Survey: Gold miners set reserves at $366

Gold mining companies are reacting cautiously to the latest spikes in gold prices in valuing their assets, unsure where the U.S. dollar is headed, an annual survey by Pricewaterhouse-Coopers has concluded.

Ignoring a peak of close to $460 an ounce in December, 43 international firms have settled on an average $366 an ounce for reserves and $379 an ounce for carrying values, an increase of 9 percent over a year earlier.

Ten companies included in the survey declined to settle on a price for 2005, reflecting their view that gold is volatile because of sharp fluctuations in the U.S. dollar.

The annual valuations are seen as a barometer of what reserves can be commercially recovered.

Although marginal reserves are likely to be ignored in Canada and South Africa they could be exploited in U.S. mines that operate in U.S. dollars.