The clamour for gold has trailed off since the US Federal Reserve launched a relatively modest third stimulus package in September. But industry analysts are cautiously optimistic about next year's prospects after a fairly lacklustre 2012. Meanwhile, Indonesia-focused gold producer Archipelago Resources (AR.) may generate optimism of its own as it upgrades estimates of its resources.
- Resource estimates likely to be raised
- Record third-quarter production
- Falling cash costs
- Low-cost producer
- Slowdown in Chinese gold demand
- Shares may be difficult to trade
Archipelago's main project is the open-cast Toka Tindung Gold Mine in Indonesia. Toka Tindung was commissioned late last year, and should produce about 160,000 ounces (oz) a year over the next six years. However, that figure could rise appreciably as a result of exploration at four other drill targets, two of which are satellite pits of Toka. True, there is no guarantee of success, but this year Archipelago has already raised the estimate of its resources to 2.69m oz. And little exploration work has been carried out within its 400 sq km catchment in Indonesia.