BUSINESS MAVERICK: Bullion’s current tear offers scant golden opportunity for South African producers

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 84%

United States News News

United States United States Latest News,United States United States Headlines

BUSINESS MAVERICK: Bullion’s current tear offers scant golden opportunity for South African producers By Ed Stoddard

South Africa’s monthly mining data should put paid to any hopes that bullion’s current bull run could help revive the national gold mining industry. In April, when overall mining production declined 1.5% year on year, gold output slid a steep 19.5%. According to chief economist at the Minerals Council South Africa Henk Langenhoven, that is just the tip of the iceberg.

That is showing up in their share prices. The JSE’s gold mining index is up by about 50% in the year to June 2019, versus 11% for the all-share index. But this is unlikely to spur new projects or a big boost in production.The Minerals Council has been saying for a long time that more than 60% of gold mines are marginal or loss-making. Gold production is unlikely to recover to its previous levels,” said Langenhoven. There are a number of examples in this regard.

Part of this stems from the actions of the occupant of the White House, who has been gearing for a punch-up with Iran, triggering trade wars all over the show, and who will certainly applaud any cut in US interest rates.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Eskom’s Gain Is South Africa’s Pain as Investors Balk at DebtSouth African President Cyril Ramaphosa’s latest pledge to support Eskom Holdings SOC Ltd. is good news for the cash-strapped electricity company -- but some investors are balking at the prospect of increased sovereign-bond issuance to pay for the bailout. 'The current debt-to-GDP trajectory does not look healthy at all.” No kidding. 😒
Source: dailymaverick - 🏆 3. / 84 Read more »