Business is bad but rand woes lift gold earnings

SIBANYE flagged a 158% gain in headline earnings per share for the six months to June as the rand price of gold rose by 301%. The rand price for gold is near record highs due to the local currency’s weakening against the dollar over the past year. ESKOM will spend R340-billion over the next five years on new power plants and transmission lines, the public enterprises minister said. The utility is building new power plants to augment a power-grid that nearly collapsed in 2008. PETRA Diamonds raised its production forecast after the integration of the Kimberley mines bought from De Beers last year. It expects to produce up to 3.65 million carats this year from a previous forecast of up to 3.4 million. PRODUCER inflation slowed more than expected, to 7.1% year on year in March from 8.1% in February, said Statistics SA. On a month-on-month basis, prices at the factory gate were up 0.7%, compared with a 0.8% increase the month before. THE Reserve Bank’s leading business cycle indicator fell 0.4% month on month in February, following a decline in the previous month, as real money supply waned and confidence fell. The indicator collects data including vehicle sales and jobs advertised. SOLIDARITY said almost 60 000 workers face job losses. The trade union said 58 549 workers could lose their jobs this year, with more than 29 000 jobs on the line in the mining sector and 8 000 jobs in metal and engineering. BARCLAYS Africa forecast that its credit-loss ratio would worsen as customers fall behind in loan repayments, and growth in its main South African market deteriorates. Barclays Plc plans to sell down its 62% stake in the African unit. SOUTH Africa cut its forecast for maize production this season for a third time. Grain SA’s crop estimates committee said the country may reap 7.05 million tons of maize this season, less than a forecast of 7.07 million tons last month.