INVESTMENT & FINANCE
Funding advice for the Mametja Moshe is the founder and CEO of Moshe Capital (Credit: Mboma)
UNDERESTIMATED AFRICAN MINING SECTOR
Mametja Moshe believes that the African mining sector is often underestimated and is optimistic about the prospects for mining on the continent.
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ot only does Africa have a rich endowment of commodities, but our young population and opportunities for using Fourth Industrial Revolution technologies position us well for mining investment. Covid-19 has changed the world as we know it and the same goes for the African mining sector. One possible positive outcome for African mining following the global economic shock could be increased investment into certain commodities. In 2020, the commodities in demand are gold, PGMs, copper and battery minerals. In addition, African exploration is securing funding where investors have confidence in management and the project has scale potential. The gold price today is around US$500 (R8 245) higher than 18 months ago. This more than triples miners’ profit margins, which have also benefited from the decline in fuel costs. In times of economic uncertainty, investors typically turn to safe-haven assets, which could result in a renewed gold rush for a continent rich in this commodity. In addition, Europe and other geographies are seeking to diversify the source of their commodities outside of China, which could also result in increased activity for Africa, especially in battery minerals. The outlined factors all indicate that Africa’s mining industry will seek further investment with a view to attaining economic recovery.
Funding mechanisms The standard ‘toolbox’ of funding mechanisms is always
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