Free cash flow--North American gold producers show strong cash generating potential

摘要

IN THE first half of 2010 the total cash costs for the largest North American companies averaged US$465/oz. With the gold price averaging US$1,154/oz, the leading North American gold producers have gross operating margins that averaged 58% and gross cash margins of US$688/oz. The cash margins for these producers are at all-time highs and, as discussed below, these companies are not only providing financial flexibility for both organic and external growth, but also the ability to return capital to investors through increased dividend payouts and share buyback programmes.