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The secret's out: The Rand Refinery's looking to boost profits by setting up shop overseas!

by , 16 May 2013

Domestic production of gold is on the decline. And this could have huge impact on gold producers in general. That's why the Rand Refinery's taken heed of this and embarked on a strategy to reduce its reliance on processing South African gold by looking overseas…
The Rand Refinery’s been in operation for 93 years, says the BusinessDay’s BDLive website.  
Last year, it produced about 400 tons of refined gold, with roughly a quarter of that being sold to China – that’s proof of China’s reliance on African resources and how critical China is to the Rand Refinery’s success.
In total, China's trade with Africa stood at nearly $200 billion last year, says FSPInvest.
The Rand Refinery’s looking offshore to boost profits as domestic gold production declines!
Thanks to China’s constant demand, Rand Refinery’s looking to set up a refinery there in the long term.
But the Refinery’s also looking elsewhere for its profits. Yesterday, CEO Howard Craig confirmed that the refinery’s stepping up activities outside Africa and setting up an office in Singapore.
But that’s not the only step it’s taking to boost its profits.
The Rand Refinery’s also looking to increase its silver refining capacity
It’s also looking to increase its capacity to refine silver at its Germiston plant.
That’s a good move as silver, in particular, is in short supply. Supply is so short, in fact, the US claimed it was running out of its supply of silver back in January because it just can’t keep up with silver demand, says FSPInvest.
And demand for silver’s expected to stay strong, as its main source of demand comes from industrial uses, reports ETFDailyNews.

Rand Refinery’s not the only one looking at silver – investors are taking note, too! 
Investors are also looking at silver as a great form of investment. 
The US Mints old over 13 million ounces of silver in the first three months of 2013, selling out of all stock of its 2013 Silver Eagles.
This demand spiked so much after a downturn in prices that the depleted supplies were said to have effectively closed the door on entry-level coin investors, reports MSNMoney.
So it’s no surprise that Rand Refinery’s also setting up a sampling and assaying office in the US. It’s also set up a concentrator there to boost the gold content in material from under 500g a ton to 20,000g a ton, which would radically change the economics of shipping the material to South Africa for treatment.
Proof that when times are tough, as they are for the Rand Refinery with domestic production of gold on the decline, innovative companies look to make a profit where they can!

The secret's out: The Rand Refinery's looking to boost profits by setting up shop overseas!
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