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6 Pages

Gold mining: 5 things to look for in 2017


Gold mining: 5 things to look for in 2017

Report summary

Despite the increasing likelihood of rising global interest rates, we expect gold prices will be supported by continued global political and economic uncertainty. After nearly half a decade of cost deflation, this year is likely to see a modest return of inflation for gold miners. Despite this, we expect sustaining cash margins to remain robust. We expect project development will favour small to mid size capital efficient projects with relatively high rates of return as the gold industry continues to pursue efforts to undo years of balance sheet expansion and strain. While the asset disposal theme of the past few years has seen asset specific M&A deal values peak in 2016, we do not expect a repeat this year. The trend of non-core asset disposals from majors is likely to slow into 2017 as the sector aims to take steps toward arresting a continued decline in reserve life. This suggests 2017 may mark a modest return to acquisition-led growth in the gold mining space.

What's included?

This report includes 2 file(s)

  • Gold mining: 5 things to look for in 2017 PDF - 544.79 KB 6 Pages, 0 Tables, 5 Figures
  • Gold mining what to look for in 2017 data.xlsx XLSX - 395.02 KB

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • Gold price drivers and expectations
  • Cost and margin drivers for 2017
  • Capex trends and Project pipeline
  • Trends in M&A
    • Gold industry M&A activity
  • Production outlook
  • Conclusions

In this report there are 5 tables or charts, including:

  • Executive summary
  • Gold price drivers and expectations
    • Gold price movement in relation to the US$ trade weighted index and cross Atlantic Sovereign debt yields
  • Cost and margin drivers for 2017
    • Cost waterfall chart between 2016 and assumptions for 2017
  • Capex trends and Project pipeline
    • Gold project capital intensity and life of mine (LoM) capital intensity by status (excluding base case projects)
  • Trends in M&A
    • Gold mining: 5 things to look for in 2017: Image 4
  • Production outlook
    • Global production and price relationship
  • Conclusions
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