University of Johannesburg Investment Society (UJInvest)’s Post

Global gold production over the years ⛏ 👑 South Africa's grip on the gold crown has loosened considerably. Once an undisputed champion, the nation's gold production has taken a tumble. One key challenge lies in the nature of the resource itself – gold is finite. Easily accessible near-surface deposits were quickly exhausted, forcing miners deeper underground. Extracting gold from these extreme depths (3-4 KMs) requires substantial investments in infrastructure, ventilation, and cooling systems. These high costs make it increasingly difficult to make a profit. The high cost of deep-level mining has led major mining companies to re-evaluate their South African operations. Some, like AngloGold, have opted to leave entirely. Others, like Gold Fields & Sibanye Stillwater, have either minimised their presence or reduced capital expenditure on South African gold projects. A 2023 PWC report paints a grim picture. With an estimated 68 million ounces of gold reserves remaining, the South African gold industry might only have 27 years left. Many mines are expected to close even sooner, within the next 20 years. 🕰 Written by Marvin Matabane Source: VGraphs Curious about the forces shaping South Africa's economy & financial markets ⚡? Follow us at University of Johannesburg Investment Society (UJInvest) for more insights!💡 #finance #markets #stockmarket #economy #southafrica #jse #investments #gold #mining

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