Africa, a land of gold
Even South Africa, once the world's largest gold producer, is producing less and less gold. This has been happening continuously for 19 months, the longest decline since the financial crisis around ten years ago. Gold production fell by 31 percent last December and by around 20 percent in January and February. The reason lies in the difficult working conditions, the gold content is declining and strikes are reducing production. Also, they have to dig into deeper and deeper regions.
As estimated by the U.S. Geological Survey, South Africa still has the world's second largest mineable gold reserves. The top producer country in Africa is now West African Ghana and no longer South Africa. In Ghana, a mining-friendly policy scores well and the costs of operating the mines are comparatively low. In 2018, Ghana's gold production increased by 12 percent.
Gold companies such as Cardinal Resources - http://www.commodity-tv.net/c/search_adv/?v=299119, which own their projects in this small West African country, therefore have an advantage. Cardinal Resources' activities are focused on the Namdini Gold Project, which is part of the Bolgatanga Project, and the Subranum Gold Project. The Namdini gold project has 5.1 million ounces of gold reserves (probable and proven). A feasibility study will be completed shortly.
Gold can also be mined profitably in Zimbabwe. The mining industry has been active here for over 100 years. A good example of successful progress is Caledonia Mining - http://www.commodity-tv.net/c/search_adv/?v=298787. Its blanket mine produced around 54,500 ounces of gold in 2018 at a total cost of US$802 per ounce. Caledonia holds the government certificate of conformity, which means that the company fully complies with all the requirements of the Indigenization and Economic Support Act. This enables Caledonia Mining to implement its long-term growth strategy and to pay out regular dividends to its shareholders. The participation of local investors ensures acceptance among the population. Skilled workers and the necessary infrastructure system are available.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/).
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