Jan. 23 (Bloomberg) -- Gold will probably reach $2,300 an ounce in 2012 and may top $3,500 in three years, Alacer Gold Corp. Chief Executive Officer Ed Dowling said.
Concerns about sovereign debt and increased demand for gold in emerging markets including China will be positive for prices, Dowling said in a telephone interview Jan. 20.
“There’s only one way for gold to go and that’s really up,” Dowling said. “I think we’ll see $2,300 this year.”
Gold has risen for 11 straight years on increased investor demand. Futures for February delivery rose 0.9 percent to settle at $1,678.30 an ounce on the Comex in New York.
Alacer, the second-biggest U.S. gold miner by market value, was formed when Anatolia Minerals Development Ltd. bought Avoca Resources Ltd. last year for A$1.21 billion ($1.27 billion). The Englewood, Colorado-based company has risen 19 percent in Toronto since the deal closed on Feb. 18.
Dowling wants to increase production from operations in Australia and Turkey to 800,000 ounces a year by 2015, from around 400,000 ounces in 2011, he said. The company is focused on expanding its existing assets, rather than growing through acquisitions, Dowling said.
Alacer doesn’t expect to sell shares to raise money for project development, he said.
The company plans to consolidate its three debt facilities into a single revolving facility with a capacity of more than $200 million in the next few months, Dowling said. The current facilities have a combined capacity of about $130 million, he said.
Newmont Mining Corp., based in Greenwood, Colorado, is the largest U.S. gold miner.