WEDNESDAY, 11.00AM
AS the gold quarterly reporting season continues, both Avgold and Johannesburg Consolidated Investments on Tuesday reported poor results for the June quarter, as mines struggle with the falling bullion price, poor margins and labour troubles.
Avgold group’s gold mines reported a R1,1-milion taxed loss, from a R1-million profit in the March quarter, while JCI’s gold mines aggregate profit over the quarter was R2-million, from a R23-million profit the previous quarter.
BUSINESS BRIEFS
ERWIN TO JAPAN
A SOUTH AFRICAN trade delegation led by Trade and Industry Minister Alec Erwin will visit Japan and South Korea in October to attract Asian investment, in particular in the motor car, chemical, iron and steel, and electronics sectors.
ESKOM UNIT TRUSTS
The financial services group, Coronation has teamed up with electricity parastatal Eskom, to launch a unit trust aimed at small investors, to begin on Friday. The new trust, Coronation Specialist Bond Fund, will be 80 percent invested in Eskom bonds, and the remaining 20 percent in government securities. The trust offers an alternate source of funding for Eskom and is ideal for high-volume, small transaction business. Participants must invest a minimum lump sum of R10 000 or monthly investments of R1 000.
BLACK STAKE FOR HORSERACING HORSERACING in Gauteng is to be restructured under a new company, Raceco, in which black empowerment groups will be oiffered a 22,5% stake prior to the company’s listing on the JSE. Raceco will be 30% held by the Racing Trust, with strategic investors and management holding 20% and 15% to be offered to the general public, 10% to the racing public and 2,5% to employees. As well as operating horseracing in the province, Raceco will also apply for casino gambling licences.
FARMWORKERS TO STRIKE ABOUT 4 500 workers of the SA Agricultural and Plantation Workers’ Union will embark on rolling mass action next week following the breakdown of wage talks at Pretoria’s Agricultural Research Council. Workers are demanding 1 14% increase and a minimum wage of R1 583 a month. The council said the demands are unreasonable.