Miningscout on Tour: Diggers & Dealers 2015 – Australian Resource Sector on the Rise

Miningscout on Tour: Diggers & Dealers 2015 – Australian Resource Sector on the Rise


Oh Vida is the mining Scout of tour Dismas NP of the highway vaporized the west australian indicating from Kalgoorlie in hintergrund is the superb it Susan on vania kilometer and found finity diggers on d lasts 5,000 films that were varied enough enters an english-based partner zukin van sonic as chairman of the diggers and dealers what’s this conference all about what this comp has been going for 24 years now this is as being organized started from a very small basis of 40 or 50 delegates has grown into it almost 2,000 that I guess this year we got 1,750 delegates and it just gets all the money companies in Australia together they can showcase the story to the investors and it goes on for three days 45 companies present 145 135 boots up placing in the auditorium and and we try to cover predominantly gold because it’s one of the largest money in the soluble recover as many commodities weekend so recovering nickel copper iron ore and mineral sales etc some companies are looking for lithium for example some others for rare earths but the main focus of the company here companies attending here seems to be gold so what’s the reason for that but it’s funny so Dickerson dealers been going for about 21 years and it started off as a god form and then depending on which metal or commodity was in vogue I know we had lifting couple years ago there’s a lot of lithium and rare earths and companies here and nice to take over to us but at the moment the only thing that is going quite well is gold because the odds of dollars fallen sharply as a result of a week Australian economy and the resurgence of the US economy and it’s dragging with it the Aussie dollar so the Australian dollar gold price is actually getting stronger and stronger and offsetting some of the losses in the US dollar gold price so if you’re a gold producer in in Australia we’ve got lots around Western Australia we’ve got the super kid you’re almost a stone’s throw away if your costs are noisy dollars you’re getting yet they’re still at a potential there to get some quite nice profit margins and based on where the Aussie dollar gold prices so Chinese economy is weakening at the moment they are not buying as many steel and commodities like coal as well but they used to invest heavily in Australia in gold mines whatever mine is coming up the Chinese were in there so is there any change in that as well yeah and it has changed quite a bit over to him the toilet certainly when the China boom first took off it took everyone by surprise including China and China then scrambled to secure some of its own resources and I invested an iron ore in Australia and Western gold and mr. Nichols yet pretty much and everything and a lot of them were unsuccessful investments and so the Chinese have been much more and much more selective from what they invest money in nowadays so that’s of tapered off a little bit and at the same time of course and a lot of projects that start up being in Australia to feed China that’s or slow down as well but it’s hard to believe that we’re talking about chinese gdp growth of only seven percent and people are complaining it’s not big enough that’s because our costs are oh so sharply during the china boom that now we can’t get costs out of our system and seven percent growth and china is almost not good enough which is hard to believe so we’ve got this reach us minh going on to get used to surviving at seven percent growth which item this thing that japan’s been growing at nothing for two decades and here we are complaining china only growing at sympathy so Michael as a member of anglogold ashanti what’s your favorite thing of australian gold mine well we we see in gold mining in Australia are still having a lot of potential we we operate the tropicana mine we own seventy percent of that with a joint venture partner independence group but there’s it’s a new built the tropicana belt so there’s still enormous potential for for exploration none of it is easy because a lot of the war is under cover so you need good scientific approaches to your physical approaches to be able to to see through that color but there’s still a lot of opportunity and we believe a lot of good or still to be discovered in the tropicana belt what do you think where’s the future of gold exploration in Australia is it more like the brownfield that’s rather easy to just expand existing mines or seized mines or is it green field exploration look for new targets totally new targets new gold belts for example now that is a good question the the brownfields exploration is far less discretionary so when times are tough unfortunately there’s a view with many companies that green fields exploration is discretionary so we’ll stop that what that does is virtually destroyed the pipeline are going forward I’m quite pleased to hear a lot of support for extra green for exploration at this at this forum this week green fields very important very important to anglogold ashanti so we’re retaining a green field budget however we’re focusing the green fields work in the countries and the regions in which we have operate in mind it’s not quite braunfels brownfields we continue to do which is almost a resource development approach you your mind a you explore for extensions of the now and all bodies you virtually have to keep to replace resources and reserves AG but green fields we’re now focusing in those areas where we’ve already got a presence when gold price was high we were exploring in dozens of countries so very much spreading and spreading our effort now when times are tough i think all companies start to bring that focus back closer to home so during this tough times and many companies with the share price collapsing do you think there will be more mergers of takeovers at these cheap levels or do you think that as moneys rare no one will even touch other companies or projects I think it’s interesting this gold price is low in u.s. dollars the countries where and I’m talking gold only where you have exchange right protection in Australia the exchange rate has devalued twenty twenty-five percent this year so in the last six months so in Australian terms don’t pass this $1,500 well they’re about there’s actually a lot of M&A activity in in Australia people are just Australian companies see Australia is a good place to explore a good place to continue to make acquisitions perhaps from the larger global companies who are feeling pain in other parts of the world where they’re not getting the exchange rate benefits we have operations in Brazil similar exchange rate with a Brazilian rial to the Australian dollar so they’re enjoying a bit of an uplift in local currency gold prices but I think it is a time when mergers and acquisitions will occur particularly in destinations like Australia first world knowing a regulatory statutory systems and so forth and also a reasonably buoyant australian gold price yet when you report in u.s. dollars as we do it costs a low you can get more perhaps bang for your buck in terms of exploration as well you’re presenting awards to some certain companies or people as well so what are the criteria and what kind of awards to your presented his calls well every at legal deal at the center dealers award a minor would an imagined company would in the media award so during the I bad februari every year there’s a Selectric immediate about 15 people from from media to broadcast the operators and we analyze all the companies his select the cameras are going to present and then we just look at the wall you can see it would be the best deal made in the year for the deal award and the performance of different cameras they analyze the one that does actually outperform the market and it’s done a pretty good job and then we come the dealers of the year the media award is actually selected by the media people themselves the select the person that has represented the resources in Jersey better than the others and then the emergency come here would following the presentations here there’s a few people that will actually decide which one is the most promising emerging company in the industry and I will be given an award for that it is a very very nice conference here and I would be glad to join in this big family and meet you again next year please do be looking forward to that thank you thank you

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