I continue to see a large amount of good reports hitting the wires and I'm hoping this momentum lasts. We are getting great results from massive companies and tiny corporations and across a selection of industries. This is a strong signal the business recovery could be stronger than economic gurus now guess. The one industry that is still a standout in my perspective is mining. I know it is an industry that really few folk see as exciting, but as a business design, the money tumbles in when conditions are rightand, you got it, conditions are precisely at the moment.
At this time, the mining industry has just about ideal conditions in which to grow. Valuable metal prices have been and should continue to be powerful. The stockmarket is on solid footing, so there's a lot of stock holdings around to finance growth. The price of money is also inexpensive, which is always beneficial. And, we have got a worldwide commercial recovery in mature economies, with continued high expansion in enormous, developing economies like Brazil, China and India. In my perspective, world events have somehow collaborated to form the ideal environment in which to be in the mining business. It is not any surprise that so many mining corporations are overflowing with money.
What you need in a mining investment is a well-managed company that's run by known industry vets. You would like a company with the right assets ( properties that are manufacturing, together with exploration potential ), growing production for the following one or two years and a rising commodity price environment. If you've got the chance, pull up a listing of recent PR releases on a company called Yamana Gold Inc. ( NYSE / AUY ; TSX / YRI ). This well known, established producer just issued an operational update that I'd say represents the ideal world for a mining business.
The company recounted increased gold production in the 4th quarter and a major reduction in cost per oz. The company formerly determined that its money costs would be $175.00 per gold equivalent ounce ( GEO ) in 2010, but now announces this number will be less than $125.00 per GEO. That is a big score and should produce a major gain in takings.
The company said that it expects 2012 total production to grow about 27% over 2010, to between 1.2 and 1.32 million oz of gold. Additionally, 2013 total production is anticipated to keep growing to between 1.46 and 1.68 million oz, and 2014 is targeted at over 1.7 million oz. of gold, representing expansion of approximately sixty five percent over 2010. That is galvanizing, and the cost of gold does not actually have to go up for this company to grow its revenues. It's the type of expansion you may associate with a high-flying technology stock. I do not own Yamana Gold, but it is a good example of the major business conditions that are now present in the mining industry. It is tough to become enthusiastic about financing gigantic holes in the ground, but this year and next, I suspect this industry will actually pay off.
At this time, the mining industry has just about ideal conditions in which to grow. Valuable metal prices have been and should continue to be powerful. The stockmarket is on solid footing, so there's a lot of stock holdings around to finance growth. The price of money is also inexpensive, which is always beneficial. And, we have got a worldwide commercial recovery in mature economies, with continued high expansion in enormous, developing economies like Brazil, China and India. In my perspective, world events have somehow collaborated to form the ideal environment in which to be in the mining business. It is not any surprise that so many mining corporations are overflowing with money.
What you need in a mining investment is a well-managed company that's run by known industry vets. You would like a company with the right assets ( properties that are manufacturing, together with exploration potential ), growing production for the following one or two years and a rising commodity price environment. If you've got the chance, pull up a listing of recent PR releases on a company called Yamana Gold Inc. ( NYSE / AUY ; TSX / YRI ). This well known, established producer just issued an operational update that I'd say represents the ideal world for a mining business.
The company recounted increased gold production in the 4th quarter and a major reduction in cost per oz. The company formerly determined that its money costs would be $175.00 per gold equivalent ounce ( GEO ) in 2010, but now announces this number will be less than $125.00 per GEO. That is a big score and should produce a major gain in takings.
The company said that it expects 2012 total production to grow about 27% over 2010, to between 1.2 and 1.32 million oz of gold. Additionally, 2013 total production is anticipated to keep growing to between 1.46 and 1.68 million oz, and 2014 is targeted at over 1.7 million oz. of gold, representing expansion of approximately sixty five percent over 2010. That is galvanizing, and the cost of gold does not actually have to go up for this company to grow its revenues. It's the type of expansion you may associate with a high-flying technology stock. I do not own Yamana Gold, but it is a good example of the major business conditions that are now present in the mining industry. It is tough to become enthusiastic about financing gigantic holes in the ground, but this year and next, I suspect this industry will actually pay off.
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