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Plunging Gold Price Has Mining Companies Selling at Loss
By Liezel Hill and Kevin Crowley
Bloomberg News
Wednesday, November 5, 2014
The latest decline in the price of gold is saddling higher-cost producers with losses on every ounce mined, and pushing others to the brink of slipping into the red.
Gold fell to a four-year low of $1,143.76 an ounce today, below production costs for six of 19 mining companies tracked by Bloomberg Intelligence, including Harmony Gold Mining Co., South Africa's third-largest producer, and Primero Mining Corp. Three more producers are within $50 of the figure.
"What's developing is almost a two-tier type of market," said John Ing, chief executive officer at brokerage Maison Placements Canada Inc., speaking by phone. One tier has companies with good assets and lower costs, while the other comprises producers "who are saddled with high-cost operations" and stretched balance sheets. ...
... For the remainder of the report:
http://www.bloomberg.com/news/2014-11-05/plun...-has-mining-...
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Low Gold Price Could Threaten the Future of Australian Industry if Global Slump Continues
By Bridget Fitzgerald and Tara de Landgrafft
Australian Broadcasting Corp., Sydney
Tuesday, November 4, 2014
Australia's largest gold miner has warned that its future in the country could be under threat if the gold price continues to slide.
The global gold price hit a four-year of US$1,167 an ounce on Monday night.
Newmont Asia Pacific manager of external relations, Kelvyn Eglinton, says the high cost of operating in Australia may force the company to relocate overseas.
Audio: Kelvyn Eglinton from Newmont Asia Pacific says gold production in Australia is 'quite threatened' by low gold prices. (ABC Rural)
Newmont operates Australia's single largest gold mine at Boddington in Western Australia's south-west, which produces 700,000 ounces of gold each year. ...
... For the remainder of the report:
http://www.abc.net.au/news/2014-11-05/gold...tralian-prod...
