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ACL
HAR
LON

Am I reading the Net Asset value's right?

Seven of Harmony’s 12 mines are losing money and it will gradually close three of its largest if cost cuts don’t make them profitable by year-end, Briggs said.

The industry is stuck in a “time warp”, said Bruce Williamson, a former mine engineer who helps manage R2bn at Imara Asset Management in Johannesburg. “Every time they tried to innovate, it would prove too difficult and too costly so they fell back on the low-cost, low-skill model.”

The problem is that low-cost mining is getting more expensive. Remuneration costs jumped 60% in the seven years to 2014 even as the number of employees dropped 30%, according to the Chamber of Mines.

The two largest unions have rejected an offer to raise basic pay from about R6 000 a month and the National Union of Mineworkers (NUM) has declared a dispute. A mediation process will start on September 14 and the NUM has said it can’t rule out a strike.

Without an agreement, South Africa’s gold industry will continue its decline, according to AngloGold’s Venkatakrishnan.

“What you’ll see is companies cutting short the life of mines,” he said

Glencore Plc fell to a record low as Goldman Sachs Group Inc. said the company’s recent steps to reduce debt and bolster its balance sheet are inadequate.
"Investors are not yet convinced that Glencore has gone far enough to totally allay fears that the industrial assets can service the new lower debt level," Goldman Sachs analysts including Eugene King, said in a report Thursday. "Recent underperformance suggests that the measures exercised are insufficient and more is needed."
Glencore dropped for the fifth time in six days. The shares fell 9.6 percent to close at 98.61 pence in London, the lowest since the company’s $10 billion initial public offering in 2011.
Dividend Cut
Shares of the miner and commodity trader run by billionaire Ivan Glasenberg have plunged 67 percent this year as sliding commodity prices reduced earnings and forced the company to scrap its dividend and sell new stock. Glencore announced a $10 billion debt-reduction program earlier this month to strengthen its balance sheet as China’s economic slowdown deepens.
Goldman Sachs lowered its share-price target on Glencore to 130 pence from 170 pence. The rating remains "neutral" and the bank expects continued volatility.
Should commodity prices fall another 5 percent, the metrics needed to maintain the company’s credit rating would be out of the required range, Goldman Sachs estimated. Goldman Sachs also lowered its profit estimates for Glencore, citing lower thermal and metallurgical coal forecasts. Earnings will be 9 cents a share in 2016, the bank said, down from an earlier 20-cent forecast.
In a separate report, the bank said the bear market in copper will persist for years. It reiterated a call for prices to fall to $4,800 a metric ton by the end of the year. The metal was little changed at $5,054 on the London Metal Exchange on Thursday

Re-Cap

NPN - 

OCE - 

AVL - 

Radar on/off : -

LON Up 57 % - 7 days - High 52 weeks R34.00
GLN Up 53 % - 7 days - High 52 weeks R58.00
SGL Up 36 % - 7 days - High 52 weeks R32.00
AQP Up 65 % - 7 days - Down  94 % - 5 years

Update : -

OCE - 
NPN - 
AVL - 

Bump

AVL : PE 76

24 Feb 2016   Next Interim Results   
1 Sep 2016   Next Final Results      

OCE : PE 19

6 Nov 2015   Next Final Results
26 May 2016   Next Interim Results

NPN : PE 105

25 Nov 2015   Next Interim Results   
29 Jun 2016   Next Final Results

Update / refresh

NPN -

Close 2 it's 52 week high
PE - 108
Forward PE - 44
NAV - R195

OCE -

Close 2 it's 52 week high
PE - 19
Forward PE - 18
NAV - R16

AVL -

Frikkin Close 2 it's 52 week high
PE - 76
Forward PE - Not available
NAV - R1

Venezuela, whose currency has lost 87 percent of its value on the black market in the past year, is urging fellow OPEC members to reverse course and curb production to support prices. Eulogio Del Pino, the nation’s oil minister, will “present evidence” at talks between OPEC and non-members on Wednesday that a price of $88 a barrel is needed to ensure investment in supply, President Nicolas Maduro said on state television.

Iran agrees that OPEC ought to reduce output to engineer a price recovery to $70, but it’s doubtful the group will enact any measures to do this, the nation’s Oil Minister Bijan Namdar Zanganeh said Oct. 19. The Persian Gulf nation is planning to boost its own output by 1 million barrels a day next year if international sanctions are lifted.

Faltering U.S. supplies show the Saudi-led strategy is paying off, said Societe Generale’s Wittner. “If there are folks in the oil market who expect this is going to end with a new game plan, they’re going to be very disappointed,” he said.