Despite a 300% increase in the gold price between 2002 and 2015 global reserves at primary gold mines have risen by just 28% over the same period (after taking into account depletion). Reserve replacement increased rapidly between 2002 and 2012 as the industry increased reserve price assumptions from US$300/oz to US$1 344/oz. This resulted in reduced cut off grades and was accompanied by paltry margins through the bull. With the fall in gold prices since 2013 industry reserve prices have dropped sharply to US$1 202/oz at December 2013 and again to US$1 117/oz by the end of 2015. As a result 10 major producers have reported impairments of US$60 billion affecting the liquidity of some of these companies.