Gold miners have mixed feelings about the presidency of Cyril Ramaphosa. It could usher in a more investor-friendly mining regime, but at the same time, hopes that SA will be better managed have caused the rand to strengthen. As long as the dollar gold price remains flat, the strong rand and inflationary pressures are squeezing miners’ revenue and profits. This puts some mines at risk of closure and increases the attractions of shallower prospects outside SA or low-cost tailings treatment in SA. Pan African Resources’ two highest-cost mines, Evander Underground and Consort, are being reviewed. CEO Cobus Loots says management is talking to labour unions and nothing is ruled out. In the six months to December, Evander Underground’s all-in sustaining cost (AISC) was R673,444/kg and Consort’s was R761,562/kg, against an average received gold price of R551,506/kg. In the same period last year, the average gold price was R565,298/kg. Pan African as a whole is still profitable, though less...

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