PT Bumi Resources Tbk. (BRMS) believes gold prices will be above USD 2,000 per troy ounce and will support performance throughout 2024.

Bumi Resources Director Herwin W. Hidayat said BRMS sees the possibility that gold prices will be in the range of USD 2,000 per troy ounce or even higher. This confidence is supported by geopolitical conditions and the possibility of a Fed rate cut.

"These factors have an impact on the strengthening of of gold prices which are still seen as safe haven investments. Several institutions such as JPMorgan, Goldman Sachs, and UBS also predict gold prices above USD 2,000 per troy ounce in 2024," Herwin told Bisnis, Tuesday (1/16/2024).

Herwin explained geopolitical factors that are still quite vulnerable such as the continuation of the Russia-Ukraine war, conditions in Gaza-Israel, and conditions in Yemen. Furthermore, the Fed is also quite stable in maintaining interest rates in the second half of 2023 which range from 5.25-5.5%.

Based on Bloomberg data on Tuesday (1/16/2024) at 18.00 WIB, comex gold prices fell 0.40% to USD 2,045 per troy ounce while spot gold also fell 0.84% to USD 2,039 per troy ounce.

In the midst of the gold price projection, BRMS believes there will be a significant increase in gold production and sales in 2024. However, Herwin admitted that these references and targets would still be discussed internally considering that 2023 performance was still in the auditing stage.

"However, we can say that the company's estimated gold production for the full year 2023 period can reach around 20,000 - 25,000 troy ounces of gold. This number has increased significantly considering the performance of BRMS gold production in 2022 which amounted to 5,400 troy ounces," he said.

The underlying belief in increasing BRMS production throughout 2024 is an increase in the capacity of the second plant, then the third plant in Palu which will start operating in the third quarter of 2024.

"Assuming gold prices can stay in the range of USD 2,000 per troy ounce, the impact will be very positive on BRMS's financial performance," explained Herwin.

Image source: bumiresourcesminerals.com

Source: www.market.bisnis.com/Bumi Resources (BRMS) Pede Harga Emas di Atas US$2.000 Sepanjang 2024