Jacques Magliolo
Newly acquired Billiton International made its debut in mining and financial giant Gencor’s first interim results. And, what an impressive start to its association it was.
Billiton’s turnover, excluding associates and investments, amounted to US$1 074-million (R3 802- million) for the six months to end-December.
Profit from operating companies (after depreciation) amounted to $104-million (R368-million).
This was derived mostly from the aluminium and alumina operations, with significant contributions from the copper and zinc operations in Canada and the group’s metal and mineral marketing and brokerage operations.
Billiton’s total debt at the interim stage amounted to $470-million
(R1 664-million), which translated into finance charges of $25-million (R88,5-million). However, when reflected as a whole, Billiton’s debt does not affect the strength of Gencor’s balance sheet with assets valued at more than R19-billion.
Gencor’s half-yearly review shows that group operations grew by nearly 50 percent to R422-million, which reflects the long-awaited improvement in commodity markets.
Markets reacted well to Gencor’s initiatives in concluding offshore ventures and restructuring the group itself. During these six months, the group’s share price climbed by 39 percent and outperformed the JSE All Share Index by 28 percent and its sector index by 25 percent.