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Article: All that's gold does not glitter; South African mining.(South Africa's uncertain gold future)
- Article from:
- The Economist (US)
- Article date:
- January 29, 2005
CopyrightCOPYRIGHT 2005 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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At today's prices, South Africa's mines barely make money
LAST year should have been a great year for gold-mining companies. And for some it was: in dollars, gold was fetching about $410 an ounce a year ago, way above the $250-or-so low of February 2001. It soared briefly above $450 as November ended, and even now, after a rapid slide, is still about $425. Fine if your costs are in dollars. But what if they are in rand?
That was a different (and sorry) tale for any gold-miner in high-cost South Africa. After a dim 2003, the gold price leapt to just over 3,000 rand an ounce in mid-January 2004. But as the rand soared--from about seven to the dollar in ...