Russia’s invasion of Ukraine and the resulting global economic turmoil is likely to propel further rises in gold prices, spurring higher profits for mining companies.
But firms are braced for cost inflation shocks and price volatility as the conflict continues.
GOLD SURGE
Following gains earlier in the year, in part due to tensions in the region, gold rose to US$1,968/oz in London – its highest level since September 2020 – on the first day of the invasion on February 24.
Capital Ltd (LON:CAPD) provide complete exploration and production drilling solutions to customers within the global minerals industry, with a focus on the African markets.