June 19, 2013
Gold prices too low to justify
current output...
MORE gold mining companies say
they are being forced to close mine projects due to low 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 was expecting to close its Hidden Valley mine in Papua New Guinea.Harmony
said in a statement that they will advise the market on the size of the
impairment at the end of July.
In Australia, two further 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.
Source: http://goldnews.bullionvault.com