PGM Prices Should Be Higher, says Valterra Platinum CEO
Anglo American's platinum unit, Amplats has demerged and started trading on the Johannesburg Stock Exchange under the new name Valterra Platinum. The new entity will also have a secondary listing on the London Stock Exchange from next Monday. It's a culmination of Anglo's wider restructuring plans announced last year to fend off an unsolicited $49 billion takeover by BHP Group. Amplats CEO, Craig Miller, spoke to Bloomberg's Chief Africa Correspondent Jennifer Zabasajja on Horizons Middle East and Africa just minutes before becoming the CEO of Valterra Platinum. (Source: Bloomberg)
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News24
an hour ago
- News24
As SA's first wind farms pass the 10-year mark, will they keep spinning?
In Vredenburg, two hours outside Cape Town, 47 wind turbines dot the landscape at the Aurora Wind Farm, harvesting coastal winds and converting them into enough energy to power more than 180 000 households per year. The 94MW wind farm has been operating for 10 years, feeding power to South Africa's grid as part of Bid Window 2 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). This West Coast wind farm is one of eight wind projects that have passed the 10-year mark. All projects enter into 20-year contracts or power purchase agreements (PPA) with Eskom, to sell the energy to the power utility. Decommissioning or repowering? The question remains what will happen by the time they have to be decommissioned, given how quickly South Africa's energy market is changing. All REIPPPP projects are required to include decommissioning and rehabilitation considerations as part of their PPAs with Eskom and financial closure obligations, said Morongoa Ramaboa, chief communications officer at the South African Wind Energy Association (Sawea). 'While formal decommissioning activities are not yet under way, project developers are expected to set aside financial provisions for end-of-life activities from the outset. As projects mature, particularly those nearing the end of their 20-year PPA, developers will refine these plans to align with site-specific and regulatory requirements,' said Ramaboa. There is, however, a possibility of repowering or extending the life of these plants so they can sell to alternative (non-Eskom) buyers of the energy, such as private sector players. 'Under the current REIPPPP framework, PPAs are fixed at 20 years though there are provisions for extension since the plants do have the capability to have their operational life extended,' said Ramaboa. The plants would have to be refurbished with upgraded technology to improve their efficiency and extend their operational life. Storm Simpson 'Why scrap something that still has life?' said Alberto Gambacorta, executive vice president for the sub-Saharan Africa division of renewable energy developer Scatec. Scatec has had a presence in South Africa since 2010. Its Kalkbult solar PV plant in the Northern Cape was the first project of the REIPPP's Bid Window 1 that was commissioned in March 2014. Gambacorta said that closer to decommissioning, or as the 20-year PPA draws to a close, there will be considerations about what can be done about these plants. But they could go for another 10 years, with maintenance and refurbishment to improve its capacity. He expects that the electricity tariffs would also be cheaper, because at that point the plant's loans would be repaid and returns would have been made for the initial investors. 'There is something that can be done with these power plants in their afterlife, which doesn't necessarily need to be decommissioned,' he said. Gambacorta, however, emphasised that there are obligations to decommission and ensure the site is restored. But if the renewables are decommissioned, there should be alternative power to replace that which is removed from the energy system, he pointed out. 'You [are] decommissioning renewables, so where are you going make it up in terms of capacity… Those plants already have a footprint. You already have the infrastructure. You have the grid connection. You need to probably reinforce it, but it's there and it's available, and they're all located with the best resources,' said Gambacorta. He added that in other parts of the world, like Europe, renewable energy plants have not been decommissioned. 'They're still there. They're still running in the wholesale markets.' Secondary markets It is possible, then, that these first renewable energy plants in South Africa could be repurposed to meet the demands of the wholesale electricity market. Luyanda Jonas, CEO of Aurora Wind Power, said that there was a possibility that there may be a secondary market for the components of these plants. 'By the time we have to decommission, there might have been a secondary market already that is developed in South Africa, like other countries that have had wind farms operating for much longer. 'So there might be a secondary market for the different parts,' she said. Storm Simpson/News24 The decommissioning will ensure that each wind tower be taken down, along with blades and other operating mechanism and then have the land returned to its original state. 'In South Africa we are among the first few wind farms that reached commercial operations and that means we're also among the first that will have to decommission when the time comes,' she said, explaining that it was not yet clear whether there would be a secondary market for parts. READ | Climate Investment Funds approve R47bn coal-exit plan for SA Sawea's Ramaboa said that international best practice supported an approach where turbine components like the steel, copper and concrete could be recycled. 'Select parts may be refurbished and sold into secondary markets, including other developing countries. Turbine blades, made from composite materials, present a greater challenge, but there are emerging innovations in repurposing them for construction and infrastructure applications,' said Ramaboa. The South African Photovoltaic Industry Association's (Sapvia) junior technical specialist Sinethemba Mnguni noted that the IPP Office is conducting a study to assess international best practices for decommissioning, as well as recommend improvements to the legal framework for decommissioning, and quantify the benefits to consumers. The study will include stakeholder consultations. Mnguni added that the IPP Office has also commissioned a study on a recycling and repurposing framework for the REIPPP projects. 'While the outcomes of that study are still pending, it is likely that the majority of solar plant components will be recycled, with minimal material going to landfill,' Mnguni said.
News24
an hour ago
- News24
I agreed to repeat orders, did I? Prove it
Suppliers can't force you to pay for goods that you did not explicitly order – thanks to the Consumer Protection Act. Despite that, some companies attempt to force their customers to pay for repeat orders that weren't mentioned in the initial sales call, writes Wendy Knowler. Thiloshni [name withheld] received a call at the engineering firm she works for some time in March, from a representative of a company called Unlimited Essentials. She agreed to buy 5 litres of a degreasing product and 5 litres of a cleaning product at a cost of 'R99 a litre, excluding VAT'. When she asked the woman confirming the order what the total cost would be, the caller responded by saying that she didn't have a calculator 'in front of me'. So even the way the cost of the order was expressed was disingenuous. The invoice which Thiloshni received later was in the amount of R1 138.50. She made payment and thought that was the end of it. But three months later, the company called back about 'the balance of your order'. She was told, for the first time, that the 'total quantity' of the order she'd agreed to back in March had not been delivered, and that a repeat order would be sent for payment. A few days later, Thiloshni forwarded me a letter she'd received from a law firm representing Unlimited Essentials, telling her: 'Our client has fulfilled their obligations under this agreement by ordering and paying for the stock you requested. 'However, we are now informed that you are refusing to accept delivery of the second delivery. 'Please be advised that under the applicable law, including the principles of contract performance and reliance, a confirmed order constitutes a binding commitment.' Then came the threat: 'Unless we receive confirmation of your acceptance of the goods or full payment for the ordered stock [within] seven days, our client reserves the right to take all necessary legal steps to recover the outstanding amounts, including any legal fees, interest, and costs associated with resale or storage.' I contacted the firm, saying Thiloshni was adamant that there was no explicit disclosure about what was later claimed to be a repeating order. As such, she only agreed to the initial order of 10 litres of product, and had paid for it. Plus, the recording of the 'confirmation call' – which I listened to – contains no mention of a second order – not when it would be sent, nor how many orders the company intended to send in total. 'I note that the word 'introductory' was used to describe the order which was agreed to and dispatched,' I said, 'but that cannot be said to imply or confirm disclosure of and agreement to repeat orders'. On what specific contractual basis, then, did the company and its attorney seek to hold Thiloshni responsible for further deliveries? Responding, a paralegal said the agent in question referred to sending Thiloshni an 'introduction pack' consisting of two products. 'The phrasing used, such as 'goods on first delivery' cos (SIC) the order was split firstly because she never dealt with Unlimited before.' 'In the interest of resolving the matter fairly and reasonably', she said, the firm was engaging with its client to recommend that no new orders would be processed or invoiced, 'as there is no evidence of informed consent for additional or recurring transactions'. 'My client is also using this opportunity to review internal training and scripting protocols to ensure future communications meet the highest standards of transparency and compliance.' Let's hope so.
Yahoo
3 hours ago
- Yahoo
This FTSE 100 bank is up 60% in year but still cheap with a P/E of just 9!
This FTSE 100 bank has had a storming run. Its share price is up 60% in the last 12 months, and 170% over five years. The company in question is Standard Chartered (LSE: STAN), and to my irritation, I've paid very little attention to it. I'm all over Barclays, Lloyds, HSBC and NatWest. My interest is no doubt boosted by the fact they have a UK high street presence. Standard Chartered doesn't. Despite being headquartered in the UK, it doesn't offer retail banking here. Instead, around 90% of profits come from Asia, Africa and the Middle East, which gives it access to a far bigger, faster-growing target market. For those seeking international exposure, it's easy to overlook in favour of HSBC, which does both, and has a far larger market cap at £152bn, compared to £27bn. But none of that has held the Standard Chartered share price back lately. Full-year results, published on 27 February, were impressive. Pre-tax profit for 2024 jumped almost 18% from $5.1bn to $6bn year-on-year. Operating income climbed 14% to $19.7bn, with a record performance in the wealth division. Global markets and global banking also delivered double-digit growth. The net interest margin edged up to 1.94%, and the bank said it attracted 265,000 new affluent clients, bringing in $44bn of new money. That's a 61% year-on-year increase. Management treated shareholders to a $1.5bn share buyback. Momentum continued into the first quarter of 2025, with results published on 2 May showing pre-tax profits up again, to $2.1bn. The group stuck to its medium-term forecast of 5%-7% annual income growth through to 2026. While the outlook is encouraging, no bank is risk-free. One concern is geopolitics. Standard Chartered's deep exposure to Asia, and China in particular, leaves it vulnerable to worsening trade tensions with the US. Management has warned that protectionist policies and tariffs could hit global growth and weigh on client activity. The second issue is exposure to unsecured consumer borrowing. Credit impairment charges rose 24% in Q1, mostly due to rising stress in parts of the wealth and retail banking division. That's a red flag if interest rates stay high for longer. A final concern is that the recent share price rally may be overdone. Analyst forecasts now suggest limited short-term growth from here, with a consensus one-year target of 1,224p. That would be just 2.5% above today's level. Despite the recent surge, Standard Chartered's price-to-earnings ratio is just 9.24. That compares favourably to HSBC at 9.32, NatWest at 9.75, and Barclays at 8.88. Its dividend yield is relatively modest, at 2.34%. But don't be misled. The 2024 total payout was hiked 37%, from 27 US cents per share to 37 cents. I'm tempted, but I think I'll stick to Lloyds, which I hold. It lacks the international growth of an Asia listing but also ducks the risks. But I'll be keeping a closer eye on Standard Chartered from now on. The post This FTSE 100 bank is up 60% in year but still cheap with a P/E of just 9! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool HSBC Holdings is an advertising partner of Motley Fool Money. Harvey Jones has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, Lloyds Banking Group Plc, and Standard Chartered Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
