JOHANNESBURG – A plunge in gold output in November saw the gold index bleed 2.5 percent on the JSE on Tuesday as no respite for the sector seems in sight.
Statistics South Africa said yesterday that production for diamonds tanked 21.7 percent, while output for the long-suffering gold industry dropped 14 percent, continuing its free-fall that stretches back seven years.
This saw mining production fall 5.6 percent year-on-year in November from a muted 0.2 percent rise in October and missing the market consensus of a 0.75 percent rise.
Sibanye Gold stock lost 4.04 percent to R9.99, while peers AngloGold Ashanti shed 1.90 percent to R173.06 and Gold Fields stock softened 2.64 percent to R49.13
Investec economist Lara Hodes said domestic mining activity continued to be hindered by operational inefficiencies and rising costs of fundamental inputs, including climbing electricity and water tariffs.