FINANCE
than $ 26 billion in writedowns .
What the industry needs is more mergers to assist in improving the investor returns and in eliminating the mines deemed unprofitable .
Profitability or lack there of According to Randgold Resources Limited CEO Mark Bristow , the biggest issue facing the gold mining industry today is profitability .
“ It ’ s going to be tough , right now we ’ ve seen the fund managers looking to management to fix it ,” he said . “ I think , to a large degree , the fund managers are joined in how we got there , culpable like management .
“ Perhaps some of the fund managers should practice what they preach , and that is allocation of capital ,” he continued . “ For gold mining to be profitable , you have to take out a whole lot of gold production . If you take out a lot of gold production , everyone ’ s going to make more money including the host countries in which we operate .
“ I think that ’ s what the industry needs and I still think the industry ’ s living in denial ,” he added .
The current price of gold
34 O ctober 2014