Sumitomo Metals and Mining President Yoshiaki Nakazato has turned his attention to gold.
Nakazato wants to double Sumitomo's gold output by 2021. The major currently owns two gold mines—the Hishikari mine in Japan and the Pogo mine in Alaska—that together produce just under half a million ounces of gold annually. By buying existing mines and through exploration success, Nakazato wants to lift that to 1 million ounces.
The company has the cash to put this plan into action.
Capital Investment Plan
SMM plans to make capital investments valued at ¥180 billion in total. With a focus on materials with remarkable growth, the development of new products and investment in new facilities shall be pro-actively undertaken. For smelting and refining, investment shall mainly focus on maintenance and renewal at Coral Bay and tailings dams for HPAL at Taganito. Investments in the acquisition of overseas interests, which are an important part of SMM’s strategy, are not included in this figure of ¥180 billion. Investments related to the acquisition of overseas interests will be added as project costs.
SUMITOMO 3 YR BUSINESS PLAN LINK http://www.smm.co.jp/E/uploaded_files/20160215-1en.pdf
GRUYERE GOLD : CURRENTLY AT DEPOSIT 6.2 MILLION OUNCES (as per 22/4/16 Announcement)
The Gruyere Gold Project, situated 200 kilometres east of Laverton in Western Australia (Figure 1), now hosts a Mineral Resource totalling 147.7 million tonnes at 1.30 g/t Au for a total of 6.16 million ounces of gold, including 13.86 million tonnes at 1.18 g/t Au for a total of 0.53 million ounces of gold in the Measured category (9% of the total resource metal).
SUMITOMO IS ON THE HUNT FOR GOLD AND HAS BILLIONS TO SPEND.
GOR Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
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