Industry Analysis & Industry Trends
The Gold Ore Mining industry has performed moderately well over the five years through 2016-17, greatly influenced by global economic conditions. Gold ore mining is a well-established industry in Australia and it has undergone growth over much of the past decade. This growth has stemmed from price increases and gold's status as a counter-cyclical commodity, meaning that it is viewed as a safe haven asset during national and global economic uncertainty. As a result, the global financial crisis and the recessionary environment that ensued provided a boost for the industry.
As the value of global financial assets and currencies plummeted due to 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.
For each dollar required for labour inputs, approximately $0.87 is expected to be invested in capital plant and equipment during 2016-17. This indicates the industry has a high capital intensity level... purchase to read more