/ 2 July 1997

Gold in bottomless pit

WEDNESDAY, 11.00AM

GOLD continued its downward spiral on Tuesday, hitting a new four-and-a-half-year low of $333,60/oz at London’s morning fix, before trading a fraction up at $333,70, then slipping as low as $333,10 in late trade.

Bullion prices at these levels mean that several SA mines are producing at cost or below. Deelkraal, ERPM, Evander, Grootvlei, Harmony, Randfontein, St Helena and Stilfontein are believed to be producing at a loss, with Avgold and Western Areas close and Randgold suffering badly.