Gold News

Lower Gold Prices Force Mining Projects to Close

Gold prices too low to justify current output...
MORE gold mining companies say they are being forced to raise money, write down the value of on-going mines, or close operations at some projects due to lower silver and gold prices.
Africa-focused Avocet Mining said Monday it will have to raise $15 million to pay back a loan to its main shareholder after the fall in gold prices meant its mines failed to generate the required cash.
South African gold producer Harmony Gold said Tuesday it is reviewing and expects to write down the value of its Hidden Valley mine in Papua New Guinea. It will advise investors on the size of the impairment at the end of July.
In Australia, two gold mines are closing because their respective owners, Tanami Gold and Focus Minerals, say they are no longer profitable at current gold prices. Tanami's Coyote project and Focus's Laverton site together account for 125,000 ounces of gold.
On some estimates April's sharp fall in gold prices, the metal's worst slump in three decades, meant 15% of miners globally were unprofitable.

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