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Old 04-13-2015, 07:17 AM   #141
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...
The latest detailed report on gold from GFMS in London does not make pretty reading for those either running gold mining operations, or investing in them. According to the specialist precious metals consultancy around 50% of the gold mining sector looks to be lossmaking on its own calculated All-in-Costs basis at a $1,200/ounce gold price ...
More: http://www.mineweb.com/news/gold/man...te-costs-cuts/

Ouch.
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Old 04-13-2015, 09:28 AM   #142
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As mines close down and experienced miners are lost to unemployment, there will be problems with any future production as a result. When the world came apart in '08, we lost a hell of a lot of cross trained employees.
These employees cost several thousand each to train, yet when we laid them off because of a lack of work, they went elsewhere. When work picked back up last year, we had to train a whole new crop of people and did so at no small expense.

These mines, once closed down, will be extraordinarily expensive to re-open.
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Old 04-13-2015, 09:30 AM   #143
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Sucks for them. China needs it's gold so the G20 can start the NWO in monetary policy. (apparently)
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Old 09-01-2015, 10:25 AM   #144
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For the first five months of the year, (Jan-May), U.S. gold production is down 10%, from 85.3 mt in 2014 to 76.9 mt currently. The majority of declines came out of Nevada. Gold production in Nevada fell from 61.8 mt Jan-May 2014, to 56.1 mt this year.

If current trends continue, U.S. gold production will fall below 200 mt in 2015. Last year, the U.S. produced 210 mt of gold (according to the USGS), so a 10% decline would amount to 21 mt. Thus, overall U.S. gold mine supply could fall to 190 mt in 2015.

The last time U.S. gold production was below 200 mt was 28 years ago in 1987 ...

... Basically, U.S. gold production hasn’t been this low for nearly three decades. ...
More (incl. charts): http://srsroccoreport.com/u-s-gold-p...-to-low-price/
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Old 01-18-2016, 09:37 AM   #145
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Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices.

The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.

Kelvin Dushnisky, president of Barrick Gold, the world's largest gold miner by annual output, said: "Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook."
...
According to Thomson Reuters' GFMS metals research team, global production of gold is expected to fall 3 per cent this year, ending a seven-year period of rising output. GFMS expects gold mine production in 2015 to have risen 1 per cent to a record 3,155 tonnes.

The end of the gold bull market has prompted some miners to abandon growth projects, while ore grades across the industry have been falling as mines become depleted. The strike rate in finding significant deposits has also declined and most mining companies are struggling to attract investment to develop projects.

Mr Nesis said: "The fourth quarter last year was in my opinion the peak quarter for fresh global mine supply. ... I think supply will drop by 15 to 20 per cent over the next three to four years."
...
http://gata.org/node/16096
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Old 01-14-2019, 09:09 PM   #146
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Interesting tidbit about recent lack of gold mining deposit discoveries due to lack of exploration budgets:


https://www.sovereignman.com/interna...uy-gold-24421/

Yet another MAJOR reason to buy gold
Simon Black January 14, 2019


Quote :
For almost a year now, I’ve been advising you that gold production is plunging…

By itself, declining gold production isn’t a huge deal.

It takes hundreds of millions of years for minerals to form deep in the earth’s crust… but humans only need a few decades to extract it.

That’s why mining companies need to constantly explore for new deposits.

And that’s where the problem comes in… mining companies haven’t been exploring.

Large mining companies have been cutting their exploration budgets for years. By the end of 2016, exploration budgets hit an 11-year low.

Part of the reason for the decline in exploration has been the stagnant gold price and general, investor disinterest toward the gold mining sector.

If you look at a chart of the Gold Miners ETF (GDX), the price hasn’t gone anywhere for five years.

And gold prices have likewise languished; today’s price of $1,290 per ounce is down 30% from the 2011.

To fight the tough times, miners slashed their exploration budgets.

That means, when the demand for gold picks up again (which I think we’re starting to see now), there won’t be enough gold supply.

You don’t have to just take my word for it…

Pierre Lassonde, the billionaire founder of gold royalty giant Franco-Nevada and former head of Newmont Mining –

If you look back to the 70s, 80s and 90s, in every one of those decades, the industry found at least one 50+ million-ounce gold deposit, at least ten 30+ million ounce deposits, and countless 5 to 10 million ounce deposits.

But if you look at the last 15 years, we found no 50-million-ounce deposit, no 30 million ounce deposit and only very few 15 million ounce deposits.

So where are those great big deposits we found in the past? How are they going to be replaced? We don’t know.

Lassonde isn’t the big gold player warning about the falling gold production. You can read some other warnings in this piece I wrote in July of last year.

One of the legends we quoted was Ian Telfer, chairman of Goldcorp, who told the Financial Post:

“If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years. Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down… We’re right at peak gold here.”

If gold production is peaking, and the mining companies aren’t spending money to find new deposits, that means one thing… when demand picks up, we’ll see a wave of consolidation in the industry.

Mining companies will be forced to acquire one another in order increase their production and meet a rising gold demand.

These consolidations are already happening. Literally just today, Telfer’s $8.5 billion Goldcorp was acquired by Newmont Mining for $10 billion.

This isn’t the first deal like this: back in September, Barrick Gold bought Randgold Resources in a $6 billion deal.

This is exactly what you’d expect to see in an era where gold miners are acquiring each other and consolidating their production.

And all of this should be quite favorable for gold prices over the long-term.

Now, at least for me, gold has never really been an investment. I don’t trade paper currency for gold, hoping to trade gold back for more paper currency down the road.

Instead, gold for me has always been always a hedge against all the risks in the world that just don’t make sense.

And there are plenty of those:

The US debt is now nearly $22 trillion and growing at more than $1 trillion a year.

Interest rates across the world’s other largest economies– Europe and Japan– are still negative. China is rapidly slowing.

Governments around the world, it seems, are in a coordinated effort to destroy paper money and inflate their massive debts away.

Meanwhile, interest rates are slowly rising from the bottom, putting the huge stock and bond rally of the past decade at risk.

All of these are very prudent reasons to own gold.

And with today’s news, we’ve now seen several of the largest gold miners in the world spending a combined $16 billion to increase their gold reserves. They’re admitting there’s a big shortage of the metal. And this trend is just getting started.
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Old 01-15-2019, 03:32 AM   #147
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It could be argued that after 7 years of the gold market not really doing anything, selling up while theres still a few big players to sell to might make some sense ?

Mainstream thinking seems to be that gold is now an irrelevance. Its only those who watch more closely, see how the price is held down and ask why, who can agree with Simon Black.
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Old 01-15-2019, 07:16 AM   #148
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Thanks Unobtanium, that was timely. We're seeing stage 2 of the fallout from the economic stress in the mining sector with the mergers/consolidations. They are struggling to stay viable.

With central banks starting to buy again, gold is really poised for a supply shock in the near future.
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Old 01-21-2019, 08:13 AM   #149
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Another miner likely to see lower production ahead:
Quote :
... Saddled with Mponeng, the world’s deepest mine in a dying South African industry that’s struggling to contain costs, the third-biggest producer could boost its value by leaving the country, according to Rene Hochreiter, analyst at Noah Capital Markets Ltd. in Johannesburg.

“Their best bet is to get out of South Africa and leave Mponeng behind,” he said. “The costs never come down in South African gold.”

That would be the final step in AngloGold’s gradual withdrawal from South Africa. The country contributed just 14 percent of its output in the third quarter of last year, down from 26 percent a year earlier, after the company sold and shut mines to stem losses.
...
https://www.bloomberg.com/news/artic...-rush-quickens
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Old 01-21-2019, 09:03 AM   #150
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Gold’s dimming supply prospects have caught the eye of one billionaire.

“For the first time in my life, I bought gold because it is a good hedge,” Sam Zell, the founder of Equity Group Investments, said in a Bloomberg TV interview. “Supply is shrinking and that is going to have a positive impact on the price.”

Spending on new mines began to dry up after prices of the metal tumbled from a record in 2011, clouding the outlook for production. With gold still down by almost a third from its peak, the biggest miners are just looking at buying their competitors in a bid to bolster their output pipeline.

“The amount of capital being put into new gold mines is a most nonexistent,” Zell said. “All of the money is being used to buy up rivals.”

The combined gold reserves still buried in mines -- an indicator of production prospects-- shrank by more than 40 percent in 2017, from its peak after companies cut spending on exploration and development of new projects, according to Bloomberg Intelligence data on big producers.
https://www.bloomberg.com/news/artic...n-tight-supply
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