Categories: Base Metals / General Market Commentary / Precious Metals
Topics: General Base Metals / General Market Commentary / General Precious Metals

Gold Miners Are Running Out of Metal: Five Charts Explaining Why

Dec. 22, 2016

Gold Miners Are Running Out of Metal: Five Charts Explaining Why

-- Exploration proving more difficult and firms have cut capex

-- Gold mining CEOs turning to deals to combat dwindling reserves

Gold’s had a roller-coaster year, surging as much as 30 percent before giving up the bulk of those gains. But one trend has been consistent: mining companies are finding it harder to dig up more of the precious metal.

The following charts show why, and what that means for the industry.

Dwindling Discoveries

Even though producers’ exploration budgets surged more than 10-fold to $6 billion a year in the decade to 2012, new finds are in decline. The amount of gold discovered last year was down 85 percent compared with 2006.

Capex Cuts

To cope with bullion’s 41 percent price plunge from a record in 2011, miners have cut capital expenditure. That’s shortened the lifespans of many mines as firms haven’t been able to build the infrastructure needed to access more ore.

To see charts and continue reading please click link https://www.bloomberg.com/news/articles/2016-12-21/gold-miners-are-running-out-of-metal-five-charts-explaining-why