Company news in brief![]()
Gold mines: SA court approves settlement
A Johannesburg High Court on Friday approved a R5 billion class action settlement between gold mining companies and law firms representing thousands of miners who contracted the fatal lung diseases silicosis and tuberculosis.
The companies involved are Harmony Gold, Gold Fields, African Rainbow Minerals ARIJ.J, Sibanye-Stillwater SGLJ.J, AngloGold Ashanti and Anglo American South Africa. The latter no longer has gold assets but historically was a bullion producer.
The settlement follows a long legal battle by miners to win compensation for illnesses they say they contracted over decades because of negligence in health and safety.
The gold producers agreed in May last year to the settlement but it needed to be approved by the Johannesburg High Court before being implemented.
The class action suit was launched in 2012 on behalf of miners suffering from silicosis, an incurable disease caused by inhaling silica dust from gold-bearing rocks. It causes shortness of breath, a persistent cough and chest pains, and also makes people highly susceptible to tuberculosis. – Nampa/Reuters
Twitter sees rise in daily users viewing ads
Twitter Inc posted better-than-expected second-quarter revenue on Friday and an uptick in daily users who see advertisements on the site, driven by changes to show users more relevant content, sending its shares up nearly 5%.
Twitter's revenue and number of users have been in focus since the social media platform started deleting millions of spam or fake accounts promoting hate speech or spreading political misinformation, contributing to declines in monthly users through 2018.
Chief executive officer Jack Dorsey said the platform saw an 18% drop in reports of spammy or suspicious behaviour.
Its monetisable daily active usage (mDAU) hit 139 million, beating analyst expectations of 135 million, according to IBES data from Refinitiv.
Twitter reported second-quarter profit of US$1.1 billion, or US$1.43 per share, compared with US$100 million, or 13 US cents per share, a year earlier. Profit was boosted by an income tax benefit of over US$1 billion related to corporate restructuring. – Nampa/Reuters
Africell to spend millions on fintech in Africa
African telecom firm Africell plans to spend part of a US$100 million US credit line on expanding its infrastructure and fintech services, its chief executive said on Friday.
The 18-year-old company, which has 15 million subscribers across its four African operations, secured the loan in May from the Overseas Private Investment Corporation (OPIC), the US government's private investment fund.
Africell founder and chief executive Ziad Dalloul told Reuters the money would help fund infrastructure investments for its operations in Uganda, Democratic Republic of Congo, Gambia and Sierra Leone.
He also said it would help the firm expand fintech services, such as mobile payments, micro-insurance and micro-finance.
Dalloul said Africell would bid to become the fourth operator in Angola, which was expected to reissue a tender in the next two months after the original tender for the licence was annulled in April. – Nampa/Reuters
Elon Musk's Boring Co raises millions
Elon Musk's Boring Co raised about US$117 million in its latest round of funding from 20 unnamed investors after offering to sell about US$120 million in equity, the company disclosed in a regulatory filing on Friday.
The company had raised US$112.5 million in equity in April last year, with Musk investing 90% of the amount, as the company seeks to build underground tunnels for hyperloop transportation project.
Boring Co did not provide details on the funding.
Musk, who also leads electric-car maker Tesla Inc and rocket company SpaceX, has been seeking to revolutionise transportation by sending passengers packed into pods through an intercity system of giant, underground vacuum tubes known as the hyperloop.
The company has completed its project Test Tunnel, located in Hawthorne, California, and other ongoing projects include the Chicago Express Loop and the Las Vegas Convention Centre Loop. – Nampa/Reuters
McDonald's beats sales forecast
McDonald's Corp beat quarterly sales expectations at established US restaurants on Friday, as the world's largest burger chain's attracted more diners with upgraded stores and new promotions, such as the 2 for US$5 Mix and Match deal.
McDonald's is the latest restaurant chain to report solid growth driven by new menu additions, expanded delivery services and tech-enhanced stores after strong US sales numbers from Chipotle Mexican Grill Inc and Starbucks Corp.
The US restaurant market has been stagnant with lower customer traffic in recent years, dogged by increasing number of competitors among fast-food chains and the entry of delivery services such as DoorDash and Uber Eats, forcing established chains to find new ways of attracting and retaining customers.
Total revenue was flat at US$5.34 billion, still slightly above expectations of US$5.33 billion.
Net income rose 1.38% to US$1.52 billion. Excluding one-time items, McDonald's earned US$2.05 per share, meeting Wall Street expectations. – Nampa/Reuters