Saturday, 22 February 2014

Brent Cook - Peak Discovery

A great article by Brent Cook outlining some of the miners' problems which drive him to believe there will be growing demand for quality discoveries and deposits.

Processing more tonnes at lower grade / higher costs

Reducing costs in the short term by high-grading will sterilise deposits and resources without much higher metal prices

Easy discoveries are gone - discovery will be harder and more expensive - big discoveries are likely to be deeper and under cover which may also mean higher production costs

Miners must replace reserves, ideally with quality - Kinross example

I will add a reference to the National Bank Financial Gold Production Cliff which suggests an industry wide fall off without new discovery and development

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