Ralph Aldis Talks the Gold Market with Mineweb

Author: Frank Holmes
Date Posted: January 24, 2013 Read time: 2 min

Geoff Candy from Mineweb and Portfolio Manager Ralph Aldis discuss the conundrum facing gold miners when it comes to reporting cash costs. Gold companies have begun to react to the conversation started by U.S. Global and experienced mining executives about changing the way that costs are reported. Mineweb highlights Goldcorp and Yamana as two miners looking at a more inclusive all-in sustaining cost measure.

When asked why companies’ reported costs have been such a hot-button, Ralph says,

“As an investor, the industry hasn’t fully come to grips with the implications of this cash cost concept that they’ve been talking about. It impacts them tremendously when governments look at them and think about taxation rights. They look at these companies coming out with $800 per ounce or $300 per ounce or whatever cash cost number they quote and think, well and you must be making windfall profits at our expense and we need to raise our tax rates on you. So, as an investor, we’ve seen taxes go up for these companies, either through royalties or a variety of different schemes; it’s bad for the companies and it certainly hurts their returns in the long run.”

The podcast is an extension of U.S. Global’s Special Gold Report, which discusses this issue as well as other drivers affecting gold companies today.

Listen to the Podcast by clicking on the play button below or read the transcript here.

If you cannot view the player above you can download the MP3 file here.

By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The following securities mentioned were held by one or more of U.S. Global Investors Funds as of 12/31/12:  Barrick Gold, Dundee Precious Metals, Goldcorp, Gold Fields, Kinross Gold, Newmont Mining, Yamana Gold