• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 hours Is Eating Meat Worse Than Burning Oil?
  • 6 mins Diplomatic immunity
  • 51 mins China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 7 hours Canada Election Deadlock?
  • 8 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 29 mins ‘If it saves a life’: Power cut to 1.5 million Californians
  • 22 hours Devaluing the Yuan
  • 12 hours Russia Predicts The Death Of U.S. Shale
  • 16 hours Nigeria Demands $62B from Oil Majors
  • 7 hours AOC vs Wells Fargo CEO on Dakota Access
  • 1 day Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 12 hours IMO 2020:
  • 16 hours The Ultimate Heresy: Technology Can't Fix What's Broken
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

The Four-Year Gold Curse

Very interesting comments this month from one of the gold industry's biggest players.

Gold Fields CEO Nick Holland was quoted in South African newspapers talking about problems faced by the precious metals sector. Primarily costs.

It's always interesting hearing from professionals on the "front line" of the business. And Holland's comments were particularly surprising and revealing.

He went on record saying that both the South African gold and platinum sectors are "under water" at current prices. Not making profits. Forcing the shut-down of mines.

The really interesting part was the pace of cost inflation seen by the CEO. Holland said that costs for the South African precious metals sector are doubling every four years.

Related article: Foreign Mining Companies Flee China

That's an incredible rate. One that certainly isn't sustainable.

The end game is that either mines will continue to close. Or costs must be contained.

Currently there are no signs of the latter. Labour is one of the biggest costs for South African miners. And increasingly militant labour unions in that country are cutting no slack for mining companies over wages.

This suggests major production dislocations could be ahead. This is big news for the global gold sector. And a potentially game-changing development for the platinum industry, where South Africa produces some 70% of global supply.

This is just one more confirmation that costs are the biggest killer for precious metals miners today (and not just in South Africa). If you're looking at projects or investments in this sector you need to be asking: what is going to make this operation affordable?

If there isn't an obvious answer, it might be a tough road ahead.

Here's to the next four years,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play