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REFLEX ECO GROUP news list (July 22, 2014 at 10:50 am) –
• Kumba First-Half Profit Falls 16% as Iron-Ore Prices Slump
Kumba Iron Ore Ltd. (KIO), the Anglo American Plc unit that owns Africa’s largest mine for the steelmaking ingredient, said first-half profit fell 16 percent after prices of the mineral dropped. Profit excluding one-time items declined to 6.5 billion rand ($613 million), or 20.28 rand a share, in the six months ended June 30 from 7.8 billion rand or 24.13 rand a share a year earlier, the Pretoria-based company said in a statement today. Iron-ore output increased 5 percent to 22.8 million metric tons, it said.
Kumba declared a dividend of 15.61 rand a share. Iron-ore producers, including Rio Tinto Group and BHP Billiton Ltd., are expanding supply, betting the increase will more than offset declining prices, which fell to the lowest since September 2012 last month. Kumba plans to almost double production by 2030, with new sites in western and central Africa potentially accounting for more than 20 percent of volumes. “Iron-ore prices are expected to remain at current levels in the third quarter,” Kumba said. “Restocking by steel mills and a slowdown in Chinese domestic iron-ore production in
Gold Falls in London as Fed Outlook Curbs Investor Demand
Gold fell in London as expectations for higher U.S. interest rates and a stronger dollar countered haven demand amid tension in Ukraine and Gaza. The dollar was near a four-week high against a basket of 10 major currencies before data may show today that U.S. inflation held at the fastest pace since October 2012, supporting the case for the Federal Reserve to tighten monetary policy. Gold slid 28 percent last year on expectations the central bank will scale back stimulus as the economy improves.
Unrest in the Middle East and Ukraine helped prices rebound 8.7 percent this year. U.S. and European leaders pressed their message that Russian President Vladimir Putin risks isolating himself on the world stage after a Malaysian passenger jet was downed over Ukraine by a missile believed to be supplied by his country. U.S. Secretary of State John Kerry held talks with Egyptian officials on crafting a truce to end Gaza Strip fighting, as the conflict enters a third week.
Ghana to issue 400 million-cedi 3-yr domestic bond on July 31
The Bank of Ghana will issue a 400 million-cedi ($117 million) three-year domestic bond on July 31 to support the government’s budget, head of the treasury Yao Abalo said on Monday. The auction, which is open to foreign investors, is the first of two domestic bonds planned for the second half of 2014.
“It is a new issue to support government finances,” Abalo said, adding that another transaction of the same maturity and value will be issued in October to roll over maturing debts. A similar auction held in May attracted a yield of 24.44 pct, and analysts forecast the new issue could attract between 23 percent and 25 percent.
Yields on Ghana’s government debt have risen above the average in sub-Saharan Africa since January, reflecting the government’s battle to bring down a stubbornly high budget deficit and widening debt, while the local cedi currency has slumped around 30 percent. The yield on Bank of Ghana’s 91-day bill rose to a fresh three-year high of 24.8385 percent at the weekly auction last Friday, from 24.3109 percent previously.
SOURCE: AFRICAN MARKETS