An examination of Australian gold mining firms' exposure over the collapse of gold price in the late 1990s

Purpose – The purpose of this study is to examine the exposures of Australian gold mining firms in the highly volatile period from 1995 to 2000. This period has been characterized by significant changes in gold price due to bulk sale of gold by collective central banks. Specifically, the paper aims to investigate several firm-specific factors that are hypothesized to carry substantial influence on gold beta.

Design/methodology/approach – To estimate gold beta, we use the following multifactor model: R_g,_t = a+ß_gGPR_t + ß_xFXR_t + ß_mR_m,_t + _Et , where R_g,_t is the return on the gold stock Index at time t, GPR_t is the gold price return denominated in US dollar at time t, FXR_t is the foreign exchange return of Australian dollar in terms of US dollar at time t, R_m,t is the market return at time t, and _Et is the random error term at time t.

Findings – The paper finds that the values of gold beta are consistently greater than one, implying the sensitive nature of firms’ stock returns to gold price changes. This also suggests that investors holding gold mining stock would receive higher percentage increases in stock returns from a percentage increase in gold price returns, as opposed to investors holding gold bullion. Furthermore, these values have changed substantially over time with significant changes in gold price volatility. The most important and consistent relationship that we find is the impact of firms’ hedging behavior on their respective gold betas. This is consistent with Tufano’s study. It implies that firms, which hedge a greater proportion of their gold reserves, are less sensitive to movements in gold prices. The finding therefore supports the risk management theory that hedging increases shareholder’s wealth. However, cash operating costs, cash reserves and the level of gold production seem to influence very little on the firms’ exposure to gold price changes.

Originality/value – This study is of interest and important to the stock mining companies and investors because the extent of the effect of gold price movements on the stock returns of gold mining companies has significant impacts on returns for both firms and investors especially in their risk management and investment decisions, respectively.

The Goldkrieg: Revaluing the Bundesbank's Reserves and the Politics of EMU. CES Germany & Europe Working Papers, No. 08.6, 1998

In May and June 1997, Germany's commitment to Economic and Monetaty Union (EMU) underwent its most serious test ever when the Bundesbank and the government of Chancellor Helmut Kohl dashed openly over the government's plans to revalue the country's gold reserves. Faced with a budget short-fall and strong political opposition to either tax increases or spending cuts, Finance Minister Waigel attempted to introduce a modest change in the Bundesbank's bookkeeping procedures to bring them in line with the standard practices at other European central banks. The Bundesbank resisted, arguing that the changes would infringe upon its closely guarded independence. This paper analyzes how the politics of coalition interacted with Germany's political institutions to cause this conflict.

内蒙古赤峰红花沟地区早中生代构造－岩浆活动特征及金成矿作用

Honghuagou gold field, Inner Mongolia, is selected as the study area for the dissertation. The geological background for gold mineralization, geology of gold deposits, ore-controlling factors, physical and chemical conditions, material sources, genesis and ore-forming epoch for gold mineralization are studied in the dissertation. Especially, the Early Mesozoic tectonic and magmatic activities and their relationship with gold mineralization are studied with special efforts. Based on the study, the criteria for ore-prospecting are systemically summarized, target areas for ore-prospecting are circled and their gold reserves is estimated. Based on the first discovery of Early Mesozoic ductile zone which show the detachment features and the study on the emplacement of Early Mesozoic maficintermediate dyke swarms, the author present that the studied area was mainly in extensional uplift state during Early Mesozoic. The tectonic evolution can be divided into two stages. The extension was dominated by ductile metamorphose at early stage, whose geodynamics was related with the post orogenic extension after the collision between the Northern China Plate with Siberia Plate. The extension at late stage was featured by the intrusion of diorite and the emplacement of dyke swarms, whose geodynamics was related with mantle uplift. The gold deposits in the area are just the products of the tectonic and magmatic activities resulted from Early Mesozoic extension. The plagio-amphibolite from Archean metamorphic rocks is partially melted under the influence of underplating caused by mantle uplift, result in the formation of diorite magma. The gold in metamorphic rocks will also be melted into magma pond, and ascend into the upper parts of crust along with the intrusion of magma. The gold-bearing hydrothermal fluids is formed during magma differentiation, and caused the precipitation and concentration of gold in favorable geological conditions, result in the formation of gold deposits. The fracture caused by the emplacement of dyke swarms break a path for the ascending and movement of hydrothermal fluids, some of them become parts of ore-controlling and host structure. The gold is thought to be formed in Early Mesozoic, not in Yanshanian epoch.

Gold mining in Ghana's forest reserves: a report on the current debate

This paper examines the debate surrounding a recent decision made by the Ghanaian government to permit gold exploration - and potentially, mining - in 'protected' forest reserves. In 2001, four mining companies were awarded mineral exploration concessions in forested regions of the country, and have since put forward applications to mine for gold. Notwithstanding the sharp divide in opinion on the issue, the continued uncertainty surrounding the implications of the proposed activities makes further research on the ground imperative in the short term. Work aiming to elicit indigenous perspectives on the projects, as well as research that facilitates dialogue between and/or among stakeholder parties, should be prioritized.

Foreign gold and exchange reserves; current trends.

Mode of access: Internet.

Foreign exchange reserves in India and China

Professor Irma Glicman Adelman, an Irish Economist working in California University at Berkely, in her research work on ‘Development Over Two Centuries’, which is published in the Journal of Evolutionary Economics, 1995, has identified that India, along with China, would be one of the largest economies in this 21st Century. She has stated that the period 1700 - 1820 is the period of Netherlands, the period 1820 - 1890 is the period of England the period 1890 - 2000 is the period of America and this 21st Century is the century of China and India. World Bank has also identified India as one of the leading players of this century after China. India will be third largest economy after USA and China. India will challenge the Global Economic Order in the next 15 years. India will overtake Italian economy in 2015, England economy in 2020, Japan economy in 2025 and USA economy in 2050 (China will overtake Japan economy in 2016 and USA economy in 2027). India has the following advantages compared with other economies. India is 4th largest GDP in the world in terms of Purchasing Power. India is third fastest growing economy in the world after China and Vietnam. Service sector contributes around 57% of GDP. The share of agriculture is around 17% and Manufacture is 16% in 2005 - 2006. This is a character of a developed country. Expected GDP growth rate is 10% shortly (It has come down from 9.2% in 2006 - 2007 to 6.2% during 2008 - 2009 due to recession. It is only a temporary phenomenon). India has $284 billion as Foreign Exchange Reserve as on today. India had just $1 billion as Foreign Exchange Reserve when it opened its economy in the year 1991. In this research paper an attempt has been made to study the two booming economies of the globe with respect to their foreign exchange reserves. This study mainly based on secondary data published by respective governments and various studies done on this area

REACHING FOR BLUE GOLD - How the EU can rise to the water challenge while reaping the rewards. EPC Issue Paper No. 80, November 2015

Foreword. Climate change is bad news for water resources – and thus for human development, societies, economies, the environment, and local and global security. The increasing frequency and severity of extreme weather events such as droughts and floods serves as a reminder of the effects climate change can have on the quantity and quality of global water reserves, and thus on various other aspects of life. Even though the effects differ from region to region, this is a global challenge with far-reaching consequences to which Europe is not immune. As the world leaders gather in Paris in December 2015 to discuss a new international climate deal, it is worth to remind politicians, businesses and citizens of the water challenge and its wider implications, which already affect us today – and which will only get worse with climate change. However, water-related risks resulting from climate change are not a fatality and damage control doesn’t have to be the only mantra. Placing the water challenge at the centre of political and security dialogues, development strategies and climate mitigation and adaptation measures, and implementing smarter water management, could also bring great economic, environmental and social benefits, in and outside the European Union. It would also contribute to global security. Water matters – now more than ever. This is also what this publication demonstrates. Building on the European Policy Centre’s, two-year “Blue Gold” project, this publication shows the rationale for action, how the EU could use its existing internal and external policy instruments to tackle the water challenge with its various dimensions and the benefits of action.

An indexing model for stormwater quality in the Gold Coast

In the era of climate change sustainable urban development and in particular provision of sustainable urban infrastructure has become a key concept in dealing with environmental challenges. This paper discusses issues affecting stormwater quality and introduces a new indexing model that is to be used in evaluation of the stormwater quality in urban areas. The model has recently been developed and will be tested in a number of pilot projects in the Gold Coast, one of the fastest growing and environmentally challenged cities of Australia.

Members abroad - Australia - Brisbane and the Gold Coast

Brisbane's sub-tropical climate, vegetation and urban history as a British settlement, endow the region with many characteristics that are familiar in KwaZulu-Natal. Brisbane settlement, firstly as a penal conlony to accommodate the hardiest criminals dispatched from Sydney, was established in 1825 on a wide river, several kilometers upstream from Moreton Bay with the Pacific Ocean beyond. The penal colony was short lived and was soon opened up to free settlement in 1842. The growth of the fledgling town was characterized by brick warehouse and service buildings to the port that was established on its riverbanks, resembling those of the old Point Road area in Durban. Government and administration buildings heralded Brisbane as the captial city of the State of Queensland, annexed from New South Wales in 1859. Morphological studies reveal that Brisbane had reached its first zenith around 1930 as a commerical city of four and five storey buildings. The urban form remained stagnant until the post-1960's building boom and the developments from this period on, consolidated land amalgamations largely ignoring the urban characteristics of the established city. Public space was poorly observed, resulting in a city that had turned its back on the river. It is only in recent times that the currency of good urban design, under the custodial direction of the City Council, has fostered a re-engagemed urban realm that, enabled by the recent building boom, has delivered high quality urban environments

An indexing model for sustainable urban environmental management : the case of Gold Coast, Australia

Improving urban ecosystems and the quality of life of citizens have become a central issue in the global effort of creating sustainable built environments. As human beings our lives completely depend on the sustainability of the nature and we need to protect and manage natural resources in a more sustainable way in order to sustain our existence. As a result of population growth and rapid urbanisation, increasing demand of productivity depletes and degrades natural resources. However, the increasing activities and rapid development require more resources, and therefore, ecological planning becomes an essential vehicle in preserving scarce natural resources. This paper aims to indentify the interation between urban ecosystems and human activities in the context of urban sustainability and explores the degrading environmental impacts of this interaction and the necessity and benefits of using sustainability indicators as a tool in sustainable urban evnironmental management. Additionally, the paper also introduces an environmental sustainability indexing model (ASSURE) as an innovative approach to evaluate the environmental conditions of built environment.

An indexing model for stormwater quality assessment : stormwater management in the Gold Coast

In the age of climate change and rapid urbanisation, stormwater management and water sensitive urban design have become important issues for urban policy makers. This paper reports the initial findings of a research study that develops an indexing model for assessing stormwater quality in the Gold Coast.

Interactions of phenyldithioesters with gold nanoparticles (AuNPs): Implications for AuNP functionalization and molecular barcoding of AuNP assemblies

The interactions of phenyldithioesters with gold nanoparticles (AuNPs) have been studied by monitoring changes in the surface plasmon resonance (SPR), depolarised light scattering, and surface enhanced Raman spectroscopy (SERS). Changes in the SPR indicated that an AuNP-phenyldithioester charge transfer complex forms in equilibrium with free AuNPs and phenyldithioester. Analysis of the Langmuir binding isotherms indicated that the equilibrium adsorption constant, Kads, was 2.3 ± 0.1 × 106 M−1, which corresponded to a free energy of adsorption of 36 ± 1 kJ mol−1. These values are comparable to those reported for interactions of aryl thiols with gold and are of a similar order of magnitude to moderate hydrogen bonding interactions. This has significant implications in the application of phenyldithioesters for the functionalization of AuNPs. The SERS results indicated that the phenyldithioesters interact with AuNPs through the C═S bond, and the molecules do not disassociate upon adsorption to the AuNPs. The SERS spectra are dominated by the portions of the molecule that dominate the charge transfer complex with the AuNPs. The significance of this in relation to the use of phenyldithioesters for molecular barcoding of nanoparticle assemblies is discussed.