Gold at all-time highs has pushed up miners’ margins, but companies are opting for restraint and avoiding the temptations of past bull cycles, Denver Gold Group executive director Tim Wood says.
The executive, who organizes the annual Gold Forum Americas event in Colorado, says the industry is still chastened after its questionable track record of about a decade ago. The industry greenlit dubious projects, nonsensical mergers and acquisitions that prized volume growth over quality, and invested cheap capital that delivered poor returns.
“We are still in a skeptics phase,” Wood told The Northern Miner’s western editor, Henry Lazenby, last week during the event in Colorado Springs. “How do we come out of this with a balance sheet that can reap a harvest from the euphoria and not suffer a famine on the downside?”
With the lessons learned from the last gold cycle in 2011, Wood said he expects miners to demonstrate disciplined spending and avoid excessive risk to win back investors.
Watch the full interview below.
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