Here’s some good news. The R140bn budget surplus recently announced by the SA Revenue Service – driven by profits from mineral exports – is a sector-specific elevated contribution that is likely to continue for years to come. By the time you’re reading this, Anglo American will have reported its interim financial results. Yes, you may burr: they were stellar.
As for the inevitable bad news? Well, apart from natural market corrections that are bound to occur, there isn’t much doom-mongering to be done about mining. Rather, the challenge for investors is whether they can make the best of the industry’s prosperity. The fact is: it’s summertime for mining, and that scent on the air is the blossom of fortune pumped out by the millions of electric vehicles (EVs) everyone will buy.
Every EV needs a battery, and every battery needs a host of different metals, depending on its science. According to the International Energy Agency’s (IEA’s) Global EV Outlook 2021 report, worldwide registrations of EVs grew 41% in 2020, when total car sales dropped 16%. Sales of EVs in Europe surpassed China for the first time. The main reasons for the popularity of EVs are supportive policies, driven by carbon emissions concerns; additional incentives; and a wider range of brand choice with falling battery prices.
The IEA predicts there will be 145m EVs (in all forms except two-wheelers) by 2030, equivalent to 7% of the total road fleet. In a scenario where governments step up incentives, the global EV fleet could be 230m by 2030, which could cut greenhouse gas (GHG) emissions from vehicles by two-thirds.
Bu hikaye Finweek English dergisinin 6 August 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 6 August 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
