Gold Miners Need To Do This To Survive - Bloomberg Intelligence

KITCO NEWS - 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 (GDX) - Get Report 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.'

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.