Gold Price Sensitivity and Gold Reserves - The +US$100 Effect1 Sep 2025 14:15
I appreciate that I've posted on this subject a few times over the past couple of years, but it's particularly relevant again, with the sustained gold price increases. Basically, according to Newmont, a US$100 increase in gold price would result in an approximate 6 percent increase in gold reserves. Yes, there are, of course, several other factors which need to be taken into account, but essentially that's what Newmont Corp. work on anyway.
This is what Newmont state in their latest reserves report from February this year:
GOLD PRICE SENSITIVITY
A $100 increase in gold price would result in an approximate 6 percent increase in gold reserves while a $100 decrease in gold price would result in an approximate 6 percent decrease in gold reserves. These sensitivities assume an oil price of $75 per barrel (WTI), Australian dollar exchange rate of $0.70 and Canadian dollar exchange rate of $0.75. These sensitivities assume all other inputs remain equal, including all cost and capital assumptions, which may also have a material impact on these approximate estimates.
On the 18th March we announced the inaugural Greatland Telfer Mineral Resource (Telfer December 2024 Mineral Resource Estimate), based on a 31 December 2024 information cut-off date.
Whatever figure you use, withe the current gold price, the outcome, in terms of reserves, is fantastic. On the 31st December 2024 the gold price was around US$2600 and on the 18th March this year it was around US$3000. It's now around US$3500. Go figure! And don't forget that currently unclassified mineralisation includes the Main Dome Open Pit, the Main Dome Underground’s Vertical Stockwork Corridor (VSC) and Eastern Stockwork Corridor (ESC), as well as several satellite deposits near Telfer.
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