Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Africa’s #2 Gold Nation Just Lost 15% Of Its Production

By PiercePoints. Originally published at ValueWalk.

The gold price has been showing strength this past week. Once again pushing toward $1,300 per ounce.

And news from one of the world’s key producing countries may help support that drive.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Ray Dalio
Gold & Rare Tangible Assets
istara / Pixabay

That’s Ghana. Where government officials said over the weekend that recent regulatory changes are about to have a major impact on gold production.

Those comments came from Ghana’s deputy minister of land and mines, Barbara Oteng-Gyasi — speaking to Reuters at a gold industry conference in India. With the deputy minister revealing that recent attempts to curb artisanal mining in Ghana are likely to cause a big fall in production this year.

Oteng-Gyasi went on record estimating that the crackdown will reduce artisanal mining output by 50% for 2017. With illegal operations across Ghana being shut down to prevent environmental impacts.

Adding another key data point, Oteng-Gyasi said that such artisanal production accounts for about 30% of Ghana’s total gold output — which came in at 4.1 million ounces in 2016.

Here’s how the math breaks down: artisanal mining’s 30% of production equates to about 1.2 million ounces yearly. So this year’s 50% reduction in artisanal output would mean over 600,000 ounces of production gone.

That’s 15% of Ghana’s total production vanished into thin air, nearly overnight. A major happening in gold supply, given that Ghana is currently Africa’s #2 gold-producing nation — and the world’s 11th-largest supplier.

Deputy minister Oteng-Gyasi did suggest that a reduction in artisanal activity may help larger gold producers expand their operations. Potentially opening up new ground to development.

Whatever the case, this is an important development for observers in the gold space. Both because of potential supply reductions — and the possibility for new project opportunities in parts of Ghana cleared of illegal miners.

Watch for official numbers on Ghana’s production, and for new projects announced by established miners here like AngloGold Ashanti — or perhaps from new players entering this proven gold terrain.

Here’s to moving out and moving in,

Dave Forest

Article by Pierce Points

The post Africa’s #2 Gold Nation Just Lost 15% Of Its Production appeared first on ValueWalk.

Sign up for ValueWalk’s free newsletter here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!