In Gold Mining, the Spread Is What Matters
For much of the past year, rising gold prices made almost every producer look good. As bullion climbed to record levels, margins expanded across the sector and investors focused primarily on where the metal might go next. But commodity markets have a way of eventually shifting the conversation. At some point, the question stops being how much an ounce sells for and becomes how much a company keeps after it is produced.That distinction has long separated the strongest mining businesses from the rest of the field. Gold prices rise and fall, but cost structures tend to endure. When markets ...