Why such a successful and lucrative industry is not given more prominence

Dec 30, 2009 Letters

Dear Editor,
I read with great elation that the Guyana Gold and Diamond Miners Association is calling on miners to meet and exceed this year’s target of 300,000+ ounces of gold (it does not state what the target is for diamonds).
Doing some basic mathematics at the current world price for gold of approximately US$1,100 per ounce, I get the staggering figure of US$330 million or G$66 billion (at the exchange rate of G$200 to US$1). Even at the lowest gold price of approximately US$900 per ounce the figure is US$270 million or G$534 billion.
I do not know what the budget was for this year but am fairly certain that G$54-$66 billion is a percentage, maybe even a significant percentage of this budget. What I would like to know is why such a successful and lucrative industry is not given more prominence in Guyana.
Further, where does all this money go? Not only where does it go, but also where does one of the poorest countries in the world get US$270 million and US$330 million from to buy and sell gold? Also, what about diamonds? How much money do diamonds rake in?
I also have questions about Norway and the LCDS: will they be willing to remunerate the gold (and diamond) miners of Guyana between US$270 million and US$330 million annually just to stop mining our Gold? Will they find alternative employment for over 103,000 Guyanese (according to the ad in the local newspaper) that pays them at their current salary?
Will they remunerate the Guyanese nation and its people the value of all the gold and diamonds in our earth? What about the other valuable minerals and resources in our earth? Will they remunerate us the value of these resources? Will they develop our country so that it reaches first world status to the tune of at least US$330 million annually?
Or if they prefer, will they give every, man, woman, and child in Guyana US$500 annually, just to stop gold mining?
If the Guyana Gold Board operates at a 1% profit margin, its profits will be between US$2.7 million and US$3.3 million (G$540 million and G$660 million at the exchange rate of G$200 to US$1) just based on buying gold from the local miners at a 1% markdown and selling it on the world market. At 5% it will be between US$13.5 million and US$16.5 million (G$2.7 billion and G$3.3 billion), at 10% between US$27 million and US$33 million (G$5.4 billion and G$6.6 billion), and at 15% between US$40.5 million and US$49.5 million (G$8.1 billion and G$9.9 billion).
In essence the Guyana Gold Board must make a profit of at least US$2.7 million (G$540 million) assuming it is at least 1% profitable, which it roust be, and can be potentially making as much as US$49.5 million (G$9.9 billion) on gold alone. Indeed, it may be as the advertisement says “too big to fail”. It may he the largest and most profitable government agency outside of the Guyana Revenue Authority (GRA).
I know that some clever accountants will come at me with expenses, operating costs, fluctuating gold prices on the world market, the fluctuating value of the US dollar, etc, etc, but the numbers don’t lie – the Guyana Gold Board can be making as much as US$49.5 million (G$9.9 billion) annually buying and selling gold alone.
And if they play the markets right their profits can be well in excess of this figure. It will take some really clever accounting to hide this amount of money. However„ Guyana does have some very clever accountants and it would not amaze me if someone says that the Guyana Gold Board is not profitable and actually loses money, and does the math to prove it.
Fidel A. Captain

Latest News

Why such a successful and lucrative industry is not given more prominence

Related

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Wharton’s brilliance propels Chase’s Academic to another Republic...

Seales’ 4 for 5 gives West Indies control...

WARRIORS BOUNCE BACK AGAINST HAMPSHIRE

Victoria go top with second win

GFF and Namilco officially launch Maid Marian...

GFF celebrates the successful completion of...

Features/Columnists

The PPPC does not practice political inclusion

Haiti: Tragically Descending into Deeper Crisis

What’s going on with this $100,000 cash grant?

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

Why such a successful and lucrative industry is not given more prominence

Share this:

Related

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]