Gold price climbs higher
GOLD price hit peaks exceeding US$1,700 (K5,780) an ounce this month, according to the Mineral Resources Authority.
This is due to the current world volatility caused by Covid-19, the slump in oil prices and stock markets and uncertain economic activity in key economies.
“This level of pricing is very positive for the alluvial sector and PNG as a whole, given that gold exports represent around 70 per cent of all PNG mineral export revenue,” the MRA stated.
“For every US$100 (K340) increase in the gold price, PNG mineral exports increase by more than K670mil based on total 2019 gold production of 2,214,428 oz.
“However, gold is a very volatile commodity and regarded as a safe haven in troubled economic times.
“It can drop as quickly as it rises.
“But, so far, for the first quarter of 2020, the gold price remains on average over US$100 (K340) – higher than the 2019 average.”
In 2019, alluvial gold export revenue through licenced gold exporters (regulated by the Bank of PNG) totalled K549,698.436.
Silver accounted for K2,051.239, bringing the total for the sector to K551,749,676 – a new revenue record.
MRA said gold production in 2019 was 119.904 ounces, slightly less than the 2014 record. The difference in revenue is because of the significantly higher average gold price in 2019.