A “very significant” rerating opportunity existed for South African gold pro-ducers, Gold Fields CEO Nick Holland said last week.

Holland said that the large gap that had existed between the market capitalisations of South African gold-mining stocks and those of far smaller international gold-mining companies had been closed in the past and, with proper management, could be closed again in the future.

Holland said that comparative studies had shown that companies with a fraction of the production and the reserves had equal market capitalisations.

He cited, as an example, that a company like Agnico-Eagle, of North America, which produced about 400 000 oz of gold a year from reserves of 13-million ounces, had a similar market capitalisation to that of Gold Fields, which was on track to produce 3,7-million ounces of gold this year from reserves of 80-million ounces....


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