Sasol Limited reports developments tied to its global chemicals and energy operations, including integrated production in Southern Africa and its International Chemicals business. Recurring updates cover operating and financial results, production performance at Secunda Operations, coal quality, gas and condensate logistics, cost and capital spending discipline, and product supply across energy and chemical value chains.
Company news also includes capital-structure actions by Sasol Financing USA LLC, including cash tender offers and senior note activity, as well as shareholder voting matters, board changes, governance updates, safety performance, and business outlook disclosures.
Sandstorm Gold Ltd. (SAND, SSL) announced its Q4 and FY 2020 results, reporting a record revenue of $29.7 million for Q4 and $93.0 million for the year, up from $24.0 million and $89.4 million in the previous year. Net income rose to $10.5 million in Q4, despite a decrease in attributable gold equivalent ounces sold, totaling 15,795 in Q4 and 52,176 for the year. The company maintained a strong balance sheet with over $110 million in cash. Future projections indicate estimated attributable gold equivalent ounces sold will range between 52,000 and 62,000 for 2021.
Sasol has partnered with GrnCat to recover wax from spent catalysts, achieving a remarkable reduction in waste by 50%. Since 2018, over 6,000 tons of clean wax have been reclaimed, supporting sustainable development goals. This initiative created 30 new jobs, contributing to local economic growth. GrnCat has enhanced its capacity to 400 tons per month, showcasing continuous process optimization. Sasol emphasizes its commitment to SDG12, promoting responsible production and consumption, and underlining the environmental and economic benefits of this collaboration.
Sasol and GrnCat have partnered to recover wax from spent catalysts, promoting responsible production and consumption. Since its 2018 commissioning, over 6,000 tons of clean wax have been reused, reducing waste volumes by up to 50%. This initiative has also created 30 new jobs. GrnCat has optimized its processes, increasing capacity by 60% to 400 tons per month. Sasol prioritizes Sustainable Development Goals, particularly SDG12, to ensure sustainability in their operations. The collaboration exemplifies a commitment to continuous improvement and community support.
Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL) will release its fourth quarter and annual results for 2020 on February 11, 2021, after market close. A conference call will follow on February 12, 2021, at 8:30 AM PST for further discussion on the results. Interested participants can join via dial-in or webcast. Sandstorm is a gold royalty company that provides financing to gold mining firms in exchange for a percentage of gold produced. It holds a portfolio of 201 royalties, with 24 mines currently producing.
Sasol is poised to report robust results for the six months ending December 31, 2020, significantly bolstered by effective management of cash costs, working capital, and capital expenditures, despite challenges from the COVID-19 pandemic and declining crude oil prices. Key metrics include an expected earnings per share rise to between R22.76 and R24.07, and headline earnings per share anticipated to reach R18.59 to R19.78, both indicating over 100% growth from the prior year. However, adjusted EBITDA could decline by 0% to 10% due to reduced sales volumes and pressure on gross margins.
Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL) provides an update on its royalty portfolio, highlighting key developments. Lundin Gold plans a 20% throughput expansion at Fruta del Norte, with 2021 gold production guidance of 380,000 to 420,000 ounces. Equinox Gold released positive drill results from the Aurizona mine, planning a $7.3 million exploration program for 2021. Endeavour Mining expects to produce 2.3 million ounces at Houndé through 2031. Sandstorm holds significant NSR royalties on these projects, indicating potential revenue growth.
Sandstorm Gold Ltd. reported a strong performance for 2020, selling approximately 52,200 attributable gold equivalent ounces and achieving record revenue of $93.0 million. In Q4 2020, the company sold about 15,800 gold equivalent ounces with preliminary revenue of $29.7 million. The cash operating margin for this period was approximately $1,630 per ounce after costs of $3.9 million. Sandstorm operates a portfolio of 201 royalties, with plans to expand its low-cost production profile through additional acquisitions.
Sasol has successfully completed the divestment of its 50% interest in the Gemini high-density polyethylene joint ventures to INEOS Gemini HDPE LLC on December 31, 2020. The transaction was valued at US$404 million, satisfied through cash and debt release. This divestment allows Sasol to repay near-term debt obligations, significantly enhancing its financial position. The restructuring has released Sasol and its subsidiaries from further security obligations, streamlining their financial commitments.
Sasol has signed a Sale Securities Purchase Agreement with Azura Power Limited to divest its full shareholding in the CTRG gas-to-power plant in Mozambique for approximately USD 145 million. The transaction is pending regulatory approval and the waiver of pre-emption rights from Electricidade de Mocambique (EDM). This divestment aligns with Sasol’s asset strategy while the company remains committed to its upstream operations in Mozambique.
Sasol successfully closed the divestment of a 50% interest in its Base Chemicals business at Lake Charles to LyondellBasell on December 1, 2020. The transaction, valued at approximately US$2 billion, allows LyondellBasell to operate and market the joint venture's polyethylene products. Additionally, Sasol has secured a covenant amendment from lenders, maintaining a net debt to EBITDA ratio of 4x for December 31, 2020. An investor update on the Sasol 2.0 transformation program is scheduled on December 2, 2020.