Gold mining not spending enough to sustain industry into future – Holland

August 22, 2016

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The gold-mining industry is not spending enough to sustain the industry into the future. Slowed primary gold supply growth is making a case for the belief that the industry may be close to hitting a peak in production amid slower exploration spend and a virtual halt to new projects.

The average reserve life of 11 gold mining companies studied has fallen from 24 years to 17 years.

High-grading is also taking its toll; the average head grade of the 11 gold mining companies studied has been higher than the reserve grade for the past three years.
The high-grading has not stopped with the rise in the gold price evidenced by the gap between reserve grade and high grade widening.

Category: General