Gold is flying but miners are left in the dirt

Author: Alan Livsey
Source: Financial Times

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Cheap targets abound, with some juniors reaching point where investment needs of projects look overwhelming.

When the worldโ€™s largest gold miners by market value prefer to discuss copper projects, the shiny metal might have an image problem.

The gold price this week hit another record high, above $2,100 per ounce. Expectations of lower US interest rates and persistent demand from Chinese households are two reasons for this.

But the biggest miners, such as Newmont and Barrick, havenโ€™t enjoyed the same success. Shares of Denver-based Newmont Mining have fallen into a pit, down 25 per cent over one year. This follows Newmontโ€™s deal to buy Australiaโ€™s Newcrest last February for an increased price of $19.5bn, too rich for shareholders. Barrick shares have also struggled. It has plans to build a copper-gold mine in geopolitically risky Pakistan.

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