Sasol has emerged into the light

Tuesday 10 August 2021

Good morning Voornaam,

Some investments work and some really don't. My position in AngloGold is one such example. It's now the worst-performing company within my gold basket, which is really saying something as the entire basket has been pretty rotten this year.
Those who have held Jubilee Metals in recent times have a totally different facial expression to mine. They can barely wipe the smiles off their faces, as the little mining company's share price is nearly 4.8x higher than it was at the start of 2020. The company isn't so little anymore either, with a market cap above R8bn.
The tailings business reported a 176% increase in operational earnings in FY21. When things in the mining and resources industry go well, they go really well.
As well as Jubilee has done, there's no greater example of a recovery story than Sasol. The company's FY21 result is the lead story this morning, as investors look back on the mountain that the company has climbed in the past 18 months or so.
I've also written on the AngloGold result, much as it pains me to do so. The company has bitterly disappointed its shareholders and the share price got hit harder than the punishment dished out by the Boks on the British and Irish Lions.
The final company news story this morning goes to ABSA and Standard Bank. Both banks have released updated trading statements for the period ended June 2021. ABSA has managed to recover to 2019 levels, which is much more than Standard Bank or Nedbank can say at the moment (the latter released an update earlier last week).
The latest episode of Magic Markets is a great example of how to analyse a new ETF product. I was openly critical of the Satrix Inclusion and Diversity ETF in a previous episode and Satrix responded by asking their portfolio manager to join us on the show. Full credit to them for being willing to do this! Together with my co-host Mohammed Nalla, we asked the tough questions in an unscripted show that was not sponsored by Satrix. It's well worth your time and you'll find the link below.
Chris Gilmour also gives his update on the global political and economic news that you need to know about, along with a view on the week ahead.
It's a short week but it's going to be action-packed in the markets. Good luck out there!
The Finance Ghost

Local and Offshore Market News

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