Business News of Thursday, 19 October 2017
Source: citibusinessnews.com
2017-10-19
The price of gold on the international market has declined to $1, 280 an ounce
Gold mining companies have disclosed that the declining price of gold on the international market has compelled them to adjust their operational strategy and forecast.
The businesses also explain that the development has made them reduce their revenue expectations for their operations.
The price of gold on the international market has been declining for some time now.
An ounce of fine gold is currently estimated at 1, 280 dollars.
For mining company, Newmont, its Regional Senior Vice President of Newmont Africa’s operations, Alwyn Pretorius explains to Citi Business News it has reviewed its pricing downwards to protect it from any adverse shock.
“There is not much that we can do about the gold prices so we plan our business to be sustainable and gold prices much lower than the current gold prices. So we really look at the country risks and also look at the opportunities that we have available,” he stated.
Although Mr. Pretorius admits they may have little control of the global prices, he like others in the industry, are hopeful of a rebound in gold prices soon.
Despite the impact of declining commodity prices, mining firms have had to contend with the impact of illegal mining activities on their operations.
The activities of the illegal miners have included destruction to forests, as well as water bodies.
Their activities have in some cases led to a threat of a boycott for gold produced from countries such as Ghana.
