gunDriller
31st August 2013, 07:05 AM
It sounds ominous, but that may be par for the course when labor negotiations are in process.
From Mineweb,
"Affected companies include South Africa's main producers, AngloGold Ashanti, Gold Fields, Harmony Gold, Sibanye, and some smaller operations.
SUNSET INDUSTRY
Wage talks have also broken down with AMCU and other unions, but they have not yet signalled an intention to strike.
A gold industry shutdown could cost South Africa more than $35 million a day in lost output, according to calculations based on the spot gold price and a Chamber of Mines estimate that the sector would stop producing about 760 kg a day."
http://en.wikipedia.org/wiki/List_of_countries_by_gold_production
South Africa - 170 tons.
There is a disconnect between the Mineweb statement, "760 kg a day" and the annual production listed by Wikipedia.
From
http://www.goldsheetlinks.com/production.htm
South Africa used to produce 2/3 of the world's gold - in 1970.
Anyway, the Mineweb article makes it sound ominous. BUT, if they are stopping producing 3/4 metric ton per day, it's not all gold.
If South Africa's miners do go on strike, that would be gold bullish. Taking world production as 2350 tons (I hear 2300, I hear 2400, so I took the average), South Africa is producing 170/ 2350 = 7% of world production.
Along with all the other projects that have been cancelled recently, DAMN !
If I had a naked short position in the gold market, I'd be nervous.
From Mineweb,
"Affected companies include South Africa's main producers, AngloGold Ashanti, Gold Fields, Harmony Gold, Sibanye, and some smaller operations.
SUNSET INDUSTRY
Wage talks have also broken down with AMCU and other unions, but they have not yet signalled an intention to strike.
A gold industry shutdown could cost South Africa more than $35 million a day in lost output, according to calculations based on the spot gold price and a Chamber of Mines estimate that the sector would stop producing about 760 kg a day."
http://en.wikipedia.org/wiki/List_of_countries_by_gold_production
South Africa - 170 tons.
There is a disconnect between the Mineweb statement, "760 kg a day" and the annual production listed by Wikipedia.
From
http://www.goldsheetlinks.com/production.htm
South Africa used to produce 2/3 of the world's gold - in 1970.
Anyway, the Mineweb article makes it sound ominous. BUT, if they are stopping producing 3/4 metric ton per day, it's not all gold.
If South Africa's miners do go on strike, that would be gold bullish. Taking world production as 2350 tons (I hear 2300, I hear 2400, so I took the average), South Africa is producing 170/ 2350 = 7% of world production.
Along with all the other projects that have been cancelled recently, DAMN !
If I had a naked short position in the gold market, I'd be nervous.