Menu

Recent Interviews

Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


John Jeffrey, CEO, Saturn Oil & Gas Inc.

John Jeffrey
CEO | Saturn Oil & Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary, AB (CAN)

jjeffrey@saturnoil.com

+1-587-392-7900

Saturn Oil & Gas CEO John Jeffrey on the future of the company and ESG


16. June 2020 | 11:34 CET

Barrick, Desert Gold, Endeavour Mining - Who benefits from the gold shortage?

  • Gold
Photo credits: pixabay.com

The production of gold is expected to reach its historic peak this year and from then on it will go down more or less dramatically. While the production of the largest producers was still below 80 million ounces in 2009, since then it has risen almost linearly to the volume of over 117 million ounces forecast for 2020. In 2029, not even 55% of this quantity is expected to be reached - with consequences for the gold price.

time to read: 2 minutes by Mario Hose


Ryan Jackson, CEO, Newlox Gold Ventures Corp.
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Full interview

 

Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author


No production without exploration

Anyone who wants to mine gold has to find it first. The origin of all gold production is exploration. Once the gold is discovered in the ground, the next step is to determine the size of the reserves. The goal of exploration companies is usually to discover quantities of gold in the ground that will allow the project to develop into an economically attractive production.

Replacement for mined reserves

Without success in exploration, mining will not be possible. For this reason, the big gold producers often keep an eye on the exploration scene, especially if they are located in the vicinity of producing mines. Everything that has been mined in the gold mine is logically gone. Conversely, the producers' reserves decrease with every ounce sold. This scenario is not abstract, but already reality. Since 2012, the reserves of the biggest producers have dropped 34% from 967 million ounces to 584 million ounces in 2019. The level of reserves is now less than in 2007 - before the first gold boom in conjunction with the financial crisis.

Quality has its price

Increased requirements and quality demands in connection with image building are also a major burden on production. As a result of accidents and environmental damage, producers and authorities have increased requirements and standards. In 2000, it took ten years before a discovery could go into production and ten years later the duration has increased to 20 years. In the meantime, it is expected to take 30 years before a discovery goes into production.

Exploration benefits from rising prices

The declining reserves of the producers let the prices for the take-overs of exploration companies rise as the gold price rises. The pressure on producers to act is constantly increasing. The exploration company Desert Gold Ventures has projects covering an area of 400 km2 in Mali. The company is surrounded by the following large mines: Fekola 7 million ounces, Gounkoto 4.4 million ounces, Loulo 9.8 million ounces, Sadiola 8.1 million ounces, Takakoto & Segala 3.3 million ounces and Yatela with 3.5 million ounces.

Attractive takeover prices in Africa

Desert Gold's prominent neighbors include B2Gold, Barrick Gold, Endeavour Mining and Resolute. As the exploration company has already discovered several gold prospects (2.04 g/t Au over 30 m, 3.03 g/t Au over 8 m and 6.28 g/t Au over 13 m), it stands to reason that the likelihood of an investment or acquisition by a producer from the region increases with further success from drilling programs. In 2018, takeovers in Africa averaged USD 200.33 per ounce in the ground. According to the presentation on the website, management is aiming for the discovery of up to six million ounces.


Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

14. January 2021 | 18:43 CET | by André Will-Laudien

Blackrock Gold, Barrick Gold, Sibanye Stillwater: In gold, we trust!

  • Gold

Why does one need precious metals at the moment? For hedging? No question, we are currently in the biggest liquidity boom since the turn of the millennium, and every day there are new highs on the stock markets. Usually, one would say that there is no need for hedging. Nevertheless, a sensible spread across all sectors makes perfect sense. Right now, the hot topics are hydrogen, e-mobility and copper. When discussing mountains of debt and when inflation fills the gazettes again, then the need for precious metals is back immediately. Therefore, one can state: In asset price inflation, which is undoubtedly taking place presently, gold, silver and platinum will also potentially see a sharp price increase! In gold, we trust - at the latest if the Bitcoin loses 50% again!

Read

12. January 2021 | 10:18 CET | by André Will-Laudien

Osino Resources, FuelCell, Nikola: Things are moving fast!

  • Gold

Yesterday saw a not-so-surprising move in the super-shooter Bitcoin (BTC). Within 12 hours, the cryptocurrency corrected from levels above USD 40,000 down to USD 30,600, a daily loss of 25%. This correction was a move that had been in the air for a long time but was probably not expected at this speed. It is not for nothing that BTC has a calculated volatility of over 100%. However, the bout of weakness once again illustrates the cryptocurrency's high susceptibility to fluctuation. All the great euphoria thus escapes somewhat, but the fan community is likely already ready to fabricate new highs. As a result of the correction, the total market volume of all, currently around 8,225, digital currencies fell back below the one trillion-dollar mark. Last week, the mark had been surpassed for the first time. Speed is more in demand than ever!

Read

11. January 2021 | 10:08 CET | by Stefan Feulner

Geely, Desert Gold, Li Auto - Incredible development!

  • Gold

The trend towards electromobility and away from combustion engines is developing more and more rapidly. Almost all the electric car manufacturers across the board increased their sales figures by 100% in 2020. With new models and better battery technologies, the old automobile world's replacement is being strongly forced. The big technology groups are now getting into the lucrative electromobility business. In cooperation with Hyundai, Apple is probably making a start and others will follow, giving the industry another considerable push.

Read