Myopic gold CEOs get a tongue-lashing from Randgold's Bristow

Similarly, severe damage has been done by high-grading, which shortens the life of a mine by focusing on the best quality ore

A gold industry obsessed with containing costs and minimising risks will find itself at the edge of a cliff by 2020 as supply tightens, according to one of the most profitable producers.

Despite prices recovering from 2015 lows, the industry has been slow to reinvest in exploration or sustaining capital, Randgold Resources Chief Executive Officer Mark Bristow said. Half of the gold coming out of the ground isn’t profitable to mine based on the true extraction costs, he said.

“The one thing this industry does very well is mine gold at a loss,” Bristow told analysts at a breakfast meeting