The Daily Update: 12 June

The latest updates from the JSE and NYSE over the past 24 hours.

South Africa

Vukile Property Fund Limited- Results for the year ended 31 March 2023

• 89% of group interest-bearing debt hedged.
• No debt maturities in Castellana until FY26.
• Interest cover ratio (ICR) of 3.1 times and LTV reduced to 42.6%.
• GCR upgraded Vukile's corporate long-term credit rating to AA(ZA).
• Strong liquidity with cash and undrawn debt facilities.
• R700 million equity raise post-year-end.
• Sale of direct property assets in South Africa, realizing R309 million.
• Further sale of Fairvest shares, realizing R50.8 million.
• Acquired a 33% investment in ALT Capital Partners and a 15% investment in REimagine Social Impact Retail Fund.
• Acquired 50% undivided share in BT Ngebs City (R400 million).
• Gross property revenue increased by 3.1%.
• Operating profit before finance costs increased by 6.1%.

Thungela Resources Limited- Chief Financial Officers Pre-Close and Trading Statement for the six-months ending 30 June 2023

• EPS and HEPS for H1 2023 are expected to be lower compared to H1 2022, with a decrease ranging from 66% to 75%.
• Thungela Resources expects to deliver positive cash generation for the six-month period ending 30 June 2023, despite a decline in coal prices and rail underperformance.
• Seaborne coal prices have fallen sharply due to milder winter in Europe, softer gas prices, and increased coal supply to Asia. However, LNG prices are starting to stabilize, which may make coal more competitive as a fuel source towards the end of the year.
• Transnet Freight Rail's performance has stabilized at approximately 48Mtpa for the industry, but two derailments in May resulted in the loss of approximately 300kt in railed volumes for Thungela. They require an industry run rate of 53Mtpa in the years second half to achieve the upper end of their export saleable production guidance.
• Capital expenditure for H1 2023 is expected to be R0.7 billion, consisting of sustaining and expansionary capital. The Group had a net cash position of R14.0 billion as of 31 May 2023.
• Thungela continues to advance its strategic priorities, including the Zibulo North Shaft life extension project and the Ensham acquisition.
• Thungela remains committed to its dividend policy and aims to target a minimum payout of 30% of adjusted operating free cash flow.

Alexander Forbes Group Holdings Limited-Results for the year ended 31 March 2023 and final cash dividend declaration.

• Operating income increased by 8% to R3 478 million, with significant growth from retirement consulting and healthcare businesses.
• Operating expenses also increased by 8% due to capacity growth and inflationary pressure in the market, including expenses from fully consolidated acquisitions.
• Profit from operations (before non-trading and capital items) increased by 9% to R786 million.
• Basic EPS grew by 45% to 57.1 cents per share.
• The group has a robust balance sheet, with a regulatory surplus of R1 516 million and available cash of R933 million.
• Assets under administration and assets under management increased by 4% year on year to R454 billion.
• The company declared a final gross cash dividend of 27 cents per ordinary share, representing a 35% increase compared to the previous year.

The U.S.

George Soros

• George Soros is passing his $25B empire onto his son.

Stocks

• The top 10 largest stocks in the world are now worth a combined $13.96 Trillion.

Tesla

• Tesla has secured a new 210 000-square-foot location in Fremont, California, to expand its 4680 battery cell production.

UBS 

• UBS has announced it has officially completed its acquisition of Credit Suisse.