The JSE’s mining index has gained nearly 60% in the first ten weeks of 2016. Some shares – Anglo and the platinum producers among them have nearly doubled investors’ money. Marginal gold producers like Harmony are up over 400%.
Yet all of this paints a story of a partial recovery – the index is still half of what it reached in the pre-2008 financial crisis-driven crash. While the underlying drivers seem thin – commodity prices have ticked up slightly, these coupled with the weaker rand have supported mining stocks. In this Moneyweb Investor article, Stuart Theobald notes that this is the first glimmer of light long-suffering shareholders have seen in their mining stocks since then.
The question everyone is asking is: can the rally be sustained?
In this interview, Mineweb editor Warren Dick spoke to Stuart Theobald, head of research house Intellidex, about whether the upswing in commodity stocks is sustainable and if it is, which companies are better placed as future winners.