Gold mining firm reports "low point"

In news that may be of interest to those investing in gold, one major Russian mining firm has said that 2007 was a "low point" for gold production.

Reporting its full-year results for the 12 months ending in December 2007, JSC Polymetal said that it saw a five per cent drop in gold production for the financial period, with output totalling just 242,000 ounces.

However, it said it expects to produce between 250,000 and 270,000 ounces of gold in 2008 - but in a climate of falling production and rising gold prices around the world, it may be debatable whether the company will manage to do so.

In addition, according to consultancy GFMS' latest Gold Survey findings, mining companies have had to cope with a number of business difficulties in the last 12 months, such as intense competition for labour, consumables and key plant items.

Vitaly Nesis, chief executive of JSC Polymetal, commented: "2007 marked the low point for our company in terms of both production levels and financial results."

Gold prices have recently reached record highs, partly as a result of falling South African production following major power outages.

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