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Plunging US Dollar Provided Support to Gold Last Week (Continued from Prior Part) Mining giants suffer
Rising precious metals prices haven’t seemed to relieve South African mining giants. The ongoing strikes in South Africa to raise worker wages have added to the woes of miners, who are already struggling due to rising production costs and a year of falling bullion prices. The members of AMCU (Association of Mineworkers and Construction Union), the second biggest union for South Africa’s gold-mining industry, are prepared to be on a continued strike to pursue better wages.
The mining companies that will be the most affected by these strikes include Sibanye Gold (SBGL), Harmony Gold Mining (HMY), and AngloGold Ashanti (AU). These three South African miners make up about 7.7% of the Market Vectors Gold Miners ETF (GDX). Below is a price chart of AngloGold Ashanti and gold futures. AU’s falling share price shows how brutally miners have been affected by retreating gold prices and the continued strikes.
Sibanye is a top bullion producer
Sibanye, the top producer of bullion in South Africa, is willing to continue negotiations with the unions and has required all four unions to sign the wage agreement for it to take effect. There are four major unions active in the country that are looking into the wage hike matter. The National Union of Mineworkers, UASA (United Association of South Africa), Solidarity (South African Trade Union), and AMCU are the four major unions. All of the unions except AMCU signed a three-year agreement on October 2 with AngloGold Ashanti and Harmony Gold. AMCU has demanded wages that are more than double the current figure.
With gold, platinum, and palladium prices shelling out 2.2%, 18.7%, and 11.4%, respectively, on a YTD (year-to-date) basis, miners’ profitability concerns are rising. The escalating production costs due to aging mines is another factor that adds fuel to the fire. ETFs that have seen steep drops in their prices include the SPDR Metals and Mining ETF (XME) and the SPDR Gold Shares (GLD).
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PRODUCER |
CODE : AU |
ISIN : US0351282068 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
AngloGold is a gold producing company based in . AngloGold produces gold, copper, silver and zinc in Argentina, in Australia, in Brazil, in Canada, in Ghana, in Guinea, in Mali, in Namibia, in South Africa and in Tanzania, develops gold and iron in Australia, in Brazil, in Colombia, in Congo Dem. Rep. of and in South Africa, and holds various exploration projects in Philippines. Its main assets in production are CRIXÁS, MINERAÇÃO, SAO BENTO, ANGLOGOLD ASHANTI MINERAÇAO and CRIXAS MINE in Brazil, SUNRISE DAM GOLD MINE in Australia, NAVACHAB MINE and NAVACHAB in Namibia, YATELA, MORILA and SADIOLA in Mali, CERRO VANGUARDIA in Argentina, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), BAMBANANI, TAU LEKOA, MPONENG, SAVUKA, TAU TONA, GREAT NOLIGWA, KOPANANG and CRIPPLE CREEK & VICTOR (CRESSON MINE) in South Africa, SIGUIRI in Guinea, TEBEREBIE, IDUAPRIEM, OBUASI and KUBI in Ghana, GEITA in Tanzania and TROUT LAKE MINE and CALLINAN MINE in Canada, its main assets in development are MOAB KHOTSONG in South Africa, MINAS-RIO in Brazil, LA COLOSA and GRAMALOTE in Colombia, KIBALI (KILO-MOTO) in Congo Dem. Rep. of and TROPICANA in Australia and its main exploration properties are HUALATAN and ER in Peru, MKURUMU in Tanzania, 777 PROJECT and RIVARD in Canada, LOUBOUGOULA, GOODPASTER and ALAMOUTALA (SADIOLA II) in Mali, BAMBADJI in Senegal, MORRO VELHO in Brazil and SIANA in Philippines. AngloGold is listed in Australia, in Germany and in United States of America. Its market capitalisation is US$ 9.3 billions as of today (€ 8.7 billions). Its stock quote reached its lowest recent point on November 23, 2018 at US$ 10.00, and its highest recent level on April 25, 2024 at US$ 22.77. AngloGold has 409 109 984 shares outstanding. |