Wednesday, 9th August 2006 (4439 views)

The new chief executive of Australian gold company Newcrest Mining has told The Age that he believes there is a possibility the price of gold could reach four-figures per ounce.

Ian Smith told the newspaper that if current trends acted as an indicator for future price movements, it was "not beyond the realms of possibility" that a price of $1,000 an ounce was achievable.

With gold trading on the Australian exchange on Wednesday (August 9th) at around $640, Mr Smith's prediction would require a significant increase in price, akin to the extreme rises seen in the early 1980s.

Newcrest is one of several gold companies that are enjoying a profitable time with relatively high trading prices for their quarry.

Although problems have been experienced at several of Newcrest's properties, Mr Smith was quick to say that he thought the worst of it was over and that profitability would begin to show a dramatic upturn in fortunes soon.

"I think in about 12 month's time our cash position will be such that we will have a whole range of opportunities open to us," he said.

Mr Smith also said the company was in negotiations with several other investors to look at expanding the companies' portfolio of properties and prospects in a view to expand the business in the near future.

 

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