Commodities report: 2013 roundup & gold, silver and copper performance 2014 outlook
By Damas Makangale, MOblog
Amidst write downs, a drop in commodity prices and lower revenues, gold, silver and copper are among the most closely watched metals in the mining sector – and they are also some of the hardest hit in 2013, according to Price water Coopers ’s (PwC) new Gold, silver and copper price report.
Gold has been the big mining story of the year. The metal, which surpassed USD1,900 per ounce in 2011, fell to around USD1,200 this summer and prices are currently hovering not far above that, as gold producers prepare for a challenging 2014.
Reflecting lower levels of confidence, 47 percent of gold producers expect the price to increase in the next 12 months, compared to 88 percent a year ago.
The worst performing metal this year was silver – with prices plummeting 40 percent. But silver miners are optimistic for 2014 with only 9 percent anticipating the price of silver to fall further next year.
Copper prices fell too, from USD3.70 per pound at the start of the year to around USD3 currently, but are expected to be stable in 2014 with nearly two-thirds of respondents (62 percent) predicting copper prices to remain around current levels.
John Gravelle, global mining leader, PwC, said:
“While 2013 has been a tough year for miners, the industry has faith that fundamentals will recover.
Gold, silver and copper may not reach record levels in the near future, but expect prices to increase alongside a stabilising global economy.”
Cutting back and keep costs down
Managing costs and finding financing are among the top priorities for miners amid less optimistic future price expectations. According to the report: