[miningmx.com] – THE market value of Sibanye Gold is beginning to challenge that of Gold Fields after the latter’s shares were heavily sold following its full- year results presentation on February 18, said BDLive.
Gold Fields said gold production from all its regions would fall except in South Africa where it hoped its troubled South Deep mine would grow production 30% to 257,000 ounces in 2016 – a level below analyst expectations of 300,000 oz.
Sibanye Gold was created after Gold Fields demerged most of its South African assets, excluding South Deep, in 2012. As a result, Sibanye is leveraged to the weakness in the rand against the dollar more than Gold Fields.
“If you think about it, Gold Fields got rid of the bulk of its rand-hedge assets and put them into Sibanye, which is now getting the full benefit of the rand’s weakness against the dollar with these high rand gold prices,” a market source told BDLive.
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