As the gold majors begin issuing their latest quarterly statements it is becoming apparent how shaky earnings are at current gold prices regardless of the massive write-downs being taken.
by Lawrence Williams, MineWeb.com
Yesterday we saw World No. 4 gold miner Goldcorp writing $1.96 billion off its asset values during Q2 and World No. 2 Newmont $1.8 billion. This follows on notice of huge writedowns for the year of around $6 billion at Australia’s Newcrest, the World’s No. 6, and a statement from World No. 3, AngloGold Ashanti, that it would be writing its assets down by between $2.2 and 2.6 billion. The other gold majors yet to report will also likely be taking huge writedowns which will significantly impact June quarter financials.
But it’s not the write-downs which are necessarily the most significant factors to be taken into consideration by shareholders and the gold market itself. It is the actual decline in operating profits, and the all-in sustaining cost of production which should be a primary focus.
Please follow SGT Report on Twitter & help share the message.