From Bitcoin to Trump: Mining Giants Identify 2018’s Challenges – by Danielle Bochove (Bloomberg News – December 20, 2017)

https://www.bloomberg.com/

In 2017, miners finally got some tailwinds from their commodities as unsavory supply pressures — from lower ore grades to worker strikes — bolstered prices.

What’s ahead for 2018? We asked six top executives from companies including Newmont Mining Corp., Barrick Gold Corp. and Teck Resources Ltd. for their outlooks.

With depleting reserves top of mind, they expect more focus on exploration and inter-company collaboration to develop assets. There’s consensus that large-scale mergers and acquisitions are a thing of the past and the rising interest in bitcoin poses no threat to gold. But opinion is split on whether miners will be able to grow, or even maintain production, without letting the hard-won cost discipline of past years fly out the window.

Gary Goldberg, Newmont Mining

“Most of the companies out there are pretty healthy. So to make M&A happen, either there’s got to be some other form of value that people see, or they’re going to pay some pretty hefty premiums.”

MARKET:

  • Gold should stay in the $1,200 to $1,300 an ounce range, with large breakouts unlikely
  • Long-term prices should be supported by strong demand from China, India, interest in gold ETFs and tightening supply

For the rest of this article: https://www.bloomberg.com/news/articles/2017-12-20/from-bitcoin-to-trump-mining-giants-identify-2018-s-challenges

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