Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Sibanye-Stillwater (JSE: SSW, NYSE: SBSW) announced on Wednesday that it has begun implementing measures to place its South African gold and PGM operations under temporary care and maintenance, in accordance with the nation-wide lockdown of 21 days, effective midnight on Thursday.
“This suspension of operations will adversely impact on production at the South African mines and shareholders are therefore cautioned that production for 2020 may differ from previous guidance,” Sibanye stated in a media release.
In South Africa, the company’s gold operations consist of underground mining and surface treatment facilities at Beatrix, Driefontein and Kloof in the Witwatersrand Basin. In total, these operations produced 1.18 million ounces of gold in 2018.
Sibanye’s South African PGM operations consist of underground mining operations and surface sources at Kroondal, Rustenburg and at Marikana. The company also has a 91% stake in the Platinum Mile tailings retreatment facility near Rustenburg.
Earlier this week, the company also reduced the number of people at its US operations on a temporary basis due to the coronavirus outbreak.
