Despite the trend to cut costs to survive, Vitaly Nesis, chief executive officer of Russian Polymetal International plc, has a different plan: “Obviously cost cutting is important but I think the emphasis in the industry is misplaced,” Nesis said. “I think capital efficiency is much more important than cost cutting.”
Kitco reported Nesis went on to say that, “the most traditional response to declining gold prices in a bid to reduce costs is high-grading, indiscriminate labor reductions and exploration cuts, which are misguided. I think that high-grading is something that an irresponsible mining company would do – we will not high-grade.”
The week’s biggest mover on the weekly Global Precious Metals MMI® was the price of Japanese palladium bar, which saw a 6.5 percent increase. This comes on the heels of a 0.2 percent decline the week prior. US palladium bar rose by a slight 2.4 percent. Chinese palladium bar rose 1.3 percent over the past week.
For the third week in a row, the price of Chinese platinum bar dropped, falling 2.0 percent. The price of US platinum bar fell 1.4 percent over the past week. This was the third week in a row of declining prices. The price of Japanese platinum bar rose 0.7 percent after falling 3.3 percent during the previous week.
The price of Japanese gold bullion rose 3.1 percent after falling 5.1 percent during the previous week. The price of Chinese gold bullion dropped 1.2 percent this week, closing out the third consecutive week of falling prices. The price of US gold bullion finished the week down 0.2 percent. The price of Indian gold bullion rose 0.2 percent after falling 10.2 percent during the previous week.
Closing out the third week of declining prices, the price of Chinese silver dropped by 4.0 percent. The price of Japanese silver rose 3.4 percent after falling 5.9 percent during the previous week. For the third week in a row, the price of US silver dropped, falling 2.1 percent. The price of Indian silver fell 0.5 percent over the past week. This was the third week in a row of declining prices.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.