Gold miner Kingsgate Consolidated says the gold price could sink as low as $US1000 per ounce before rebounding on Chinese and Indian demand.
Kingsgate's new chief executive Greg Foulis said expectations of a US interest rate rise this year and a higher US dollar had been weighing on the gold price for two years, but most of the weakness had already been factored in by markets.
"Our expectations of a US rate rise are certainly a dampener on the gold price but longer term we still think the fundamentals for gold coming out of India and China still would support the prices," he said.
"We think we might test a floor around $US1000 an ounce but we're very optimistic we're going to see a return to around $1500 an ounce."
He said he was very happy with the company's overseas assets after taking on the role of chief executive in June.
The company is focused on Chatree in Thailand and Nueva Esperanza in Chile.
"We're endowed with two very good assets in two very good jurisdictions and we're going to build off those footprints," he said.
Mr Foulis said the company intended to use those assets to build new projects in the future.
The company had a strong in-house exploration team which could be utilised for growth, he said.
Gold is trading at five year lows around $US1100 an ounce.
Kingsgate says it's on track to produce more than 200,000 ounces of gold in 2014/15.
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