You are here

Investors warn gold miners to keep lid on ambitions

Section: Daily Dispatches

By Henry Sanderson and Neil Hume
Financial Times, London
Sunday, September 15, 2019

Gold miners are facing pressure from investors to keep their animal spirits in check as the precious metal trades at its highest levels in six years.

As the industry gathers this week for its annual gold conference in Denver, some of the sector's largest investors have warned gold miners not to repeat the mistakes of the past.

... Dispatch continues below ...



ADVERTISEMENT

Buy, Sell, or Store Precious Metals with Money Metals

Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --

https://www.moneymetals.com/news/2015/02/03/worldwide-ratings-organizati...

-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.

Shop online with Money Metals Exchange here --

https://www.moneymetals.com/buy

-- or by calling 1-800-800-1865.

Meanwhile, Money Metals Depository will store your precious metals in a segregated account at low cost:

https://www.moneymetals.com/depository



"We don't want to see the poor decisions that we've seen in previous cycles," said Joe Foster, a fund manager at VanEck in New York. "The emphasis will continue to be on more conservative management styles, in terms of debt and financial management."

Gold miners have outperformed this year, rallying 31% according to the VanEck Gold Miners Exchange Traded Fund. The gold price has risen 17% to about $1,500 a troy ounce.

But investors are fearful that soaring gold prices will lead to a repeat of the last boom, which peaked in 2011 when they rose above $1,900 a troy ounce. Encouraged by bankers, miners splurged cash on ambitious deals and projects that ultimately destroyed value for investors when gold crashed in 2012.

"The big thing we’d like to see is for companies to grab the margin expansion from higher gold prices and return that to shareholders as dividends," said Mark Burridge, managing partner and fund manager. "We don’t want to see a massive shift to growth." ...

... For the remainder of the report:

https://www.ft.com/content/dce12c9a-d57d-11e9-a0bd-ab8ec6435630

* * *

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019

https://neworleansconference.com/noic-promo/powellgata/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16