GOLD’s gradual decline from the beginning of the year followed by spectacular losses in mid-April have prompted gold bulls into a fighting withdrawal and seen the bears firing from the hip. Most shots have been taken from the safety of the trenches but London’s Association of Mining Analysts last month established a frontline for the battle, pitting three of gold’s most bullish bulls against three ardent grizzly bears in a debate at Burlington House, London.
DESPITE the good timing with regards his exit given the subsequent declining gold price, former Newcrest Mining managing director Ian Smith might be disappointed his much lauded stewardship of the gold miner has been taking a hit with the current travails.
SELF funding Phoenix Gold (ASX: PXG) is set to kick off mining of its second modest gold deposit in the Western Australian goldfields with a venture that is expected to generate net cash flow in excess of $A3 million based on a gold price of $A1350 per ounce.
THE standard claims and counter-claims are being thrown around in the Mineral Deposits versus Teranga Gold stoush, and while there seem elements of truth and nonsense in various measures from both sides, the lesson perhaps lies with the old adage of being careful who you get into bed with.
YOU may not see it happen overnight, but it could happen. When ‘it’ is a $A400-an-ounce reduction in gold cash costs, this declaration by Perth-based mining consulting firm Optiro was bound to grab some attention.
THE World Gold Council last week wrapped some hard numbers around the demand environment for gold over the first quarter, which saw a mass exit from gold exchange traded funds by investors to underpin a 13% fall in overall demand.
AFTER a decade in the wilderness, the chances of hedging being implemented by miners on a significant, industry-wide basis must surely be on the increase. The rub being, such a change of tack will put further pressure on the gold price.
WHEN he was a young 24-year-old mining contractor Bill Beament had the unenviable task of standing in front of a bunch of miners to inform them they were facing a significant pay cut. Fast forward to 2013 and the now managing director of successful gold miner Northern Star Resources is seeing the distinct possibility of industry-wide wage cuts for those in the gold sector. The straight talking executive can see other significant changes on the way too.
AUSTRALIAN gold standout Regis Resources maybe having a hiccup or two but it is still producing bullion at industry low costs.
WHAT a week for the Australian gold space, with strategies implemented by gold companies flying left, right and centre in the wake of the significant gold price decline.
WHILE many gold juniors are scrambling in the face of existential threats, the well performed Phoenix Gold (ASX: PXG) is staying the course as it tracks towards a mine development decision by the end of 2013.
THE well-performed managing director of emerging gold miner Evolution Mining Jake Klein is confident the gold price will remain strong in the years ahead despite the recent reversal suffered by the precious metal. And he needs to be right because the Evolution business is very much leveraged to the gold price.
ALTHOUGH it has taken more than two years to secure finance and cut through red tape, Alkane Resources is confident about bringing its gold project in New South Wales into production by the end of the year.
THEY don’t have the public profile and hence have not got the kudos accorded others deigned market darlings, but the team at Millennium Minerals led by CEO Brian Rear have delivered an impressive performance in building the significant Nullagine gold project on time and budget, and then getting the operation on a commercial footing in next to no time.
A MUCH needed deal transacted by gold miner Troy Resources and emerging explorer Azimuth Resources would appear to give shareholders of both companies the opportunity to enjoy future capital growth.
NOTIONALLY at least, the odds of a deal being cut between Reed Resources and Metals X should be shortening if the basis of the market’s evident scepticism about Reed’s Meekatharra gold project has validity.
HIGH profile IPO Dacian Gold’s strong results at the company’s Westralia gold prospect west of Laverton in Western Australia have highlighted the tangible potential for meeting its target of 500,000 ounces of reserves at an historically bountiful operation.
AS one cash cow winds down for Ramelius Resources the ramp-up of several new projects is expected to reinvigorate the company, though strong investor interest may not return until later this year.
THERE remains plenty of evidence to suggest we should expect further strength in the gold price following the recent correction, however the tentative recovery in the global economy combined with ongoing currency wars has taken the edge off less ardent gold bugs.
THE resource sector is all about having a crack (aka punt), and so hearty congratulations to Reed Resources for the opening of a new gold project in Australia this week, a relatively rare occurrence in the best of times. Fingers crossed now for sustained success.