Risk-on greater reason for record-high Q2 gold price than interest rate decline

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Risk-on greater reason for record-high Q2 gold price than interest rate decline
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The all-time-high second-quarter (Q2) gold price is less about the forecast decline in interest rates and more about risk-on amid global economy wrestling and world deglobalisation, Barrick president and CEO Dr Mark Bristow highlighted this week, following his round-the-world travel. “China is certainly going to recover – but not back to where it was,” Bristow forecast during the Q2 results presentation of the New York- and Toronto-listed gold and copper mining company. (Also watch attached Creamer Media video.)

JOHANNESBURG – The all-time-high second-quarter gold price is less about the forecast decline in interest rates and more about risk-on amid global economy wrestling and world deglobalisation, Barrick president and CEO Dr“China is certainly going to recover – but not back to where it was,” Bristow forecast during the Q2 results presentation of the New York- and Toronto-listed gold and copper mining company.

“It’s got the people, by far, but it needs to care about them,” said Bristow, drawing on the addresses of leadership at the mining summit, which emphasised the country's need to focus on development and not just exploitation. As far as the policy towards mining and metals is concerned in the US, there is a need in Bristow’s view for reflection on just exploiting other people’s natural resources rather than developing some of its own, “and engaging and supporting a real mining industry, because that’s what’s required if we’re going to have a better world ahead of us”.

As Barrick has done at its Kibali gold mine in the Democratic Republic of Congo, Balochistan people are being educated as future operators, well ahead of the commencement of mining at Reko Diq, the proposed multi-generational mine.Bristow acknowledged Africa as “by far” the most consistent performer in Barrick’s portfolio. “Africa’s not only a reliable contributor to the bottom line, but also host to a wealth of future gold and copper opportunities.

Kibali’s substantial Q2 production improvement has set it back on course to achieve its full-year guidance and underground development is supporting its new ten-year mine plan.

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