As you know a lot of mining companies cutting down production:MOSCOW (Reuters) -
Two Russian gold miners - Petropavlovsk and Nord Gold - plan to cut production in 2014 as they focus on cost reduction after a slump in the gold price, they said on Thursday.
Many gold producers were hit by a 28 percent fall in the price of gold last year - its biggest annual loss in 32 years - prompting miners to cut costs, delay new projects and hedge, selling their production forward.
"The miners were mining at the highest possible cost because the gold price was going up and when it stopped going up, they had to reduce that. So that means that they will mine less gold," Peter Hambro, Petropavlovsk chairman, told Reuters.
Petropavlovsk expects its 2014 gold production to decline 16 percent year-on-year to 625,000 troy ounces after it sold high-cost alluvial assets, the company said in a statement.
