Gold market rigging drives mines out of business -- but without complaint

Section:

The World Gold Council can always become the World Derivatives Council.

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Gold Firms Plan Drastic Cuts to Stay Afloat as Bullion Sinks

By Silvia Antonioli and Nicole Mordant
Reuters
Thursday, November 6, 2014

Struggling gold producers plan increasingly drastic measures such as scrapping dividends, cutting jobs, halting projects, and shutting mines to survive the latest price plunge, but not all of them will make it. ...

According to Citi analysts, about three quarters of gold mining companies burn cash at spot prices just below $1,200 on an all-in cost basis, which includes head office, interest, permitting, and exploration costs. ...

"The bigger problem is that if they cannot afford to reinvest and explore, there will be a sharp drop in production a year or two from now," said Meryl Pick, an equity analyst at South African fund Old Mutual. "If current prices persist we may see more shafts going onto care and maintenance."

... For the report in its entirety:

http://www.reuters.com/article/2014/11/06/gold-mining-costs-idUSL6N0SU50...



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