Gold supply decreasing..........
Gold industry consolidation not over: AngloGold CEO
Platt's Metals Week, 8 May 2000, p 3-4, Business Day, 2 May 2000, p 1, 12 Apr 2000, p 12, Mining Journal, 5 May 2000, p 341
AngloGold CEO, Bobby Godsell, says that consolidation in the gold industry, both locally and abroad, is far from over, and that offshore expansion may be necessary if AngloGold is to continue producing seven million oz/y of gold. Operating problems at five of AngloGold's South African mines have forced AngloGold to reduce its South African production target for 2000 by 4% or 7 t. Some of the company's Free State mines are coming to the end of their lives as far as AngloGold is concerned, and the shafts will be wound down or sold. AngloGold seeks to operate mines with a return on equity greater than 10% and with cash costs of around $200/oz. Meanwhile, AngloGold has approved a $63 million expansion plan at its 100%-owned Australian operation, Sunrise Dam. The expansion will add 1.45 million oz of gold to the life-of-mine production at an average cash cost of $186/oz, while extending the life of the mine by three-and-a-half years. Analysts believe AngloGold is also looking at other acquisitions. Australian gold companies are vulnerable to takeovers as investment interest is depressed and the sector is undervalued. The CE of US-based gold producer Newmont Mining Corp agrees there are compelling reasons for consolidation in the gold industry. For investors, size does matter, and in the future, the world gold industry may end up with just seven or eight large gold producing companies.
384/2000
Barrick, Newmont see gold deficit and high prices
Platt's Metals Week, 8 May 2000, p 2-3
The CEOs of North America's two largest gold producers, Barrick Gold and Newmont Mining, say that a serious deficit is developing in the gold market, with future industrial demand expected to outstrip production from mines whose reserves are being depleted. There is a scarcity of new mines to replace lost production, and the gap between supply and demand is widening due to restricted central bank sales and less producer hedging. They expect the price of gold to recover. |
