Gold production is expected to significantly increase this year, given the huge investments and expansion drive by major mining companies in the country, according to Dr. Toni Aubynn, Chief Executive Officer of the Minerals Commission.
Gold output during the 2016 production year stood at about 2.1 million ounces, which represents an increase of 2.77% over the 2015 production figure of 1,977,135. Golden Star Resources [GSR] is set to expand its mining activities at the Wassa project site this year and production levels are expected to be at an average of 163,000 ounces of gold per annum over its production life, with average cash operating costs of US$780 per ounce. The first production from Wassa underground which begun early this year is estimated to continue into 2024.
Asanko Gold Mines, Goldfields and Gold Star Resources have all shown signs of increasing production through injection of new capital. With the prices of gold set to stabilize further on the global commodities market, the performance of gold mine stocks on the Accra bourse [i.e. AGA and GSR] will be very stable with a very high possibility of periodic marginal capital gains in the medium term. Labour actions such as employee lay-offs within the industry could also improve this year. Gold stocks have a better outlook in 2017 than last year.
Trading activity on the bourse ended with 5 gainers [CPC, EGH, ETI, SCB and TOTAL] and 2 losers [HFC & SIC] yesterday. SIC topped trading chart in terms of volume as 64,300 shares worth GHS 9,657.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 5.98% and 8.67% respectively.
Trading activity on the Ghana Alternative Market (GAX) was hushed yesterday as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi LOST marginally to the Dollar and Euro but GAINED to the British pound yesterday.
The local currency exchanged at a mid-rate of GHS 4.2913 to the USD, GHS 5.3877 to the GBP and GHS 4.6416 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 3.17%.
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