Van Sun says Integra boss optimistic despite low gold ! Van Sun says Integra boss optimistic despite low gold
2014-12-23 07:02 ET - In the News
The Vancouver Sun reports in its Tuesday edition it has been a bad couple of years for the gold industry. Guest columnist and Integra Gold chief executive officer Stephen de Jong writes the price of the precious metal has fallen by more than 30 per cent to below $1,200 per ounce since its record high above $1,900 in 2011. For many producers, the average cost to break even is in the $1,100- to $1,300-per-ounce range. Should gold fall below this range, many companies will be forced to make hard decisions. Investors have understandably been unimpressed with the sector's performance. Still, some believe the restructuring taking place in the gold sector today is healthy, positioning the industry well for a stronger 2015 and beyond. The metal's fundamentals -- as both a currency and safe haven -- remain solid. The gold mining industry also remains largely resilient. Juniors are continuing to invest in and expand projects. Integra (18.5 cents), with its Lamaque South project in Val d'Or, bought a milling facility to help it transition from an exploration company to a producer. While merger and acquisition activity in the sector has quiet compared with the heyday of 2011, strategic purchases are still taking place.