LarCO
11-19-2008, 04:47 PM
Randgold expects global gold production to decline by between 15% and 20% in the next three or four years, as unprofitable operations are squeezed out and difficult market conditions delay the development of new mines.
“And if we have some real failures, which I think we are going to have, it will be the upper” end of the range, Bristow said on Wednesday.
Total global gold production contracted 0,4% in 2007, to an eleven-year low, according to metals consultancy GFMS.
In the last four months, several companies have announced that they are curtailing production or delaying projects, and most of the rest are still reviewing spending plans.
This decline in world supply, coupled with inflation resulting from the huge amounts of money being injected into the world's economies, would likely result in a rebound in the gold price, Bristow commented.
“And my gut says that it's probably going to happen sooner and faster.”
“And if we have some real failures, which I think we are going to have, it will be the upper” end of the range, Bristow said on Wednesday.
Total global gold production contracted 0,4% in 2007, to an eleven-year low, according to metals consultancy GFMS.
In the last four months, several companies have announced that they are curtailing production or delaying projects, and most of the rest are still reviewing spending plans.
This decline in world supply, coupled with inflation resulting from the huge amounts of money being injected into the world's economies, would likely result in a rebound in the gold price, Bristow commented.
“And my gut says that it's probably going to happen sooner and faster.”