SA gold mines face second cost-cutting round

[miningmx.com] – SOUTH African gold mining companies face a second round of cost-cutting and possible restructuring, said Standard Bank Group Securities analyst, David Davis, who added the gold price would remain weak in 2014.

“The US Fed has indicated that tapering is unlikely to have a short-term effect on real interest rates in 2014,” Davis said in a report quoted by BDLive.

“Under these circumstances, and given the current bearish sentiment, we believe that gold will average lower in 2014 than it did in 2013,” he said.

Davis lowered his forecast for the average gold price this year by nearly 16% to $1,213/oz, from $1,440/oz before.

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