Technology-like margins come to the mining sector
The mining sector is at the starting point for more M&A and other big money moves, said Hugh Agro, CEO of Revival Gold in an interview with Kitco.
Argo joined Neils Christensen and Michael McCrae for Kitco Podcast.
Argo said he expects generalist interest to come to the sector because high gold prices make the margins too tempting, but the action to date has been timid by North American miners.
"These [factors] are the sorts of things that are the starting point for taking bigger steps into this space, more risky steps into the space," said Agro.
"Let's not forget even at $1,700-$1,740 ounce gold--if your all-in-sustaining-cost of production is $1,000 or $1,100 an ounce, you're making big margins. You're making the kind of margins that software companies or technology companies can make."
Listen to our conversation with Hugh Agro, Neils Christensen and Michael McCrae.