Higher output should soften fall of South African gold miners, Citi says

|By:, SA News Editor

Citi expects South African gold miners will have produced ~6% more gold Q/Q in December, mainly due to the inclusion of Gold Fields' (GFI +1.2%) recently acquired Yilgarn assets and the ramp up of AngloGold’s (AU +2.5%) Tropicana and Kibali projects.

But bearish fundamentals have not changed, Citi says, maintaining its Neutral rating on GFI but Sell ratings on AU, Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%).

If Citi is right, the South African gold miners will continue to lose their equity value, although perhaps at a slower pace.