Gold mine cost cutting not allaying margin falls

``The mining companies have been entering into cost reductions that may perhaps be considered as window dressing to keep individual and institutional holders happy in that the easy cuts are being made regardless of the longer-term implications these may have on a company's future. These include cutting back and deferring capital programmes... selling off less economic or lossmaking mines to smaller companies which may be more flexible in their approach; mining to higher grades, and thus debilitating longer term resource and reserve levels...'''