How Gold Miners Can Leverage the Price of Gold

...The upside to gold stocks is that investors historically have received a 2-to-1 leverage by owning gold equities instead of the commodity... ...We believe that effective management can help miners gain more leverage over the metal for their shareholders. Picture the gold price as a pulley with gold company executives applying force on one side of a rope. The more disciplined and successful the management, the bigger the potential boost in gold equity returns. The muscle that gold miners can use to increase their “multiplier effect” for shareholders is three-fold: grow production volume, expand margins or optimize capital, you want to keep showing that you can increase the return on the mine and that you can increase the cash flow available for shareholders at a particular gold price... full article here