Premium: Mining companies back in vogue with investors – and SA’s government
An interesting avenue entered by Magnus Heystek in our interview yesterday was how, over the past two years, mining companies have rescued the parlous state of SA's government finances.
Heystek urges caution, arguing today's tax flood can easily become tomorrow's drought. He also frets that the ANC's vote-catching schemes like a Basic Income Grant and National Health Insurance are being justified against this peak (mining) revenue background.
It's not just the SA government which is not listening, Investors, too, see the boom continuing with mining stocks attracting lots of fresh money from punters seeking inflation hedges. Partly because unlike in the run-up to the 2008 commodity price Boom-Bust, this time mining executives have been conservative on production expanding capex.
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