Gold exploration activities have dropped 55%, says IntierraRMG market report

Gold  |  2013-05-21 03:40:09   |   By

Research firm, IntierraRMG has released the new State of the Market Report which states that the global gold exploration activities have dropped by a huge 55%

NEW YORK (Scrap Monster) : Research firm, IntierraRMG has released the new State of the Market Report which states that the global gold exploration activities have dropped by a huge 55%.

The report portrays the uncertainties surrounding the world economy. The crisis in Europe, signs of slowdown of economic growth in China, deteriorating employment statistics from the US and above all, the slumping metal prices are primary areas of concern. The weak economic activity around the world in the past two years has obviously affected the global mineral exploration sector in a big way.

The exploration activities which continue to witness weakness since October 2011 have shown no signs of recovery. Gold exploration has been particularly weak, with activity reported from just 172 prospects in March, compared with 382 a year earlier – a fall of close on 55%.

The report also signifies that the exploration activity figures may continue to remain subdued in the next few months.

The IntierraRMG report states that the extraction cost of a major chunk of world gold production is lower than the gold prices. The report says that 91% of the 235 gold mines monitored in the Raw Materials Group database (RMD) had lower operating costs than the mid-April lows of gold. Out of the monitored gold mines, 215 had average operational costs below $1,350 per troy ounce in 2012. The cost figures are exclusive of ongoing capital and exploration costs, including them would make the cost more or less in balance with the current gold price.