Gold price exceeding $2,000/oz would not surprise me – Dushnisky

JOHANNESBURG (miningweekly.com) – There is every chance that the gold price could exceed $2,000/oz, said AngloGold CEO Kelvin Dushnisky on Monday.

Answering journalists’ questions during a virtual media roundtable, Dushnisky said that a gold price higher than $2,000/oz would not come as a surprise to him at all.

“Regarding the gold price reaching $2,000/z, do I think it could reach $2,000/oz? Yes, I certainly do, and I think that given quantitative easing we’re seeing, the likelihood of interest rates being lower for longer and all of those factors coming together, I think there’s every chance that the gold price could exceed $2 000/oz. That would not come as a surprise to me at all,” he elaborated.

But he made it clear that the Johannesburg- and New York-listed gold mining company he heads was not reliant on the gold price reaching such heights.

“We do our planning conservatively and nobody is happier than us to see a rising gold price because of our strong leverage to it. But to answer the question, yes, I certainly could see gold going higher than $2,000/oz,” he reiterated.

AngloGold’s diverse portfolio of 14 mines in nine countries has helped to limit to 11,000 oz the impact of Covid-19-related stoppages in the three months to March 31.

The company reported that first-quarter free cash flow before investment in growth projects – the measure on which dividend payments were based - rose 231% year-on-year to $94-million. Cash flow from operating activities rose by 227 % from $67-million to $219-million over the same period.

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