profits

Johannesburg, South Africa – Mansa Musa, the 14th-century emperor of the Malian Empire, often comes to mind whenever African gold enters the conversation. Renowned for his immense wealth, he is often described as the richest man in history, largely due to the vast gold resources of his empire.

Yet centuries after Mansa Musa’s reign, Africa’s relationship with gold remains paradoxical. The continent possesses some of the world’s richest gold deposits, but much of the wealth generated by the industry continues to be captured elsewhere. According to the United Nations Environment Programme (UNEP), Africa holds about 40 percent of the world’s gold reserves.

Although Africa remains one of the world’s most gold-rich regions, it continues to occupy the lower end of the global value chain. Gold extracted across the continent is largely exported, mainly to the United Kingdom, where it is refined, traded and priced. As a result, the most profitable stages of the industry remain concentrated elsewhere, creating a persistent gap between extraction and value capture.

“Africa’s position reflects structural constraints, including limited refining capacity, capital bottlenecks and historical trade patterns that favour exporting unrefined gold, allowing offshore markets to capture the highest-value margins in refining and trading,” Kate Collett, insights analyst at Africa Practice, told Al Jazeera.

Increasingly, African governments are not only seeking to extract more gold but also to retain greater control over it. That ambition extends beyond mining policy. Across the continent, policymakers are increasingly viewing gold as a strategic financial asset that can strengthen reserves, reduce external vulnerabilities and support greater economic sovereignty.

A shift in global reserves

Gold has re-emerged as a strategic reserve asset in an increasingly fragmented global economy. Unlike fiat currencies, it is widely seen as retaining value during periods of inflation, geopolitical tension and financial uncertainty.

Across the Global South, central banks have increased gold accumulation in recent years as part of efforts to diversify reserves and reduce exposure to external financial systems. This trend is visible in major emerging-market economies, including China, Russia, India and Turkiye, according to data from the World Gold Council.

By accumulating gold, central banks reduce reliance on foreign currencies and hold reserves outside the direct control of any single financial system.

African countries have joined this shift in an effort to strengthen economic stability, build reserve buffers and increase financial sovereignty.

Within Africa, Ghana, one of Africa’s leading gold producers, has increased the proportion of locally produced gold purchased by the central bank under its domestic gold accumulation programme, according to Bank of Ghana reporting and policy communications.

Nigeria has pursued broader reserve diversification strategies, including increased interest in gold as part of efforts to strengthen the composition of its external reserves, according to central bank statements and analysis by international financial institutions, including the International Monetary Fund (IMF) and the World Gold Council.

Tanzania requires approximately 20 percent of gold output from mining companies and traders to be allocated for sale to the central bank under its reserve-building framework, according to Bank of Tanzania regulations. Guinea has tightened licensing and export controls in its mining sector, part of wider efforts to increase state oversight and capture more domestic value.

According to analyst Thea Fourie, head of regional analysis for the Middle East and Africa at S&P Global Market Intelligence, rising gold prices have reinforced these shifts. “This trend aligns with a broader geopolitical shift towards de-dollarisation … including the development of alternative payment systems and increased use of local currencies in trade,” she told Al Jazeera.

For African producers, this changing global financial environment has accelerated the use of gold as a tool of economic sovereignty, analysts say.

Capturing more of the value chain

Across the continent, governments are also trying to retain more value from domestic production by tightening oversight of mining and reshaping how gold moves from extraction to export.

Ghana has expanded its central bank gold purchasing programme. Tanzania has strengthened regulatory control linked to domestic sales and reserve-building requirements, while Guinea has tightened licensing enforcement and export rules aimed at improving domestic processing and value retention.

In Guinea, authorities have also cancelled mining licences deemed unproductive and restricted exports of unprocessed gold in an effort to encourage local refining. Namibia continues to restrict the export of unprocessed minerals, reinforcing efforts to increase domestic value capture.

Artisanal mining, often operating outside formal systems, is increasingly being treated as part of the formal gold economy rather than a parallel informal sector. Governments are seeking to formalise production, reduce smuggling and increase tax and export revenues.

“These programmes can help countries retain more value from their mineral resources by reducing smuggling, formalising artisanal mining and creating incentives for local refining and downstream industries,” Collett said.

But integration remains uneven. Many small-scale miners still operate outside formal channels due to limited access to finance, markets and technical support.

“As commodity prices rise, this gap between legal status and how the sector operates on the ground is widening, with value still flowing outside formal systems,” she added.

Resource nationalism in the Sahel

In the Sahel, military-led governments in Mali and Burkina Faso have pushed further towards state control of mining assets, framing reforms as part of a broader effort to reduce economic dependence on former colonial partners.

Mali’s President Assimi Goita has overseen a restructuring of the mining sector, expanding state involvement and promoting domestic processing capacity. With Russia emerging as a key partner after a break with France, the government is also developing a state-controlled gold refinery in Bamako.

Burkina Faso has increased state participation in mining and sought to expand national gold reserves. Alongside Mali and Niger under the Alliance of Sahel States, it has pursued deeper economic coordination. Plans for closer monetary cooperation have been discussed, though they remain in development.

However, most large-scale mines in the region remain operated by foreign companies due to limited domestic technical capacity.

According to Fourie, of S&P Global Market Intelligence, this shift reflects a broader wave of resource nationalism driven by fiscal pressures and security challenges.

“These governments have also deepened ties with non-Western partners, reshaping longstanding trade and diplomatic relationships,” she said.

But analysts caution that tighter state control can deter investment if regulatory frameworks are unclear or not consistently applied.

“The quest for African resource sovereignty should not be reduced to the Sahel juntas’ spectacular enforcement, with executives locked up in jail, and inflammatory narratives,” Collett said.

A long road to control

Despite growing policy momentum, full control over the gold value chain remains distant. Moving from extraction to refining and pricing within African economies requires sustained investment in infrastructure, skills and industrial capacity.

Building internationally certified refineries and attracting long-term capital will take time, even as governments push for greater oversight.

“When the measures are introduced in an opaque manner, when there is no stakeholder engagement, is when investor confidence starts to slip,” said Beverly Ochieng, senior analyst at Control Risks.

Some governments have managed to balance tighter control with investor confidence by maintaining clearer regulatory engagement and consultation with industry stakeholders.

For now, much of the value generated by African gold continues to flow abroad.

“The experiment with the state mining operators will be one to watch … whether they are able to meet international standards, sell the gold and set prices,” Ochieng said. “And ultimately, at the back of it is whether this government will be stable enough to see through this process.”

Still, many analysts believe the direction of travel is set.

“I think in the long run, we are seeing more African governments taking steps to ensure the entire value chain remains in-country … Maybe in a couple of decades, we might see a sort of gold OPEC emerging from African countries,” she said.

Published on
25/06/2026 – 10:43 GMT+2

Micron, one of only a handful of companies able to make advanced memory chips at scale, said on Wednesday that revenue in the third quarter reached $41.4 billion (€36.5bn), more than four times the $9.3 billion (€8.2bn) it recorded in the same period last year.

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The figure also comfortably beat the roughly $35.7 billion (€31.4bn) analysts had forecast, while profit climbed even more dramatically.

The Idaho-based group posted net income of $28.24 billion (€24.9bn), or $24.67 per share, against less than $2 billion (€1.7bn) a year ago. Adjusted earnings of $25.11 a share sailed past the $20.49 expected.

The market reaction to the impressive results was immediate.

Micron shares rose more than 15% in after-hours trading to around $1,213, leaving the company valued at roughly $1.16 trillion (€1tn).

The stock has now climbed about 700% over the past year, one of the most dramatic re-ratings of any large company through the AI boom, reflecting a fundamental shift in the economics of the AI build-out.

The vast data centres being constructed by hyperscalers such as Amazon, Microsoft, Google and Meta, which have collectively earmarked hundreds of billions of dollars in capital spending this year, depend on enormous quantities of high-bandwidth memory, a specialised chip that sits alongside the processors made by Nvidia and others.

Micron has said its entire 2026 output of these chips is already sold out under fixed-price contracts.

According to CEO Sanjay Mehrotra, the results reflect what he called the strategic value of memory in the AI era.

The company pointed to a series of multi-year customer agreements that it expects to make earnings more durable and predictable, a notable claim in an industry long defined by brutal boom-and-bust cycles.

Margins to rival the biggest names

What has startled analysts most is Micron’s profitability.

The company reported a gross margin of around 85% for the quarter, a level that now rivals or exceeds those of far larger technology names such as Nvidia and Meta, an extraordinary position for a memory maker historically squeezed by volatile chip prices.

The tightness of supply, with new factories not expected to add meaningful output until 2028, has handed producers exceptional pricing power.

Micron’s guidance was more striking still.

The company expects revenue of around $50 billion (€44bn) in the current quarter and adjusted earnings of roughly $31 a share, implying the boom is accelerating rather than fading. It is ramping up investment to match, lifting planned capital spending to about $27 billion (€23.7bn) this fiscal year and signalling a further jump in 2027, management told analysts during the earnings call.

The results offer reassurance to investors betting that AI infrastructure spending remains robust, with Micron’s order book serving as a real-time gauge of that demand.

The open question, as ever in the memory industry, is how long the upswing can last before supply catches up. Even the most bullish observers acknowledge that risk has not completely disappeared.

June 15 (Asia Today) — Salt-damaged farmland once unsuitable for either agriculture or aquaculture has become a source of pension income for residents of islands in southwestern South Korea.

Shinan County in South Jeolla Province operates what it calls a “Sunlight Pension,” sharing part of the profits from solar power projects with local residents. The program is regarded as a social economy model that connects large-scale renewable energy infrastructure with household income and local spending.

The county began distributing the pension on Anjwa and Jara islands in 2021 under a renewable energy profit-sharing program. It has since expanded the program to Jido, Saokdo, Imjado and Bigeumdo.

Under the program, part of the profits generated by solar power projects is distributed to residents through local cooperatives.

South Korea’s Ministry of the Interior and Safety regards the Shinan program as a social economy model that converts local resources into resident income while keeping spending within the community. The program brings residents, local government and private businesses together to ensure that some profits from power generation remain in the region.

The model is also consistent with the national government’s initiative to create “Sunlight Income Villages,” where communities receive income from renewable energy projects.

Shinan County enacted an ordinance in 2018 establishing a system to share profits from renewable energy development with residents. Residents do not directly pay the cost of building the power plants. Instead, resident cooperatives participate in the projects and receive dividends from the resulting revenue.

The dividends are paid through local gift certificates, encouraging recipients to spend the money within Shinan County.

“Existing residents are guaranteed dividend benefits, while benefits for new residents vary according to age to encourage younger people to move here,” a county official said. “New residents age 40 or younger are eligible immediately, without a waiting period.”

The program has produced measurable results.

Renewable energy development dividends generated cumulative revenue of 24.71 billion won, or about $16.1 million, between April 2021 and April 2025. Of that amount, 22.32 billion won, or about $14.6 million, was distributed through the Sunlight Pension.

An additional 2.39 billion won, or about $1.6 million, was distributed as a Sunlight Child Allowance for residents younger than 18.

Of Shinan County’s 16,483 residents, 13,284 are members of participating cooperatives, representing a participation rate of 81%.

The Anjwa Solar City power plant serves as the foundation of Shinan’s Sunlight Pension model.

The facility has a combined generating capacity of 288 megawatts, consisting of a 96-megawatt first phase and a 192-megawatt second phase. The first phase began commercial operations in November 2020, followed by the second phase in January 2023.

Plant officials said the project cost about 560 billion won, or approximately $366 million. It generates annual revenue of between 80 billion won and 85 billion won, or roughly $52.3 million to $55.6 million.

The history of the site is also significant.

The land was originally used for farming but became unsuitable for both agriculture and aquaculture because of salt damage and years of use as fish farms. A 2019 revision to South Korea’s Farmland Act allowed salt-damaged farmland to be used temporarily for other purposes, clearing the way for the solar project.

The land is scheduled to be restored to farmland after the solar facilities cease operations.

Anjwa Solar City is considered a leading example of South Korea’s resident-participation renewable energy profit-sharing system. Large solar projects can generate local opposition when residents receive few tangible benefits, making the profit-sharing structure a central element in securing community acceptance.

The Shinan model, however, may be difficult to reproduce in every region. Large renewable energy projects require several conditions, including government approval, resident consent and access to transmission infrastructure.

Project profitability and local acceptance must also be considered to maintain a stable dividend system.

“The Sunlight Pension was designed to ensure that development profits remain with residents and circulate within the community,” the county official said. “We plan to expand the profit-sharing program beyond solar power to offshore wind and other renewable energy projects.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260615010005065

Published on 03/06/2026 – 11:31 GMT+2•Updated
11:36

The Spanish fashion giant behind Zara, Inditex, posted net income of €1.4 billion in the first quarter, up 5.4% year-on-year and ahead of market expectations.

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Sales rose 5.8% to €8.7bn, or 8.8% at constant exchange rates, ahead of the roughly 8% analysts had anticipated.

Gross profit rose 6.9% to €5.4bn, helped by an improvement in profit margins, meaning the company kept a larger share of revenue as profit. EBITDA, a measure of underlying earnings, increased 7.3% to €2.6bn.

Inditex shares rose more than 5% on Wednesday after the company reported a strong start to the second quarter, with sales increasing 11.5% between 1 May and 1 June, reassuring investors that the Zara owner remains resilient despite signs of weakening consumer spending.

“Inditex continued its strong momentum with its latest results beating first quarter expectations, and also seen a strong start to the second quarter too, as sales grew more or less in line with the rate the company exited with in the previous quarter,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

The revenue jump from one of the world’s largest listed clothing retailers points to solid consumer appetite heading into the summer, despite concerns that a more uncertain economic and geopolitical backdrop could weigh on spending in the months ahead.

Navigating geopolitical risks

The results come as businesses around the world face growing uncertainty over the global economy and concerns that consumers may cut back on spending.

Inditex said its wide-ranging supply chain and flexible transport network had helped it keep products flowing to stores around the world despite recent disruptions.

“Ultimately, Inditex continues to have a resilient business model that can withstand significant economic pressures and currency headwinds,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

Valechha said strong customer demand and the company’s ability to source products close to its key markets had helped it keep collections up to date while limiting the need for discounts. Productivity improvements had also helped protect profitability.

Inditex also said that the current “geopolitical challenges” had an impact on the sales in the Middle East, a region that Barclays estimates accounts for about 5% of its revenue.

The company also warned that ongoing instability in the region could affect its performance in the months ahead.

Inditex faces a number of other challenges, including higher shipping costs and rising prices for raw materials such as cotton and polyester. Currency movements are also expected to weigh on results this year.

Inditex ended the quarter with 5,456 stores and a net cash position of €10.8bn.

The board has proposed a dividend of €1.75 per share for the last fiscal year, comprising an ordinary component of €1.20 and a bonus of €0.55, payable in two instalments in May and November 2026.

Despite the strong start to the year, Inditex left its outlook unchanged. It said it expects sales growth to continue into the second quarter, supported by strong demand for its spring and summer collections and ongoing improvements to its stores and operations.

However, the company said currency fluctuations are likely to reduce sales growth by around 1% over the full year. It also expects to invest about €2.3bn in the business during the current financial year.

Published on
06/05/2026 – 15:39 GMT+2

The surge in jet fuel prices has become a primary concern for the European travel industry, with Lufthansa finding itself at the centre of this crisis.

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According to Lufthansa’s latest earnings report, the airline expects an additional €1.7 billion ($2bn) fuel cost burden in 2026 as soaring jet fuel prices continue to weigh on the industry.

The need to avoid certain airspaces has led to longer flight times, which naturally increases consumption. These adjusted routes also require more staff hours and higher maintenance cycles, adding layers of complexity to an already strained global supply chain.

As reported by Euronews, global airlines have already cancelled approximately 13,000 flights this May, while Lufthansa alone has axed 20,000 short-haul flights through to October in a bid to cut fuel consumption.

This reduction in capacity is a direct response to the unsustainable cost of operating older, less fuel-efficient aircraft during price peaks.

While Lufthansa has managed to stay profitable, the jet fuel price spikes have forced the firm to advise passengers to book their holidays as early as possible to avoid further surcharges.

The company is currently investing heavily in its “fleet modernisation” programme to mitigate these risks in the long term, though the immediate impact of fuel volatility continues to weigh on the balance sheet.

Lufthansa remains committed to its financial targets, but the volatility of the global oil market remains the largest variable in its 2026 outlook.

“We are satisfied with the first quarter […] at the same time, the current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated,” CFO Till Streichert stated.

The Lufthansa Group has announced a landmark financial performance, revealing that it generated the highest revenue in its history in 2025. Revenue rose by 5% compared with the previous year to €39.6 billion.

According to the latest figures, the airline group also saw its operating profit grow by 20% compared with 2024, highlighting a robust recovery in passenger demand.

In the first quarter of 2026, year-on-year revenue climbed 8% despite challenges linked to the conflict involving Iran, including €1.7 billion in additional costs caused by volatile jet fuel prices and the suspension of dozens of routes.

The firm kept its capacity broadly stable with slight growth in long-haul traffic compensating for capacity reductions in short and medium-haul segments.

Lufthansa Technik and Lufthansa Cargo also significantly contributed to earnings with demand for maintenance, repair and overhaul services increasing, as well as through the marketing of ITA Airways’ cargo space.

Global demand for air travel remains high and continues to prove resilient even in times of crisis, as Lufthansa Group again expects a strong summer travel season.

“In the first quarter, we significantly improved on the previous year’s financial results […] but the ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel and for our company as well,” CEO Carsten Spohr stated.

“However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” Spohr added.