Gold price slips as traders weigh outlook for Fed interest rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Following its announcement earlier this month of an initial public offering in London, along with a secondary listing in Moscow, Nordgold has now decided to postpone its potential multi-billion-dollar IPO.
In Tuesday’s news release, the Russian gold producer said it would put the proposed IPO on hold, given a murky outlook of the global gold market.
“Recent central bank comments indicating an acceleration in expected interest rate rises have created significant uncertainty and volatility in the resources sector, in particular impacting gold and gold equities. Nordgold has determined that it would therefore not be sensible to pursue an IPO at this particular juncture,” CEO Nikolai Zelenski said in a media statement.
“Although we have decided to postpone our IPO, our priorities remain the same — delivering on our low cost, low risk development pipeline anchored in the Gross District and continuing to drive shareholder returns, without ever compromising on our adherence to the highest ESG standards, or the safety of our people, and the values that are core to Nordgold,” he added.
Nordgold currently operates four mines in Russia, one in Kazakhstan, three in Burkina Faso and one in Guinea. It produced approximately one million ounces of gold last year, earning a core profit of $1 billion.
