Industry Trend Analysis - Randgold-Newcrest Partnership To Further Boost C?te d'Ivoire Gold - FEB 2017


BMI View : Cote d ' Ivoire ' s positive gold outlook will be boosted by a recent mining partnership , a rebound in gold price and relative political stability, although risks will persist.

Cote d'Ivoire's gold mining industry will benefit from a partnership agreement reached in November 2016 by Randgold Resources and Newcrest Mining to explore for gold in the south-east of the country. The plan is part of a so-called 'Three in Five' strategy by Randgold which aims to secure three new projects in the next five years. This project reflects the heightened investor interest in Cote d'Ivoire mining in line with our forecast that it will be a bright spot for the sector across Africa. Randgold's CEO has noted that the country has 'potential for the discovery of truly world class gold deposits'.

The removal of US sanctions last year, low production costs, reforms to the business environment and a healthy project pipeline means that we forecast the country's mining sector to experience an average annual growth of 12.2% in mining industry value (MIV) during the next four years, reaching USD1.17bn in 2021.

Production To Increase
Cote d'Ivoire - Gold Mine Production (moz)
e/f = BMI estimate/forecast. Source: BMI Calculation/USGS

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