Gold Fields and Impala Platinum (Implats) are the latest precious metals producers to flag big jumps in 2019 earnings. The rally in the likes of gold and palladium are clearly flowing to bottom lines.
South Africa’s mining industry remains challenged on a range of fronts, a recurring theme at the Investing in African Mining Indaba that was held this week in Cape Town. But it has been getting a big break where it really counts: the prices that end-consumers pay for some of the key commodities produced here. And that has helped gold and platinum group metals (PGM) producers to build on a swing back to profits.
Gold Fields and Impala Platinum (Implats) are the latest companies to issue trading statements ahead of the release of 2019 results later this month that flag steep jumps in their profits. Gold Fields said on Thursday 6 February that it expected full-year 2019 headline earnings per share to rise between 171% and 200% to between 19 and 21 US cents per share. This will be “driven by higher production, higher gold prices achieved, lower cost of sales and lower impairment charges in 2019”.
Gold’s spot price rose 19% last year and is widely…