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Half of Gold Output May Not Be ‘Viable’ as Price Sags: Randgold

  • Gold declines to five-year low on Friday as dollar advances
  • `Where is all this value that people promised?' Randgold CEO
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Metals' Demand Problem Deepens Commodities Slump

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Half of the gold coming from mines may not be viable at current prices, underscoring the industry’s need for consolidation and output cuts, according to the best-performing producer of the metal in the past decade.

“The more we continue to produce unprofitable gold, the more pressure we put on the gold price,” Randgold Resources Ltd. Chief Executive Officer Mark Bristow said in an interview in Toronto on Friday. “In the medium term, it’s a very bullish outlook for the gold industry. The question is, how long are we going to supply it with unprofitable gold?”