Good fortune bolsters PGMs in 2020
By Dineo Faku
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JOHANNESBURG - GOOD fortune smiled on mining companies as the gold price jumped sharply this year and platinum group metals (PGMs), particularly palladium and rhodium, strengthened significantly since the second half of last year.
Cash flow surged and profits soared as the bullion price broke several records due to the Covid-19 pandemic, spooking the markets and investors dumping risky assets for gold which is considered a haven asset during times of uncertainty.
In April, the gold price reached $1 720 (about R25 000) an ounce, bringing it to R1 million a kilogram. It smashed $2 000 an ounce in August.