Rob McEwen Sticks with $2 000/oz Gold by Year-End


". . .and, when the game is over for gold, it will be over $5,000 an ounce."

Goldcorp founder Rob McEwen is standing by his forecast that the price of gold will reach $2,000/oz by the end of 2010, he said on Monday.

While it may still seem a stretch from current levels of around $1,135/oz, it should be noted that McEwen has been making the prediction since at least March 2006. At that time, prices for the yellow metal had not topped $600/oz since January 1980.

"I have been saying for over five years: by the end of this year, we will be at $2,000 and, when the game is over for gold, it will be over $5,000 an ounce," he said in an interview on the sidelines of the PDAC annual convention.

McEwen is the former CEO of Goldcorp, the second-biggest gold miner by market value, and is currently CEO of US Gold, Minera Andes and Lexam Explorations.

US Gold is exploring for precious metals in Nevada and Mexico, and has found what it could be a significant silver discovery, the El Gallo project, in Mexico's Sinaloa state.

The firm should have its first resource estimate on El Gallo by midyear, and expects to complete a prefeasibility study by the end of 2010, McEwen said.

Bigger, But Not Better?

There has been a lot of chatter at this year's PDAC event about looming merger and acquisition (M&A) activity, with Pricewaterhouse Coopers calling for a "blockbuster year" in mining M&A as cash-flush companies seek to add to their resources and production.

But McEwen cautioned that acquisitions are no good unless they result in an increased share value.

"The real danger most companies face is an investment banker comes along and says you can get this much bigger if you take over that company and everybody thinks: 'well, I'll get all this press, and maybe I'll get a bigger salary'.

"And the shareholder is sitting there saying, 'what am I going to get?'."

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