TO - News warning this week that its in-the-ground gold reserves will shrink is widely expected to be echoed in the coming weeks by miners around the globe, spelling more asset writedowns for an already beat-up sector. For the first time in years, miners from Canada to Australia will tell their shareholders that reserves - the future source of production, cash flow and growth - have significantly diminished, hit by bullion's 28 percent price slide in However painful, the reserve cuts and associated writedowns are seen helping nurse the sector back to longer-term health by discouraging miners from seeking low-margin growth at the expense of profits. It is a shift most mining executives have promised over the last year and one that investors are keen to see them deliver.
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