The GOLD MINING industry needs a near-term price of $2,000 per ounce to maintain "robust returns" according to Nick Holland, CEO of Gold Fields, the world's fourth largest Gold Mining producer.
Speaking to Reuters from Johannesberg as Gold Fields announced its latest quarterly results, "The current Gold Price is not leaving a lot of margin," said Holland.
"All-in costs – meaning the capital costs plus operating costs to produce ounce of gold – are sitting around $1400," Nick Holland believes, saying that figure is based on the senior Gold Mining producers as a proxy for the wider industry.
Pointing to China's fast-growing gold jewelry and Gold Investment demand, "If the mining industry is going to be able to sustain itself to meet increased demand, we're going to have to see robust returns...a price nearer to $2000 certainly in the short run," he explained.
Gold Fields' own cash costs per ounce rose 13% in the latest quarter from a year earlier. Nick Holland's view comes after World Gold Council CEO Aram Shishmanian was quoted saying a Gold Price of $3,000 per ounce may be needed 5 years from now for producers "just to stay in the business" of developing new finds.
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