JOHANNESBURG (miningweekly.com) – Despite volatility in the gold sector over the past few months, gold remained – and would for the next few years remain – a worthwhile investment, NYSE- and TSX-listed Brigus Gold chairperson and CEO Wade Dawe averred on Tuesday.

In a letter to shareholders, he stated that investor sentiment for the sector had reached “extreme[ly] negative” levels, as lower gold prices and a significant reduction in the valuation and equity prices over the past quarter weighed on the financial performance of all gold mining companies.

However, since hitting a 46-month low at $1 179/oz on June 27, spot gold prices have rebounded to $1 400/oz, while equity prices have also started to recover.

“[Sentiment] is in the process of reverting to a more reasonable range,” he said, adding that gold would continue to play a very important role as a store of value for investors.

As the world's major paper currencies were systematically debased as a result of unprecedented central bank policies, gold would continue to be accumulated as a hard asset of choice by many of the world's smartest investors, and gold mining companies with a prudent strategy would be major beneficiaries, he pointed out.

Brigus, which lifted its 2013 full-year output guidance to between 95 000 oz and 105 000 oz, noted that the company’s underlying fundamentals continued to strengthen, with the group “intently focused” on positioning the company to deliver strong operating results and positive shareholder returns in the current gold price environment.

The Halifax, Nova Scotia-based company reduced capital spending by $7-million and implemented various cost-saving measures, including personnel reductions and price concessions from key suppliers, in response to lower gold prices.

“We are doing more with less; these cost saving measures will not negatively impact gold production levels moving forward. In fact, we have increased our production guidance as stated,” Dawe explained.

Brigus had accelerated the reduction of its cost structure, increased gold production, enhanced its balance sheet management, narrowed its focused exploration activities to boost the company’s inventory of gold and created a “stable mining jurisdiction” to achieve organic growth.

He concluded that the company’s future was optimistic, with an attractive cost profile, compelling growth prospects and a working exploration strategy.