Sibanye Gold Ltd., South Africa’s second-biggest producer of the metal, closed at a record low on speculation that profit will decline.
The shares slid 6.6 percent to close at 9.25 rand in Johannesburg, the lowest level since they started trading on Feb. 12. The stock has slumped 22 percent this week, on course for its worst weekly performance. The spot price of the precious metal, down 17 percent this year, reached the lowest since February 2011 on April 15.
“The spot gold market has a huge influence on the gold miners,” Jacques Theron, a portfolio manager at Absa Asset Management Private Clients, said by phone from Johannesburg. “That is why the stocks are so deeply discounted.”
Sibanye was spun off from Gold Fields Ltd. in February and comprises the Kloof-Driefontein complex, Africa’s largest gold operation, and the Beatrix mines.
This month’s futures-price drop to as low as $1,361.10 an ounce brings gold closer to the global average-production cost of about $1,200 an ounce, according to Nomura Holdings Inc.
The six-member FTSE/JSE Africa Gold Mining Index is heading for its worst week in four years, dropping 11 percent so far.