Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
AngloGold Ashanti CEO Mark Cutifani aims to re-ignite mining in South Africa by confronting what he sees as seven key issues that have spooked foreign investors.
South African mining has suffered serious setbacks in recent years including the Marikana shootings and other wildcat strikes, and ANC youth leader Julius Malema’s industry nationalization campaign. These setbacks have contributed to the stagnation of South African mining, with few companies experiencing strong growth since 2008.
The seven highlighted issues of global investor concern are:
Speaking last week in Johannesburg, Cutifani was eager to spread the word that these seven areas are either already fixed or being dealt with.
He cited the power price hike by South Africa’s public electricity company, Eskom, claiming that the 8% rise would “keep [South Africa] at the mid-point of global power supply to mining industries across the globe.” Cutifani also remains hopeful that the discussions between mining companies and the government over the new Mineral and Petroleum Resources Development Act will reach “the right outcome.”
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Source: Business Day
