Gold Miners Try To Capture What Executive Calls ‘Once In 50 Year Opportunity’

    Gold Miners Try To Capture What Executive Calls ‘Once In 50 Year Opportunity’

    Anytime a market starts moving, things change. And that appears to be the case in the gold mining industry, where in the midst of the rally, Newmont is announcing some significant changes which have the potential to affect the industry.

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    32 Comments

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    3. This makes no sense. Why wouldn’t you invest in a rising price for metals? If They are hiring, those hires should be adding to their profitability.

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    6. I took a big stake in Newmont in 2024 and I'm sitting on a huge gain. This news from the CEO is very troubling. If you want to reduce AISC just do it. They should be striving to reduce AISC on a continuing basis. He is setting expectations now for the market that he will not be able to meet, unless he stretches resources so thin he risks an unintended negative outcome and/or compromises long-term returns for short-term gains. Newmont just can't get out of its own way. I suspect they are tired of hearing about the much lower AISC at Agnico. While there is still a lot upside left, I will be exiting sooner than I planned. There is no way they shave $300 off AISC without compromising the long-term prospects of the company. What does Boston Consulting group know about mining anyway? If Newmont leadership doesn't know how to reduce AISC, they should hire Agnico as consultants. The problem is Newmont wants to maximize shareholder value in the short-term, so they don't want to make the capital investments needed to reduce AISC sustainably. They are going to take the "private-equity" approach and do it with an axe.

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    8. Hedging always end up with banks making money. Many Australian miners are getting ridiculously low prices for many years due to their hedging. In the rise of gold prices in the early 2000s Son of Gwalia miner went bankrupt due to hedging more gold than they produced. Their stupidity made them look like they worked for the bankers.

    9. Miners who hedge are stupid losers, any miner that hedged at $3,350 are now looking at booking $67 hedging losses (at current price of $3,417).

      As has happened many times in the past, I fully expect management at most miners to lose their minds and become the stupid incompetent losers of their ancestors but hopefully this is much further down the track

    10. I think this is great news for Newmont and the first of the ‘thousands’ to get laid off should be the entire executive team and board, effectively the cretans that overpaid for Newcrest but have been bailed out by the debasement of currency leading to a higher gold price.

      The people who actually mine the gold are more important than management

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