The vast majority of analysts who cover the gold market focus on mine supply as one of the main drivers of gold-price forecasts.That said, the nature of capital-intensive extractive industries, including mining and oil and gas, permits the bean counters more wiggle room with the numbers.However, if you want to take advantage of the wild gold price swings, there is a way: gold mining stocks.Their poor performances have called into question the validity of cost reporting measures in the gold mining industry.
With falling gold prices since Q4 2011, the major gold miners have suffered a proliferation of negative earnings and cash flow reports combined with massive write-down of assets.The following numbers include total cash spent on acquisitions and IMP.
There are currently two non-GAAP cost reporting measures employed by the gold mining industry.Investors want to know how to invest in gold or silver bullion and who are wrangling over whether to invest in the metal itself or in gold and silver mining stocks.First, if you own gold bullion, it is, in a sense, risk free-as long as you retain possession.
Acknowledgments: I thank Rod Husband and Elena Tanzola of Cipher Research Ltd, Vancouver, B.C. for confidential access to a white paper that forms the basis of this musing and permission to publish.The information contained in a report, commentary, this website, interview, and other content is subject to change without notice, may become outdated, and may not be updated.Find great deals on eBay for antique gold mining pan and vintage gold mining pan.In order to reach sustainable profitability, gold miners must adopt a core philosophy of producing only those ounces that return robust cost margins and cease trying to grow production and reserves in order to placate analysts and investors for the next earnings statement.
Then every few years they take major write-offs to clear out the balance sheet.All in the family: Mining roots run deep in these seven families.Track the current price of Gold changes by the hour with APMEX Gold price Chart.Overpaying for acquisitions is a common theme in the mining industry and the topic of another entire research report.OPEX can also be shown as Cost of Goods Sold, Production Cost or Cost of Sales.Gold shares are harder to use as a means of purchasing safety or life-sustaining products.
Revenues received from their sale are deducted from operating expenses prior to calculating the cash costs for the primary metal.Colorado Gold Mining,. when the Silver Panic hit all of the silver mining towns in Colorado.The cost attributed to the production of each metal is relative to its contribution to revenue.Executives receive larger bonuses and, as long as the company grows, shareholders and analysts remain content.
Gold-Mining Profits Fallacy. The higher the gold price climbs, the more gold miners can focus on lower-grade ore to increase their production. When.This table surprisingly shows that IMP has had little to no impact on either the reserve-resource base or the production levels for gold mining companies since the gold price started rising in 2003.
Call Gold Fever TOLL FREE 1-888-985-MINE (6463) Find your recreational gold mining equipment...View Gold Commodity Market Trades, Streaming Charts Available Online.Although the price of gold has increased significantly since 1967.For those looking to add mining stocks to your portfolio to ride this wave of gold, we decided to explore why and when gold prices and mining stocks make big gains.Note that we have chosen the period from 2003-2013 in order to minimize the anomalies that can occur in individual years and serve as reference for a longer term investment horizon.Successful junior gold-mining companies, or those companies that are not yet in production, frequently rise by a factor of 5 to 10 times more than the price of gold.In fairness, we must point out that the above scenario is not unique to Goldcorp but has also occurred year after year with other companies in the gold mining industry.If costs are capitalized rather that expensed, mining companies appear more profitable in the short term, and enjoy higher market capitalizations and price multiples.The lowest annual averages correspond to years with the highest average gold price.