DOWN THE DRAIN

Finweek English Edition - - INVESTMENT -

Gold and gold stocks have been un­der mas­sive pres­sure with the big three lo­cal gold stocks all ap­proach­ing decade lows but it was the most re­cent ad­di­tion, Sibanye that really caught my eye. The miner has had to close part of its West­ern Beatrix shaft due to a f ire and this will cost it 61kg of gold per month, although this is a small enough amount for the com­pany, rep­re­sent­ing about 2% of 2012 pro­duc­tion. But Sibanye did men­tion that some R2.6bn had been spent to de­velop the mine, that equates to around 355c per Sibanye share, an­other mas­sive waste of money from a gold miner.

Sibanye Gold

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