Posts Tagged ‘Barrick Gold Corp’

Gold margins getting squeezed

Wednesday, June 26th, 2013

Gold margins decreasing June 2013
Barrick Gold Corp. announced this week that it will lay off approximately a third of its corporate staff in Toronto, which follows the news earlier in the month that Newmont Mining Corp. will divest a similar proportion of its 750-strong Colorado workforce.

Clearly, the gold miners are having their margins squeezed, and future production will likely wane if the commodity continues to fall in price.

In tandem with reduced output, gold producers are also less likely to sell forward in order to hedge exposure, thus reducing at least one source of future selling pressure.