JSE ends flat but banks see wee recovery

(www.businessday.co.za) THE JSE ended virtually unchanged yesterday , but banks staged a slight recovery after the South African Reserve Bank (SARB), as widely expected, hiked rates by 50 basis points.

The all share index ended 0,05% higher. Resources gained 0,47%, the platinum mining index was up 2,49% but the gold mining index fell 0,72%.

Industrials lost 0,35%, financials weakened 0,08% but banks picked up 1,18%.

One trader said that SARB’s decision to hike rates by 50 basis was not considered as a nonevent because some investors may have been expecting a 100 basis point hike.

“Although SARB governor Tito Mboweni came across as hawkish, he mentioned that inflationary pressures took place against a backdrop of healthy economic growth,” the trader said.

The SARB’s monetary policy committee (MPC) yesterday decided to increase the repo rate to 9,5% in line with consensus expectations.

Banking group Absa was up 1,68% to R136,25, Standard Bank added 1,50% to R105, and FirstRand was up 1,10% to R23.

Boosted by solid gains in the platinum price during the session, miner Impala Platinum soared 4,47% to R234,01 and Anglo Platinum was up R5,50 to R1198. But Lonmin fell R4,52 to R533,99.

On the resources index Anglo American gave up R2,14 to R418,86, while BHP Billiton added 1,36% to R183,25. Synfuels producer Sasol fell R1,25 to R250.

Gold miners fell, tracing a slide in the bullion price, with AngloGold Ashanti slipping 1,18% to R297,50 and Gold Fields losing 1,01% to R117,75.

Heavyweight industrial group Barloworld added R1,50 to R198,50, brewer SABMiller was off 8c at R169,42, and consumer goods group Tiger Brands gained 70c to R180,20.

South African near-dated futures ended 88 points in the red after a topsy-turvy day yesterday characterised by general weakness on a 50 basis point rates increase and poorer US markets. The near-dated Alsi contract ended down 0,34% at 25625.

“It has been volatile as we were up slightly in the morning, but saw a relative sell-off towards the MPC decision,” a futures dealer said.

“There was a lack of direction and the market is not very strong. The Dow Jones and S&P are also not looking good,” the dealer said.

A Safex official said a total of 47198 Alsi contracts traded compared with 25685 on Wednesday.

South African white maize futures closed lower yesterday as traders followed in the footsteps of the Chicago Board of Trade (CBOT) overnight.

“There has been little news, so we followed CBOT,” a Johannesburg-based trader said.

The trader said that it was difficult to tell the market’s next move, as it remained tied to movements on CBOT.

“It’s not easy to say where we will go from here, but we are looking at the harvesting progress for clues,” the trader said.

According to the latest harvest report by the South African Grain Information Service, farmers have already harvested 1,8-million tons of maize since the beginning of last month.

SA, the continent’s biggest maize producer, is set to produce 7,05-million tons of maize.

The benchmark July white maize contract fell R15 to R1745 a ton and December white maize was down R16 to R1835. July wheat gave up R19 to R2451 and December wheat was declined R21 to R2146.

Dow Jones newswires reported that CBOT maize futures settled lower yesterday, pressured by lower wheat and soybean values as corn continued its recent role as a follower of the other grains. I-Net Bridge

Investments on the Johannesburg stock exchange

SA’s booming economy lures immigrants

A article found on iol.co.za has a look at a alternative look at the booming south African ecomomy

Source (iol.co.za) As long as South Africa’s economy continues to boom, immigrants from neighbouring states would continue to flood the country, Home Affairs Minister Nosiviwe Mapisa-Nqakula said on Thursday. Addressing MPs during her budget vote debate, Mapisa-Nqakula said economic migration was an international phenomenon confronting every region of the globe. “There is not a country in the world which does not face an influx from its neighbours if it is economically more stable. “It is logical that our economy would be a magnet for economic migrants from the region,” she said. Mapisa-Nqakula, who was speaking against the backdrop of mounting concerns on the growing number of refugees in the country, particularly Zimbabwean citizens, reminded MPs about the important role played by migrant workers in the development of the country’s economy. “South Africa has long relied on those workers to help build our economy,” she said. However, Mapisa-Nqakula said this did not mean the department was absolving itself from the responsibility to enforce the country’s immigration laws. “That is not to say that we should invite or even tolerate a free for all. “As Home Affairs we have a role in regulating the status of those who come from other countries looking for work and in administering the protection the law offers to genuine asylum seekers.” The backlog in the processing of asylum seekers’ permanent residence applications, Mapisa-Nqakula said, would soon be a thing of the past. “Already, we are able to report that since our last budget debate we have been able to clear the backlog of 13 000 applications for permanent residences,” she said. – Sapa

Investments on the Johannesburg stock exchange

Great Returns

What can I say, today is a good day. The interest rate hike of 50 basis points did my stocks good. ADW not effected as much as I thought this morning but a nice return anyway. with the exeption of Cadiz, all shares ended stronger. Grindrod and Zeder preforming particularly well.

					Daily Statistics
Share Name	Price	Yesterday	Diff	%	High	Low	Deals	Vol	Value
AFDAWN	241	240	1	0.42	250	240	25	156,200	379,566
CADIZ	520	520	0	0.00	520	520	8	40,000	208,000
CHROMETCO	97	95	2	2.11	98	93	31	292,817	275,248
GRINDROD	2376	2350	26	1.11	2400	2340	209	964,129	22,926,988
S.OCEAN	780	775	5	0.65	790	780	11	36,409	284,718
ZEDER	277	272	5	1.84	278	272	94	4,375,660	12,033,065

My holdings at the end of the day:

				R SCHOLTZ
	Quantity	Cost		Current
		Price	Value	Price	Value	Perc (%)	Profit Loss	Return %
AFDAWN	1,400	230	3,225.92	241	3,374.00	10.68	148.08	4.59
CADIZ	600	547	3,282.06	520	3,120.00	9.88	-162.06	-4.94
CHROMETCO	2,200	112	2,462.01	97	2,134.00	6.76	-328.01	-13.32
GRINDROD	430	2337	10,049.31	2376	10,216.80	32.35	167.49	1.67
MERAFE	200	106	211.29	190	380.00	1.20	168.71	79.85
S.OCEAN	500	771	3,853.48	780	3,900.00	12.35	46.52	1.21
ZEDER	3,000	253	7,601.70	277	8,310.00	26.31	708.30	9.32
			30,685.77		31,434.80	99.54	749.03	2.44
			146.85		146.85	0.46
			30,832.62		31,581.65	100.0%		2.43

in other news the Cape Empowerment trust went up 3%, O how I which I had more capital to invest here.

Today’s Statistics
Last	300	Difference	10
Yest.Close	290	% Move	3.45
Low	290	Deals	48
High	300	Volume	524,391
		Value	1,552,197

If I find the time I will try to do a proper analysis on this share.

Investments on the Johannesburg stock exchange

Uranium/gold developer Simmers, at 1/3 the price

Source: Mineweb.com

Mr Market is battling to correctly price stock in uranium-gold hybrid Simmer & Jack. Author: Barry Sergeant
Posted: Wednesday , 06 Jun 2007

JOHANNESBURG –

Gordon Miller, CEO of Simmer & Jack (JSE: SIM, R7.10 a share), the hybrid uranium and gold developer, is a frustrated man. He is determined to show that the market is not pricing Simmers correctly, but acknowledges that hybrids such as those under his watch are relatively new, and, further, that the modern Simmers is a relatively new entity in any event.

The group’s assets are anything but new. Ezulwini (the key uranium asset, but also holding gold) and Buffels (gold, but also with uranium) are relatively near to Johannesburg. Ezulwini Mining Company was formerly No. 4 Shaft Randfontein Estates, and was bought from Harmony (HMY, R104.99). Buffelsfontein, comprising the Buffelsfontein and Hartebeestfontein mines, was bought from liquidators, and was formerly held by DRDGold (DRD, R6.16). Simmers also holds the historic Transvaal Gold Mining Estates (TGME), in Mpumalanga, to the north east of Johannesburg.

Simmers spun out its uranium interests last year and floated them on the Toronto Stock Exchange as First Uranium (TSX, FIU, C12.58 a share). Simmers still holds 67% of First Uranium, which boasts a market capitalization, or value, as a whole, of C$1.5bn. Companies are wont to overstate their investment case, especially in frothy commodity markets, but First Uranium’s total uranium resource (including inferred resources) positions the company as the holder of one of the world’s largest uranium resource bases.

Just as important, First Uranium is one of the few companies with the ability to bring uranium production on to the market in the near term. Over the next two years, First Uranium will re-open and develop the underground mine at Ezulwini, and construct a tailing recovery facility at the Buffels mine, in order to treat the uranium-rich gold tailings there. Indeed, reprocessing at Buffels is about to start.

At full production (2014-15), First Uranium is expected to produce around 500,000 ounces of gold and 3m pounds of uranium a year, at gold and uranium cash costs of around $265/oz and $21/lb, respectively, calculated on a co-product (rather than by-product) basis. Gold is currently trading around the $670/oz level, and spot uranium is quoted around $135 a pound.

Measured in US dollars, the prevailing market capitalization for Simmers is $1.04bn. Measured in the same currency, Simmers’s stake in First Uranium is worth $970m, meaning that the market values the rest of Simmers at just $78m. This is demonstrably off the mark by hundreds of millions, or even billions, of dollars.

The gold mining business, as such, at Buffels, remains in the Simmers stable. The most recent independently audited figures show that Buffels holds 13.7m gold ounces in resources, with 4.8m of these classified as reserves. These kind of numbers place Simmers in the Tier Two global gold producer category, alongside the likes of IAMGOLD (IAG, $7.55), Agnico-Eagle (AEM, $37.63), and Randgold Resources (GOLD, $24.05).

Miller, however, is more comfortable comparing Simmers with the likes of Johannesburg-listed Afgold (AFO, R3.37), Pamodzi Gold (R17.60) and Great Basin Gold (GBG, R19.00, also listed in Toronto, GBG, C$2.62).

Analysis of the Simmers’s global peer group shows that, after taking into account the stake in First Uranium, investors value gold reserves held by Simmers at $16 an ounce, against a sector average of $548 an ounce. Gold resources held by Simmers are valued at a paltry $6 an ounce, against a sector average of $271 an ounce.

If Simmers’s gold reserves were to be valued at the sector average, Simmers would be trading up around a market capitalistion of $2.6bn, excluding its stake in First Uranium. When that is added back, Simmers would be trading at a conceptual market capitalization of $3.6bn, rather than the actual $1.04bn now seen. On a per share basis, Simmers would be trading at around R24.50 a share, more than three times the prevailing R7 or so a share.

Simmers recently placed 53.7m new shares, at R6.50 a share raising R349m. Proceeds from the issue, which was more than six times oversubscribed, are to be used to re-open the high grade Five Shaft at Buffels, and accelerate the exploration and development of the heap leach potential at TGME. Miller says that Simmers is now cash flush, with around R400m in the bank. First Uranium has US$280m cash in the bank.

Good-sized portions of the cash balanced are being invested in strategic plans to lower cost bases. Miller points out that the transition phase will consolidate in 2008, and anticipates that investors will be more than pleased with the profits that start rolling in during 2009.

GLOBAL SECOND TIER GOLD PRODUCERS
	Market	Market	Market
	Value	Reserves/	Resources/
	$bn	ounce	ounce
IAMGOLD	$1.32	341	148
Centerra	$2.30	333	190
Eldorado	$2.11	311	229
Agnico-Eagle	$5.12	411	365
Randgold Resources	$1.66	308	118
Yamana	$5.37	790	392
Meridian	$2.69	697	336
Peter Hambro	$1.53	1522	586
Simmer & Jack	$1.04	218	76
Sector average	$2.57	548	271
Simmer & Jack*	$0.08	16	6
Simmer & Jack**	$2.63	548	271
* Excludes value of stake in First Uranium
** Value of gold business alone, at sector averages

Investments on the Johannesburg stock exchange

Simmers: Acquisition of Mine Waste Solutions

Click Here for full SENSE

This is sure to increase the stock price. I which I could have bought simmers when I made the recommendation. when I first mentioned it it was at 706, now 742 look at this:

SIMMERS

Today’s Statistics
Last	742	Difference	29
Yest.Close	713	% Move	4.07
Low	714	Deals	451
High	745	Volume	5,998,297
		Value	43,847,551

Volume	Bids	Offers	Volume
22,500	740	742	22,050
31,196	738	743	22,944
22,290	737	744	6,467
90,242	736	745	50,441
367,098	735	746	25,000

Investments on the Johannesburg stock exchange

It might only be 3 deals but Afdawn is up 4.17% t…

It might only be 3 deals but Afdawn is up 4.17% this morning, maybe the anticipated interest rate hike is doing it some good?….

AFDAWN

Today’s Statistics
Last	250	Difference	10
Yest.Close	240	% Move	4.17
Low	240	Deals	3
High	250	Volume	6,000
		Value	14,460

Volume	Bids	Offers	Volume
10,000	241	250	3,800
22,600	240	254	2,000
5,000	239	255	2,500
12,500	238	259	5,632
13,500	236	260	6,000

Investments on the Johannesburg stock exchange

Stock Report – My Share Portfolio

So here is my holdings at the end of the day. CMO down 5% today, ouch!!! I knew when I sold out of ABO and invested in CMO it was risky but if I get out now I have to pay R200 in transaction fees, I just have to let it sit there for a while. SOH reacted well to the good news, traded at a high of 800 today just after the SENSE.

				R SCHOLTZ
	Quantity	Cost		Current
		Price	Value	Price	Value	Perc (%)	Profit Loss	Return %
AFDAWN	1,400	230	3,225.92	240	3,360.00	10.76	134.08	4.16
CADIZ	600	547	3,282.06	520	3,120.00	9.99	-162.06	-4.94
CHROMETCO	2,200	112	2,462.01	95	2,090.00	6.69	-372.01	-15.11
GRINDROD	430	2337	10,049.31	2350	10,105.00	32.35	55.69	0.55
MERAFE	200	106	211.29	189	378.00	1.21	166.71	78.90
S.OCEAN	500	771	3,853.48	775	3,875.00	12.41	21.52	0.56
ZEDER	3,000	253	7,601.70	272	8,160.00	26.12	558.30	7.34
			30,685.77		31,088.00	99.53	402.23	1.31
			146.85		146.85	0.47
			30,832.62		31,234.85	100.0%		1.30

No Change in ZED, Cadiz also a bit down today, its back to previous levels. This share is going nowhere and I am getting a bit impatient. GND, my darling so to say is down only slightly after yesterday’s recovery.

					Daily Statistics
Share Name	Price	Yesterday	Diff	%	High	Low	Deals	Vol	Value
AFDAWN	240	238	2	0.84	245	238	30	251,904	604,570
CADIZ	520	525	-5	-0.95	521	520	8	35,633	185,292
CHROMETCO	95	100	-5	-5.00	100	95	31	385,995	370,555
GRINDROD	2350	2359	-9	-0.38	2370	2305	115	396,431	9,304,236
S.OCEAN	775	760	15	1.97	800	768	48	509,203	3,992,152
ZEDER	272	272	0	0.00	272	270	108	1,932,753	5,218,433

The Cape empowerment trust (CAE) cough my eye, I am considering selling out of most of CMO, CDZ, and maybe even SOH later to invest in this share. they have had a pronominal performance this year… just look at the graph

mmmm…. I which I had more cash

Here’s to a great tomorrow

Investments on the Johannesburg stock exchange

GVM Metals Limited

lots of SENS for GVM, the issue of new shares and options might bring prices down a bit, the change in directors interest I am not sure of.

GVM Metals Limited - New Issue Of 35 050 101 Shares

GVM - GVM Metals Limited - New Issue of 11 250 000 options

GVM - GVM Metals Limited - Change of Director s interest notice

Investments on the Johannesburg stock exchange

Technical Analysis Video

Interesting video on Technical analysis:

Click Here

Investments on the Johannesburg stock exchange

SOH – South Ocean – Cautionary announcement

South Ocean entered into negotiations that may have a material effect on the share price if Successful.

This might explain the steady rise in price that we have been seeing the last few days:

This was announced a few minutes ago and look at this 🙂

page

					Daily Statistics
Share Name	Price	Yesterday	Diff	%	High	Low	Deals	Vol	Value
S.OCEAN	800	760	40	5.26	800	768	20	96,722	745,727

This is the initial jump, will be interesting to see what happens during the rest of the day.

wish me luck

Investments on the Johannesburg stock exchange