Ann: Company Update , page-6

Thanks mate, will have a read. Middle Arm results will certainly be decisive! Hopefully they can keep costs down to a minimum. Recent news below regarding the continuation of high gold and copper prices...the stars are aligning for BCD!


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Global jitters keeping gold price high
Herald Sun 08 Aug 2012

GLOBAL economic worries might be giving some a headache, but its good news for gold producers with it keeping the price of the precious metal high, according to global gold miner.

Mike Feehan, regional president of Barrick Australia Pacific, said the price of gold would remain “particularly strong” over the next few years.

“Are current prices sustainable? We think they are,” he said.

The current global financial concerns would help the precious metal retain its purchasing power over the next few years, Mr Feehan told delegates at the annual Diggers & Dealers mining conference in Kalgoorlie today.

“Gold retains its purchasing power particularly when you look at all the currencies, monetary and fiscal inflation, sovereign debt concerns,” he said.

He added the gold price – which has remained steady over the past few months, and is currently at around $US1600 an ounce - was being helped by the popularity of the metal amongst central banks global.

“It’s obvious they (central banks) were net sellers in the market for quite a number of years but it was actually 2010 when things turned around for the first time in 22 years they became net buyers"

Mr Feehan said the strong growth in emerging markets and the growing wealth of the middle class would help sustain demand.

Meanwhile the industrialisation of emerging countries like Africa, China and India was building demand for copper.

Around 40 new copper mines will need to be developed to keep up with the 3.5 per cent annual growth in demand, he added.

He also echoed the recurring theme amongst miners that costs right across the board needed to be kept low in order for company’s stay viable.

Total operating cost for Barrick is between $550 and $575 an ounce, he said.