The gold industry will need to bring on line eight-million ounces in the next five years to maintain 2019 levels of production, consultancy firm Wood Mackenzie (Woodmac) said on Wednesday, warning that the gold supply summit was in sight.
This equated to about 44 project and based on the average project capital intensity of $4 610/oz, it would require an investments of about $37-billion in greenfield and restart projects by 2025.
Prior to the coronavirus outbreak, peak gold supply was becoming a real possibility. Now, with exploration programmes paused or cancelled and project disruptions hampering production, the summit is in sight, Woodmac noted.