China's Zijin buys stakes in Gold projects

May 27, 2015 at 10:29


China's Zijin Mining Group , which announced two acquisitions on Tuesday for more than $700 million, believes now is the good time to buy overseas assets as the mining sector is weak, a senior executive said on Wednesday. "In terms of acquisitions, now is the low level (of prices), good opportunity," the Zijin executive said. The two acquisitions are shares in Barrick Gold's unit and Ivanhoe Mines' copper project. The executive said gold and copper were the focus of the company's overseas assets. It bought the projects now because weak prices provided "good" prices for acquisitions, which also was in line with China's "One Belt, One Road" policy on overseas inves...

UBS puts 'buy' recommendation on gold stocks

May 27, 2015 at 10:27


Gold stocks are set to boom thanks to the commodity's price and merger activity, with UBS slapping a buy on its entire gold coverage list with the exception of Newcrest and Independence Group. UBS put out the note as the sector enjoys a boost from a wave of mergers and acquisitions this year, with 26 deals worth in total $1.7 billion. Gold has recovered from its March lows of $US1150 an ounce and is now trading near $US1188 ($1533). "With the exception of Newcrest and Independence Group, we have buy ratings on our entire gold coverage list," said UBS. "On the flipside, Newcrest is one of the best-performing resource stocks this year, an attribute we ...

Will Indian Monetisation Plan Impact Gold Price?

May 26, 2015 at 13:35


The gold monetisation scheme announced by the government may bring Indian gold prices on par with international gold prices. Currently, Indian gold sells at a premium of $50-60 to international gold prices. "The marginal dip in prices expected in the wake of the scheme could fuel fresh purchases of the yellow metal,'' says Hareesh V, Research Head, Geofin Comtrade. Thus, the gold monetisation scheme is viewed as positive by the market, although certain issues need to be ironed out. India is one of the largest consumers of gold in the word. In many families in India, gold purchases are almost mandatory on occasions like marriages or festivals like Diwali and Ak...

Report: True Impact Of Interest Rates On The Price Of Gold

May 26, 2015 at 13:29


While the broad media is tirelessly trying to explain and persuade the public that an interest rate hike would encompass a prolonged gold price depreciation a report by Boris Gerjovi would indicate quite the contrary: There is a lot of talk about an interest rates hike in the media worldwide. As a consequence the decreasing price of gold should follow. However, the task of science is not to repeat what the media have to say, but to put the serious doubt on whatever the media have to say. So, we do believe that the interest rates hike could follow pretty soon, but it’s not the task of this article to discuss if there will be or will not be an interest rates hike. Our in...

Aussie Gold production slips to lowest in 25 years

May 25, 2015 at 09:02


Australian gold production fell by 7 per cent in the first quarter of this year. Less than 70 tonnes of the precious metal was pulled from the ground in the first three months of 2015, according to mining consultancy firm Surbiton Associates. Director Dr Sandra Close said the low figure was in part due to a number of shutdowns, wet weather and fewer production days from January to March."March is usually the lowest quarter of the year anyhow, but overall both the grade and tonnage of ore treated was lower this quarter than for December and there are quite a few reasons for that happening, in fact," she said. "First of all, the wet weather - some operations had sche...

China sets up "largest" Gold fund for Silk Road nations

May 25, 2015 at 08:59


China, the world's biggest gold producer, has set up a gold sector fund involving countries along the ancient Silk Road which is expected to raise $16.1 billion. The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan ($16.1 billion) in three phases, state-run Xinhua news agency reported. It is said to be the "largest fund" set up by China. The fund has been set up in northwest Xi'an city during an ongoing forum on investment and trade. China is the world's largest gold producer, and also a major importer and consumer of gold. Among the 65 countries along the routes of the Silk Road Economic Belt and the 21st-Century M...

Tanzania’s gold output rises

May 22, 2015 at 12:30


Tanzania's gold output edged up 1.26 percent in 2014 to 1.27 million ounces, snapping a two-year decline, government data showed on Friday. Tanzania is Africa's fourth-biggest gold producer after South Africa, Ghana and Mali and gold exports are a key source of foreign exchange. Export earnings however fell last year, reflecting lower metal prices globally. “The total value of mineral exports by the seven major gold mines decreased by 6.7 percent from $1.78 billion in the year 2013 to $1.66 billion in the year 2014,” the state-run Tanzania Minerals Audit Agency (TMAA) said in a report. Government revenues from gold mining companies, in form of taxes and royalties...