Barrick hits at c.bank gold sale critics
LONDON, Sept 17 (Reuters) - Gold miners should stop criticising central bank gold sales and concentrate on how to survive in the current low gold price environment, Barrick Gold Corporation (Toronto:ABX.TO - news) president and chief executive officer Randall Oliphant said on Friday.
He said that while he would prefer that the Bank of England did not sell its gold he did not think that moaning was the right answer.
``I think we have to focus on our own goals and figure out how we make money,' Oliphant said in reply to questions after speaking to an RBC Dominion Securities mining equities conference.
The Bank of England is due next Tuesday to auction 25 tonnes from its gold reserves as part of a plan to slash holdings by 415 tonnes to 300 during the next few years, replacing the metal with interest bearing dollars, euros and yen.
The bank ran into a barrage of criticism when it announced its plans in May, news which prompted a wave of producer and hedge fund sales that knocked more than 10 percent from the spot gold price.
``I don't think my views are necessarily very popular in the gold industry. I am not mad at the Bank of England as everyone else seems to be,' Oliphant said.
``The Bank of England tried to do what we asked them, which was to be transparent in what they did,' he said.
``I don't think selling 800,000 ounces periodically is enough to damage the price of gold,' he added.
``Barrick was not predicated on the Bank of England holding on to its gold reserves. Long term, there will be a transfer out of the hands of central banks into the hands of consumers,'
The low-cost Canadian miner, North America's second largest gold producer, poured 3.2 million troy ounces of gold last year.
Barrick runs the largest hedge book in the industry with its entire planned production through to the end of 2001, some 13.3 million ounces as at July 22, sold forward at secured prices averaging $385/ounce.
Oliphant said he was unsurprised that global gold production was rising despite prices near 20-year lows in the $250s as higher cost miners sought out their best reserves to stay afloat.
``I think people have decided to pursue some of their best grades. I don't think that is sustainable long term although I understand why people are doing it given the circumstances,' he said.
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