Gold Miners Approaching $1,300 Pain Threshold: Corporate Canada
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Gold miners led by Barrick Gold Corp., the world’s largest, will likely accelerate spending cuts and trim high-cost output as the metal’s biggest plunge since 1980 threatens to make about 30 percent of production unprofitable.
Gold futures fell 9.3 percent to settle at $1,361.10 in New York yesterday, taking losses to more than 20 percent since the record close in August 2011 and meeting the common definition of a bear market. The average so-called all-in cost of 20 gold producers was about $1,306 an ounce in the fourth quarter, Toronto-based analysts at Dundee Capital Markets said in an April 12 note.