Investment in gold as a safe-haven asset during times of systemic crisis has held true during the unprecedented health crisis resulting from the COVID-19 pandemic. Gold prices this year have risen to their highest level since 2012 amid fears of a global Coronavirus-induced economic slowdown.
What does this mean for Africa’s booming gold mining industry?
While many gold mines have had to halt operations due to COVID-19 lockdowns and restrictions, which may have an effect on their short-term profitability, the future looks bright as gold prices are expected to continue to rise even as economies recover and mines return to full operation. This will allow Africa’s gold miners to take advantage of the high price environment.
Listen to a recording of the discussion hosted by Mining Review Africa and Africa Mining Forum which explored the effects of the gold price rally on Africa in more detail.
Key discussion points included:
- Gold price trends in 2020
- The effect of the COVID-19 pandemic on gold prices
- Gold mining operations in Africa and their contribution to global gold production
- How gold mining companies in Africa have responded to the COVID-19 pandemic
- The effect of the gold bull market on the gold mining sector in Africa
Cobus Loots, Chief Executive Officer | Pan African Resources
Charles Gibson, Director & Sector Head for Mining | Edison Group
Dean Cunningham, Chairman and Chief Executive Officer | Micofin