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Health and Safety Specialist - Mining Cape Town

Gloomy mining outlook offers cheaper buying opportunities, experts say

13 Jul 2012

While the outlook for South Africa's mining sector looks bleak, mining analysts concurred that there might yet be a silver lining amid all the gloom. The picture further out, they told Business Live, may lead to potential buying opportunities at current cheaper prices.

Steve Meintjes, a strategist at Imara SP Reid, did not think there is "panic" at the moment, but recent sell-offs, he agreed, create opportunities that "investors should look at closely".

According to Business Live, the resources sector has taken a serious knock, and this has created buying opportunities, Stanlib Head of resources, Sholto Dolamo, said. "Share prices are certainly pricing in a much more severe demand destructive situation than what is likely to happen," he added.

Business Live reports that with the mood of international investors "dented", according to Dow Jones Newswires, by signs that the US Federal Reserve isn't about to launch a third round of quantitative easing, spot gold and platinum fell over $10 in morning trade on Thursday.

Read the full article on www.businesslive.co.za