The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Thursday, 5th February 2004 (4519 views)

The world's largest gold producer said it ended 2003 with proven and probable gold reserves of 91.3 million equity ounces based on a price assumption of $325 an ounce.<BR/><BR/>However, the increase 'was almost wholly due to the increase in the gold price bringing lower-grade ore into the economic reserve category,' according to Brien Lundin, editor of Gold Newsletter.<BR/><BR/>'Newmont's results highlight an important trend in the mining industry: the world's largest miners are adding to reserves and production through consolidation and acquisitions, even while global production of gold is actually dropping,' said Mr Lundin.<BR/><BR/>In a statement Newmont CEO Wayne Murdy told CBS Marketwatch that the firm would focus on boosting its reserves, which he argued was 'crucial to creating long-term value'.<BR/> <BR/>Mr Lundin suggested that Newmont could be on the prowl for new acquisitions, currently boasting $1.3 billion in its treasury, with a further $1 billion potentially raised in the future.<BR/><BR/>Mining competitor AngloGold reported 2003 gold production of 5.6 million ounces, down five per cent from the previous year, but is apparently on the verge of acquiring Ashanti Goldfields of Ghana, which produced 1.6 million ounces in 2003.

 

« Back to Gold News stories