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.