Jamie Sokalsky från Barrick Gold om hur det blivit betydligt svårare att hitta och utveckla stora guldtillgångar: Gold Industry Facing Mine Discovery Challenge
Gold discovery rates are decreasing even as exploration spending in the industry reached a record $8 billion last year, according to Jamie Sokalsky, chief executive officer of Barrick Gold Corp., the world’s largest producer.
There were three discoveries last year, compared with 11 in 1991, and none of those can be described as “supergiant,” or holding more than 20 million ounces, Sokalsky said at a conference in Hong Kong. Breakeven costs were rising, he said today, predicting gold’s bull market shows no signs of ending.
“It’s getting harder to find large deposits and to get those deposits into production takes at least twice as long as it might have taken a decade ago,” Sokalsky said yesterday in an interview. “We’re not going to see new mines coming in as fast as we thought to replace old mines that are closing.”
I would just like to add that the Barrick CEO just discussed how difficult how difficult it is to go out and find gold deposits right now. I have actually given a couple of speeches about this recently. Maybe some of my remarks filtered back to him. I’ve been addressing something I like to call ‘Peak Gold.’
I think we are just about at ‘Peak Gold’ right now. This is basically the point at which the rate of new gold discovery will start to diminish from here on out. The Western gold companies have not been producing the gold discoveries, but the emergence of China as a producer has temporarily saved the day.