Busy Tuesday for JSE watchers
BHP starts the big miner results week, followed by Glencore on Wednesday and Anglo American on Thursday
In a busy week for mining results, Tuesday started with BHP releasing its interim results in Australia ahead of the JSE’s opening.
BHP will be followed on Wednesday by Glencore, and then Anglo American on Thursday. All the big miners are expected to report bumper profits, boosted by a rally in iron ore and other commodities.
BHP, with a market capitalisation of R691bn at Monday’s closing price of R327.29, is the top 40 index’s second-largest constituent, behind Naspers.
Although BHP is smaller than Glencore, which has a market cap of R809bn at Monday’s R55.47 closing price, Glencore is excluded from the top 40 index because it is deemed to be a foreign company by SA’s pension fund laws.
Anglo American, which once dominated the top 40, has slipped to fourth place, with a market cap of R499bn at Monday’s R355.05 closing price.
Anglo American subsidiary Kumba Iron Ore said on January 24 that it expected to report on Tuesday that headline earnings per share (HEPS) for its 2018 financial year would be flat, while basic earnings per share would fall by about 24% after accounting for an impairment reversal in its 2017 financial year results.
AngloGold Ashanti — which was historically part of the Anglo family before it divested from gold mining — said on February 4 that it expected its HEPS to be up to nine times the $0.06 it reported in 2017.
AngloGold expects to report basic earnings per share of about $0.30 from the previous year’s $0.46 loss per share.
Reasons for the leap in AngloGold’s earnings included that its 2017 included a $46m provision for silicosis class action claims.
Besides miners, Tuesday is generally a busy day on the JSE-listed companies results front.
Comair warned shareholders on January 30 that it expected to report its interim HEPS declined by about 40% in the six months to end-December from the matching period in 2017.
This was mainly due to the price of jet fuel rising 35% during the reporting period.
Other companies diarised to release results on Tuesday include Liberty Two Degrees, Jasco and Rolfes.
Asian markets pointed to another day of gains for the JSE following Monday’s 1.16% rise.
The rand was trading at R14.15/$, R15.98/€ and R18.24/£ at 6.30am.