Gold mine output continues to hit record highs despite industry cutbacks

|By:, SA News Editor

Gold miners have spent more than a year whacking expenses, so it may come as a surprise that mine production has continued to rise to new record highs, climbing 4% Y/Y in H1 2014, according to a new report from the World Gold Council.

“It shows you the inelasticity of gold mine production,” says World Gold Council managing director of trading strategy Marcus Grubb. “These are long-term projects, they have long life of mines with [rates of return] over multiple decades in some cases.”

Still, the Council does not believe the trend of rising production is sustainable for much longer; in fact, 2014 could be the peak year of gold mine production, with the effects of industry cutbacks likely be felt later this year and into 2015, when production is expected to dip.

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