Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
After a wobble on Monday following Friday’s big rally, the gold market managed modest gains during quiet trade on Tuesday gaining slightly to $1,163 an ounce.
Gold is trading not far below its opening price for 2014 and has recently been flirting with levels last seen April 2010.
The new sub-$1,200 an ounce reality in the gold market has not filtered through to many miners it seems.
According to a survey by consulting firm PwC for its new Gold, Silver and Copper Price Report 2015, 60% of gold mining companies expect the price of gold to head lower in the next 12 months. That compares to 7% last year.
Despite this pessimism however, gold miner’s longer term assumptions assume a strong recovery in the gold price from today’s levels.
When asked what gold price companies are using to determine reserves, the average among respondents was $1,241 per ounce, with a range of between $950 and $1,350. For resources, the average was $1,331 per ounce with a range of between $950 and $1,600.
Perhaps the apparent disconnect can be explained by the fact 46% of respondents said they relied on management’s internal estimates as their main source of determining price, while 28% relied on consensus pricing. Another 10% looked more at the spot price, 8% at the forward curve, and 8% relied on historical averages.
Source: PwC
2 Comments
anon
…because nobody wants to write down reserves
Wcarmonasrocks
don’t know who to beleive about gold price ,up or down its still GOLD
this is one of thoese minerals that as long as the demand is great is great,gold is high and when the demand goes down hopefully price goes down. then we hope everyone wants a piece.Good all Won’t stop me from mining the minerals GOLD