OXR oxiana limited

alarm bells on gold output.........

  1. 871 Posts.
    for South Africa but NOT for the Mighty OX!

    Gold Production is falling dramatically in South Africa, plunging the industry into a crisis.
    Latest figures put gold production in 2004 at 342.7 tonnes, the lowest since 1931.
    The trend in what is the world's largest gold producer continues downwards. In the second quarter of this year, production declined by a further 72 tonnes and 18 per cent by comparison with a year earlier.
    The alarm bells are ringing. South Africa produced around 14 per cent of the world's newly mined gold in 2004 - it was 68 percent in in 1970 - and gold still provides about 5 per cent of the nation's gross domestic product.
    But the strength of the South African currency, the rand, has generated a host of problems and led to mass lay-offs.
    The chief economist of the Johannesburg Chamber of Mines, Roger Baxter, blames the problems facing the industry on the restructuring necessitated by the rand's strength.
    Although the gold content of the rock brought to the surface has risen, along with the gold price, operating costs have outpaced them.
    The industry made an operating profit of 17,000 rands ($A3500) a kilogram, but the high costs of the restructuring process resulted in anet loss of 1438 rands a kilogram.

    My question is where does Ashanti Gold fit in all of this???????? Food for thought.
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