Looks like investors are throwing the baby out with bath water in the gold sector today. Newmont posted anaemic cash flow of just 88 million for 2023 which for a 37 billion market cap company is pretty woeful.
Meanwhile you’ve got cash generating monsters on the ASX like PRU which get completely ignored because of the Africa focus. Surely owning a marginal company with a skyrocketing PE is more risky than Africa ? So we are seeing an extreme bifurcation in the investability of mega cap to mid cap gold companies, unfortunately that throws the whole sector in the doldrums because the mega caps are where the massive fundies go for liquidity. “The biggest risk you have is that you wont make money” (although simplistic, I’m pretty sure that’s a Rick Rule quote)
Anyway I went a bit off track but my point is that companies with a multi jurisdiction - multi operation focus have their own struggles with keeping costs under control, from a management point of view it would be much harder to track. We have the advantage of only having to worry about 1 high grade mine. Although I’m sure having some diversification has its own set of advantages, it just doesn’t seem to be reflected in the earnings reports of the mega cap gold miners.
SPR Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)