Gold: Getting a Handle on Costs

Imaru Casanova

April 16, 2015

The gold mining sector of the recent past was characterized by the pursuit of growth at any cost, which led to over spending, high costs, and poor returns on investments. A change was needed, and companies have now been reconfigured. They are focused on cutting operating and capital costs, reducing corporate overhead, increasing profitability and returns on capital, reducing debt, increasing cash balances, and simplifying projects and management structures. A few quarters of results suggest that their initiatives are working. And encouragingly, companies remain committed, reiterating their focus on further increasing operating efficiency, reducing costs, and enforcing capital discipline.