Merafe Resources yesterday issued an SOS to its shareholders, warning that the ongoing power cuts that have forced mining companies to scale down on production and the constrained economic environment would have a negative impact on the future of some of the company’s operations and the wider ferro alloys sector in South Africa.
The South African currency fell to a two-week low yesterday as domestic production data disappointed while ongoing rolling power outages shone the spotlight on a faltering economy according to NKC Research.
President Cyril Ramaphosa on Tuesday cut short his state visit to Egypt as South Africa’s biggest electricity crisis in more than a decade hit the rand and wobbled the markets, after troubled power utility Eskom implemented more power cuts amid constrained output and flooding that resulted in companies slashing production.
Lurco, the diversified commodities, beneficiation and trading business whose R500 million bid for the Gupta linked Koornfontein Mine was scuppered by late payment, has approached the courts for a reprieve against the business rescue practitioners.
Tongaat Hulett suffered a reduction of equity to the value of R11.89 billion as a result of impairments of R4bn, including the derecognition of expropriated land in Zimbabwe and R3bn of deferred tax assets that have not been taken into account in the past.