Gold’s Revival in 2014 Boost Exploration Expenses

Gold’s rebound from the biggest decline in more than three decades is sparking a revival in exploration – and for one Brazilian focused-miner it’s worth the risk of crossing paths with jaguars.

Beadell Resources Ltd. hired armed guards earlier this year to protect its exploration team in the Amazon rainforest in Brazil after they stumbled across the largest of South America’s big cats.

“Shareholders have gone from rewarding companies for doing no exploration, no expansions and cost reductions into rewarding companies for value-accretive exploration,” Beadell’s Managing Director Peter Bowler, said in an interview in Kalgoorlie, Western Australia, at the annual Diggers & Dealers conference. “About 70 percent of our shareholders would prefer us to drill, drill and drill.”

Producers from Gold Fields Ltd. to Northern Star Resources Ltd., who both attended the conference, are boosting exploration budgets that were trimmed as companies sought to cut costs amid gold’s 28 percent tumble last year. The mood mirrors comments last month by Rio Tinto Group Chief Executive Officer Sam Walsh who noted renewed investor appetite for spending.

via Mineweb

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza