23.09.2014 - Gold Mining "Hurt Long-Term", Output "Peaking in 2014"
Gold mining output worldwide is set to peak and then "plateau" in 2014, according to the leading data analysts, as today's lower prices force producers to cut exploration spending in a bid to boost profit margins. "It seems inevitable," says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry's response to 2013's gold price crash "will be detrimental to mine supply levels in future years." Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), "The mining sector is increasing production this year," says the consultancy, "with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher."..............................................Full Article: Source
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