Africa’s top bullion producer, AngloGold Ashanti, could begin “harvesting” some of its mines if the gold price sinks below $1 000 an ounce, its chief executive said on Monday.
[contextly_sidebar id=”8Kh94cDwJwsVJCURX6NJ77tIkeDtqENv”]If we end up with a gold price below $1 000 an ounce we may start harvesting some of the short-life mines for cash for a period until prices recover, chief executive officer Srinivasan Venkatakrishnan said on a media conference call.
Vnkat said he could stop investing in mines in Mali such as Morila, Sadiola and Yatela, which are already reaching the end of their lives, and instead mine the gold that is left.
The bullion price currently sits at $1 117 an ounce having slid more than 40% from peaks in 2011.
AngloGold swung to a second-quarter profit with adjusted headline earnings totalling 6 US cents per share in the three months to end-June from a loss of 1 cent a year earlier.
Source: Fin 24