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START YOUR MORNING BY LISTENING TO TODAY’S BIZNEWS BREAKFAST BRIEFING PODCAST – Equities take a breather; Oil slips below $100; Coal booms, Thungela profits rocket; China’s facing a foreign debt crisis
(If you’re struggling to access BBB via Spotify of iTunes, an audio-only version is also available on the BizNewsTV channel on YouTube).
Catch up with the latest on BizNews.com
- NHI is a politically motivated policy sure to break this camel’s back
- Eskom may need more than the 32.66% hike it has asked for
- Save us from Ramaphosa’s mishmash of energy solutions
- Cost of transport has risen 22%, inflation shock coming
- Investment lessons from the pandemic
- Social Compact or no Social Compact: that is the question
- Prof Noakes on Keys’ skewed cholesterol findings
- Thematic and Megatrend investing
- Tuberculosis moves out of Covid’s shadow as research advances
- Best of BizNews #9 – The trillion rand property collapse
- Best of BizNews #8 – Nene firing aftershock: Barclays UK to sell Absa
- Private investors drive equities higher; better informed or heading for fall? (Premium)
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Anglo’s folly – Thungela from R25 to R290 in a year, still cheap
In June last year, Anglo American caved to shareholder pressure on ESG by completing the de-coupling of its South African coal assets. The new company, Thungela Resources, traded life at R25 a share. Anglo’s large foreign shareholding base dumped their allocations as quickly as they received them.
Yesterday Thungela issued a trading update disclosing it had earned R67 a share in the six months to end June. Annualised, that’s R135 a share – in a single year, five times the price at which Anglo rid itself of the supposed millstone.
In the investment world, following fashion is rarely a smart call. This one, taken by handsomely remunerated London-based managers, has to rank among the worst ever by any South African company. Even now, with Thungela’s shares more than 10x the price at which it was abandoned by its former parent, they look appealing.
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Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.