Archive for February, 2015

TOP WORLD MINERS.Canada’s Saskatchewan second only to Finland as world’s top mining destination

Saturday, February 28th, 2015

Canada’s Saskatchewan second only to Finland as world’s top mining destination

Saskatchewan is the most attractive jurisdiction for mining investment in Canada, and the second best worldwide, according to the latest annual global survey of mining executives released Tuesday by the Fraser Institute.

Canada’s policy think-tank’s Annual Survey of Mining Companies 2014, rates 122 jurisdictions around the world based on their geologic appeal and the extent to which government policies encourage exploration and investment.

This year, the potash and oil-rich prairie province was placed at the top by executives surveyed between August 26 and November 15, 2014.

But what is it that makes Saskatchewan such a magnet to mining investors? According to Kenneth Green, Fraser Institute senior director of energy and natural resources and the survey’s leader, there are two key reasons: the province’s abundance of mineral potential, and Saskatchewan’s government transparent and productive approach to mining policy.

Canada’s Saskatchewan second only to Finland as world’s top mining destination

The province offers a competitive taxation regime, good scientific support, efficient permitting procedures and clarity around land claims. That’s what miners look for,” said Green.

Canada as a country did fairly well, as four jurisdictions — besides Saskatchewan —finished in the top 10 worldwide: Manitoba (4), Quebec (6), Newfoundland and Labrador (8) and Yukon (9).

Quebec rebounds, B.C. falls

Quebec, which had got poor reviews in the last three years, climbed back up, which suggests the period of increased red tape, higher royalties and regulatory uncertainty may be coming to and end, the report shows.

Two of Canada’s other geographically large jurisdictions — Ontario and British Columbia — didn’t fare as well. Internationally, Ontario was placed 23rd and B.C. ranked 28th, falling nine and 12 spots, respectively, compared to the 2013 survey.

“In Ontario, the New Mining Act amendments regarding First Nations consultation have resulted in complete incomprehensibility of rights on all sides,” Green said.

“Similarly in British Columbia, uncertainty concerning disputed land claims and ambiguity about what regions will be protected are deterrents to investment and exploration,” he added.

The latest survey included responses of 485 mineral exploration and development company executives from around the world. Exploration budgets reported by companies that participated in the study totalled US$2.7 billion in 2014 and US$3.2 billion in 2013, the Fraser Institute said.

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Henry Sapiecha

THE TOP TEN GOLD MINERS IN THE WORLD INFOGRAPHIC

Friday, February 27th, 2015

UPDATED: The world's top 10 gold producers

Number one Barrick Gold’s output drops in 2014, but fellow Canadian firm Agnico Eagle adds 30% to production ounces.

In 2014, preliminary estimated gold production by the top publicly-traded and non state-owned gold mining companies amounted to 30 Moz, in line with the 2013 totals.

Three out of the 10 miners suffered a decline in their attributable gold output while six of them achieved growth.

With 6.25 Moz of gold produced in 2014, Canada’s Barrick Gold Corp. (TSE:ABX) holds first place in global ranking, well ahead of its competitors.

Compared to 2013’s 7.17 Moz, Barrick’s gold output declined by 13%, mainly because of significant drop in output at its Cortez Mine (-33%), as well as a number of gold mines in Australia and USA which Barrick sold during the year.

UPDATED: The world's top 10 gold producers

Provisional attributable gold production by 10 leading companies in 2014/2013, Moz of gold except Gold Fields and Kinross, where Moz of equivalent gold used (data retrieved from corporate reports)

The US-based Newmont Mining Corporation (NYSE:NEM) ranks second in the global gold competition and produced about 4.85 Moz of the precious metal in 2014, a 4% decline on 2013 (5.07 Moz), due to a significant decrease of gold output at its North America’s operations (-16%) and decline at Newmont’s Australia/New Zealand operations (-6%).

Third-ranked AngloGold Ashanti Limited (NYSE:AU), reported its second consecutive growth in annual production. In 2014, company mined out 4.44 Moz of gold, or 8% more than 2013 totals (4.11 Moz).

Fourth-ranked Goldcorp Inc. (TSE:G) produced 2.87 Moz of gold in 2014, including discontinued operations, or 7.5% more than in 2013 (2.67 Moz). This increase was due to development of production at Penasquito (Mexico, +41%) and Pueblo Viejo (Dominican Republic, +36%) mines, and commissioning of Cerro Negro (Argentina) and Eleonore (Canada) mines.

Another Canadian company Kinross Gold Corporation (TSE:K), fifth in world gold production rankings, produced 2.71 Moz of gold equivalent in 2014. This volume is slightly exceeded the Kinross’ guidance of 2.5-2.7 Moz of gold equivalent and is 3% higher than 2013 production totals (2.63 Moz of gold equivalent).

Sixth in the ratings, Australian Newcrest Mining Limited (ASX:NCM), produced approximately 2.33 Moz of gold in 2014 calendar year, which is 1% lower than 2013 output (2.36 Moz).

South African Gold Fields Limited (NYSE:GFI), currently ranked seventh, produced 2.22 Moz of gold equivalent in 2014, or 10% higher than in 2013 (2.02 Moz). This increase is mainly due to the inclusion of a full year’s production from the Yilgarn South assets in 2014 compared with only one quarter in 2013.

In eighth place, Russian origin Polyus Gold International (LON: PGIL) produced 1.7 Moz of gold, a 3% increase from its 2013 tally of 1.65 Moz.

South Africa’s Sibanye Gold Limited (JSE: SGL & NYSE: SBGL), which split from Gold Fields in February 2013, enters at ninth position with its first full year output. In 2014, Sibanye produced 1.59 Moz of gold, or 11% more than in 2013 (1.43 Moz)* from its four Witwatersrand mines.

Canadian Agnico Eagle Mines Ltd (TSE:AEM) gold output jumped by staggering 30%, from 1.1 Moz in 2013, to 1.43 Moz in 2014, thanks to new mines coming on stream, including Goldex mine (Canada) and La India mine (Mexico), as well as acquisition of 50%-share in Canadian Malartic mine.

This allows Agnico Eagle to jump two positions up in the world rankings, from 12th to tenth, pushing Freeport-McMoRan Inc. (NYSE:FCX) out of the top 10. Production at US-based Freeport – primarily a copper producer and owner of the iconic Grasberg mine Indonesia – decreased by 3%, from 1.25 Moz in 2013, to 1.21 Moz in 2014.

Knocking on the door is Canada’s Yamana Gold (TSX:YRI) which and increased its gold output by 18%, from 1 Moz in 2013, to 1.18 Moz in 2014.

Note: For corporate attributable gold production, figures used are from actual official data or companies’ expectations for the 2014 calendar year. Wherever possible, calculated gold ounces are quoted instead of gold equivalent ounces. 

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Henry Sapiecha

Apple buying a third of world’s gold to meet demand for iWatch

Friday, February 27th, 2015

Apple buying a third of world’s gold to meet demand for iWatch

Technology giant Apple (NASDAQ:AAPL) may soon buy up one third of the world’s gold in order to meet the demands of its highly anticipated Apple Watch, according to reports.

Interest in the high-end model, featuring 18-karat gold casing, is picking up and the firm is already taking the necessary steps to have enough of them in stock. According to WSJ.com, Apple plans to start producing more than one million units per month in the second quarter of the year, anticipating high demand from Asian markets, mainly China.

Apple buying a third of world’s gold to meet demand for iWatch

Josh Centers, from TidBits, estimates that each gold watch will contain 2 troy ounces (62.2 grams) of gold. So, based on the estimated sales figure, he concludes that Apple will need 746 tons of gold a year, or about 30% of the world’s annual production.

His estimations — admittedly based on the Wall Street Journal predictions, not official figures — would mean that Apple may soon become a major player in the world’s luxury watch market, grabbing about half of it.

Worldly wealth via a gold infographic interaction

Thursday, February 12th, 2015

WORLD WEALTH IN GOLD HOARDING

In 2014, we took a look at where in the world the most gold was mined. Now, we want to take that a step further and look at which countries in the world hold the most gold reserves.

Countries hold gold as a precaution to safeguard themselves against inflation, loans, debt and economic disasters. The total gold holding globally was just under 32,000 tonnes in the summer of 2014.

So, with this in mind we want to take you around the world with our latest interactive infographic to show you which countries have the most gold.

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Henry Sapiecha

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