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The world's top gold miners are retrenching after COVID-19 related shutdowns despite record prices for the yellow metal, with cost-conscious executives prioritizing investor returns over production growth. Gold prices have jumped 30% this year to roughly $2,000 an ounce as central banks dial up stimulus measures in response to the coronavirus pandemic. Seven out of 10 of the global gold miners, including Newmont , the world's biggest gold miner, Canada’s Barrick and South Africa's Gold Fields, have cut planned output for the year by 7%, citing coronavirus-related shutdowns, regulatory filings show.
Miner Gold Fields <GFIJ.J> said on Friday it was reviewing the approvals given to each of its Australian sites after Rio Tinto <RIO.AX> destroyed historically significant Aboriginal rockshelters which led to the resignation of its chief executive. Rio Tinto said earlier on Friday chief executive Jean-Sébastien Jacques and two other executives would step down following an outcry over its decision in May to detonate part of an ancient gorge that showed 46,000 years of human habitation. Gold Fields, which has operations in Australia including its Granny Smith and Gruyere mines, said it was already acting in response to the situation its rival had found itself in.
Now that even Warren Buffett is backing gold, it’s time to look towards the most profitable aspect of this market - small-cap miners