Newcrest predicts strengthening gold price

Australian gold producer Newcrest Mining Ltd suggested yesterday (August 19th) that it expects to see a strengthening in gold prices over the next year.

The company is the country's largest gold producer and also one of the world's top ten gold mining operators in terms of production, reserves and market capitalisation.

Speaking at a media briefing following the group's annual results, managing director Ian Smith explained that the current economic turmoil should make the landscape ripe for gold investment in 2009.

He said: "All the pre-conditions in the world are there for gold to make a substantial run in the next 12 months."

Although the company announced record annual profits, its year-on-year output fell by six per cent in the three months to June to 435,120 ounces, mainly as a result of disruptions to gas supplies to its Telfer mine.

Meanwhile, the World Gold Council, the commercially-driven international marketing organisation for the gold industry, revealed in its second quarter report that the value of Saudi Arabia's gold sales soared by 14 per cent to SR4.84 billion.