The Industry Said 3 Of The Gold Production Enterprises Will Lose Gold Prices And Rise In Costs.

Keynes said,

As the last guard, there is nothing better to replace it with the reserve in case of emergency.

But this mineral product, known as "hard currency" since ancient times, has been "on the decline" in the market since last year.

Data show that since last year, the price of gold has ended 10 years' bull market with an annual decline of nearly 30%.

Gold is currently hovering around $1240 an ounce.

"If we did not know whether gold was at an inflection point last year, through this year's trend, I personally believe that the gold market has entered the mid low price band cycle."

At the 2014 China International Mining Conference held in Tianjin, Weng Zhanbin, vice chairman of Shandong recruitment group, was judged.

This is exactly the case.

Shandong

Wang Peiyue, assistant general manager of the group, believes that with the acceleration of the US economic recovery, there is not much opportunity for gold prices to rise in the short term. "In the next 2~3 years, the price of gold will fluctuate on the 1100~1400 US dollar / ounce, and the situation is not optimistic."

It is noteworthy that the price of gold has fallen sharply, and the costs of related enterprises are rising continuously.

Lu Dong Shang, chairman of the Shandong recruitment group, counted the reporters: the average price of gold in 2011 was 327.53 yuan per gram, and in 2013, it dropped to 278.6 yuan, a decrease of about 50 yuan. The total production cost of Ke Jin rose from 168.9 yuan to 197.32 yuan, an increase of 30 yuan, a drop and a liter, leading to a decline in profits of gold mining enterprises.

According to Weng Zhanbin, the cost of gold has increased substantially, including resource cost, labor cost, safety cost and ecological environment.

"Gold prices are falling, but several major costs, including labor costs, including direct costs are rising, which greatly reduces the profit margins of gold companies."

He predicted that these costs will continue to rise.

From the perspective of the entire gold mining industry, the profits of gold mining enterprises in China dropped by more than 60% in the year 2013, ending the history of 11 consecutive years of profit growth.

"From the perspective of the industry as a whole, 1/3 of the gold production enterprises are losing the average production cost of US $1200 per ounce. We can say that the entire gold mining industry has entered a meager profit era."

Lu Dong Shang said.

Among them, CICC gold and Shandong

Although the listed companies did not suffer losses, their performance had shrunk dramatically.

Data show that the net profit of CICC gold in the first half of this year is only 283 million yuan, down 51.12% compared with the same period last year. Net profit in the first half of Shandong gold fell more obviously, or 67.75%.

The problems that plagued gold production companies are more than that.

"From the perspective of national policies, the new gold resources tax policy will definitely impact domestic gold enterprises. The central bank has implemented a prudent monetary policy, raising financing difficulties and raising the financing environment."

China Gold Group Co general manager Song Xin said.

It is understood that over the past more than 10 years, the entire gold industry has been engaged in horse race and resource acquisition. Enterprises are rushing to buy resources, leaving behind the whole gold mining problem of high debt ratio, high financing pressure and high financial cost.

However, many people in the industry also believe that the gold industry is still a relatively healthy industry compared with resources such as nonferrous metals, steel and coal.

"At present, (kking) cost control is low around 80 yuan, but the high level also has more than 200 yuan, and there are individual loss companies, which reflects the great room for increasing efficiency through management."

Lu Dong Shang said.

In view of the growth potential of the consumer market, most of the gold producers are still sticking to their positions.

"Sometimes employees will complain that the price of gold has dropped by 25%~30%, and our wages have dropped by 75%. Our families are not satisfied. I hope you can all stick to it and tide over the difficulties with us."

DavidJarvis, general manager of Eldorado Gold Corp China, said.

Data show that last year, China's gold production reached 428.16 tons, reaching the world's first in seven consecutive years, and gold consumption reached 1176.4 tons. For the first time, it surpassed India as the largest gold consumer in the world.

Liu Bing, deputy general manager and chief accountant of China Gold Group, said that China's Gold retail market is mainly based on gold and real investment in jewelry, and the market of gold and jewelry consumption is vast and has great potential for growth.