Our thoughts

Gold-hedge haters focused on the hole, not the doughnut

The USD gold price has been on the tear these past 13 weeks. Gold prices in most other currencies have been running hot for quite a bit longer, and the list making new all-time highs this year keeps getting longer, but it’s the USD gold price that drives broader sentiment and it gets the headlines.

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Mining The Upside

Everywhere we look at the moment we see the market values of exploration and development companies of all shapes and sizes that don’t reflect even a sliver of the cash their assets might create if the world just stayed the same. Why is it so?

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New Year’s resolutions (or old habits die hard?)

Late on New Year’s eve 2017, without a great deal of analysis of the consequences (as tends to happen at that hour when drinking) I announced my 2018 would be alcohol free. My wife, bless her, immediately volunteered to join me, saying the shared challenge would be easier. And boy was she was right about that.

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Dodging the Death by Dilution bullet

Mining is a risky business. How risky depends on many things. Sometimes I think for mining equity investors it’s a bit like betting on a game of Russian Roulette being played by the CEO. Investors of course must also remember that ‘death’ for the player is often much less painful than it is for them.

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Kim and co architects of tarnished gold

Much has been written in the past week or so about the presentation made at the recent Denver Gold Forum by Paulson and Co partner, Marcelo Kim. In short, Kim took aim at outrageous amounts of CEO pay at the big end of the gold mining industry despite the parlous shareholder returns and various investment blunders delivered by most of that same group.

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Many a miner’s dirty little secret

The vast majority of gold mining companies globally make a very big thing about being non-hedgers. They have it on their website home page and it often features heavily in all investor communications. Rather like the shop windows that have the “no cash kept on premises”, they are strongly declaring no “financial derivatives inside”.

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