Half of the gold mined by manufacturers today - is unsustainable at current prices. Branches of mining the yellow metal requires massive consolidation and a sharp decline in output - says CEO Randgold Resources, Mark Bristow - Materials AMarkets.
Randgold Resources - the most successful gold miner in the last decade.Bristow believes that now most of the companies operating at a loss, making the metal at low prices, which is not in demand, among other things, in its entirety. This factor has an even greater adverse impact on the price of the metal. On Friday, gold fell to a 5-year low amid growing the USD and speculation about raising rates FEDom in December. As miners trying to escape in the current unfavorable conditions? Manufacturers are working only with the mines, where extraction of the least costly. In the future, this strategy should lead to a significant reduction in production volumes and higher metal prices. The average life of a mine is close to a short period of 5 years - the industry has gone on to optimize and prolong the life of the mine for the sake of maximum production from each unit. In a short time, experts say, the industry will be a massive mergers and acquisitions - a common tactic for survival in a crisis.
Randgold company traded on the stock exchange. The profitability of the company for the past 10 years has averaged 19% per annum - this is the best result in the industry, as calculated by Bloomberg.