Mineweb reported that recent major write-downs by gold companies may cause them to write down the value of their assets when reporting results, and that a price drop below $1,000/ounce could result in dividend cuts.
As quoted in the market report:
Nonetheless, a potential dip below $1,000 per ounce in gold price could result in dividend cuts, Fitch cautioned, adding, “We have already seen cuts to capital budgets and an increasing focus on costs.
To view the whole Mineweb report, click here.
