results for the 6 mont...
26/08/201409:30ILIAD AFRICA LIMITED - Unaudited Interim Results for the six months ended 30 Jun...
26/08/201409:25PPC LIMITED - Dealings in Securities by Director
26/08/201409:00UBUBELE HOLDINGS LIMITED - Suspension Of Trade
26/08/201408:48TAWANA RESOURCES NL - Tawana Commence Assessment Studies for Mofe Creek ASIA
26/08/201408:36ASTRAL FOODS LIMITED - Directors dealing in securities
26/08/201408:15HUGE GROUP LIMITED - Associate of Director Dealing in Securities
26/08/201408:00COAL OF AFRICA LIMITED - Director notification
26/08/201408:00COAL OF AFRICA LIMITED - Private Placement and Notice of EGM
26/08/201408:00GLENCORE PLC - GLN - Transaction in own shares
26/08/201407:30ONELOGIX GROUP LIMITED - Condensed consolidated audited annual financial stateme...
26/08/201407:10SA CORPORATE REAL ESTATE FUND - Condensed unaudited group interim financial resu...
26/08/201407:10BRIMSTONE INVESTMENT CORPORATION LD - Unaudited interim results for the six mont...
26/08/201407:05AVENG LIMITED - Audited summarised consolidated annual financial statements for ...

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