Market Analysis: GOLD 2/11/2014

Gold Production Growth Continues

African gold miners were heavily punished in 2013. This statement is especially true for Harmony and Gold Fields. However, as the production costs finally slipped below the actual gold price, the outlook for the miners improved. What's more, gold production has been stable at both companies, which means that they were able to lower their costs without sacrificing ounces.

Randgold and AngloGold have been outperforming their peers due to manageable costs and a solid rise in gold production. Randgold increased its gold production by 15% in 2013, and is planning a production increase between 24% and 30% in 2014. Randgold and AngloGold hold an equal share in the Kibali mine in Congo, which has more than 10 million ounces of reserves. Randgold guides that the mine will deliver 550,000 ounces for this year at cash costs between $500 and $600 per ounce, enhancing both companies' cost profiles.