Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Gold’s slim price recovery this year boosts supply fears

Gold’s slim price recovery this year boosts supply fears

A lack of new and significant gold mines to come on stream soon, due mainly to miners’ reduced investment in exploration, is boosting fears in the industry over future supply of the metal.

Bullion’s limited gains this year (it just logged its worst month since mid-2013), especially when compared to other commodities, has done nothing but prompt miners to keep spending in new projects low and even sell non-core assets, Financial Times reports (subs. required):

Petropavlovsk, a gold miner with assets in Russia, is a case in point. It has cut its exploration budget by two-thirds.

“There is a chronic shortage of exploration money and as usual the gold price is not acting in the way everyone thought it would do,” says Peter Hambro, chairman of the company.
Africa-focused producer Randgold Resources (LON:RRS) echoes those worries. Its chief executive, Mark Bristow, has been warning for months that peak gold production may be reached within the next three years.

A lack of new and significant gold mines to come on stream soon, due mainly to miners’ reduced investment in exploration, is boosting fears in the industry over future supply of the metal.

Bullion’s limited gains this year (it just logged its worst month since mid-2013), especially when compared to other commodities, has done nothing but prompt miners to keep spending in new projects low and even sell non-core assets, Financial Times reports (subs. required):

Petropavlovsk, a gold miner with assets in Russia, is a case in point. It has cut its exploration budget by two-thirds.

“There is a chronic shortage of exploration money and as usual the gold price is not acting in the way everyone thought it would do,” says Peter Hambro, chairman of the company.
Africa-focused producer Randgold Resources (LON:RRS) echoes those worries. Its chief executive, Mark Bristow, has been warning for months that peak gold production may be reached within the next three years.

To continue reading please click link http://www.mining.com/golds-slim-price-recovery-this-year-boosts-supply-fears/