Gold Output Won’t Meet Expectations, Say Major Producers

Bloomberg reported that according to Barrick Gold Corp. (TSX:ABX,NYSE:ABX), Goldcorp Inc. (TSX:G,NYSE:GG) and Newmont Mining Corp. (NYSE:NEM), global gold output is set to decline, largely because miners have cut spending and revised their mining plans.

As quoted in the market news:

There’s no clear consensus among producers about when exactly mine supply will start declining. McEwen Mining Inc. Chairman and CEO Rob McEwen sees it falling this year and Goldcorp CEO Chuck Jeannes wouldn’t be surprised if that were the case, they said in separate interviews. Newmont CEO Gary Goldberg predicts output will rise in 2014 and fall after that.

That places the gold industry at odds with projections from Barclays Plc. Mine supply will rise to 2,787 tons in 2014 and to 2,838 tons in 2015, after a 3.4 percent increase last year, Barclays analysts including Gayle Berry said in a Feb. 12 note. Output climbed in 2009 through 2012, data from the U.S. Geological Survey data show.

 Click here to read the full Bloomberg report.