Q & A LOOKING AT THE FINANCIAL CLIMATE OF THE MINING INDUSTRY
were last involved in a major war , almost the only option open to them ( whatever route they chose ) is to create money – which is where the opportunity lies for the mining companies , as producers of the ultimate real asset .
Can you provide some examples of mining companies and their contribution to the Industrial Metals and Mining index ? While past performance of the majors has been impressive however , it leaves the sector looking less than cheap , at the moment . The P / E on the FTSE Mining index is negative and its dividend yield is the fourth lowest in the market ( out of 39 ). That makes the second tier of companies look much more interesting . Four that Edison would highlight are Pan African , KEFI , Euromax and Cradle .
Pan African has two gold mines in South Africa – Barberton , which is a hundred years young and Evander , which is the most youthful of the Witwatersrand fields . Pan African ’ s interim results to December 2015 were ahead of our expectations , with strong performances at its surface operations complementing a solid recovery in the underground head grade at Evander ( effectively portending its exit from a low grade period of mining ). Subsequently , management reported that production for the full year to
13