PDSNET Market Snapshot

BHP is a world-wide commodities company with its headquarters in Melbourne, Australia. It processes minerals, oil and gas and it has 62000 employees, mostly in the Americas and Australia. It produces copper, iron, coal, oil, and gas. BHP owns 57,5% of the Escondida mine in Chile which is one of the world's largest copper producers and also produces some gold and silver.

It owns 33,75% of Antamina in Peru which produces copper and zInc. It owns 100% of Pampa Norte which produces copper cathode in the Atacama Desert in Northern Chile. It owns 50% of Samarco in Brazil which produces iron ore and a one third interest in Cerrejón in Colombia which produces coal from an open-cut coal mine.

It owns mineral rights in Saskatchewan in Canada which contains one of the world's largest unexploited potash deposits. In Australia, BHP owns Olympic Dam which is one of the world's largest copper, uranium, and gold ore bodies. It also owns Western Australia Iron Ore which is a system of five mines connected by more than 1000km of railway lines.

It owns Queensland Coal which comprises the Mitsubishi Alliance and Mitsui Coal. It also owns the Mt. Arthur open-pit coal mine in New South Wales. It owns Nickel West which is a nickel mine with smelters, concentrators, and a refinery. In the petroleum field it owns high quality resources in the Gulf of Mexico, Australia, Trinidad, and Tobago.

This is a diversified international mining company which is impacted directly by commodity prices and hence from any recovery in the world economy. In its results for the year to 31st December 2025 the company reported a 30% growth in copper production with copper now accounting for 51% of its earnings before interest, taxation, depreciation, and amortisation (EBITDA).

The company said, "BHP is the world’s largest copper producer and with strong performance at Escondida, and solid contributions from our other operations in Chile and South Australia, we have increased FY26 group copper guidance to 1.9 – 2.0 Mt. This is allowing us to maximise increased earnings from the recent run up in copper prices as well as gold".

In an operational update on the nine months to 31st March 2026 the company reported a "Strong operational performance in copper and iron ore. Our balance sheet remains strong, and in the last month we have realised ~US$4.8 bn by completing the Antamina silver streaming transaction".

In an update on the year to 30th June 2026 the company said, "For the second consecutive year, we produced around 2 Mt of copper and delivered record iron ore production, demonstrating the power of a disciplined operating system and world-class assets". The share was rising steadily since April 2025 and we added it to the Winning Shares List (WSL) on 5th December 2025 at a price of 50350c. It has since risen to 66903c (16-7-26) and we expect it to go further.

It remains vulnerable to commodity prices. On 18th March 2026 the company announced that Brandon Craig would succeed Mike Henry as BHP CEO on 1st July 2026. 

Cartrack was folded into a new international listing under the name Karoo (KRO) on 21st April 2021. It operates a vehicle recovery, insurance, telematics, and fleet management company operating in twenty-four countries around the world. It has a 92% recovery rate, which it claims is the best in the industry.

It has very rapid organic growth, having grown its subscriber base by 21% compound over the past six years. Approximately 96% of the company's turnover is annuity income. The founder, Zak Calisto, owns 68,5% of the Singapore firm called "Karooooo". Given its rapidly growing annuity income and its rand-hedge character, we regard this share as an ideal investment for private investors.

It is attracting strong institutional intereSt. The company has almost no working capital and its annuity income ensures that its overheads are already covered before it opens its doors at the beginning of each month. We suggest that you accumulate this share on any weakness. On 7th December 2020, the company announced that it would list the company on the NASDAQ with an inward listing on the JSE.

This enables the company to raise funds on the international market. On 12th February 2024 the company announced that it would be buying back up to 1 million of its own ordinary shares in the market. In its results for the year to 28th February 2026 the company reported subscription revenue up 18% and subscriber numbers up 16% to 2,66m.

Earnings per share (EPS) decreased 11% and operating profit was down 12%. The company said, "Cartrack's SaaS annualized recurring revenue ("ARR") increased 18% to ZAR5,179 million (Q4 2025: ZAR4,384 million). Karooooo Logistics's B2B delivery-as-a-service ("DaaS") revenue increased 32% to ZAR145 million (Q4 2025: ZAR110 million)".

In an update on the first quarter to 31st May 2026 the company reported Cartrack subscribers up 18% to 2,8m and subscription revenue up 19%. The company said, "Karooooo Logistics's B2B delivery-as-a-service ("DaaS") revenue accelerated to 46% reaching ZAR177 million (Q1 2026: ZAR121 million)". We continue to regard this as a "must have" investment for private investors and it should be bought on any weakness. 

Richemont (CFR) is the world's second-largest supplier of luxury goods controlled by the Rupert family in Stellenbosch. Its sales are entirely located overseas so it is an excellent rand-hedge. Its luxury brands include Mont Blanc, Cartier, Lancel, Jaeger-LeCoultre, Van Cleef and Piaget.

It has boosted online sales to 21% of turnover by acquiring Yoox-Net-A-Porter (YNAP), Watchfinder, a UK online group and entering into a joint venture with the online giant Alibaba, to develop apps to penetrate the Chinese market and offer its line of luxury goods. At the same time, its luxury goods are offered through Alibaba's Tmall Luxury Pavilion.

Richemont is a company which is directly linked to the recovery of the world economy following the pandemic. While the company sales clearly took a hit from COVID-19, we expect them to continue rising, especially now that it is aggressively offering its products online. This share is also impacted by the slowdown in the Chinese economy and the developments in Central and Eastern Europe.

It will benefit from the recovery in the world economy but will be impacted by changes in the strength of the rand. In its results for the year to 31st March 2026 the company reported sales up 11% and headline earnings per share (HEPS) down 3%. The company said, "Operating profit up by 1%, or by 23% at constant exchange rates, resulting in a 20.0% operating margin.

Continued strength at Jewellery Maisons with sales up by 8%, or up by 14% at constant exchange rates, delivering a 30.5% operating margin". In an update on the 3 months to 30th June 2026 the company reported group sales up 20%. The company said, "Strength across all regions led by local demand, with double-digit increases in the Americas, Asia Pacific, Japan and Europe at both constant and actual rates; return to growth in Middle East & Africa".

Richemont is clearly a rand hedge, but it is also dependent on the Chinese consumer. Technically, it is in a strong upward trend and was added to the Winning Shares List (WSL) on 9th January 2025 at 292438c. It has since reached 396600c (15-7-26), a new all-time record high. 

Previously known as "Go Life International" (GLI), Numeral is a company listed in Mauritius with a secondary listing on the JSE's Alt-X market. Its focus is in "nutraceuticals" which are products associated with alternative medicine. In other words, they are not pharmaceuticals directly, but claim to offer consumers health benefits.

The company was formed to acquire and exploit companies in South Africa which produce nutraceuticals. The company currently owns Go Life Health Products and Gotha Health Products. In their results for the year to 28th February 2026 the company reported revenue up 126% and headline earnings per share (HEPS) down 47%.

The company said, "It is noted that during the year under review, the issued share capital was consolidated on the basis of 1 share for every 10 shares in issue. Accordingly, the per share information for the prior year is presented on a consolidated basis". Numeral has continuously delayed the publication of their financials in the paSt. Until they can generate an increase the free float and tradability of their shares, we do not believe that they are a practical investment for private investors.

Northam (NPH) is a fully empowered platinum mining company which operates in the Bushveld complex. In the current difficult legislative environment where the 3rd mining charter is regarded as unfriendly from an investment point of view, Northam is probably the only mining house which is buying up new properties.

It has come to an arrangement with Anglo American to exploit a property adjacent to its Zondereinde mine (the deepest platinum mine in South Africa). It has also bought Eland Platinum from Glencore for R175m which it intends to re-start at a cost of R2bn. On 29th October 2019, the company announced the acquisition of Maroelabult for R20m which is west of the Eland mine with an analogous ore body.

This accelerated the bringing to production of Eland and required very little capital. With the Eland mine, Northam got a concentrator plant which can process up to 250 000 tons a month. In return, Glencore got the right to market all of Northam's chrome. Zondereinde is a deep-level mine which has all the problems associated with mining at depth, while Booysendal is a shallow mechanised mine which is much easier to manage.

Both mines are profitable, but the empowerment structure results in Northam always reporting a loss because of the preference dividend that must be paid. Once Booysendal is complete the company should generate strong cash flows. The appointment of Mcebisi Jonas (former South African Minister of Finance) and Jean Nel (previously CEO of Aquarius Platinum) as non-executive directors has significantly added to the strength of the board.

The company has the stated intention of doubling its workforce as it strives to become a major PGM supplier in the world. With plans to increase production of PGM's over the next few years to 1 million ounces, this is probably one of the better options in the industry. In its results for the six months to 31st December 2025 the company reported sales revenue up 60% and headline earnings per share (HEPS) up over 1000% at 1524c.

The company paid a dividend of R2,8bn or 700c per share. At the end of the period the company had R2,8bn in debt with R9,3bn in cash and cash-equivalents. In a production update for the year to 30th June 2026 the company reported record chrome concentrate production of 1,69m ounces and 4E metals sold of 1,087m ounces.

The company said, "Strong production growth was recorded at Eland, with marginal improvements at Zondereinde ahead of the commissioning of 3 shaft, and at Booysendal on the back of further productivity gains". The share has been in a downward trend since January 2026. It remains a volatile commodity share.