According to a report on the sector released by RBC Capital Markets today, with total costs continuing to increase to just under the US$1400/oz level compared to the current basket price of approximately US$1230/oz a further margin squeeze is on the cards.
One of the major contributing factors to this is the wage increases seen at operations in South Africa - for example both Amplats and Impala have agreed increases of 8-10%……………………………………….Full Article: Source