Cambior: Growth and Diversification for a Canadian Gold Producer

Many mining companies try to fight their way up from small operator and exploration company to major producer. Not many companies make it. Cambior Inc., formed in 1986, is one company well on its way to making it as a major operating company. In 1993, Cambior surpassed 15.5 t (500,000 oz) of gold production and began operations at its world class Omai gold mine in Guyana. At the same time, the company has embarked on a program of geographic and minerals diversification. Cambior, a Canadian company, now has interests in eight mines, three development projects and more than 100 exploration properties in North and South America. The company’s goal is to derive 70% of its income from gold and 30% from base metals and other minerals. Cambior’s moderate diversification into base metals gives protection against negative gold price fluctuations. It also balances the typically short term gold mines and the longer term base metal mines.