Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
With gold prices posting the best first half in almost four decades, the coming round of earnings reports may provide signs miners are preparing to ease their collective death grip on spending.
Big producers had focused on deferring projects, curtailing operations and otherwise slashing costs and debt as prices declined for three years in a row. That has raised concern companies won’t be able to maintain current output levels as mines get older and the smaller explorers and developers get squeezed.
