14.09.2012 - High gold prices mask difficult future for miners-S&P
With the current capacity in the mining pipeline and the hefty position in gold ETFs, Standard & Poor's warns that gold miners' profits and free cash flow are at risk "from an abrupt downward correction in the gold price as occurred in the late 1990s following years of production increases and healthy prices." In an analysis made public Tuesday, S&P suggested such a correction could "lead to the closure of high-cost mines and reduced investments to stem negative free cash flow, even though gold miners have adequate liquidity to withstand low gold prices over an 18-month period."..............................................Full Article: Source
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