By Rob Starr, Content Manager, Big4.com
“Gold miners are adamant about proving to the market that they’re once again a good investment — not just for the interim, but for the long-term,” says John Gravelle, Mining Leader for Canada and the Americas, PwC. “Receiving investors’ approval will involve establishing cost effective management strategies, increasing dividend payments and responsibly investing in production growth — all on the back of a strong gold price.”He was referring to the latest PwC Gold Price Report .
While Canada tops the list with the most active gold buys in 2012 with 243 transactions worth $4.8 billion, China continues to keep an eye out for gold mines to acquire. In 2011, four of the top gold deals were acquired by Chinese buyers. This year, China was again responsible for four out of the top 10 gold deals announced.
Regarding development and exploration spending, 100% of senior gold companies used cash for such activities and they plan to do the same for the upcoming year. Meanwhile, 89% of mid-tier gold companies will use cash for project development and 83% will use cash to fund exploration activity in 2013.