Precious Metals

Top 5 gold producers follow individual courses

Mining projections for Barrick Gold Corp. suggest 2016 production of 5 million to 5.5 million ounces.

Background image courtesy of Barrick Gold Corp; inset image courtesy of Gainesville Coins.

The top five gold mining companies are charting their own futures as the price of gold continues to rise toward the $1,400 an ounce mark, according to market analyst Adam English, an editor for Outsider Club.

English examines the present and future mining endeavors for Barrick Gold Corp., Newmont Mining Corp., Newcrest Mining Limited, Goldcorp Inc., and Agnico Eagle Mines.

Barrick Gold Corp.

To reduce debt, according to English, Barrick sold some of its mines and divested itself of some assets, several impacting production. 2015 production yielded 6.12 million ounces of gold, with between 5 million and 5.5 million ounces projected for 2016, according to English. Barrick hopes to sustain annual production above 4.5 million ounces through 2020, he added.

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Overall production and related costs dropped in 2015 to $831 per ounce, from $864, with 2016 costs to average between $775 and $825, according to English.

Newmont Mining Corp.

During the first quarter of 2016, Newmont reduced its sustaining costs to $828, from $999 per ounce registered during the fourth quarter of 2015, English notes. Over the same period, Newmont's gold margin grew to $366 per ounce from $159, while gold's spot price stayed within $1,158 to $1,194 per ounce.

Newcrest Mining Limited

The mining concern is beginning to restart its Indonesian Kencana gold mining operation after a four-month suspension, according to English. Sustaining cost per ounce of gold for current operations is at $770, producing a margin of 31 percent as of the last half-year report in February, he said.

Goldcorp Inc.

English explains Goldcorp Inc. produced 783,700 ounces of gold during the first quarter of 2016, at a sustaining cost of $836 per ounce, with average spot gold prices at $1,203.

Gold production is expected to fall 15 percent during the second quarter of 2016, with total annual output at 2.8 million to 3.1 million ounces, and with costs between $850 and $925 per ounce.

Agnico Eagle Mines

Agnico witnessed its gold reserves reduced 5 percent, leaving it with 19.1 million ounces. With 1.6 million ounces projected to be produced annually, the mine's production life is forecast at 12 years.

Production costs are pegged at $797 per ounce during the first quarter of 2016, down from $813 from the final quarter of 2015, according to English.

English's complete mining market analysis can be found here.

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