GoldCos – How are you positioned

By Tshepo Magagane – M&M Executive

How do you get new gold ounces at 1k AISCC? I don’t think you can ignore Africa even if you have zero risk appetite – confiscations are a thing of the past when you do things right in Africa (when you start teaming up with this politician to take assets off this promoter – obviously you are asking for it – bring the community/nation along in your development story)

NB: the biggest question right now is, does the AISCC level for the majors ie 1.5k set a floor for prices and secondly, given the price level at which the likes of China has been diversifying their FX reserves, do you have a “China / CB Put” at 2k? A lot of African juniors have an AISCC of just around 1k.

An interesting note from Money of Mine on Aussie Gold juniors – their conclusion “slim pickings”!

Majors have really always struggled – their AISCC is around 1.5k and they are losing the battle when it comes to NOSH v Reserves / Production: the way you fund gold companies is mostly through equity – hence NOSH reference – however, if you keep issuing shares but your reserves/production is not moving in tandem, it is value destruction in its simplest form!