2013 Global Gold Price Report

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Gold is the favoured commodity of 2013 with more than 80% of gold executives expecting to see a rise in the price of gold. An analysis of the 46 largest TSX-listed gold mining companies showed that more than 20 of these gold companies have cash reserves greater than $500 million.

Gold miners are determined to prove they’re a good investment — not just now, but in the long term. In order to receive approval from investors, they will have to establish cost-effective management strategies, increase dividend payments and invest responsibly in production growth.

Gold companies are using cash for development and exploration, with 100% of senior gold companies using cash for such activities and 89% of mid-tier companies planning on using cash for project development and another 83% of mid-tier miners planning on using cash for fund exploration activity in 2013.

There will also be an increase in M&A activity in 2013 as 20% of all senior gold companies plan to spend money on acquisition-related activities, while 33% of junior/mid-tier companies expect to spend their cash on acquisitions. This is double the number of companies that spent money on M&A activity in 2012.

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