Thursday, November 26, 2020

Tag: Gold: the Mine Reserve Crisis

Gold: the Mine Reserve Crisis, and Higher Prices – Jeff Nielson

by Jeff Nielson, Sprott Money:
Regular readers of these commentaries are used to reading material which is ahead of its time, in terms of identifying important trends in precious metals and the overall economy. In May 2014 , a Sprott Money article was published titled Evaporating Gold Reserves Signal Dying Sector.

Three years ago, that article pointed to the precipitous drop in gold reserves for the senior gold mining companies. For readers unfamiliar with mining fundamentals, in order for gold mining companies to be able to maintain steady, efficient production, they require (at least) several years of reserves of ore to process.

These years of reserves are referred to as the “mine life” of that particular mining operation. Obviously mines (and companies) with more years of mine life in their reserves will be healthier than those with less years of reserves.