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Hi dr, After writing the post rio puts out there cutting new...

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tcisboss

13,252 Posts.

09/12/15

09:51

Post #: 16575316
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Originally posted by doctorwho2 ↑

good post tciboss.

I recall attending talk by the Chairman of Barrick, many moons ago, who said the Company's strategy was only to acquire (gold) deposits whose costs were in the lowest quartile so that it could survive when others went to the wall. I suspect that when all said and done that Barrick's strategy will prove good and that those resource companies whose costs are in the lowest quartile will provide many of the metals that the world needs. If consumption exceeds supply, which it might well do, then prices will rise. If not there will be a rationalisation in the metals industry and I would hope that the lower costs are passed on to the consumers - which I doubt. The opportunities for the investor may therefore lie with essential specialist metals, or strategic commodities, where availability and/or continuty of supply is the key, not the price. Wish I had a reliable crystal ball.

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Hi dr,
After writing the post rio puts out there cutting new investment by 5 bil and cutting expansion by a few more bil. Anglo last night announced they are closing 35 mines and cutting 85,000 jobs 2/3 of its work force.
The saddest thing is I don't want to be right and I fear it's the the thin edge of the wedge.
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0 Great analysis

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