Gold Price Languishes On Cyprus Calm
Gold is down nearly five percent so far this year and if the losses continue, the metal faces the first back-to-back quarterly loss since 2001, which would mark a gold market "recession" according to the conventional definition of two subsequent quarters of negative growth, Mining.com points out.
On Thursday, amid a re-opening of Cypriot banks after a two-week hiatus due to the island's financial woes, gold continued to splutter, and by the end of the trading session the overall trend was down. April COMEX gold futures last traded down $11.80 an ounce at $1,594.40 an ounce, while spot gold was last quoted down $10.60 at $1,595.25. Friday is expected to be a quiet day for precious metals with North American markets closed for the Easter holiday.
Barrick Gold (TSX:ABX,NYSE:ABX) founder Peter Munk is resigning from his position as chairman, prompting the world's largest gold miner to initiate a search for his successor. In a letter to shareholders released on Tuesday, Munk said it is time for the company to "consider a path to new leadership at our board level." Munk singled out John Thornton, who was made Barrick co-chair in 2012, as a likely successor. Barrick, whose stock has floundered to its lowest point since 2008 on cost-overruns and delays on key projects, replaced CEO Aaront Regent with Jamie Sokalsky last June.The Bachelor Gold Mine in Quebec is due to start commercial production, according to a report from The Montreal Gazette. The mine, owned by Metanor Resources (TSXV:MTO), will produce 50,000 to 60,000 ounces a year from an underground operation. The newspaper said the mine "has overcome long permitting delays and labour shortages" after an investment of $100 million. The company has been pouring gold non-commercially since last summer. Randgold Resources (LSE:RRS) has a kitty full of cash and is exploring joint venture opportunities, the Africa-focused gold producer announced on Thursday. Writing in the company's 2012 annual report, CEO Mark Bristow said Randgold's top priority is to pour gold at its Kibali project in the DRC before the end of the year. Despite dropping $562 million on capital expenditures last year, Randgold had $403 million in the bank at the close of 2012, according to Bristow, putting the company in a good position to make acquisitions: “Our exploration teams are hunting for additional resources for our mines as well as fresh targets that will produce our next big discovery."
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