Gold miners need to focus on self-funding and creating a stable business
First, it was the senior producers with their mega-mergers in 2019 now it’s the mid-tier producers to do what they can to get bigger to get noticed by generalist investors, said Joe Mazumdar, co-editor of Exploration Insights said. However, Mazumdar also said, in an interview with Kitco News on the sidelines of the Metals Investment Forum, that there is no more appetite among investors to fund large mines with massive capital costs. Instead, he said that companies need to focus on building smaller mines that create sustainable production.
“What majors need to do is to use their free cash flow to build their new mines and if they want to introduce stable dividends, they need to introduce a lot more capital discipline,” he said. “They have to focus on self-funding and creating a stable environment.” (show less)
First, it was the senior producers with their mega-mergers in 2019 now it’s the mid-tier producers to do what they can to get bigger to get noticed by generalist investors, said Joe Mazumdar, co-editor of Exploration Insights said. However, Mazumdar also said, in an interview with Kitco News on the sidelines of the Metals Investment Forum, that there is no more appetite among investors to fund large mines with massive capital costs. Instead, he said that companies ... (read more)
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