The
protracted downtrend of precious metal prices may have run its course, there is
however no clear indication of much higher gold and silver prices in the near
or medium term future. Gold is moving
sideways, unable to uphold $1400 for more than a few days. Producers are scrutinizing their mining sites
and not without reason. Production at mines with high total production costs
may need to be scaled back. Any new
mining development will need to factor in lower gold prices going forward and
the internal rate of return will be substantially lower. Especially on sites where investment costs
have been spiralling out of control, tough decisions may have to be made. It should be clear that, under these
circumstances, the global gold mining output will continue its decline,
possibly at an accelerated pace. Gold
mining: the fading away of an industry...
