Simon’s stock tips

Finweek English Edition - - SIMON SAYS -

Lo­cal gold com­pa­nies have been publ i s hing t hei r f i r s t- quar t er up­dates, which makes for very sorry read­ing. Sure, there have been is­sues and South African mines are deep and hence ex­pen­sive, but the re­al­ity is that their all-in costs per ounce mined sits around the cur­rent gold price, leav­ing no room for er­ror. If we look abroad, the ma­jors (Bar­rick, New­mont and Gold­corp) all have lower costs, with Bar­rick be­low $900 ( R10 750) per ounce. The bot­tom line is that if you want to buy a gold miner, the non-South African mines are a bet­ter bet, un­less it is the lever­age you’re look­ing for.

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