Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (32366)	4/22/1999 8:52:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116770

S.Africa's Durban sees post-election monetary easing 10:49 a.m. Apr 22, 1999 Eastern By Darren Schuettler JOHANNESBURG, April 22 (Reuters) - Veteran South African gold baron Roger Kebble said on Thursday the mining industry stood to benefit if president-in-waiting Thabo Mbeki eased monetary policy after elections in June. ''This election will be a watershed for South Africa,'' said Kebble, chairman of gold producers Durban Roodepoort Deep (DURJ.J) and Randgold & Exploration Co (RNGJn.J). Kebble predicted that Mbeki's government would seek to make South Africa a stronger, export-driven economy by pushing for substantial interest rate cuts and a weaker local currency. South African gold producers, which sell their gold for dollars but pay costs in rand, are major benefactors of a lower domestic currency. The rand stood at 6.0870 per dollar at 1440 GMT on Thursday. ''If they let the rand slide we would become an export-driven economy,'' Kebble told analysts at a Durban Roodepoort results briefing, adding that the rand could slip to eight against the dollar after the election. The economy is a key issue in the run-up to the country's second all-race election on June 2 which the ruling African National Congress is set to win comfortably, installing Mbeki as president in place of the retiring Nelson Mandela. In its election manifesto released last month, the ANC expressed its desire for lower rates to boost growth and job creation. But it did not suggest the government would risk an assault of the rand by demanding a lower interest rate regime. Former labour minister Tito Mboweni, who takes over at the central bank on August 7, has said the independence of the bank must be preserved. However, economists and business leaders suggest Mboweni might be more sympathetic to the desires of his former ANC colleagues. ''I'm quite sure he (Mbeki) will have a major influence on the Reserve Bank,'' Kebble said. He also expected Mbeki to take a more ''draconian'' stand on law and order in South Africa where soaring crime rates have threatened foreign investment. Durban Roodepoort was the second major South African gold producer to post favourable results for the quarter to March 31. Cash profit for the quarter rose four percent to 18.8 million rand ($3.1 million) from 18.1 million rand in the previous quarter to December 31. Gold output climbed six percent to 5,241 kg and is seen rising to 5,250 kg in the current quarter to June 30. The forecast included 180 kg in lost production from the Blyvoor mine which suffered mechanical problems last month. Cash operating costs are seen easing to $259/oz in the June quarter from $260/oz in the March period. Kebble said Durban would continue to hedge about 30 percent of its 700,000-ounce annual production in the face of persistent weak gold prices. He forecast a dollar gold price of between $285-$290/oz for the foreseeable future. Gold Fields Mineral Services (GFMS) said on Wednesday sluggish world growth and negative supply/demand fundamentals would keep the price in a range of $265 to $305 per ounce in 1999. ''Durban Deep at those levels would still be robust and still stand on its own for quite a while,'' said Durban chief executive Mike Prinsloo in reaction to the GFMS forecast. Prinsloo also said capital spending would fall to 28 million rand in the June quarter from 32 million rand in March. He said the company was planning a capital budget of around 15 million a quarter for the new financial year starting July. ($ - 6.0870 rand) ((Johannesburg newsroom, 27 11 775 3155, newsroom+reuters.co.za)) Copyright 1999 Reuters Limited.