In a blow for the World Gold Council, the industry’s market-development organization, South African miners AngloGold Ashanti (NYSE:AU) and Gold Fields (NYSE:GFI) have decided not to renew their membership citing fees issues.
As members pay per ounce of metal produced, both companies said they had to look at the cost-benefits of staying in the organization, amid their efforts to adjust to a gold price that has dropped 21% since the beginning of 2013.
The WGC counts among its members most producers of the precious metal, including Barrick Gold Corp. (TSE:ABX) and Newmont Mining Corp. (NYSE:NEM), the world’s largest gold miners.
South Africa produced more than two-thirds of the world’s gold at its peak in the 1970s, but the sector has been in decline for years as shafts have matured. However, it remains a key global producer of platinum, with the country home to about 80% of the proven reserves.
via Mining.com
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza