BRMS Targets a Significant Increase in Gold Output This Year

BRMS Targets a Significant Increase in Gold Output This Year

PT Bumi Resources Mineral Tbk (BRMS) targets 35,000 troy ounces of gold production with an average selling price (ASP) above USD 2,000 per troy ounce

Director of Bumi Resources Mineral, Herwin Hidayat, said that through 2024, gold production is expected to exceed 35,000 troy ounces or higher than the 2023 production estimate of 25,000 troy ounces.

“For 2024, we hope our gold production can exceed 35,000 oz,” Herwin told Bisnis on Monday (5/2/2024).

Herwin said BRMS’ gold ASP is expected to be above USD 2,000 per troy ounce throughout 2024, considering the increasing gold price.

As for 2023, BRMS estimated gold production to reach around 20,000 to 25,000 troy ounces. This achievement increased 270% to 362% from the total production in 2022, which was 5,400 troy ounces.

Previously, Herwin revealed the possibility of gold prices to reach USD 2,000 per troy ounce or even higher throughout 2024. His view based on geopolitical conditions and the Fed’s potential interest rate

Such factors have contributed to the rise in gold prices, which is still considered a safe haven for investment. Some financial institutions such as JPMorgan, Goldman Sachs, and UBS also predict that gold prices will surpass USD 2,000 per troy ounce by 2024.

Herwin pointed out that geopolitical factors, such as the continuation of the Russia-Ukraine war, the situation in Palestine-Israel, and the situation in Yemen, contribute to this prediction. In addition, The Fed is also deemed to be quite stable in maintaining interest rates in the second half of 2023, ranging from 5.25-5.5%.


Image source: / Doc. Bumi Resources