from Kitco NEWS
lass=”” >Although gold miners seem to be turning the corner after spending years in a bear market, one metals analyst says it’s time for these mining companies to start rethinking their strategy. Gold miners must shift from being cost-focused to revenue-focused if they want to continue attracting investors, suggests Ken Hoffman, global head of metals and mining research for Bloomberg Intelligence. ‘I think what gold miners need to realize is that in the past, the miners would just focus on the cost and ignore price, but this year is different,’ he told Kitco News. Given that investors now have more liquid investment alternatives in the metals and mining space, gold miners need to make themselves a more attractive investment. Hoffman explained that the advent of exchange-traded products has created headwinds for miners looking for funding. ’It’s taken the money that would have gone into gold equities and put it into the ETFs and what investors are telling us is that what gold miners really need to focus on is cash flows.’
Don’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week: http://www.kitco.com/newsletter
Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: http://kitcomm.com — Or join the conversation on social media: @KitcoNewsNOW on Twitter: http://twitter.com/kitconews — Kitco News on Facebook: http://facebook.com/kitconews — Kitco News on Google+: http://google.com/+kitco — Kitco News on StockTwits: http://stocktwits.com/kitconews