Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
South Africa’s total mineral production grew 4.2% in June, compared with the same month last year, but the negative trend in gold output continued its course with bullion output dropping 4% by volume, Statistics South Africa said Wednesday.
The total production numbers were welcome by the local mining community as it ends a run of 10 consecutive months of decline.
Production of non-gold minerals went up by 5.3% in the second quarter of 2012. Platinum group metals production contributed the most to the overall performance, registering a 4.8% in June.
Actual mining production, however, fell 2.1% in the second quarter of 2012 compared with the same period last year.
Despite the gloomy outlook for the country’s mining sector, analysts quoted by Business Day said the long-term picture is not quite so adverse, leading to potential buying opportunities at current cheaper gold prices.
