Largest gold producers replace reserves despite higher costs, increased risks, and lack of new discoveries
Metals Economics Group’s (MEG) recent Strategies for Gold Reserves Replacement study concludes that between 1999 and 2008 the world’s largest gold producers (those with production of 450,000 oz or more in 2008) overcame rising costs, equipment and labour shortages, electrical outages, wars, permitting hurdles, typhoons, political opposition, and other obstacles to replace almost twice their reserves lost through production. The group’s average cost of replacing reserves through a combination of acquisitions and exploration was $83/oz. At the same time, this group also increased its aggregate production by a total of 10.7 Moz/y of gold, and together accounted for about 55% of 2008 world gold production. (more…)
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