Major miners are running out of gold, and that’s good news for explorers

Gold miners 10 years ago Goldfinger Stockhead | James Alexander Michie

80 per cent of the world's top 20 gold miners have less reserves than 10 years ago: Auric Goldfinger, Goldfinger

Some of the world’s largest gold producers may be forced to engage in targeted acquisitions or expand their exploration activities to overcome a sharp decline in their gold reserves.

This is despite spending $US69.5 bn on acquisitions and exploration activities since 2010, according to S&P Global Market Intelligence.

“With top producers facing declining production profiles, shrinking reserves and a return to rising production costs, we expect many to expand organic exploration in the near term while leveraging targeted acquisitions to supplement their depleted pipelines,” said report author Robert Anders.

This could be good news for advanced ASX gold explorers who stand to benefit from exploration partnerships with major miners; or even lucrative takeovers, like Cardinal Resources (ASX:CDV) and Spectrum Metals (ASX:SPX).

80 per cent of major gold miners have declining reserves

Sixteen of the world’s 20 largest gold producers saw their remaining years of production fall in the 2010 to 2019 period.

Kinross had just 9 years of remaining production in 2019, down from 24 years in 2010.

Two of the 20 largest gold miners had more reserves in 2019 than in 2010, Zijin Mining Group and Fresnillo, and Gold Fields’ remaining production profile was unchanged over the period.

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Source: Mike Cooper | Stockhead

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