Macmahon expects gold to shore up company outlook
The CEO of Australia's Macmahon Holdings (ASX:MAH) expects gold to continue performing well despite the weak outlook for the mining sector in general.
Macmahon chief Ross Carroll said to the Australian Financial Review that the company's 10-year contract for the Tropicana gold mining project in Western Australia is a source of reassurance for during troubled times for the resources sector.
"Certainly with iron ore being weaker and coal, and potentially the flow-on effect of lack of new work there, to have a gold project like this which is for 10 years…it's obviously very comforting to us," said Carroll.
Australia's leading miners have taken a battering in recent months following precipitous declines in spot prices for the country's key resource exports of iron ore and coal
The Tropicana project in Western Australia has a total value of AUD$740 million and projected output of 490,000 ounces per annum following the commencement of full operation.