Price upsurge a boon for Queensland gold sector

Soaring gold prices are tipped to deliver heightened investor backing for exploration efforts in areas like Queensland with runs on the board. Gold hit a record Australian dollar spot price of $3311 per ounce on Saturday, following a record US dollar spot price of $2195 per ounce on March 8. AMEC chief executive officer Warren Pearce. "Typically, when the gold price surges it is closely followed by strong investment in gold equities, driving further gold exploration,” Association of Mining and Exploration Companies chief executive officer Warren Pearce said. “This had not been the case over the last 12 months despite an extremely strong gold price, and gold equities have struggled to attract capital. "However, with the critical minerals ramp-up facing significant challenges, and the high gold price projected to last, many investors are now turning back to gold. “Gold traditionally attracts around one third of all mineral exploration investment, and proven gold regions like Queensland are primed to benefit.” Pacgold is advancing the Alice River gold project 300km north-west of Cairns and managing director Tony Schreck describes the continued rise in gold prices as quite remarkable. Drilling at Posie prospect at the Alice River gold project. It was definitely having an impact on the share prices of gold producers, he said. "I think we are just starting to see this trend begin to flow through to exploration companies, which are showing promising signs of rebounding from recent lows," Mr Schreck said. "I believe that exploration companies with solid projects will particularly benefit in the coming months as investor interest returns to the gold exploration sector. "For companies like Pacgold, this uptrend couldn't have come at a better time as we gear up to resume drilling for our 2024 season and expand our Alice River gold project in North Queensland." Related: Drilling confirms new gold zones at Alice River In their latest quarterly analysis, Melbourne-based gold mining consultants Surbiton noted that Australian dollar gold prices averaged $3040 per ounce in the December quarter - this was $94 per ounce more than in the September quarter of 2023. By comparison, the rise in the US dollar price was only half this amount. The rest was due to a decline in the Australian dollar exchange rate, Surbiton Associates director Sandra Close said. "Ignore the US dollar:Australian dollar exchange rate at your peril,” Dr Close said. "Locally, it is the margin between the Australian dollar gold price and the Australian dollar cost of gold production that determines profitability and the producers’ ability to pay dividends.” Below: An ABC Bullion chart showing the upward trend in Australian dollar spot prices.

Price upsurge a boon for Queensland gold sector

Industry Queensland

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