What we do


We are an information company, working with mining-service companies (suppliers, consultants and contractors). We offer several services.


The first is a reporting service on mining projects in Australia and, where driven from Australia, overseas (see Sample Reports above). 


The second is a directory of mine sites in Australia, completed in March 2020. For each site, the directory provides a brief description of the site and contact details for key people there (e.g. mining, processing and maintenance managers). 


The third is consultancy work, ranging from providing strategic advice on particular markets, to analysing market trends and assisting clients in pursuing specific market opportunities. A paper outlining our experience in this area over the past decade is available on request. 





Source: Stephen Codrington


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Mining Notes


GOLD-MINING SECTOR DOING WELL 

11 May 2020


While falling prices and the coronavirus pandemic are hurting some mining sectors, the gold-mining sector is doing well. Why? 

First, gold prices have been rising for the past 18 months and, alone among nearly all minerals, have continued rising this year.


Price changes, %, 1 January to 8 May 2020

Gold

+12

Zinc

-13

Iron ore

-5

Copper

-15

Tin

-10

Aluminium

-17

Lithium

-12

Thermal coal

-22

Nickel

-12

Crude oil

-53

Sources: Markets Insider; Trading Economics.

Second, for the past 18 months, most gold-mining companies have been making attractive margins. Consider the following figures from the March 2020 quarterly reports of several major Australian gold-mining companies. 


Margins of selected gold-mining companies, A$ per ounce

Company

Average price

All-in sustaining costs

Margin

Margin as % of average price

 

 

 

 

 

Newcrest Mining

1,569

827

742

47

Saracen Mineral Holdings

2,228

1,133

1,095

49

Silver Lake Resources

2,170

1,380

790

36

Northern Star Resources

2,179

1,590

589

27

 

 

 

 

 

 

Reflecting strong prices and margins, plans are well advanced to expand existing mines and develop new mines. Examples:

  • existing mines: Cadia Valley in NSW (Newcrest Mining), Carosue Dam in WA (Saracen Mineral Holdings), King of the Hills in WA (Red5), Tanami in NT (Newmont Australia)
  • new mines: Bardoc (Bardoc Gold) in WA, Karlawinda (Capricorn Metals) in WA, McPhillamys in NSW (Regis Resources)


Will gold’s strength continue? This cannot be assessed with any confidence. The sector has always had its bears and bulls, with bears currently seeing gold as over-priced and bulls seeing prices in coming months exceeding US$2,500 per ounce (the current level is around US1,700 per ounce).

But what can be said with reasonable confidence is that, reflecting Australia's role as a cost-effective producer, it will overtake China next year as the world’s largest gold producer.