Largest gold miner in Australia reports $5.77bn loss
Regular reader will know that since the gold price decline at the start of the year, the gold miners are starting to really feel the pain – with Australian gold production tipped to fall by 20% next year.
It’s worth remembering that Australia is the second biggest gold producing country on the planet.
So it will be no surprise to read that Newcrest mining, Australia’s biggest gold miner, has reported losses of $5.77bn. From the New Statesmen:
The largest gold miner in Australia has reported a net loss of US$5.77 bn for the 2013 financial year…
All due to huge write-downs in the value of its assets – thanks in large part to that 30% drop in the price of gold in 2013:
…thanks to a massive $6.22 billion writedown in the value of its assets. Gold prices have fallen by nearly 30 per cent since January to a low in June of $1,180 per troy ounce…
Which rather predictably is going to lead to less gold production, after already declining 8% so far in 2013:
…forcing Newscrest to curtail gold production at its most expensive mines and reassess the value of its assets…
…Production stood at 2.1m ounces for the year to June, 8 per cent lower than last year,
At the start of the year we predicted that falling gold production would be the real story for gold in 2013. It is certainly shaping up for that to be the case – we’ll have to wait a few more months to start to find out just how severe the cut-back in production has been, but it is very likely to be substantial. We’ll leave it to our readers imagination just how long the gold price can remain suppressed when demand from the likes of China is still at record levels whilst the gold miners limit fresh supply.
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Link to this article: : http://www.goldmadesimplenews.com/mining/largest-gold-miner-in-australia-reports-5-77bn-loss-11407/