African Gold Producers Vulnerable to Ebola Risk

Gold producers are among the most at risk when it comes to the most recent Ebola outbreaks, says SNL Metals & Mining. “A number of companies are heavily reliant on production from countries with reported Ebola cases,” they say in a report. 

“Teranga Gold Corp. mined 100% of the 186,484 ounces comprising its 2013 aggregate attributable gold production in Senegal. A similar trend exists for Randgold Resources, Banro Corp., Endeavour Mining Corp. and Resolute Mining Ltd., which all had a significant amount of 2013 aggregate attributable gold production from the region.”

SNL notes roughly 1.87 million ounces of gold was mined 2013 in the affected regions by nine gold-mining companies. Gold production in affected areas includes the Democratic Republic of Congo, Guniea, Mali, Senegal and Sierra Leone. SNL says that “whether or not Ebola will have a large impact on future mining production is unclear; however, at the very least, the crisis is expected to result in even further cutbacks to West African exploration programs in the second half of 2014.” The other two metals seen at risk by SNL were copper and iron ore.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza