WATCH: The good news contained in the bad news on mining
Mining production slumped in July after a pickup in June, but Moody’s sees some light at the end of the tunnel. The agency said in a report that local miners’ operating margins and overall credit quality will remain protected from rand-dollar volatility as commodity prices in rand terms will likely remain flat due to the favourable interplay between the two currencies. Cost containment, which, to an extent, is within management’s control, will play a bigger role in determining margins. Moody’s senior analyst Douglas Rowlings spoke to Business Day TV about the local mining industry.