Electronic Theses and Dissertations (Masters)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37975

Browse

Subject: search.filters.subject.SDG-8: Decent work and economic growth

Search Results

Now showing 1 - 4 of 4
  • Thumbnail Image
    Item
    An investigation into equity market timing practices by South African mining companies
    (University of the Witwatersrand, Johannesburg, 2024) Matumba, Lindelani
    This research examines the practice of equity market timing among 30 Johannesburg Stock Exchange (JSE)-listed mining companies from 2006 to 2022. Mining companies, characterised by their capital-intensive nature, rely on management for optimal capital management, which includes both the acquisition of capital through debt or equity and its optimal allocation. The concept of equity market timing, introduced by Wurgler and Baker in the 1990s, suggests that company management may engage in timing the equity market when they perceive their stock to be mispriced. This study incorporated control variables such as market-to-book value (a relative valuation metric that investors use to assess a company's market value in relation to its book value), asset tangibility, degree of leverage, and profitability. Panel regression analysis, utilising both fixed effects and random effects, revealed that market-to-book value was not statistically significant at the 5% level. The overall R-squared value was 58.8%. Given the lack of significance for market-to- book value and asset tangibility, it is recommended to consider other capital structure theories, such as the pecking order or trade-off theory. Additionally, incorporating variables like interest rates and other macroeconomic factors could help address the potential for omitted variable bias.
  • Thumbnail Image
    Item
    Assessing the policies for legalising artisanal and small-scale mining in south africa
    (University of the Witwatersrand, Johannesburg, 2024) Komape, Ledile Jane; Marshall, T. R.
    This research examines the regulatory framework of artisanal and small-scale mining in South Africa, discussing issues around whether the current policies are up to the challenge of managing the realities and expectations of artisanal and small-scale miners. The research was conducted through a survey of three focus groups across four areas in South Africa using structured questionnaires and interviews. Data collection involved contacting individuals at the Department of Mineral Resources and Energy, Mine Health and Safety Council, and Mining Qualifications Authority, as well as Artisanal and Small-Scale Miners and mine representatives, and conducting interviews at their offices, homes, or workplaces based on their preferences. Data collected from the three focus groups reveal a disconnect between the goals of the policies and how the artisanal and small miners’ communities experience them, emphasising the need for effective policy implementation, comprehensive education initiatives, and avoidance of unrealistic expectations. Key recommendations of the research include the adoption of digital technologies for monitoring, fostering cooperative models, and encouraging international collaboration between local and foreign operators. It underscores the importance of creating and applying inclusive, equitable and sustainable policies to improve the socio-economic and environmental conditions of artisanal and small-scale miners in South Africa.
  • Thumbnail Image
    Item
    Assessing the Challlenges in the Valuation of Early-Stage Secondary Diamond Deposits
    (University of the Witwatersrand, Johannesburg, 2024) Ganda, Nair da Conceição de Oliveira Gavião; Marshall, Tania R.
    Diamond mining is a fundamentally important part of the economy in many countries. Globally, some of these countries are home to early-stage alluvial diamond projects that attract significant interest from investors. Often, these investors need to understand the project’s value to make informed decisions. However, valuing early-stage alluvial projects is a complex and challenging process. This research report identifies and assesses the challenges associated with the valuation of early-stage alluvial projects through a case study of a project in Angola. For the case study, a valuation exercise was conducted using both the Cost Approach and the Market Approach. The research identified challenges specific to the Cost Approach, such as data availability and compliance with internationally recognised Resources and Reserves reporting codes. Likewise, challenges specific to the Market Approach included estimating current commodity prices and checking the performance of alluvial diamond properties on an applicable stock exchange. Additionally, it became clear that complications related to both approaches, such as experience and resource estimation methodologies, need to be addressed before a final valuation range can be determined. Although there are several difficulties, the valuation of early-stage alluvial projects is still possible. Nonetheless, these challenges impact the accuracy, consistency, and interpretation of the valuation results. Therefore, becoming familiar with these challenges and the recommendations made in the report will help valuators avoid potential pitfalls and contribute significantly to the field by guiding more informed decision-making in the valuation of early-stage alluvial diamond projects.
  • Thumbnail Image
    Item
    An assessment of the Angolan mineral taxation regime: considerations for possible improvements on government´s revenue
    (University of the Witwatersrand, Johannesburg, 2024) Africano, N´djamila Hilifavale Borges; Mtegha, Hudson
    Angola is host to 36 of the 51 critical minerals in the world and ranks third in mineral exports, totalling over USD 1 billion in 2020, and third in diamond production; Botswana and South Africa hold the top two slots, respectively. These untapped opportunities make the Angolan mining industry an excellent place to invest despite the mining industry contributing less than 1% to GDP and has yet to become a driver of economic diversification. In June 2022, Angola joined the EITI, bringing a welcome improvement in the transparency of the sector´s governance and reform, intended to attract new investors. The study evaluates the effectiveness of the Angolan mineral fiscal system as a tool for maximising revenue for the benefit of its citizens and securing investment (local and foreign) to promote linkages and broad-based national growth and development. Four objectives were examined in this study: (i) Conduct a situational analysis of the current fiscal regime through a comparative analysis of headline rates in regional and international countries; (ii) Qualitative evaluation of the effectiveness and efficiency of the mineral fiscal regime; (iii) Analyse the tax revenues raised by the mining industry between 2011-2021; (iv) Make possible recommendations to improve the current mining tax regime. The study employed a descriptive survey design with a qualitative and quantitative approach for data collection and analysis. The main findings include: (i); Angola's political economy setting resembles that of a hegemonic government characterised by an institutionalised one-party regime whereby the implications on the mineral fiscal regime are multifaceted, affecting investment, regulation, revenue sharing, and sustainability; (ii) Both mineral royalty and corporate income tax rates, are within regional and international norms and have consistently contributed a significant share of the government's direct tax revenues over the last eleven years; (iii) Prevailing fiscal regime can be improved through a combination of tax instruments such as resource rent-tax or profit-based royalty with a basic ad valorem tax system; (iv) However, Angola’s primary challenges point to a possible absence of enforcement and compliance mechanisms for both the mining code iii and the sector fiscal framework, as well as the need to strengthen government agency capacity to oversee and gather fiscal contributions from the sector. In light of these findings, it is recommended to (i) Improve the sector's mining code and fiscal legislative framework and enforce it; (ii) Conduct a study to analyse the effects of all government taxes (direct tax, indirect tax and non-tax instruments and tax incentives) on both the industry and the government´s treasury; and (iii) Conduct further studies on the proposed optimal mineral fiscal regime. Finally, an effective, efficient, and transparent mineral fiscal system can only exist first and foremost through intentional collaboration and alignment of objectives among the sector’s stakeholders.