Latest news with #R1.6
IOL News
05-06-2025
- Business
- IOL News
Jubilee Metals receives R1. 6 billion offer for its South African chrome and PGM operations
Jubilee Metals, a diversified metals producer with operations in South Africa and Zambia, has received a conditional binding offer from a private mining and metals trading company to acquire the group's chrome and platinum group metals operations in South Africa Image: Supplied Jubilee Metals, a diversified metals producer with operations in South Africa and Zambia, has received a conditional binding offer from a private mining and metals trading company to acquire the group's chrome and platinum group metals (PGM) operations in South Africa for a consideration of up to $90 million (R1.6 billion). The shares leapt 4.17% to R1.00 on Thursday morning on the JSE as investors welcomed the news. The offer allows Jubilee to sharpen its focus on expanding its copper strategy in Zambia while retaining exposure to the PGM market through its Tjate Platinum mining project. Under the terms of the offer, Jubilee will retain all current rights to the Tjate Platinum mining project offering Jubilee continued exposure to the potential upside of the PGM market, while focusing to further advance the Company's copper strategy in Zambia. The total consideration of up to $90m is payable through a combination of cash upfront and deferred cash payments over an approximate three year period. Jubilee's board has reviewed the offer and recognises its compelling value proposition. The company is also evaluating its dividend policy to potentially enable future distributions to shareholders. A detailed shareholder circular outlining the transaction will be issued soon. Absa Corporate and Investment Bank, a division of Absa Bank Limited, has been appointed as the financial advisor for the transaction. Strategic Focus on Copper in Zambia The disposal of the chrome and PGM operations allows Jubilee to prioritise its Zambian operations, where the company sees significant growth potential. Strong copper markets support higher earnings potential resulting in higher margins than that of chrome. It said, "With the anticipated continuing expansion of the world's growth in electrification generally, renewable power and automotive applications, demand for copper is expected to remain high. Jubilee has demonstrated its ability to successfully recover copper from shallow, transitional reefs. Recent trials confirm the Roan concentrator's capability to maintain a ROM feedstock run rate of between 35 000 to 40 000 tonnes per month (tpm) on the transitional reefs equating to 240 (at 35 000 tpm throughput and min Cu grade) to 360tpm of Cu units (at 40 000tpm and targeted Cu grade," Jubilee said. Jubilee recently continued to expand its near surface mining portfolio with the execution of two further agreements offering the exclusive right to perform its due diligence on these properties with the option to purchase the rights pending the outcome of the due diligence. Zambia holds additional potential opportunities which Jubilee seeks to secure. Jubilee's in country operational presence and processing know-how, positions Jubilee well to pursue these opportunities.
The Citizen
04-06-2025
- General
- The Citizen
uThukela to install 100 toilets in Zwelisha area
uThukela Mayor Inkosi NB Shabalala officially handed over a sanitation infrastructure project in Ward 28 of Alfred Duma Local Municipality on Tuesday (June 3). The project will see 100 Ventilated Improved Pit latrines installed in the Zwelisha area (Ward 28). The mayor expressed the municipality's commitment to extending basic services to all communities. 'We are pleased to bring this vital service to the residents of Zwelisha. The local ward councillor made the request to the municipality and we have responded by allocating 100 toilets for this area,' said Shabalala. Also read: IFP encourages Grade 12 learners to work hard as early as possible The mayor further explained that the allocation of toilets across the district is guided by requests from each ward and the availability of resources across the district's 76 wards. Highlighting the improved technology, Shabalala stated that the new latrines use chemical treatments that enable waste to decompose, eliminating the need to dig new pits when the toilets are full; a significant improvement from the traditional system. The project, valued at R1.6 million, is expected to be completed within six months and will create about 30 employment opportunities for local residents. The contractor is DLV Projects, who confirmed that construction is set to begin this coming Sunday (June 8). Please follow us on our YouTube channel and do not be shy; please subscribe and comment as well. Click to receive news links via WhatsApp. Or for the latest news, visit our webpage or follow us on Facebook and Twitter. Join us there! At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
04-06-2025
- Business
- IOL News
High-cost loans, Trump turmoil hurting Africa, says G20 panel chief
Seasoned politician and anti-apartheid activist Trevor Manuel chairs the panel of experts working on proposals to address issues affecting Africa, including high debt, to be presented at a summit of the Group of 20 leading economies in November. Image: AFP Critically needed economic growth in Africa is being held back by high borrowing costs imposed by international lenders, with unpredictable US policy changes adding to the strain, the head of the G20 panel on the continent said. Seasoned politician and anti-apartheid activist Trevor Manuel chairs the panel of experts working on proposals to address issues affecting Africa, including high debt, to be presented at a summit of the Group of 20 leading economies in November. African nations are not necessarily more indebted than major economies but they face higher debt servicing costs, Manuel told AFP in an interview. The "unbelievably expensive and prohibitive" cost of capital for African nations has hobbled their development, said Manuel, who served as finance minister in post-apartheid South Africa for more than a decade. "We know that the risk premiums in general on Africa are much higher than they need to be, and that impacts them on the debt service costs," he added. More than half of Africa's 1.3 billion people live in countries with debt interest payments higher than social spending on health, education and infrastructure, according to the South African government. South Africa is the only African nation in the G20 and has made debt sustainability for developing countries one of the priorities of its presidency of the group of 19 countries, the African Union and European Union. African countries will pay close to $89 billion (R1.6 trillion) in external debt service alone this year, with 20 low-income countries at risk of debt distress, it says. Manuel said the panel will seek to persuade the entire G20 to engage with multilateral development banks, in particular the World Bank and International Monetary Fund, to address the issue of borrowing costs. 'Unbelievably difficult' Abrupt changes in global order since US President Donald Trump took office in January, such as sweeping aid cuts and trade tariffs, will have long-lasting ramifications for the continent, Manuel said. Trump's "capricious" announcement in April of major trade tariffs effectively did away with the African Growth and Opportunity Act, a major US-African trade deal that had helped to build some African economies, he said. He cited as examples the tiny kingdom of Lesotho, which faces 50% tariffs on exports to the US, including jeans and golf shirts, and Madagascar, which sends vanilla pods and is threatened with 47% tariffs. "It becomes unbelievably difficult for small countries that try and develop export markets, for their products to be struck by these sudden announcements," Manuel said. "There's no time for adjustment." Adding to the pressure is the termination of Usaid programmes and a push for Nato countries to increase defence spending, which restricts what they have available for overseas development assistance. "The impact on the African continent is going to be very severe," said Manuel. "We can't abstract Africa from the rest of the globe." "The realm of policymaking requires a greater degree of predictability and certainty than what we see at the moment," he said. "The fact that there are these occasional outbursts that aren't informed by reality as I see it... makes it even more complex." Intra-Africa Manuel said his panel's work on better understanding the African economy and developing solutions was likely to continue beyond this year's G20, for example, via the UN Economic Commission for Africa and the African Union. This included looking at "intra-African dynamics" such as the role of the African Continental Free Trade Area (AfCFTA) launched in 2019. Conflicts also cost the continent, he said, citing the war in Sudan and unrest that has held back a major gas project in impoverished northern Mozambique. "When countries spend more on war than what they do on the upliftment of people, then we face profound consequences," Manuel said. He said a strong United Nations and African Union were important in "persuading countries to do the right things" in the long term, beyond the sometimes disruptive short electoral cycles that usher in new leadership and policy changes. "If you don't have those kinds of objectives, which frequently will not be completed within a particular electoral cycle, I think we run ourselves into the ground." AFP
IOL News
02-06-2025
- Business
- IOL News
Buy now or miss out: Johannesburg property market heats up
As interest rates decline, Johannesburg's property market is heating up, presenting a golden opportunity for buyers and investors. Don't get left behind—find out why experts are urging immediate action! Image: Karen Sandison / Independent Newspapers In a decisive move that could reshape the real estate landscape in Johannesburg, the South African Reserve Bank has cut interest rates by 25 basis points, bringing the home loan interest rate to an unprecedented low of 10.75%—the most favourable level since February 2023. This announcement has sparked urgent calls from property experts for prospective buyers and investors to act swiftly in this buoyant market. Denese Zaslansky, CEO of FIRZT Realty Group, emphasised the growing momentum in property demand since rates began to decline in September last year. 'We have witnessed a remarkable 38% surge in sales and an average price increase of 6% over the past six months,' she noted, pointing out that desirable locations in Johannesburg are already seeing diminishing stock levels. The implications of today's rate cut are significant for both first-time buyers and seasoned investors. Given that the current average home price in the city is approximately R1.6 million, qualifying for a home loan currently requires a gross monthly income of about R54,200. This figure is R3,600 less than it was this time last year, offering a golden opportunity for many who may have previously felt locked out of the market. Zaslansky warns, however, that time is of the essence. 'If property prices rise by just 5% in the next year, prospective buyers will face higher monthly bond repayments and will need to increase their monthly income by R2,700 to qualify for a home loan, should interest rates remain stable. This will erode the advantages gained from the recent rate cuts,' she cautioned. Today's interest rate decline comes in response to inflation metrics consistently lingering below the Reserve Bank's target range of 3% to 6%. With inflation reported at 2.8% in April, and economic growth failing to gain real traction, the decision reflects a broader shift aimed at boosting consumer confidence and justifying spending amid turbulent market conditions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading According to Zaslansky, a turnaround is imminent. 'We are highly optimistic that we will see rapid advancements in the property market as demand escalates. The number of new developments sprouting across Johannesburg is a clear indicator of rising investment in property, stimulating both job creation and overall economic growth in the region.' With the property market in Johannesburg offering rare opportunities for savvy buyers, Zaslansky's message is clear: the time to act is now. Ignoring this window may mean relinquishing the chance to secure a home at today's favourable rates and prices—an opportunity that may not last long as the market continues to evolve. BUSINESS REPORT
IOL News
28-05-2025
- Business
- IOL News
Mayor defends water tariff increase while providing free water to vulnerable families
Left: Ilembe District Municipal Manager Sazi Mbhele, Mayor Thobani Shandu, and Director of Technical Services Ncingisa Mbole at the media briefing on Wednesday to clarify budget decisions. Image: Supplied As part of a response to the Democratic Alliance's demands for the 0% water tariff increase, the water-stricken Ilembe District Municipality has decided to supply 10,000 litres to poor households every month. In a R1.6 billion budget tabled by the district mayor, Thobani Shandu, on Tuesday, the municipality approved a revised 13% increase from 13.5%, which was initially proposed, dismissing the DA's demand as highly unreasonable. The mayor said it was not feasible not to increase the water tariff while Umngeni-Uthukela Water, which sells water to municipalities, has raised tariffs by 13%. Shandu said the municipality believes that more than 30% of the approximately 700,000 people living in the district will receive free water under the 10,000 litres cushion. The mayor said there would be a drive to encourage the poor households to register under indigent programmes so that their financial status would be assessed and be placed under the programme. 'It was impossible for us not to increase water tariffs while the water utility where we buy water from has increased. We were reasonable enough to at least increase our tariffs by the same amount. 'The DA must understand that we are a rural municipality with no less revenue collection, so we are like cities like eThekwini, which collect more residential and business rates, and those cities can easily reduce water tariffs and take money from other sources to cover water costs,' said Shandu. Out of this budget, the municipality set aside R357 million for capital projects, leaving the rest for operational costs. The municipality has a surplus of R14,6 million. Shandu said he believes the budget reflects a strong commitment to pro-poor service delivery, infrastructure development, and financial sustainability. Clarifying the qualifying criteria for free water, Shandu said all homes with a value of less than R130,000 of families with a combined monthly income of less than R50,000 will qualify for the free water programme. He added that the charges will also be capped at homes worth R5 million, meaning that even those families living in homes worth more than R5 million will not pay more than 13%. The district covers the three rural local municipalities of Ndwedwe, Mandeni, and Maphumulo as well as the semi-urban Greater KwaDukuza Municipality. In its response, the DA rejected the mayor's explanation, saying the party would force the municipality to reverse the increase through other mechanisms, including legal action. The DA's district constituency head, Sakhile Mngadi, who led the water march earlier, said the municipality's problem was irregular expenditure, which was picked up in the Auditor-General's report. Mngadi said that 15% of the budget went to fruitless and wasteful expenditure, and the municipality shifts its poor financial management to the poor people by burdening them with avoidable tariff increases. [email protected]
