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7 Pages

South African gold mining: a final flourish or structural shift?


South African gold mining: a final flourish or structural shift?

Report summary

The sharp devaluation of the rand since 2012  and in particular from mid-2015 to early March 2016 has resulted in considerable cost savings for miners. This has set the scene for the country's gold sector to produce its largest annual pre-tax free cash flow in over a decade. This is relatively welcome news to the well publicised state of decline in South Africa - where production peaked in the 1970s at approximately 1000t/annum and is forecast at less than 150t in 2016.

What's included?

This report includes 1 file(s)

  • South African gold mining: a final flourish or structural shift? PDF - 454.99 KB 7 Pages, 0 Tables, 7 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

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  • Executive summary
  • Cost drivers across the South African gold mining sector since 2012
  • Longer term structural trends in productivity and mechanisation
  • Conclusions and outlook

In this report there are 7 tables or charts, including:

  • Executive summary
    • Pre-tax cash flow and year-to-date equity performance of producers with exposure to South Africa.
  • Cost drivers across the South African gold mining sector since 2012
    • Waterfall chart for Total Cash plus Sustaining Capital (TCPS) costs in South African gold mining sector since 2012
    • South African inflation, power prices to mining sector, currency movement and cost sensitivity
    • Labour costs as a percentage of total minesite costs for South African gold miners
  • Longer term structural trends in productivity and mechanisation
    • South African gold mine productivity - temporal trends and estimate for 2016
    • Relative share of South Africa's reserves and resources to selected peers and rest of world
    • South African gold production and number of workers engaged in gold mining
  • Conclusions and outlook
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