Finance
The price of gold is the same around the world but the cost of production unfortunately is not .
According to a recent article by Forbes ’ columnist Tim Treadgold , gold mining companies are earning more from U . S . based mines than anywhere else in the world .
“ In the commodity world the value-gap is best illustrated by that universal material gold , with the cost profile of one company demonstrating why the U . S . is a preferred destination for new mine developments ,” he writes .
Numbers never lie In his article Treadgold uses South African miner AngloGold
The US division of AngloGold produces gold at $ 765 per ounce , nearly $ 100 an ounce less than it ’ s operations in Africa
Ashanti ( Jse : ANG ) as a prime example of why the US is the preferred destination for gold mining .
The company , which has four major divisions ( South Africa , Africa , Australia and the Americas ), reported a four percent increase in gold production to over one million ounces for the second quarter of 2014 .
When breaking down production and cost between the four divisions , however , the clear cut winner was the Americas unit .
According to Bank of America Merrill Lynch , the division produced gold at $ 765 per ounce , almost $ 100 an ounce less than AngloGold ’ s operations in Africa – which should be the cheapest mining destination . AngloGold ’ s African operations produced gold at $ 846 / oz and the company ’ s Australian mines at $ 850 / oz .
“ When it comes to future investment it is likely that proposals from the Americas division of AngloGold will win a capital allocation ahead of other divisions simply on the question of costs , a situation which could soon attract the attention of environmental groups opposed to most forms of mining ,” Treadgold says .
32 S eptember 2014