When we talk about growth, it includes not only annual production growth, but also operating margin and reserve growth. For example, if a company produces 1 million ounces of gold today, and is projected to produce the same amount next year, many would consider it to have zero growth. But, if next year’s ounces are produced at a lower operating or capital cost, then cash flow will grow. This is growth! 

If the company produces the same number of ounces the following year, but through exploration or acquisitions it manages to increase its reserve base in order to sustain this production level for longer, its net asset value will grow. This is growth! 

In other words, we view growth as anything that grows the value of the company over our estimated operating horizon. Thus, value creation rather than growth seems to be a better term to define the success of a company’s strategy.

MVIS® Global Junior Gold Miners Index


Source: MarketVector IndexesTM. All values are rebased to 1,000. Data as of March 13, 2023.


About the Author:

Ima Casanova joined VanEck in 2011. Prior to VanEck, Ima was Managing Director and Senior Equity Research Analyst at McNicoll Lewis & Vlak and established the firm's metals and mining research department. Previously, she was Equity Research Analyst at Barnard Jacobs Mellet USA and BMO Capital Markets and held positions as Production Technologist, Offshore Wellsite Supervisor and Petroleum Engineer for Shell Exploration and Production. Ima has both an MS and a BS (magna cum laude) in Mechanical Engineering from Case Western Reserve University.

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