Australian gold producers are now joining the ranks of reticent explorers in shelving and postponing projects because of the serious slide in the gold price.
For gold production not forward sold, the miners are now gaining about $120(A) per ounce less than they were in the middle of last year, and m any quarterly reports are no longer talking about escalating production and discoveries, but of contractions.
The political lobbies have conveniently ignored the growing signs that the gold boom, though far from over, has faltered, and it has done so because the blue sky has gone and the clouds of uncertainty are there. There is no greater obstacle for companies to have the confidence to explore or mine than the forthcoming gold tax.
There is no doubt that, apart from the current soft gold price, many companies are taking negative actions because there is the gold tax disincentive ahead to add to their waning confidence in gold.
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