Bullion prices are set to climb because there’s been a lack of exploration and the global industry isn’t replacing the reserves it’s been mining, this according to Stephen Letwin, chief executive officer at Iamgold Corp.
- The producer-funded World Gold Council has estimated that world supply may have peaked
- Toronto-based Iamgold is seeking to increase production to 1.35 million ounces in four years from about 875,000 ounces, through more exploration near existing mines and by ramping up its Westwood operation in Canada
- The company spends about $45 million a year on exploration, and isn’t looking into acquisitions, unless they are really compelling
“Gold has a much higher probability of moving north as opposed to south,” Letwin said in an interview at a mining conference in Hong Kong on Thursday. “I’ve been around a long time; when you’re in an industry that’s not replacing what it produces, eventually, the price has to move up.”
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Original Source: https://www.bloomberg.com/news/articles/2018-04-05/gold-price-seen-moving-north-as-world-fails-to-replace-output