Gold miners’ earnings hurt by higher production costs
I agree that if we see oil prices stablize in this $70-90 dollar area, we should see earning improve for this sector compared to the environment of $125-150 dollar a barrel oil. Gold Fields is mentioned in this article and they are in a tougher situation because of the continuing issue of power production from Eskom of South Africa.
Release:
Two of the world’s leading gold miners reported big drops in quarterly earnings on Wednesday as soaring costs for fuel and raw materials ate into margins already narrowed by a slumping gold price.
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