Dwindling gold reserves
The research agency Standard & Poor's Global Market Intelligence has examined the development of the mineable gold reserves of the major gold mining companies over the last decade. The lack of new discoveries and the shift from growth strategy to margin preservation were noted.
In addition, in many cases the mining costs are increasing. Also, according to the survey, 16 of the top 20 gold mining companies in the world have seen their production years decline over the period 2010 to 2019, with only two of the major companies having more remaining production years at the end of 2019 than they had at the beginning. These are the Chinese Zijin Mining Group and Fresnillo.
Fresnillo is the partner of MAG Silver: https://www.commodity-tv.com/play/newsflash-with-oceanagold-mag-silver-and-copper-mountain-mining/. Together they are developing the Juanicipio project in Mexico, with the first production tunnel ready for mining in mid 2021. MAG Silver is driving various projects, with the Juanicipio project being the flagship project.
According to S & P Global Market Intelligence, production years have shrunk from 20 to 14 years over the last ten years. The exceptional company Sibanye-Stillwater was not included in this study: https://www.commodity-tv.com/play/mining-newsflash-with-sibanye-stillwater-mawson-gold-and-isoenergy/. This is because the remaining life of its reserves has increased from 12 to 15 years. Sibanye-Stillwater is a major gold producer and at the same time a significant producer of platinum and palladium. The projects are located in South Africa and in the USA. In the first half of 2020, revenues increased by approximately 134 percent compared to the same period last year. An interim dividend was approved.
So there are companies that can buck the trend and shine with positive production years or solid reserves.
Current company information and press releases from MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/) Sibanye-Stillwater (https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also