"In the first half of this decade, gold miners were forced to cut costs and pay down debt following a sharp fall in the gold price. Having restructured their businesses, management may be tempted to make acquisitions – possibly overpaying – just when they need to increase maintenance spending," he cautions.
“Elsewhere in the precious metals space, we are watching the platinum price for any weakness. With the sale of diesel cars under pressure and jewellery demand weaker on the back of anti-corruption measures in China, this is a possibility."
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eleanor.duncan@ft.com
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