News about Africa

South Africa's annual consumer price inflation edged up to 4.5% in September from 4.4% in August, according to Statistics SA, driven mainly by transport, housing, utilities and financial services. The figure came in below market expectations. Investec Chief Economist Annabel Bishop said it is unlikely on its own to prompt an interest rate hike at the November MPC meeting, noting that inflation has stayed above the SA Reserve Bank's 3% target for some time due to very high fuel prices, a supply-side issue. The government is leaning on capital spending, with infrastructure investment set to grow 5.2% over the medium term, the fastest-growing item in the national budget. President Cyril Ramaphosa said infrastructure is a key driver of growth, benefiting manufacturing, logistics and other sectors.

Goldman Sachs initiated coverage on Endeavour Mining and AngloGold Ashanti with Buy ratings, citing their organic growth, strong cash flow and shareholder returns, while both stocks trade at discounts linked to their jurisdictions. For Endeavour, Goldman set 12-month targets of GBP47 per share (EDV.L) and CAD90 per share (EDV.CN), based on 1x net asset value and 4.5x 2027 EV/EBITDA, and expects output to rise from 1.1 million ounces to about 1.5 million ounces by 2030. The Assafou project alone is expected to add 320,000 ounces a year, and the bank estimates shareholder distributions of about $1.8 billion over three years. For AngloGold Ashanti, targets are $104 per share (AU) and ZAR 1,720 per share (ANGJ.J), based on 1x NAV and 6x 2027 EV/EBITDA, with brownfield projects that could add 300,000 to 450,000 ounces a year by 2030, or 10% to 15% growth from the 2025 base.

Nigeria's headline inflation fell to 14.63% year-on-year in September 2026 from 15.39% in August, driven by lower food prices, marking the fourth straight monthly decline since June. Food inflation eased to 19.59% year-on-year, with month-on-month food prices down 1.55%, while core inflation rose to 12.95% year-on-year and 1.11% month-on-month, from -0.06% in August. The National Bureau of Statistics reported the average all-items CPI change at 15.80% over the 12 months to September 2026. By state, Imo had the highest headline inflation at 30.04% and Taraba the lowest at 1.78%.

This article runs a discounted cash flow (DCF) analysis of Montage Gold after the stock's very strong share price run over the past three years. Free cash flow over the latest twelve months was a loss of $490.094 million, so the valuation depends on the company moving into sizeable positive cash generation later in the decade. The DCF output sits well above the CA$16.44 share price, though the article suggests the market may already be pricing in ambitious production. CEO Martino De Ciccio's comments on ramping up the Koné project and adding sites in Côte d'Ivoire and Mauritania are cited as context for those expectations. The article also points to an 11.2x price-to-book ratio as offering a different valuation view.