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.