South African Gold 'Very Positive Investment,' Compared to PGM Sector
Source: Mineweb, Tessa Kruger (1/27/09)
"South African gold sector offers a "very positive investment thesis" on the back of its gold price outlook. . ."
Comparing the gold producers to the local PGM sector, analyst Leon Esterhuizen said the "picture for South African PGM producers were anything but pretty." Although the rand weakened substantially towards the end of 2008, the decline in the metal price basket would result in markedly lower earnings than previously seen.
"The situation is compounded by current spot metal prices trading another 35% below the average recorded for the second half of last year, so the really bad numbers are yet to come—in the first half of 2009," he said.