In both cases, this amounted to a dividend yield (DY) of around 10% at the interim stage.
No share buybacks as Anglo American (JSE code: AGL) own a significant majority of the shares and likely want the dividend back at home.
The question is will other miners be as generous or will they do some share buybacks as well?
If commodity prices stay where they are, we'll see the same again in six months and into 2022?
If prices remain the same to the end of 2022 (big if?) we'll get a 40% return from just dividends?
This is what super profits look like.
/ New closing highs for S&P500 & Nasdaq. But Russel2000 is lagging.
/ Apple delays back to the office to October
/ Twitter and Snap - good results
/ China regulator bars Tencent from exclusive rights in online music
/ Big results due this week; Apple & Amazon. So far reported results have been very strong.
/ Rioting impact, retail about 8% of store space impacted. REITs bigger concern.
/ Local inflation drops
/ Anglo Americana and BHP production updates
/ City lodge sells East African assets
/ Cashbuild update
/ Distell update
Risk is good
I got an email from a listener asking about risk free investments on the JSE. Thing is, there is no risk free on the JSE - and that's a good thing.
Without risk there would be no reward.
When I am looking for investments, I always look for the good things about the business. Margins, growth, product and the like.
But I also dig into the risks, competition, input inflation and the like.
The thing is, I like to see risk, I just want risk that I think the company can manage and ultimately maybe even turn into a benefit. For example, new product is absolutely a risk. But what if they disrupt themselves and create a new product that hits sales of their existing product, but creates an entire new category.
Apple did this with the iPhone, killing off the iPod.
When researching into long-term 'til death do us part' investments
I create a short list of the three main features I like in a stock. But I also create a list of the three main risks and I keep a close eye on both lists.
/ US inflation, again above expectations
/ Delta airline results show travel returning
/ US bank earnings as previsions put back into the income statement
/ Netflix looking into gaming
/ QoQ China's GDP increased 1.3% in Q2, 7.9% YoY
/ Rioting impacts as listed companies report details
/ South African Special Risks Insurance Association (Sasria) will cover claims
/ Standard Bank taking out Liberty Holdings
/ Very strong Richemont update
/ Tongaat results
/ Steinhoff increases settlement offer
So the answer here is fairly simple, South Africa has an SOE that covers riot insurance - South African Special Risks Insurance Association (Sasria).
They repeatedly have clean audits (financials are here).
Assets under management is a little over R8billion.
But they have reinsurance.
Pretty much any property insurance you have will include a line item for Sasria and it is very cheap.
For corporates, it is a larger cost every month and the question is are corporates 10% insured or have they done some self insuring.
/ US ten year back at 1.36% after peaking at +1.72% in March
/ Jeff Bezos has stepped down as Amazon CEO
/ OPEC+ couldn’t reach an agreement
/ Fed minutes tell us nothing new, except inflation is higher/faster than they expected
/ US extends the economic blacklist of Chinese companies
/ China wants pre-IPO review of all new listings that have large user data
/ Imperial delisting offer at 6600c
/ Sibanye Stillwater bearish on palladium, bullish on platinum & rhodium
/ MultiChoice hit with R63billion tax bill in Nigeria
/ Nedbank WFH policy, 60% in office ie: 2 days WFH each week
/ Prosus shareholders approve share swap
Markets are as quiet as the street of Jozi, so this week a list of my favourite podcasts, the focus is offshore. I'll return and look at local in a few weeks.
/ US The unemployment rate edged up to 5.9% in June
/ US home prices rose by 14.6% in April, the largest gain in 30 year
/ S&P 500 closes green 7 days in a row, record is 8 days (US markets closed Monday)
/ RobinHood proposed listing ~ $40bn valuation
/ Didi Chuxing lists on NYSE, market cap $69bn & Chinese regulator blocks new accounts
/ Modest Q2 for JSE, TOP0 -1.2% (+11% YTD), Fini15 +6.8% in Q2
/ SARB turned 100 last Wednesday
/ May saw another +R50billion trade surplus tax receipts
/ Invicta results
/ AdaptIT shareholders vote for 700c Volaris delisting offer
/ Etion results. The story is they selling LAWTrust business for R245million when the market cap of the entire company is R22million. CEO says plans to return value and delist