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After more than two decades in the gold “In addition to refining “At the moment, I think WA is the flag bearer for
refining business, The Perth Mint general services, we produce the gold industry and what it actually does for
communities. Taking iron ore out of it, where
an extensive range
Proudly taking continues to see things like never before. coins, and offer various Backed by a successful 120-year history, The
would WA be without gold?”
of bullion bars and
manager refining Nathan Edwards
investment options
Perth Mint’s standing as a trusted refiner is well
including gold-backed
established, which Edwards says is an advantage
exchange traded
Australian “I have seen a lot of cycles from when gold was products listed on the ASX and NYSE, depository of being aligned with the State Government.
He said that being government-owned alleviated
$US250/oz in the early 2000s through to now.
accounts and a digital trading app, GoldPass, each
some of the financial strains other refiners
allowing people to buy gold as a store of wealth,”
I don’t think we conceived that the gold price
around the world have faced in the past.
Edwards said.
would be sitting at almost $US2,000/oz,” Edwards
precious metals said. In the scheme of the precious metals sector, gold “You need to manage your metal properly as it
is no different to a gold mine where you must
A buoyant gold price has sparked widespread
is regarded as the ultimate safe-haven asset and
understand how much metal is going in and how
preferred to the oft-overlooked silver.
activity across the entire gold chain, of which The
much metal is going out; you can’t lose any of
Perth Mint’s refinery is an integral link.
History indicates that when the gold price runs,
that metal,” Edwards said.
to the world for Gold from Alaska, Africa to outback Western the silver price follows on the upward trajectory “Assay integrity is imperative, which also goes
and while that is the case now, there was a lag in
Australia is refined at The Perth Mint and while
back to our government guarantee. A lot of our
household gold heavyweights are clients of
positive sentiment towards the latter in the latest
clients aren’t diversified miners so all of their cash
the State-owned establishment, the current
bull-run.
flow goes through our refinery. That means we
environment is seeing a raft of new source feed
120 years supplied to the refinery. “Our gold processing capacity is extensive so need to get it right because if assays aren’t on
we’ve recently embarked on expanding our silver
point, it can create a cash flow concern.
processing plant. While it has not yet translated
“Depending on the cycle, some miners may go
“If you look at it from that perspective, a refinery
into higher silver volumes coming through,
for lower grade dirt because it is more profitable
is a critical part of a mining company’s entire
to do so in times of high prices, but that doesn’t
silver so there is plenty of scope there for that to
necessarily translate into higher volumes from Australia has the largest known reserves of operation yet people don’t often think of it in
that way.
our existing customers,” Edwards said. increase,” Edwards said.
“What it does mean is that there are a number “Most of the supply at the moment is generated “The Perth Mint is the only Australian refiner
Through our trusted products and services we develop the of junior operations starting up while others are as a by-product of concentrates and from mines accredited by the five commodity exchanges in
coming online, which is what happens when in north-west Queensland. Mines in south and London, New York, Shanghai, Tokyo and Dubai, so
markets and create the demand for Australian precious metals. prices are sustained.” central America, particularly Mexico, are also big producers expect us to undergo rigorous testing
Regardless of price cycles, The Perth Mint miners of silver with their output going through of our standards each year so they can be assured
that we are giving them 100% return on their
From refining and assaying Australian gold to manufacturing refinery’s services thrive on producing a European or Australian smelters. We do get the metal,” he said.
bullion bars and coins, and offering secure storage solutions minimum 99.5% gold and 99.9% silver products product from them, but in terms of actual mined The Perth Mint’s sustained level of excellence
dore, our expectation is that silver prices need
that are tradeable in international markets, while
and innovative digital gold platforms, we’re making gold and the 99.5% and 99.9% 1kg and 400/oz gold bars are to be sustained for reserves to be mined. Once is maintain by adhering to its core values and
embracing technology and innovation to ensure
popular value-added investment products. there is price stability, we’ll probably see more
silver accessible assets to own. “The benefit of The Perth Mint is that we operate operations come to fruition.” its offerings are delivered with the utmost
attention to industry best practice and ensured
across the complete gold supply chain from mine Reinforcing its capabilities in silver refining will safety.
to market. enhance The Perth Mint’s growth aspirations as a
global refiner. While “keeping his cards close to his chest” as
to exactly what The Perth Mint is working on,
Unrivalled customer service and
business integrity are the pillars of Edwards said the last 2 to 3 years had seen
The Perth Mint, with the organisation automation practices widely explored at the
supremely aware of its obligation refinery.
to create and maintain its own “Ultimately, we want to see the entire process,
reputation as well as contribute to including the production of a finished gold
that of the entire Australian gold bar, boxed and bound for market, to be fully
industry. automated and handled only by robotics,”
Edwards said.
“Our services create income for
the State, jobs for more than 400 “The great thing about this advancement in
Western Australians, and we help manufacturing is that we have an engineering
to promote brand WA in the global team inhouse with the capabilities to create
community. these bespoke solutions.
“We are an integral part of the gold “With these greater efficiencies, we will reinforce
industry in this country, so if we are our prominent standing in the industry and
successful on the international stage continue to deliver a superior level of customer
A sponsor of the
then it is a positive outcome for the service and product quality that are second to
none.”
broader gold sector,” Edwards said.
Diggers & Dealers Mining Forum for 20 years.
The Perth Mint general manager refining Nathan Edwards
perthmint.com/refine
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 51
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