Business Briefs - 07 July 2008

Mon, 07 Jul 2008 09:32



SHOPRITE

Retail group Shoprite Group increased it's total turnover by 22,3% for the 12 months to ended in June 2008 to about R47.7 billion. The South African supermarket division, which is the core operation of the group, increased sales by 21,8%. The dominant brand, Shoprite, grew turnover by 25%, while Checkers contributed 15.6%. Operations outside of South Africa increased turnover by 38.2% from the previous year. The group attributes it's success to its strategic decision to cut margins on basic food stuffs to alleviate the impact of high food price increases on consumers.

RANDGOLD

Randgold Resources sees production to be at 600,000 ounces by 2011 up from just under 445,000 ounces. CE Mark Bristow said at a media briefing earlier today that output will be boosted through organic growth and acquisitions. He also said that the firm won't produce base metals.

MTN

South African mobile phone operator MTN and India's Reliance Communications may continue their tie-up talks beyond Tuesday's deadline. That report out in the Wall Street Journal yesterday. MTN and Reliance agreed in May to 45 days of exclusive negotiations to create a global 10 telecoms company, however the companies may extend the talks by a few more weeks. An extension would give Reliance Communications' chairman Anil Ambani some time to try to resolve a claim of right of first refusal on the telecom's shares by his estranged brother Mukesh, who runs Reliance Industries India's largest company.

LONMIN

Lonmin the world's third biggest platinum producer could lose as much as 10,000 ounces of refined platinum sales this year. This after it temporarily shut down a furnace for repairs. Lonmin has already cut its sales target twice for the year to end-September due to operational problems and because of a power crisis in South Africa. The firm has faced a string of problems with maintenance that has cost them millions of dollars.

RESERVES

The South African Reserve Bank's net gold and foreign exchange reserves rose by $532 million to $33.762 billion dollars at the end of June. Analysts say that almost half of the rise in the gross reserve was due to the gold reserve. They say this confirms that in the last few months reserves have risen by a slower pace compared to the last half of the year. The Reserve Bank has said it will continue to build its reserves by buying foreign exchange but will strive to avoid affecting the value of the rand.

G8 - JAPAN

Africa took centre stage at the G8 Summit which kicked off in Japan today. The G8 invited seven African leaders, to join the opening day of its annual summit. Climate change, record oil-prices and a deteriorating global economy, will also be at the top of the agenda. But the U.S. President George W. Bush says he wants to hold fellow leaders accountable, for their African aid pledges. At its 2005 summit in Gleneagles, the G8 agreed to double-aid to Africa by the year 2010, but a report by the Africa Progress Panel, says that the G8 will fall $40 billion short of its target, that's if it doesn't change its current spending plans.