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Sefalana revenue up by 18%

In the face of ongoing challenging economic conditions and fluctuations in currency exchange, along with a general increase in the cost of borrowing over the last year, Sefalana group has recorded an 18 percent increase in its revenue for the half year ended 31 October 2015.

The group’s revenue was P1.8 billion up 18% on prior period whilst the group’s profit before tax was P80.4 million level with the prior period. Earnings before interest, tax and amortisation was P78.9 million up 3% on prior period.

“We are pleased to report that, despite ongoing challenging economic conditions and fluctuations in currency exchange, along with a general increase in the cost of borrowing over the last year, coupled with continued pressure on consumer and Government spending, Sefalana has remained competitive, achieving an overall profit before tax of P80.4 million for the 6 month period to 31 October 2015,” said Chandra Chauhan the Group Managing Director.

The Group predominantly did well in its core segments, being the Fast Moving Consumer Goods (“FMCG”) businesses in both Botswana and Namibia. “This strong performance was offset somewhat by performance below expectation from the Manufacturing segment,” he stated.

The group remains positive about its future and expects to grow the business through continued focus on its core FMCG and related business segments.

Looking ahead the online shopping site which is currently only available in Gaborone will be rolled out to other areas of the country and a loyalty program is due to be launched by mid 2016.

“Emphasis will remain on the manufacturing entities and will aim to maximise value along the value chain. We see a lot of potential in this area and look forward to growing this side of the business,” said Chauhan.

Additionally, Chauhan said Sefalana is also looking at potential property investments in Namibia to support its planned growth in the country, and aim to maximise return for its shareholders.

As per the results statement, the Botswana operations contributed 58% of the Group’s revenue and profit before tax for the reporting period, respectively. Turnover amounted to just over P1.2 billion which was 13% up on the prior period. Profit before tax amounted to P46.3 million which was 28% up on the prior period.

Metro Namibia contributed 28% and 17% of the Group’s revenue and profit before tax for the reporting period, respectively. Turnover amounted to just over P0.5 billion which was 69% up on the prior period. Profit before tax amounted to P13.3 million which was 81% up on the prior period.

Sefalana highlighted that part of this increase was however due to 6 months of trading in the current period compared to only 4 months in the comparative period.
During the period under review Sefalana purchased the building that previously housed the Golden Fruit, juice business in Ramotswa. This is seen as a prime location for a large cash and carry for the customers in the area. The group also purchased the Delta Dairies property in Broadhurst where its newly acquired milk plant is located.

Chauhan said the group will continue to focus on growing its Botswana portfolio which is currently worth around P0.5 billion.

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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