Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
South African mining company profits have plunged by almost half this year, dropping almost 100 billion rand ($5.2 billion) because of the blows from lower commodity prices, crippling power cuts, rail network constraints and rising costs, Fin24 said, citing a report by PwC.
An analysis of 29 domestic mining companies showed that combined net income slumped to 108 billion rand in their latest financial years, from a record 206 billion rand, the online financial news service said, citing PwC’s annual South Africa Mine report.
Transnet Freight Rail’s poor performance, particularly on the export coal line, has been a major challenge, according to the report. Despite the decline in earnings, the industry’s profitability is still more favorable than the 32 billion rand recorded in 2019 or the loss in 2018.
The mining sector’s woes will affect the government, which has benefited from windfall taxes and royalties in the past two years. The sector’s reported tax expense declined by 34%.
The industry continues to play a key role in balancing the national trading account, with mined materials accounting for around 58% of total exports in the first six months of 2023 at 575 billion rand, Fin24 said, citing South African Revenue Service figures.
(By Colleen Goko)
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