We are a producer of gold and major holder of gold reserves in South Africa. We are primarily involved in underground and surface gold mining and related activities, including extraction and processing. All of our operations are located in South Africa. Our principal mining operations are KDC... More
Monday, Dec 25:44 PM
Wednesday, Sep 259:15 AM
Friday, Sep 62:11 PM
Friday, Sep 62:11 PM| Comment!
- Some striking South African gold miners returned to work last night after accepting an 8% pay increase from companies including AngloGold (AU +2.6%) and Sibanye Gold (SBGL +3.6%).
- The offer has been accepted by most members of the National Union of Mineworkers, which represents two-thirds of the country's gold miners.
- However, 10 of Harmony Gold’s (HMY -0.6%) 11 mines continue to be affected by the strike, and workers at Gold Fields' (GFI +1.3%) South Deep mine also aren’t yet back at work, but they may report for duty later today.
- AU’s six mines report normal shifts, and two of SBGL’s three sites are operating with the remaining mine expected to resume tonight.
Friday, Aug 307:58 AM
Friday, Aug 307:58 AM| 3 Comments
- South Africa’s four biggest gold producers - AngloGold (AU), Gold Fields (GFI), Harmony Gold (HMY) and Sibanye Gold (SBGL) - are hoarding cash and lining up access to more as they prepare for the first industry-wide strike since 2011, as the National Union of Mineworkers says its members will lay down their tools on Sept. 3.
- The companies seem unwilling to meet the labor union’s terms; “The gold mines are taking action to put their operations into positive cash flow at this gold price," a Johannesburg-based analyst at SBG Securities says. "Hunkering down on wages is part of that strategic plan. They can’t afford it."
Thursday, Aug 228:28 AM
Thursday, Aug 228:28 AM| Comment!
- South Africa's labor unrest is spreading, as tens of thousands of construction workers prepare to lay down their tools next week and gold mining unions plan to call a strike over wages.
- The National Union of Mineworkers says it will consult members in the coming days to discuss strike action; NUM represents ~64% of ~140K South African gold miners, where major operators include AngloGold (AU), Gold Fields (GFI), Harmony (HMY) and Sibanye Gold (SBGL).
- A construction stoppage would affect major companies such as Wilson Bayly Holmes Ovcon, Aveng (AVEPY.PK) and Group Five.
Monday, Aug 1910:35 AM
Monday, Aug 1910:35 AM| Comment!
- AngloGold (AU -5%) shares sink after a National Union of Mineworkers spokesman tells Bloomberg the wage-offer gap between gold producers and labor groups in South Africa appears too wide to resolve, saying "I smell a strike in the air."
- Wage negotiations stalled July 24 after the unions rejected an offer of a 5% pay increase and a housing-related allowance.
- GFI -1.7%, HMY -0.7%, SBGL -3.8%.
Thursday, Aug 89:35 AM
Thursday, Aug 89:35 AM| Comment!
- South African miners AngloGold Ashanti (AU +0.8%), Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%) are cut to Sell from Hold at HSBC, which says lower gold prices are cutting margins.
- Foreseeing a 12-month period of "momentous pressure" on the industry, the firm expects "extremely tough operating conditions given the current tensions between management and labor, as wage negotiations enter dispute, and the negative implications of potential restructuring on industry jobs."
- Gold Fields (GFI +0.5%), which spun off SBGL earlier this year, is HSBC’s preferred South African gold miner with a Hold rating.
Friday, Jul 2612:18 PMGold is falling and taking gold mining stocks with it, but South Africa’s miners have it worse: HMY -5.8%, SBGL -5.6%, AU -3.4%, GFI -1.9%. The fractious nature of labor relations and the potential for another violent incident is the biggest of many problems, Barclays writes, and getting it right is critical for the country; the sector accounts for 5% of real value added directly and 18% indirectly. |Friday, Jul 2612:18 PM| Comment!
Friday, Jul 1211:14 AMSibanye Gold (SBGL -6.8%) gained more than 10% yesterday and was one of the best performing emerging-market ADRs, but today shares are slammed after the miner recognized AMCU as the majority union at its Driefontein operations, the first formal nod by a South African gold producer of the union seen as militant. |Friday, Jul 1211:14 AM| Comment!
Wednesday, Jul 102:59 PMAnglo American (AAUKY.PK, AAUKF.PK) CEO Mark Cutifani warns that wage negotiations beginning tomorrow in South Africa will determine not only the future of the mining industry but also the continent’s largest economy. Against a backdrop of rising costs and falling prices, with many shafts losing money or operating on thin margins, a more militant AMCU union is involved in talks for the first time. |Wednesday, Jul 102:59 PM| Comment!
Friday, Jun 285:23 PMAfter recently saying the price is headed to $1K if $1.2K support is broken, Dennis Gartman says it's no longer time to be short gold. He thinks the yellow metal has probably "seen its worst" in the recent selloff in which the precious metal fell to its lowest level since 2010 to under $1.2K an ounce. "I'm not sure that I want to step up and buy," he adds, "but the time to be short of it is passed... it's time to go to the sidelines." (Video) |Friday, Jun 285:23 PM| 12 Comments
Friday, Jun 284:18 PM
Wednesday, Jun 2611:58 AMNo one has more to lose in gold's bear market than South African miners, as gold drops to as low as $1,245/oz. and below production and capital spending at Gold Fields (GFI -5.3%), Harmony Gold (HMY -3.9%) and Sibanye Gold (SBGL -9.8%). Labor demands are coming at the wrong time: "There's a vast difference between what labor unions are demanding and what South African mines can afford." |Wednesday, Jun 2611:58 AM| Comment!
Tuesday, Jun 253:57 PMSouth Africa is likely to start official gold mining wage talks in mid-July after unions lodged their demands, including for sharp pay increases, WSJ reports. Mining execs warn the talks could be more hostile than those held two years ago, given the substantial cuts mining companies are planning and the deaths of more than 50 people during illegal and violent strikes last year. |Tuesday, Jun 253:57 PM| 3 Comments
Thursday, Jun 205:30 PM
Thursday, Jun 63:31 PMSibayne Gold (SBGL +12.5%) soars after receiving a Goldman Sachs upgrade to Neutral, but Goldman is hardly ga-ga for South African miners, noting tough operating conditions, key unions competing for membership, and U.S. gold prices remaining relatively low. The weak rand has given the stocks a short-term boost but could create problems down the road, leaving AngloGold (AU) most vulnerable, Goldman adds. |Thursday, Jun 63:31 PM| Comment!