The $30bn SPDR Gold Trust (NYSE: GLD.US) ETF closed almost unchanged on Friday at $118.99, leaving it up by 2.5% so far this year. In the UK, London-listed Gold Bullion Securities (LSE: GBS) rose by 0.75% to $119.05 in early trading, leaving it up by 2.9% on the year to date.
Miners report production gains
Shares in Mwana Africa (LSE: MWA) climbed 11% to 2.2p in early trading, after the African gold and nickel miner reported that gold production from its Freda Rebecca mine in Zimbabwe had risen by 23% to 16,555 ounces during the second quarter, while all-in sustaining costs fell by 17% to $1,061 per ounce.
This suggests Mwana can remain profitable even if the price of gold remains weak. Mwana’s CEO, Kalaa Mpinga, says that recent modifications to the mine “appear to be bearing fruit” and should result in “a more consistent operating performance in the coming quarters“.
Shanta Gold Limited (LSE: SHG) climbed 8% to 9.5p when markets opened this morning, after the Tanzania-focused gold miner reported a 4% increase in gold production to 22,720 ounces, while all-in sustaining costs fell by 9% to just $873.
Shanta’s low mining costs mean that its mining operations have remained robustly profitable in the face of lower gold prices, and the firm reported second quarter cash flow from operations of $14.8m, double the $7.0m reported for the same period last year.
Trans-Siberian Gold (LSE: TSG) rose by 12% to 10.9p this morning after the small Russia-focused miner reported that the average gold grade processed during the third quarter of 2014 was 8.28g/t, the highest achieved at any time during the last three years and a 20% improvement on the 6.87g/t the firm reported during the first half of 2014.
Trans-Siberian reported third-quarter production of 7,784 ounces of gold and 9,121 ounces of silver, but while production has been rising at the firm, it has struggled with costs: Trans-Siberian’s total cost of sales per ounce of gold was $1,269 during the first half of this year, compared to an average sale price of $1,292 per ounce of gold, which is above the current market price for gold.
Roland Head owns shares in Mwana Africa. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.