Australian gold producers outperform global rivals and are eyeing expansion
Singapore/Melbourne — Gold producers in Australia are outperforming their global competitors, prompting investors to encourage them to expand their horizons and acquire struggling North American rivals. Boosted by some of the sector’s best margins, low debt and swelling cash piles, miners in the world’s number two producer are defying a wider lull in gold equities. Saracen Mineral Holdings and Northern Star Resources have surged in the past year as rivals in Canada, the US and SA have faltered. "Australian gold miners currently enjoy some of the highest margins in the world," said Stephen Land, California-based portfolio manager at the $1.1bn Franklin Gold and Precious Metals Fund. The producers are being supported by cuts to operating costs and stronger prices of bullion in Australian dollar terms. Miners in Australia and New Zealand account for about 20% of the Franklin fund’s holdings, which, last year, added positions in Dacian Gold and Gascoyne Resources. Australian companies a...
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