From FT site:
Millennium coin plan loses support
By Kenneth Gooding, Mining Correspondent
Big mining companies expected to back the launch of a millennium gold coin have decided against the idea, though the project is moving ahead without their help.
It had been hoped that the scheme to sell the coins internationally would lift the gold market out of the doldrums by encouraging the sale of up to an extra 1,000 tonnes of gold.
However, Peter Hambro, the mining financier who is one of the founders of the Millennium Gold Coin Company, said on Thursday sales of 1,000 tonnes of gold this way was "unrealistic". "If we sell 20m to 30m coins we would be doing very well."
At today's price, that means an extra 300 to 450 tonnes of gold might be sold, roughly equivalent to the annual output of the US, the second largest producer.
Mr Hambro said the coins would retail at about $150 each. He has personally financed the scheme so far, together with another well known mining personality, Willie McLucas, former chief executive of Waverley Mining of Scotland.
Mr Hambro said they hoped to raise initially $10m to $15m for the Millennium Gold Coin Company.
Progress so far includes:
Agreement in principle for Experian, part of the Great Universal Stores group and one of world's biggest suppliers of consumer credit information and marketing services, to handle international sales and distribution of the coins;
HHCL, a marketing communications agency with experience of product launches, such as British Airways' new low-cost airline, has been hired for the launch;
Three bullion banks - Deutsche Morgan Grenfell, SBC Warburg Dillon Read and Salomon Smith Barney - have expressed interest in financing stock and work in progress.
Originally, some of the biggest gold groups seemed enthusiastic about the millennium coin. They included Barrick Gold and Placer Dome of Canada, Newmont Mining of the US and Anglogold of South Africa. Robert Champion de Crespigny, chairman of Normandy Mining, Australia's biggest gold group, was asked to report on the potential.
John Willson, Placer Dome's chief executive, said this week: "The group looking at the potential of the millennium coin idea concluded that, in light of all the other millennium projects, it would not be attractive to sponsor that idea."
However, discussions among gold producers, under the auspices of the World Gold Council, were taking place to consider sponsorship of existing gold-based millennium projects that had the potential to raise the profile of gold and encourage gold sales.
Mr Hambro said that, because of the progress made by the Millennium Gold Coin Company since the de Crespigny report was compiled, he was sure some gold producers would find the scheme attractive enough to provide backing.
He hoped the first coins would be on sale in January, initially concentrating on the key markets of the US, Canada, UK, France, Germany and Australia.
|
