The country's exports of gold from sole producer, Galane Gold, were on track for a historic performance in 2012 with sales up to November pegged at P587 million on strong global prices.
Throughout the stop-start history of gold mining in Botswana, 2011 boasted the highest export figures of P524.7 million followed by P460.5 million in 2010. Stronger gold export figures were recorded from 2005 when Galane Gold's Mupane Gold Mine began operating under its previous owners.
According to recently released Bank of Botswana data, gold exports between January and November last year amounted to P586.5 million, with the first quarter being particularly profitable at P187.9 million. At a monthly average of P53 million for the first 11 months of 2012, full year gold exports for 2012 could close near P640 million.
Gold prices continued their record-breaking performance last year, driven by investor concern over the performance and outlook of other classes of investments particularly in developed economies. Last year, prices of the precious metal rose by nearly four percent, peaking at US$1794.1 per ounce in October. Gold prices reached their all-time high in August 2011 at US$1889.7 as the safe haven investment attracted more investors.
Galane Gold, the country's sole producer similarly reported a healthy performance from its various mining operations in the north-east. In the nine months ended September 30, 2012, Galane generated $67.7 million (P532.1 million) in revenue from the sale of 40,652 ounces of gold at an average of US$1,666 per ounce.
The mine expects to strengthen its operating position in 2013 through a combination of both stronger exploration and streamlining of mining activities. "The company continues to make good progress in all areas of its mining and processing operations as well as our exploration activities," said CEO Philip Condon.
"The focus of the exploration programme will continue to be both near mine and mostly brown fields targets, being associated with previous mining activity dating back in some cases to the mid 1800s, with the ultimate aim of building considerably on Galane's resource base and therefore mine life."
Galane's efforts will be soundly complemented by analysts' projections of healthy gold prices in 2013.Leading UK bank, HSBC has forecast the average 2013 gold price at US$1760 per ounce, with the figure rising to US$1775 per ounce in 2014.
"We believe that gold prices will recover this year and retain a pronounced bullish posture," Reuters quoted HSBC analyst James Steel as saying in a client note.
