Ever falling gold prices are causing huge stress for gold mining company CEOs as they have to look at closures, cutbacks, writedowns and layoffs.
by Lawrence Williams, MineWeb.com
Only just over a couple of years ago gold mining company CEOs could seemingly do no wrong. The gold price was soaring to record levels, stock prices were mostly strong, shareholders mostly seemed happy, and the major funds which provided much of the companies’ support were calling for more and more growth. The bandwagon was rolling, and the serious underlying problems which were already surfacing, such as hugely escalating capital costs for new projects, and ever ongoing sharp rises in operating costs were largely being ignored as they were being more than covered by the seemingly ever-rising gold price. The gold bulls were predicting ongoing gold price escalation and those who were suggesting caution were being ignored or ridiculed.
Oh what fun it was being a gold mining company CEO. Money was no object. Smaller companies were being absorbed while mega projects, which would make the execs’ names forever were entered into.
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