- Gold mines are on the verge of peak production as the pipeline of new withers, supporting prices and delivering a new impetus for dealmaking and industry consolidation, Goldcorp (NYSE:GG) Chairman Ian Telfer tells Bloomberg.
- The number of deals in the gold sector this year is the highest since 2011, as gold’s price surge has prompted producers to trade assets to add production or to improve the mine portfolio quality, and Telfer says GG is reviewing opportunities for acquisitions or partnerships including in new discoveries and existing assets.
- Randgold (NASDAQ:GOLD) CEO Mark Bristow said recently that gold production may peak in the next three years as miners fail to replace their reserves, and Telfer concurs, saying producers have limited scope to raise output in response to higher prices, and that “we are having a heck of a time finding gold."
- “Once supply from mines starts to decline and people start to realize the impact that’s going to have... it’s going to be incredibly bullish for gold,” Telfer says.
- ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GTU, UGLD, GLL, DZZ, OUNZ, DGL, DGZ, DGLD, UBG
Original article