As the gold price continues to decline, gold miners are struggling to remain profitable. Indeed, as I write the price of gold is nearing three-year lows of $1,200 per ounce. During the second quarter of this year, about 25% of 67 gold-producing companies, representing roughly 44% of worldwide gold output, were losing money on a cash-flow basis.
This has led to deep cost cutting throughout the gold industry. The question remains, however, how much further can these cost cuts go?..............................................Full Article: Source
|