The four largest North American miners – Goldcorp., Barrick Gold, Newmont Mining and Newcrest Mining, have garnered $47.5 billion in operating cash flow but $43.4 billion was marked for net capital expenditure and $19.1 billion was spent on acquisitions. While expanding their businesses seemed like a good idea, their actual production growth has consistently fell short of guidance.
However, as gold prices rise again, gold miners will begin to see a better profit margin. [Gold Miner ETFs Get Back on Track]
“If you want to go on a total cost basis, we’re running at about $1200. The industry average is probably around $1250 an ounce,” Mark Cutifani, CEO of AngloGold Ashanti, said in Gold News.
GDX, the gold miner ETF, is falling toward its 52-week low.
Market Vectors Gold Miners ETF
For more information on precious metals miners, visit our gold miners or silver miners categories.
Max Chen contributed to this article.