Industry Analysis & Industry Trends
Gold ore mining is a well-established industry in Australia, and has undergone a period of growth over much of the past decade. In addition to price increases, this growth has stemmed from 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 onset of the global financial crisis and the recessionary environment that ensued provided a boost for the industry. Although world gold prices declined significantly in 2012-13 and 2013-14, the weak Australian dollar limited the industry's decline. As gold is traded in US dollars, the low dollar also benefited the industry in 2014-15 and will contribute to price increases in Australian dollars in 2015-16... 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