Unlike other Australian commodities, the price of gold has continued to rise in recent times to all time highs of close $1500.
This surging price has put Dominion Mining in a unique position that few, if any, other Australian gold companies can match, Dominion operations manager Peter Bamford told MINING DAILY.
“Dominion is in a very good position in that it’s got no debt,” he said.
“It puts us into a serious position to see about acquiring another advance prospect, another project, perhaps another company.”
Such a position, according to Bamford, is distinctive among similar companies throughout the country.
“It’s an unusual position,” he said.
“You could name the number of gold companies in Australia in our position on the fingers of one hand.
“It gives us a unique opportunity and we’re failing if we don’t take advantage of that in the next 12 months.”
According to Bamford, current prices are making gold increasingly attractive to potential investors.
“Because of the poor commodity prices apart from gold, people are saying where will I put my money for at least the next three years or so?” he said.
“They can buy gold bars, they can leave it in the bank, they can buy the bank’s stocks.
“Or perhaps they’ll buy gold stocks from those companies that have actually got a very healthy margin.”
Dominion’s current position makes a proposed expansion of its Challenger mine in South Australia’s north-west, and the extra jobs that would come with it, a real possibility.
“We are looking at the possibility of expanding up to about 130,000 ounces a year from 105 to 110,000,” Bamford said.
“That would require a significant number of additional workers which would probably mean, on top of our current total on-site workforce of about 140 people, another 40 jobs.”