Modern Mining June 2020

GOLD

Can SA attract investment in gold

While South Africa is still home to over 50% of all gold reserves in the world, the country only accounts for 4% of the global gold production. With gold price currently booming, is SA primed to attract new investment in its gold mining industry? One would think that the high gold price could encourage more investment, but Jill MacRae, associate director at BDO South Africa, tells Munesu Shoko that market price is only one consideration and there are other factors that investors take into account and may, in fact, place more emphasis on – and these are standing in the way of investment in SA.

T raditionally, gold has been a safe haven in times of uncertainty. With economies and stock markets around the world crashing due to the ongoing COVID-19 pandemic, investors have once again flocked to buy gold, with global demand resulting in gold reaching a seven-year high of more than US$1 700/oz. Jill MacRae, associate director at BDO South Africa, says that gold’s latest run is spurred by cash injections to mitigate the severe impact of COVID-19 on the global economy. Governments worldwide, she says, are signing off on massive stimulus measures

Gold’s latest run is spurred by cash injections to mitigate the severe impact of COVID-19 on the global economy.

Jill MacRae, associate director at BDO South Africa.

18  MODERN MINING  June 2020