Global Gold Production

The artificial plunge in the gold price is now having an impact on global production, surprise, surprise!

With global demand running at around 4000 tonnes and production ex-China and Russia at 2100 tonnes, the last thing the world needs is a plunge in production, but that is what an artificial plunge in price will produce.

The worlds biggest producer, Barrick, has given guidance that production will drop from 7.2 million ounces to 6-6.5 million ounces. On top of this they have dropped their reserves from 140m oz to 100m oz due to the lower prices.

This story is being repeated globally. Kinross is the 6th largest producer and it has written off 20 million of its 60 million ounces of reserves.

What’s more concerning than that…both companies have reduced capital expenditure by 50%. This doesn’t bode well for long term future production. Meanwhile gold has reached $1318 so perhaps they will be saved by a rising gold price.

God bless

Kevin

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA
Reload the CAPTCHA codeSpeak the CAPTCHA code