Miners' reserve-to-resource production ratios overstated, Barclays says

Barclays argues that reserve-to-resource production ratios at North American gold miners are overstated, as reserves and resources associated with shelved development projects remain on company statements.

The firm says Eldorado Gold (EGO) has the longest reserve/resource life among its coverage companies (39 years) on an adjusted basis, with Goldcorp (GG) having the longest reserve/resource life (23 years) among senior producers vs. the group average of 22 years.

Kinross Gold (KGC) and Iamgold (IAG) have the shortest adjusted reserve/resource lives among senior and mid-tier producers (18 and 14 years, respectively).

On a percentage basis, the companies most affected by the adjustment are New Gold (NGD) and IAG, which both saw reserve/resource lives fall by 47%; however, NGD still enjoys the second longest reserve/resource life (37 years).

Newmont Mining (NEM) was the least affected by the adjustments, with reserve/resource life declining by only 12% to 22 years from 25 years.

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Comments (5)
  • Mark0f0
    , contributor
    Comments (3061) | Send Message
    Ummm, do these Barclays people have any brains? Projects that have been shelved, can be un-shelved when the pricing and capital availability environment improves.


    For instance, Barrick's Pascua Lama will come on-line in the next few years, and will contribute nearly a million ounces a year to Barrick's production. It is insanity to not include the reserves at Pascua Lama, and their almost-completed mine, on their statement of reserves.


    Talk about a desperate act to discredit the miners!
    7 Jul 2014, 06:22 PM Reply Like
  • robin steel
    , contributor
    Comments (153) | Send Message
    There is plenty of gold in the ground and ready to mine, whenever the guys at BP and Exxon decide to go for it...they will keep making their money with easily pumped oil until we have a better way to drive, then they can "go for the gold" at Kennecott...probably waiting for $5000 oz or the 5000 yuan oz...should be at parity in the next 20 years...
    Kennecott is a copper mine, of course, so they don't report gold reserves, it's just "byproduct"...and it would just discourage Barrick, out there in Nevada scratching in the dirt for 2/3 gram/ton...
    7 Jul 2014, 07:07 PM Reply Like
  • 26175913
    , contributor
    Comments (15) | Send Message
    It's strange how one of the worst of the criminal banks is now casting stones at an industry that has been nearly broken by the criminal banks and commodities brokers manipulating the price, that are criticizing it! Wonders never cease!
    7 Jul 2014, 07:58 PM Reply Like
  • greybeard2
    , contributor
    Comments (3) | Send Message
    Interesting. And stupid. And why would anyone believe anything Barclay's says anyway? Just another lying bank with hands into everything.
    7 Jul 2014, 10:34 PM Reply Like
  • svensation
    , contributor
    Comment (1) | Send Message
    Barclay's is shameless. What a surprise!
    8 Jul 2014, 11:14 AM Reply Like
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