News24 Business | Business brief | Gemfields get estimate on Mozambique gold; SPAR slips amid sales miss

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In a slower day for corporate news, SPAR slipped after it warned of lower profits and weaker-than-expected volumes, while precious stones miner Gemfields says its exploration project in northern Mozambique has an inferred resource estimate of over 100 000 ounces of gold. In international news, the International Energy Agency expects the global investment in clean energy technology and infrastructure to hit $2 trillion (R38 trillion) this year, twice that of fossil fuels.

Ruby and emerald miner Gemfields said on Thursday said the maiden mineral resource estimate for its gold exploration project in Cabo Delgado, northern Mozambique, infers 103 000 ounces of the precious metal at a grade of 2.02 gram per tonnes. The project is housed in Nairoto, a joint venture between Gemfields (75%) and Mwiriti Lda (25%), the group’s existing partner in Montepuez Ruby Mine. “Given we have yet to drill deeper in order to understand the depth extension, these results are a good first step as we continue our exploration to better understand both [the resource] and our other target areas,” said Kartikeya Parikshya, Gemfields’ MD for Mozambique in a statement. “It is worth raising that our gold project remains outside of our core focus of responsibly mining and marketing coloured gemstones. Gold mining is not part of Gemfields’ long-term strategy, and we will, in due course, once we have further understood the resource, look for a purchaser or suitable partner for the project.” Shares in Gemfields, valued at about R3.5 billion on the JSE, rose marginally on Thursday and have fallen by a fifth in the past year.

Retail group SPAR on Thursday flagged a between 3% and 13% decline in continuing headline earnings per share (Heps) for its six months to end-March, saying in a brief trading statement that while operating costs have been well managed, cost increases for the slightly exceeded lower-than-expected turnover growth. It also took hits from the ongoing IT system issues at its KwaZulu-Natal distribution centre, as well as from prolonged high interest rates that have caused a significant increase in net finance costs. Total Heps, including a Polish business it is looking to sell, is expected to decline by between 2% and 12%. Shares in SPAR were down about 3% at the JSE’s close and have lost about 18% so far in 2024. They are, however, down only marginally on a one-year basis.

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