Resolute Mining says it will pay Mali $160 million in tax dispute
The company’s shares in Sydney were suspended on Thursday, after tumbling 40% since news of the detention of CEO Terry Holohan.
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.
