Northern miners weather dropping gold prices
The price of gold is at its lowest price in three years, but some smaller mining companies in northern Ontario say they’ll continue to grow, while others have only slightly scaled back operations.
Lakeshore Gold in Timmins has trimmed 35 jobs in the last month, but the company's director of investor relations said hundreds of jobs have been created in the last five years.
The company has also invested $700 million in the Timmins area since the company set up shop, Mark Utting said.
"We’ve done considerable hiring over the last several years," he explained. "If you go back to 2007, we had approximately 10 employees in Timmins."
The company now employs just under 500 people in Timmins, Utting said, and there are no plans for more lay-offs.
Big companies vs. small companies
Toronto based Barrick Gold recently cut 100 jobs at its headquarters, and the CEO of a northern mining company said he thinks other companies are panicking.
Brian Hinchcliffe said his smaller, single-asset company is more efficient and therefore less vulnerable, and added he plans to hire 100 people over the next year.
"I think there’s an argument to be made that single-asset companies that understand what you’ve got might do as well or better than the conglomerates," he said.
It’s important for any company to keep perspective, he added.
"If you really have good assets and good projects that can be reasonably low cost producers, there’s certainly no need to panic."
Hinchcliffe said his company could even weather another drop of $200 an ounce.