Tag - Mining
Tuesday, September 25 2018
By GCRU Gold News on Tuesday, September 25 2018, 00:31
Canada’s Barrick Gold Corp has agreed to buy Randgold Resources Ltd in an all-stock deal valuing the Africa-focused miner at $6.5 billion, to create the world’s largest gold producer in an industry under investor pressure to put capital to good use.
The new Barrick company, which will be listed in New York and Toronto, will own five of the world’s 10 lowest cost gold mines and have market value of $19.4 billion based on Monday trading. That would make it the world’s biggest gold miner by market capitalization, overtaking Newmont Mining Corp, according to Reuters calculations.
Sunday, September 23 2018
By GCRU Gold News on Sunday, September 23 2018, 23:45
Barrick Gold Corp. is said to be in advanced negotiations to merge its operations with Africa-focused rival Randgold Resources Ltd., protecting the Toronto-based miner’s crown as the world’s largest producer of the metal.
Saturday, September 22 2018
By GCRU Gold News on Saturday, September 22 2018, 00:19
After almost a year of behind-the-scenes work, billionaire hedge-fund manager John Paulson has formed a coalition with 15 other investors aimed at curbing years of what his fund has called value destruction in the gold sector.
The group intends to ensure the management and boards of mining companies are aligned with shareholder interests, he said. The group will meet periodically to address a number of issues and will be funded by members.
Monday, September 17 2018
By GCRU Gold News on Monday, September 17 2018, 04:35
The Kambalda mine that produced more than $15 million worth of spectacular gold specimens a fortnight ago from a single deep cut 500m underground has turned out another precious stone after development restarted after the announcement.
A specimen stone weighing 43kg and estimated to contain 1100 ounces of gold, valued at about $1.8 million, was recovered after work resumed underground at the Beta Hunt gold mine.
Tuesday, July 24 2018
By GCRU Gold News on Tuesday, July 24 2018, 01:48
South Africa’s gold mines are the world’s deepest and among the most labor intensive. The country’s gold production dropped 16 percent in May from a year earlier, falling for an eighth straight month, as aging infrastructure, depleted reserves and accidents raise costs and curb output.
“Gold is a sunset industry,” Pityana said in an interview last week in Bloomberg’s Johannesburg office. “It doesn’t matter what you do, it doesn’t matter how you do it, you are not going to be able to change that.”
Friday, July 13 2018
By GCRU Gold News on Friday, July 13 2018, 04:47
“If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years. Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down… We’re right at peak gold here.”
Thursday, June 14 2018
By GCRU Gold News on Thursday, June 14 2018, 02:12
Gold is one of the rarest elements in the world, making up roughly 0.003 parts per million of the earth’s crust. But how much gold is the world digging up each year and what countries produce the most?
In 2017, global gold mine production was a reported 3,247 tonnes. This figure is down 5 tonnes from the previous year and marks the first annual drop since 2008, according to the GFMS Gold Survey 2018. The driving forces behind the drop in output were environmental concerns, crackdowns on illegal mining operations and rising costs.
Monday, June 4 2018
By GCRU Gold News on Monday, June 4 2018, 00:08
Major Russian gold mining companies are planning to almost double production. The increase could make Russia the world's second largest producer of the precious metal.
The country is currently third in the global rating of gold miners after Australia and China. However, that could change in less than a decade, according to Mikhail Leskov, deputy CEO at the Moscow-based Institute of Geotechnology, as quoted by Vedomosti.
Monday, May 28 2018
By GCRU Gold News on Monday, May 28 2018, 01:03
BHP, Barrick Gold and mining contractor Hatch are all looking at ways to replace mines with grids of wells that pump metal out of the ground, up-ending the industry's economics.
Engineers in the mining industry say the same could be about to happen in copper and gold, as some of the world's largest mining companies examine ways to replicate fracking, injecting liquid into deposits to extract metal from ore, before pumping it back to surface.
Thursday, May 17 2018
By GCRU Gold News on Thursday, May 17 2018, 00:49
'Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all'
Tuesday, May 8 2018
By GCRU Gold News on Tuesday, May 8 2018, 00:39
The demand for gold is increasing, yet new discoveries of the precious metal have not kept pace with the demand. Funds for exploration are historically high, $54.3 billion, up 60 percent over the past 18 years.
Thursday, November 30 2017
By GCRU Gold News on Thursday, November 30 2017, 14:24
A report by BMI Research states that global gold mine output growth will pick up in the next few years, supported by higher gold prices and solid projects in key countries.
“We forecast global gold production to increase from 105moz in 2018 to 125moz by 2026, averaging 2.3% annual growth. While a steady pace of growth, this represents a slight deceleration in growth rate compared with the previous eight-year average of 3.1%,” the firm says.
Saturday, November 25 2017
By GCRU Gold News on Saturday, November 25 2017, 00:22
A gold industry obsessed with containing costs and minimizing risks will find itself at the edge of a cliff by 2020 as supply tightens, according to one of the most profitable producers.
Half of the gold coming out of the ground isn’t profitable to mine based on the true extraction costs, he said.
The industry is headed for a dramatic supply shortage from 2020 if gold prices stay between $1,000 and $1,400 an ounce, he said.
Input costs probably will rise as “you’ve got a complete over-inflation of value in just about every asset class and industry in the world, with burgeoning central bank balance sheets.”
The result will be higher gold prices
Saturday, October 28 2017
By GCRU Gold News on Saturday, October 28 2017, 01:42
My good friend Pierre Lassonde, cofounder and chairman of Franco-Nevada, doesn’t know how we’ll replace the massive gold deposits of the past 130 years or so. Speaking with the German financial newspaper Finanz und Wirtschaft this month, Pierre says we’re seeing a significant slowdown in the number of large deposits being discovered. Legendary goldfields such as South Africa’s Witwatersrand Basin, Nevada’s Carlin Trend and Australia’s Super Pit—all nearing the end of their lifecycles—could very well be a thing of the past.
Over the medium and long-term, this could lead to a supply-demand imbalance and ultimately put strong upward pressure on the price of gold.
“It doesn’t really matter what the gold price will do in the next few years,” Pierre says. “Production is coming off, and that means the upward pressure on the gold price could be very intense.”
Thursday, October 5 2017
By GCRU Gold News on Thursday, October 5 2017, 02:30
Last week, billionaire John Paulson said his firm will spearhead the creation of the Shareholder’s Gold Council to give a greater voice to institutional investors on matters including board appointments, pay plans and mergers. The group is meant to rein in what Paulson called years of bad management at many gold-mining companies.
Wednesday, September 27 2017
By GCRU Gold News on Wednesday, September 27 2017, 11:09
On Tuesday, New York hedge fund Paulson & Co, founded by noted gold bull John Paulson launched a blistering attack on the world’s top gold mining companies over “serial value destruction” in the industry.
Speaking at the Denver Gold Forum, the sector’s most important gathering now in its 28th year, Paulson & Co partner Marcelo Kim called on major gold equity investors to join a coalition – dubbed the Shareholders Gold Council – to stop CEOs, boards and management enriching themselves at the expense of shareholders and prevent companies from embarking on the kind of acquisitions and budget blow-outs that according to Kim have destroyed $85 billion in value just since 2010.
Monday, September 25 2017
By GCRU Gold News on Monday, September 25 2017, 23:13
Looking ahead, I expect global gold mine supply will gradually decline over the coming years, driven by the recent downward trend in prices, a reduction in exploration spend and a decline in development projects. I do believe, however, that the scale of decline will be gradual. Between the mid-1990s and early 2000s, industry mine supply dropped by approximately 1% annually. It is likely to be similar this time round.
Monday, August 21 2017
By GCRU Gold News on Monday, August 21 2017, 00:38
The chart below shows the global cost curve for gold mining — in terms of all-in costs. That includes operating costs, sustaining capital at mines, and development costs to bring new ounces of production online.
Thursday, August 10 2017
By GCRU Gold News on Thursday, August 10 2017, 11:35
Here’s something few investors know.
The gold mining industry is massively depleting its reserves, not finding new deposits fast enough, and could be on the cusp of its most profitable turning point ever.
Gold mine supply will peak in 2019 and continue falling through at least 2025, according to BMO Capital Markets and Bloomberg.
Saturday, May 20 2017
By GCRU Gold News on Saturday, May 20 2017, 09:54
From Canada’s Yukon to southern Patagonia, outbreaks of gold-rush fever are popping up as bullion markets stage a tentative recovery.
The number of holes drilled at gold deposits has been rising steadily for more than a year, according to S&P Global Market Intelligence. And while early-stage exploration budgets haven’t kept pace with spending at existing mines, prospecting hot spots are starting to pop up in traditional destinations Canada, Australia and Latin America.