Gold Mining From A CEO's Perspective

For the mining industry in general and gold mining in particular the past few years have been difficult. Economic conditions coupled with growing regulatory restrictions have led to increasingly important reasons for managing assets wisely. From a public company perspective this makes sense because it ultimately provides for an increase in shareholder wealth and that's what we're in business to do. Regardless of whether a company is public or not, assets must be managed effectively to remain a player in today's competitive environment. So, as the CEO of a gold mining company, how do we manage our assets to ensure that we are satisfying our obligations to our customer --the Amax: Gold shareholder? Let me tell you. As I said earlier, the gold industry has been under siege. We have just completed our third year of average prices below $400 per ounce. When you add finding and/ or acquisition costs and development costs to operating costs, there isn't much of a profit margin left. What this environment provides, however, is opportunities for growth. In the gold business, you either grow or you die. Today, most North American gold producers have at most a 10 year mine life. We are all scrambling to add reserves so we don't become extinct. As prices remain low, opportunities for increasing diminishing reserves abound. This is the time for the opportunistic company to take advantages of market conditions and that's precisely what we, at Amax: Gold, have done!