Gold Prices Fuel Boom in Australian Mining Sector

The gold mining industry in Australia is experiencing a boom, driven by high gold prices and increasing demand. Mark Zeptner, boss of leading gold producer Ramelius Resources, said he's never seen anything like it, with up to 10 new gold plants set to be built in Western Australia this year.

Ramelius' wages bill runs at around five to seven per cent of its costs each year, and Zeptner noted that workers are very sought after across the industry. However, Ramelius hasn't had a big change in its turnover rates, with under 20 per cent of staff leaving the company.

The outlook for precious metals like gold is looking up despite global problems such as wars and high inflation. The spot price of gold has hovered around $US4,000 an ounce, after touching an all-time high of $US5,589.38 in January.

Evolution Mining's head Lawrie Conway believes that the safest bet for gold producers is to have a high-margin business. Evolution is one such company, with its margin exceeding the industry average and generating more cash per ounce of gold produced than anyone else.