In 1988, Croesus Mining entered year two of its company life. The teething problems were being ironed out but the best was yet to come.
Like the second novel, the second year as a listed company is very often more difficult than the first. Croesus Mining however entered its second year well positioned for a program of significant expansion.
I am pleased to be able to report that this has been achieved despite unprecedented upheaval within the financial and precious metal markets of the world — volatility on a scale that no one could have predicted.
The selling price of gold over the past fifteen months has ranged from a high of A$685 to a low of A$530 per oz. Gold mining share values have fluctuated, seemingly without reference to the normal criteria for measuring performance.
Against this uncertain backdrop the industry was also faced with steadily increasing costs. Consumables such as cyanide almost doubled in price.
Mining and its people
Successful mining is to some extent dependent on the resourcefulness of individuals working in harsh and lonely environments. As such it is very much a people business. Croesus is fortunate in having an operating team with the enterprise to make exploration develop into mining.
Gold production for the year under review finished at 23,451 ounces from 137,996 tonnes. In this climate of enthusiasm and hard work it is all the more frustrating to find one’s industry under attack from some federal, state and local politicians. These people refer to us, among other things, as the ‘capitalist mafia’. This is a classic example of resentment against achievement.
Both resentment and achievement have co-existed throughout history in all societies and in varying degrees. When the morality of achievement predominates, civilisations flourish in commerce, in the arts and in science and are remembered by future generations.
When the morality of resentment gains ascendancy, civilizations decline and eventually perish, for civilization is the sum total of all the achievements of the people.
Your company’s workforce, in common with those of other mining companies, are proud to be among the achievers and thus part of the wealth creating sector of Australian life.