With the gold price on the rise, Newmont set to expand the Boddington gold mine
With gold on the rise, United States-based Newmont Mining is set to spend $400 million on the expansion of the largest gold mine in the country, the Boddington mine in Western Australia.
After Newmont’s rival Canada-based Barrick Gold spent the majority of the past two years selling off most of its Asia-Pacific gold mines, the new expansion at Boddington is a welcomed investment.
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With local management improved productivity at the mine in areas such as shovel utilization and truck idle times, this new project is expected to add several years to the life of the operation.
Boddington, located 120 kilometres southeast of Perth, produced 739,000 ounces of gold in the financial year ending on June 30, which is much more than the second biggest gold mine in the nation that produced 606,000 during the same year. With the mine expected to produce gold at a sustaining cost of US$820 per ounce this year, it would give the operation profit margins of US$350 at this current rate.
Meanwhile, Aussie gold miners are enjoying the rising price of the commodity as the Australian dollar remains low. With gold currently selling for $1,620 a troy ounce, share prices are also increasing.
Uncertainty over if the U.S. Federal Reserve would raise rates was also a big factor in the increase, according to ANZ Bank precious metals analyst Victor Thianpiriya.
“We had a big run up in the U.S. dollar in 2013 and 2014, but that rally has stalled over the past few months,” said Thianpiriya. “Now people are seriously considering whether the U.S. Federal Reserve can raise interest rates in 2015 at all.
“Until we get some further clarity on the director for the Fed, we’re likely to see, in U.S. dollars, gold trade in the US$1,150 range.”
RELATED TOPIC: Australia takes hit as Barrick Gold continues to sell
The sharp fall of the Aussie dollar against U.S. currency has come on the heels of several acquisitions by local miners following the unloading of gold operations by large U.S. companies. As a result, Australian companies have swiftly taken advantage of the positive market conditions that have driven up share prices.
With the low exchange rate working in favour of Aussie gold miners, businesses are making the most of the current climate and hoping the dollar remains around 70 U.S. cents.
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.