RERUN: Will Utter Destruction Continue For The Gold Majors?

Gold miners have suffered of late, owing in part to poor capital allocation choices from management, said Marin Katusa, chairman of Katusa Research.
“I’ve known David Garofalo [CEO of Goldcorp], and they announced today they’re doing a massive buyback of shares. They’ve had a horrible quarter…they’ve been such poor allocators of capital. And, if you’re a shareholder, are you investing in the company to reduce the number of shares, or would you rather have them grow and improve their margins?” Katusa told Kitco News on the sidelines of the Silver & Gold Summit in San Francisco, “Because, as an investor, I can place my own capital, I don’t need management to place the shareholders’ money.”
Katusa said that investors should focus on political risks, margins, and what their investment time frame is when making investment decisions in the mining sector. (show less)

Gold miners have suffered of late, owing in part to poor capital allocation choices from management, said Marin Katusa, chairman of Katusa Research.
“I’ve known David Garofalo [CEO of Goldcorp], and they announced today they’re doing a massive buyback of shares. They’ve had a horrible quarter…they’ve been such poor allocators of capital. And, if you’re a shareholder, are you investing in the company to reduce the number of shares, or would you rather have them ... (read more)

Kitco News

Kitco News
The Kitco News team speaks to analysts and experts on the frontlines of the market to get the most up-to-date news on the economy. The show offers a well-rounded, timely view on big market moves and any major headlines that may affect financial assets. Coined – no pun intended – as the number one source of precious metals news, Kitco News is the leading provider of up-to-date price action in the precious metals space.

Disclaimer: The content on this website, including, without limitation, news, videos, interviews and commentaries, is provided by Kitco Metals Inc. ("Kitco") for informational purposes only and is not intended as any form of advice, whether legal, accounting, investment, financial or tax advice. Therefore, it cannot be relied upon as such. Should you require such advice, contact a licensed professional. The content provided herein is provided on an "as is" basis without any warranty of any kind, whether express or implied and your use of the information provided in said content is entirely at your own risk. In no event will Kitco be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content on this website.