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Out of rand crisis, opportunity for world's costliest gold mines
By Kevin Crowley
Bloomberg News
Monday, December 14, 2015
South African President Jacob Zuma is causing turmoil in financial markets and accidentally throwing a lifeline to his country's struggling gold industry.
Zuma's decision to fire respected Finance Minister Nhlanhla Nene drove the rand to a record low, instantly reducing labor and other costs in the local currency for mining companies, relative to the U.S. dollars they earn by selling gold.
Shares of Harmony Gold Mining Ltd., the highest-cost major miner of the metal, are up 25 percent since Zuma's decision Dec. 9. AngloGold Ashanti Ltd. gained 12 percent and Gold Fields Ltd. 11 percent. A weak rand offers relief to an industry plagued by labor unrest, aging mines, and power shortages. Companies as recently as six months ago were saying they needed to cut costs to survive as they lost money on 35 percent of local production. ...
... For the remainder of the report:
http://www.bloomberg.com/news/articles/2015-12-14/out-of-rand-crisis-opp...
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