Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Daily Digit: Spot gold price fall hurts

Wednesday, August 07, 2013 - 01:35

August 7 - Spot gold prices have deliced 25% this year hitting AngloGold Ashanti, the world's third-largest bullion producer, and Randgold. As Hayley Platt reports some smaller mining companies are being pushed to the brink of closure.

▲ Hide Transcript

View Transcript

25% is today's daily digit - the fall in spot gold prices so far this year. It's hurting many, including AngloGold Ashanti. The world's third biggest bullion producer is to cut 2,000 jobs and writedown the value of its assets by $2.4billion. It's also scrapped its quarterly dividend. Shares were down 6 percent at midday, after touching a 12-year low. It was a similar story at Randgold Resources where shares fell 5% after a 62% fall in second quarter profit. Mark Bristow is CEO. SOUNDBITE: Mark Bristow, CEO Randgold Resources, saying (English): "Everybody wants the global economy to get back to where it was and it's not going to happen. The 'first world' is never going to get the growth that it used to have in the last couple of decades." Rising production costs and falling commodity prices are hitting the entire sector. Some smaller companies may be forced to close - although emerging markets are offering some hope. SOUNDBITE: Mark Bristow, CEO Randgold Resources, saying (English): "Mali's been a great place to be in. The government's always been aligned with the importance of attracting investment. Cote d'Ivor is emerging following ten years of crisis and the government there is really focussed on building a mining industry." Billions of dollars in writedowns has now been announced across the industry. And the sector which for years benefitted from soaring Chinese demand now looks almost entirely made up of Chinese investors.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Daily Digit: Spot gold price fall hurts

Wednesday, August 07, 2013 - 01:35