Latest update November 23rd, 2024 1:00 AM
Latest News
After years, Gold Board clears deficit
The Guyana Gold Board (GGB) is boasting of being in a better state, financially.
According to the most recent financials tabled in the National Assembly, prudent fiscal management evidences itself in the reduction of the board’s deficit at the Bank of Guyana by 75.1%.
According to the Board’s 2017 report, the bank deficit went from January 1, 2017 balance of $18.9M to a closing balance of $4.7M on December 31, 2017.
The board has been working to clear the deficit incurred during 2012 and 2013 when the Gold Board borrowed large sums from the national treasury to trade in gold, leading to massive losses.
Further proof of the board’s improved financial status indicated that during the period under review, the GGB went from an operating deficit of $194,184,802 on January 1, 2017 to an operating surplus of $648,370,179 on December 31, 2017.
“Moving from a five-year deficit position to a surplus is undoubtedly an achievement,” said GGB’s General Manager, Eondrene Thompson, who has been credited by the Board of Directors for the financial turnaround.
The GM indicated that revenue earned in 2017 exceeded the amount earned in 2016 by approximately US$14 million, despite a decrease in gold purchases by 30%.
Foreign sales for 2017 were 9,000 ounces higher than that for 2016.
According to Thompson, for 2017, six of the nine licensed dealers exported their gold overseas; therefore, GGB did not suffer from the usual off-loading when gold price plummeted.
According to the financials, dealers’ exports increased by 15,710 ounces in 2017 or 6.40% over 2016.
The report noted that Aurora Gold Mines Inc. also increased their exports in 2017 over 2016 by 7,745 ounces and Troy Resources experienced a shortfall in 2017 by 3,433 ounces compared with 2016.
Gold Board’s Chairman, Gabriel ‘GHK’ Lall; GM, Eondrene Thompson and Stacy Weever, the entity’s Legal Officer.
Overall, the GGB exported 32,472 ounces or 16.07% less in 2017 than what was exported in 2016. The year was considered a mixed year for gold where the first half may be considered as excellent with respect to price.
Gold purchases for 2017 decreased by 65,543 ounces or 30.56% compared with that of 2016.
According to the board, the decrease was primarily due to more licensed gold dealers exporting their gold rather than sell to GGB.
In fact, one of the licensed gold dealers who sold large quantities, approximately 79% of GGB’s purchases for the first quarter of 2017, to GGB is under investigation by the Special Organized Crime Unit, as such the dealership licensed had to be suspended.
There were other factors that included the miners’ reaction to Government’s newly imposed taxes. According to the GGB, miners decry the increase tributors’ tax to 20% and as such withheld selling their gold to the board.
“It is unclear whether they mined and dispose of the gold by other means or whether they ceased work. Based on reports some miners exited the industry,” the GGB stated.
According to the GGB, the major factors that have impacted gold prices include the weaker US dollar, geopolitical uncertainties, higher interest rates and expectations regarding President Trump’s ability to push through his campaign agenda.
For the first half of 2017, gold price rose by 8% and GGB said it took advantage of the gold prices during those months.
Subsequent to June 2017, gold prices faced headwinds based on market expectations that the Fed will raise rates.
This expectation has caused dramatic market movements, including stronger dollar and weaker gold prices.
Towards the end of December 2017 there was a gradual increase in gold price. Gold prices for 2017 ranged from a low of US1,146 per ounce to a high of US$1,350 per ounce, compared with 2016, prices ranged from a low of US1,072.70 to a high of US1,378.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Let us not be silent witnesses!
…Peeping Tom kaieteur News- Ray Daggers walked from Corriverton to Charity. It was a journey so epic it might have... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
