Time to hit pause on gold miners
Finweek English|21 May 2020
Even as the rand gold price soars, the uncertainties around miners of the yellow metal call for a temporary halt on their shares.
David McKay
Time to hit pause on gold miners

The pressure on government to relax, if not lift, lockdown measures is only likely to grow over the coming weeks, not least of which from South Africa’s gold companies.

Peter Steenkamp, CEO of Harmony Gold, was obviously careful with his wording at the firm’s first-quarter presentation mid-May, but the message was nonetheless clear: Nearly a month after the end of the initial 21-day Covid-19 lockdown, his company is ready – hopeful even – of resuming full production.

“I’m confident that the mining sector has positioned itself well, so I’m also confident we could get relief at the next level,” he said in response to analyst questions.

The relief to which he refers is that the country’s underground mines are allowed to progress to 100% production at level 3 of lockdown restrictions. The current dispensation in terms of the government’s amended lockdown regulations is that underground mines operate at 50% of capacity, whereas mechanized, less labour-intensive open-cast mines are permitted to operate at full throttle.

“We have done a tremendous amount of work so we can get back to 100%. The minister [energy and mineral resources minister Gwede Mantashe] has been to the operations. We have testing and quarantine facilities in place, and we have had good support from unions,” he said.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM FINWEEK ENGLISHView all
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021