|Day's range||1,490.70 - 1,497.00|
(Bloomberg) -- Step aside Canada, Australia and South Africa: West Africa is fast becoming the hottest ticket in gold mining.Producers and prospectors are pouring money into the region as prices rally and the industry at the southern tip of the continent keeps shrinking. While gold miners face a dearth of new discoveries globally, large parts of West Africa have barely been explored. The deposits tend to be shallow -- meaning easy access -- and relatively low-cost.At least two new projects started up this year and a further two are scheduled for 2020. AngloGold Ashanti Ltd. is also expanding and modernizing its Obuasi mine in Ghana and Canada’s Iamgold Corp. is considering a new operation in Senegal. In July, Resolute Mining Ltd. agreed to buy another West Africa-focused producer.At the center of the action are the Birimian belts, tracts of ancient, gold-rich volcanic rock that stretch from the fringes of the Sahara to the Atlantic coast. While West Africa has a long tradition of gold mining -- Ghana was known as the Gold Coast under British colonial rule -- the vastness of the region and political insecurity in some areas mean its riches remain mostly untapped.Read: Africa’s Biggest Fund Manager Sees Gold Boom in West Africa“West Africa is brimming with potential,” said Kelvin Dushnisky, the chief executive officer of the world’s No. 3 gold producer AngloGold. “Our Obuasi mine is a spectacular orebody that will be a significant production engine for Ghana and AngloGold for many years to come.”Both of AngloGold’s larger rivals, Barrick Gold Corp. and Newmont Goldcorp Corp., also have mines in the region, and Newmont recently completed an expansion project in Ghana.Read: Nation Built on Gold Loses Its African Crown to Rival GhanaInvestment, especially in exploration, slowed across the industry after gold prices came off the highs seen in 2011 and 2012, and most producers were focused on cutting debt and lowering costs rather than new spending.Now, with gold back around $1,500 and ounce, there’s more money to go around.Most of West Africa’s gold deposits have yet to be found and mined, according to Oumar Toguyeni, Iamgold’s vice president for the region.“If you are looking for gold in West Africa, you go to the Birimian belt,” Toguyeni said by phone from Mali. “The potential is still there as the region remains under explored. It’s the easier deposits that were found.”To be sure, West Africa also has its challenges, as a surge of attacks by al-Qaeda and Islamic State-linked insurgents threatens to curb exploration and mining.Terrorist ThreatsTerrorist threats from Mali to Burkina Faso have spread to border areas with Ghana and Ivory Coast as Islamist militants seek to extend their influence. In January, the body of an executive of Vancouver-based Progress Minerals Inc. was found with bullet wounds after being kidnapped from an exploration site in the northeast of Burkina Faso.There are also more conventional challenges. A lack of skilled workers and basic infrastructure such as electricity supplies and roads makes mines more expensive to build, Toguyeni said.Read: Islamist Insurgencies Feed Age-Old West African Conflicts Still, once projects are up and running, there’s good money to be made. Gold Fields Ltd. produces at a cost of about $950 an ounce at its Tarkwa mine in Ghana, said CEO Nick Holland.Once the waste rock is stripped away, “there is quite a lot of meat on the bone to go for,” he said. “If you can manage costs and be efficient, open pits, it’s great business.”Several smaller companies are exploring for gold in West Africa, aiming to either develop their own mines or find a buyer once a discovery is made, said Cora Gold Ltd. CEO Jon Forster.Cora is exploring a deposit in Mali and believes it can get investor support for a mine, said Forster, a veteran geologist who has worked in West Africa for about 25 years.“It’s one of the world’s great gold provinces, he said. “This gives investors the confidence that you can take a project from exploration stage to mining.”Here’s a list of projects in the region:\--With assistance from Leanne de Bassompierre, Ougna Camara, Simon Gongo, Andre Janse van Vuuren and Jeremy Diamond.To contact the reporter on this story: Felix Njini in Johannesburg at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com -- Here's a summary of regulatory news from the London Stock Exchange on Wednesday, 23rd October. Please refresh for updates.
Gold markets went nowhere during the training session on Tuesday as we continue to see a lot of consolidation overall. Quite frankly, the market has been very listless as of late, and it appears that we are more than likely going to see a lot of lackluster trading until the next catalyst.
The British pound has drifted a little bit lower during the trading session on Tuesday, testing the bottom of the hammer like candlestick that form for Monday. I suspect that this market is probably going to pull back a bit, as the 1.30 level has obviously attracted a lot of attention in the market is overbought.
The British pound is consolidating against the Japanese yen during trading on Tuesday, just above the ¥140 level. This is obviously an area that will attract a certain amount of attention because it is a large, round, psychologically significant figure.
The Australian dollar has gone back and forth during the trading session on Tuesday, as we continue to see a lot of back-and-forth in this market. We are currently trading at an area that cause resistance previously, so it’s something that catches my attention.
Investing.com - Crude prices snapped two-straight days of losses on Tuesday, ignoring another weekly inventory rise forecast by analysts. Instead, traders focused on a report that OPEC might consider deeper supply cuts when it meets in December.
Investing.com – The Brexit theater is taut with suspense and gold longs are keeping their powder dry, Tuesday, until clearer signs emerge on where things are going.
Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 26880.
Based on the early price action and the current price at 3012.00, the direction of the December E-mini S&P; 500 Index the rest of the session on Tuesday is likely to be determined by the uptrending Gann angle at 3009.75.
The early price action suggests the selling may be greater than the buying at current price levels. Traders are lightening up on the long side because of technical resistance and uncertainty of the Brexit vote.
Investing.com -- Gold prices drifted lower Tuesday after weak economic data from the U.S. and U.K. only put a modest dint in optimism regarding developments in Brexit and the U.S.-China trade dispute.
Gold is likely to remain rangebound, but with a slight downside bias as long as the U.S. and China are still talking. I don’t expect to see a major more until there is major news about a trade deal ….good or bad.
The markets remained surprisingly calm last week, despite worse than expected U.S. economic data releases. The third-quarter earnings season along with Brexit play may have overweighed the data pessimism.
Global equity markets were stronger Monday, S&P; up 0.7%, with gains also through Europe and Asia, as the U.S. moves into a busy week of earnings reports. The news flows were comparatively light, however, but short-term money is getting a whiff of the distinctly positive change in risk sentiment as an air of optimism around trade talks continues to envelop risk markets.
Based on the early price action and the current price at .7871, the direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to the major 50% level at .6877.
The Canada general election, economic data, and Brexit are all in focus, with early support coming from positive updates from Trump on trade…
Investing.com - Oil prices turned lower on Tuesday in Asia despite signs of easing tensions between China and the U.S., the world’s biggest oil importers.
Investing.com - Prices of the safe-haven gold prices inched down on Tuesday in Asia as China and the U.S. made some progress on their trade negotiations.