(Nigel Jarred/Getty Images)
In a slow day for corporate news, SPAR fell after warning of lower profits and lower-than-expected trading volumes, while precious stones miner Gemfields announced estimated reserves of more than 100,000 ounces of gold at an exploration project in northern Mozambique. In international news, the International Energy Agency expects global investment in clean energy technologies and infrastructure to reach $2 trillion (R38 trillion) this year, double that of fossil fuels.
Ruby and emerald miner Gemfields The company announced on Thursday that a maiden mineral resource estimate for its gold exploration project in Cabo Delgado, northern Mozambique, is estimated to hold 103,000 ounces of precious metal at a grade of 2.02 grams per tonne. The project is being carried out by Niloto, a joint venture between Gemfields (75%) and Mwiriti Lda (25%), an existing partner in the Montepuez ruby mine. “Given that we still need to drill deeper to understand the depth extension, these results are a good first step towards continuing exploration to better understand both the deposit and the vein,” said Gemfields CEO and CEO, Mwiriti Lda. [the resource] “It is worth pointing out that our gold projects are outside our core focus of responsibly mining and selling coloured gemstones,” Gemfields' managing director for Mozambique, Kartikeya Pariksha, said in a statement. “Gold mining is not part of Gemfields' long-term strategy and we will seek a buyer or suitable partner for the project once we understand more about the resource.”Gemfields' shares, valued at about R3.5 billion on the JSE, were up slightly on Thursday and have fallen by a fifth over the past year.
Retail group SPAR The company warned on Thursday that headline earnings per share (Heps) would continue to fall by 3-13% for the six months to the end of March, saying in a brief trading statement that operating costs were well managed but the increase was due to slightly higher than expected sales growth. The company was also affected by ongoing IT system issues at its distribution centre in KwaZulu-Natal and a prolonged period of high interest rates which caused a significant increase in net finance costs. Total Heps, which includes the Polish business it is considering selling, is expected to decline by 2-12%. SPAR shares were down about 3% at close on the JSE and have fallen about 18% so far in 2024. But over the course of the year, the decline is only modest.
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