Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Gold demand surged in the first quarter of this year as purchases of the precious metal for investment climbed 11% to 981.3 tons in the first three months according to the latest World Gold Council report. Much of the increase was as a result of buying of the physical metal – purchases of gold bars and coins shot up 52% year on year to 366 tons, representing a virtual doubling in value to $16bn.
The report from the association of gold producers comes as the biggest producers sound warnings on Monday that any major pullback in the metal’s price below $1,000 could jeopardize the primary supply of gold.
Allan Seccombe, writing in the BussinessDay, quotes the CEO of Gold Fields:
“Some analysts say the gold price could go to $900/oz. At $900/oz there is no industry,” said Nick Holland, CEO of Gold Fields. “The industry’s 70-million ounces a year of gold production are under threat if those gold forecasts are right.
“The industry cost curve, including sustaining capital, is already over $1000. The industry will start taking pain again if the gold price goes down there,” he said.”
On Friday, Gold Fields, the world’s fourth-largest listed gold producer, posted better-than-expected second quarter earnings due to cost cuts and higher gold prices and said the outlook remained positive.
