Brimestone FY earnings up 586%

Brimestone, the investment group, has announced a significant increase in its earnings for the 2021 financial year, with profits soaring up to R920.9 million. The group has also resumed its dividend payments at 30c per share, signaling a positive outlook for shareholders. The CEO of Brimstone, Mustaq Brey, recently joined CNBC Africa to discuss the company's impressive performance and future plans. Brey expressed optimism about the company's prospects, stating that the worst is over for Brimstone after overcoming the challenges posed by the COVID-19 pandemic. Brey highlighted the company's efforts to right-size its operations by reducing costs over the past two years, resulting in a more efficient and profitable business. He credited the positive market conditions and shareholder support for Brimstone's success, leading to a surge in the company's share price. However, Brey acknowledged the persistent discount in Brimstone's share price compared to its intrinsic net asset value, attributing it to the company's unique status as a BE (Black Economic Empowerment) entity. Despite the challenges, Brey assured that Brimstone is actively working to reduce the discount and enhance shareholder value. Looking ahead, Brey discussed Brimstone's growth plans, emphasizing the focus on existing assets and potential expansion into new ventures. He highlighted the strong performance of subsidiary companies like Obsidian Elf and Sea Harvest, which have shown significant growth and profitability. Brey also addressed the recent developments at Oceana, where he is a major shareholder, following the resignation of key executives and an ongoing investigation by the FSCA (Financial Sector Conduct Authority). Brey clarified that the investigation revealed behavioral issues rather than financial wrongdoing, and the company is taking necessary actions to address the situation. He urged stakeholders to review the integrated report released by Oceana and emphasized the importance of transparency and accountability in corporate governance. Brey expressed confidence in Brimstone's future trajectory and commitment to delivering value to its shareholders through strategic investments and operational excellence.