Peak Gold and MerrexWhile we wait for the next batch of results.....
Here is an interesting article on Goldcorp CEO talking about peak gold expected to occur this year or next.
Peak Gold
There are important facts presented in the article that are relevant to the future of Boto/Farika/Diakha.
1. Since 2000, there have only been 7 major gold discoveries (over 2 million oz). There were 22 in 1995 alone.
This suggests that the future for the price of gold is pretty good. Fewer new mines are going to come on stream soon, and old ones will be getting shut down.
2. The time from discovery to first pour of gold is getting up to something like 18 years. An open pit mine like Boto/Diakha will be 'way under that. Some of these open pit mines in Mali getting up and running quite quickly. Diakha will be a very attractive asset for any miner.
3. First World countries are getting extremely difficult to start-up....not just costs (which are very high) but environmental risks and First Nations people are slowing down the process. Boto/Diakha doesn't face the same level of risks in those areas. In fact, it is looking more and more that the risks are actually elevated in the more developed countries, which goes counter to conventional wisdom. In my view, IMG should never have bought Cote Lake because not only is it highly expensive to start up, they have to drain lakes and are nearby sensitive ecosystems.....unlike the desert of West Africa. Risks appear to be getting flipped around these days and Africa is looking more attractive.