For gold miners, copper is no longer a swear word
As investors demand more from management and gold ounces become more difficult to replace so the lowly red metal is no longer the dirty little secret it used to be when it comes to reserves and resources
Author: Geoff Candy
In this kind of environment, gold miners can no longer afford to look cash-generating gift horses in the mouth, especially ones that add to their mine life and often come attached to gold ounces.
Speaking at the RBC Capital Markets 10th Annual Gold Conference, Newmont President and CEO, Richard O'Brien said that the group's exploration arm has been re-oriented to see the discovery of copper ounces as a success. "Before, we considered finding copper a failure".
So what has changed?
Part of the reason is that it is becoming harder and harder, especially for the majors to find large enough pure gold deposits to replace those that are being mined out.
As one analyst told Mineweb on the sidelines of the conference, gold miners are looking at copper-gold porphyry more out of necessity than anything else.
Another reason why copper is becoming more important, O'Brien explained, is that it allows one to extend the reserve life of an asset.
https://www.mineweb.com/mineweb/view/...ail&pid=102055