The chief executive of FTSE 100-listed mining giant Randgold Resources today said the industry is operating in an unsustainable way and called for a greater emphasis on profits.
“We should all practice being real businessmen and focus on profits,” Mark Bristow told reporters.
“This industry cannot continue the way businesses are structured and operated.”
He cited the example of the Barrick-Newmont merger talks, which fell apart last month after the two gold miners failed to agree on the operational and managerial structure of the combined company.
Bristow said that now hedging gold is out of favour, companies are producing gold at a loss, which cannot continue.
“We have had five years of no value creation despite a significant bull market,” he said.