If it's a trickle now, the number of gold projects now either being canned or being re-jigged is surely about to turn into a flood. Which will be next? A strong candidate must surely be African Consolidated's Pickstone-Peerless mine in Zimbabwe.
African Consolidated has just released a plan for Pickstone-Peerless which was modelled using US$1,500 gold, which, to be blunt is a set of calculations broker SP Angel says does "not look immediately compelling".
That's putting it mildly. The cash costs before maintenance capital are put at US$886 per ounce, always assuming that higher gold price, and it now turns out that the previous PEA for Pickstone-Peerless underestimated capital costs to the tune of US$60 million.
None of this is out of the ordinary, and points to a deeper truth, as highlighted by a prominent Canadian investor last week. The bear market that ran throughout the 1990s meant that there was a dearth of talent in the mining industry when the boom got underway in 2004.
Relentlessly rising commodity prices for many years hid a multitude of sins. But we are now reaping the rewards of that mixture of great opportunity with mediocre talent.
Not every company fits into that mould though. Here on Minesite you can read every week about some of the choicer gems that are still sparkling brightly. But we'll also highlight a few duds for you too, so you know what to avoid.
| 95th Minesite Forum - 11th September 2013 |
95th Minesite Forum
Wednesday 11th September 2013
The Brewery
Chiswell Street
London
EC1Y 4SD
(Nearest stations are Moorgate and Liverpool Street)
Presenting Companies Include:
Kefi Minerals
If you are interested in Speaking or Sponsoring a Minesite event
please contact; Amy Clayton amy@minesite.com
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