Industry Analysis & Industry Trends
Gold ore mining is an industry well established in Australia, and has undergone a strong period of growth over much of the past decade. This growth has stemmed from gold's status as a counter-cyclical commodity, meaning that it is viewed as a safe haven asset during times of national and global economic uncertainty. As a result, the onset of the global financial crisis and the recessionary environment that ensued provided a massive boost for the industry. In the five years through 2014-15, industry revenue is expected to increase at an annualised 3.4%.
As the value of global financial assets and currencies tumbled in the wake of the global financial crisis, investors across the world turned to gold as a safe monetary asset... purchase to read more
Industry Report - Industry Investment Chapter
The Gold Ore Mining industry has a high capital intensity level due to high capital and depreciation costs associated with establishing and developing gold mining operations. Companies in the industry require extensive funding levels to invest in mining equipment, facilities, equipment, truck, vehicles, buildings and other capital components. In particular, the industry relies heavily on investment in open-cut and underground mining plant and equipment.
To calculate the capital intensity level for the industry, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, while total industry wages are used as a proxy for labour inputs... purchase to read more