Sasol with a business update as well as the chief staying on an extra year, into 2012

Sasol with a business update as well as the chief staying on an extra year, into 2012. Looks all rather positive, including some new developments, specifically with the extraction of shale gas, that might well mean entering the American markets sooner than we might have expected. The Reserve Bank released their quarterly bulletin yesterday, what does it all actually mean for the ordinary folk and is the European crisis starting to bite us, remember that they are an important trading partner. And some other data, real on the ground data that always deserves another look, the Mooi River index.



A Sasol update from the Chief executive, including some management changes. Pat Davies, the chief would stay on a year longer than the traditional retirement age, he is 59 now, not so? So that means that he would stay on for roughly another two years from now, no doubt to groom someone for the job all the while in the background. I spoke yesterday with a journalist who covers the sector (at length) and we concluded that perhaps Christine Ramon was relatively new from what Sasol would normally think as the acceptable replacement. Insiders with a wealth of experience has been the recent trend. How old is Ralph Havenstein? A quick search tells me 54 this year. Havenstein had a very distinguished career at Sasol and then was the fall guy at Angloplats, which he headed briefly. At least in my opinion.



So what is new at Sasol? We will see a conclusion of the investment case in China for a Coal-to-liquids project and the feasibility study in Uzbekistan gas-to-liquids project by the end of the year. So those are two exciting projects that could be realised soon. What really interested me however, was the "new technology to extract shale gas at much lower cost than in the past has resulted in large reserves of natural shale gas being available in the US and such finds are also expected in other parts of the world." That seems pretty interesting to me. More than a little interesting.



And then perhaps the opening lines show that in their view (Sasol) the overall picture is improving, remembering that the I part is : "I am pleased to report that operating profit has further improved in the third quarter of this financial year. We continue to benefit from our dedicated focus on enhancing operational efficiency while maintaining strict cost discipline. Higher realised product prices and improved production volumes have contributed to healthy cash generation supporting the strength of our balance sheet. The board of directors' (the Board) approval of a progressive dividend policy demonstrates our confidence in the value that Sasol consistently delivers."