The Daily Update: 4 April

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

South Africa

Glencore PLC

• Glencore has submitted a proposal to Teck Resources to merge the two companies and simultaneously demerge their combined metals and coal businesses.
• The proposed transaction would create two standalone companies - MetalsCo and CoalCo.
• MetalsCo would be a base metals business with a diversified portfolio and a leading position in the critical minerals required for the energy transition, while CoalCo would be a cash-generative coal and carbon steel materials business.
• The combination exchange ratio proposed by Glencore is 7.78 Glencore shares per Teck B share.
• At this proposed ratio, Glencore and Teck shareholders would own approximately 76% and 24% of the merged entities, respectively.
• The proposed merger would create significant value for both Teck and Glencore shareholders, with an estimated post-tax synergy value of $4.25-5.25 billion.

Pick n Pay Limited- Voluntary Earnings Update for the 52 weeks ended 26 February 2023

• Pick n Pay expect to report resilient earnings despite the difficult trading environment due to load shedding and diesel expenditure.
• The Group has contained the earnings impact through constant underlying gross profit margin and tight control of trading expenses.
• EPS is expected to fall by between 0% and 6% to between 238.14 cents and 253.34 cents per share.

Shoprite Holdings Limited

• Shoprite ordinary shares will be traded on A2X with effect from Tuesday 11 April 2023.

Anglo American PLC

• Anglo American has signed a memorandum of understanding with H2 Green Steel to advance low carbon steelmaking.
• The agreement includes studying and trialling the use of premium quality iron ore products from Anglo Americans Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2 Green Steels direct reduced iron (DRI) production process at its Boden plant in Sweden.
• The goal is to explore ways for premium, responsibly produced iron ore to be used as feedstock in the Boden plants low carbon production process, paving the way to a cleaner, greener way to produce steel.

Renergen Limited- Quarterly Update

• Geological surveys indicate larger reservoirs than anticipated.
• Completion of Phase 2 funding due diligence with US DFC and Standard Bank.
• Construction and commissioning of 8.5km 33kV overhead power line and corresponding substation grid connection completed.
• Construction and commissioning of gas gathering pipeline, including 60km HDPE pipeline, 16 well head connections, and two booster compressor stations, is complete.
• The balance of plant contract has two components, the Internal battery limit (IBL) and the Outside battery limit (OBL), with IBL completed and OBL forecast to be completed within the next quarterly reporting period.
• LNG/Lhe processing plant has progressed in two stages, with the LNG system and helium system now complete.
• Construction of downstream dispensing infrastructure for two customers completed.
• Phase 2 expansion includes drilling of additional gas wells, construction of additional gas gathering pipelines, and construction of a larger processing and liquefaction facility, with completion of pre-feasibility, feasibility, and front-end engineering and design already achieved.

The U.S.

Twitter

• Elon Musk added the Doge Coin logo to Twitter.

Google

• Google workers in London staged a walk out in protest of job cuts.