Canadian Gold Mining Has Potential To Be #2 In The World - Wood Mackenzie
(Kitco News)- Mininginvestors might want to pay more attention to Canadian projects as the countryis expected to have strong production growth in a world that is seeing adecline in the quality of gold deposits, according to one search firm.
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| Canada's largest gold mine, Malartic Mine, Quebec, Canada |
Ina presentation during the 2018 Prospectors & Developers Association ofCanada (PDAC) convention, Vince Madden-Scott, manager of gold cost services atWood Mackenzie said that his firm sees Canada’s gold production pushing above300 metric tonnes within the next five years, an increasing 80% from currentproduction levels.
WoodMac’sprojections would make Canada the world’s second-largest gold producing nation,behind China. Currently, Canada is the fifth largest producer in the world,Australia, Russia, and the U.S. all recorded higher gold production last year.
Madden-Scottnoted that the nation that has the most potential is Chile as its domestic goldproduction is expected to grow 270% and output pushes to 100 tonnes of goldwithin the next five years.
WoodMac’sresearch shows that Australia’s gold sector could see the most significant fallas the firm expects the nation’s gold production to drop 23% over the next fiveyears. The U.S. is expected to see a drop of 16% in its gold production.
Madden-Scottsaid that the issue faced by the gold sector is a lack of quality gold depositsin the production pipeline. He added that a lot of current deposits depend onprices holding above $1,300 an ounce. WoodMac’s long-term outlook for the goldprices is around $1.300 an ounce.
Madden-Scottsaid that Canada has embraced its domestic potential as money flows into in thenation’s exploration sector. In particular, he highlighted the growth potentialin Canada’s Yukon Territory, which in the last few years has seen a surge of investmentcapital from all the major gold producers.
“Canadais truly blessed,” he said. “It still has a lot of untouched territories yet tobe explored,” he said.
Notonly does Canada have the most mineral potential, but Madden-Scott also notedthat costs are relatively low. He explained that Canada is in the middle of therange of the cost curve.
However,mining costs in Australia are increasing as mines are getting deeper anddeeper, he added.
Russiacurrently has the lowest mining costs in the world, according to the firm’sresearch.
“Reserveattrition is a major issue and it’s going to take a refocus from miningcompanies to change the trend,” he said.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.