Paulson & Co.’s presentation on gold miners titled. “Gold Equities: Myths, Dreams And Reality” from a presentation given yesterday at the Denver Gold Forum.See more slides and goodies here.
H/T Mining.com
Gold Equities Have Severely Underperformed Gold Price
Input Costs Have Moved In Companies’ Favor
The Sobering Reality Of Gold Equities
- Analysis of 13 Largest Publicly Listed Gold Companies Shows Total Shareholder Returns Have Been Dreadful
- Economic Returns Have Been Value Destructive
- So What To Do?
Average Total Shareholder Returns Have Lagged By 65%
Despite Poor Returns, CEOs Received $550 Million
Despite Destroying $85 Billion In Value
Where Has The $85 Billion Gone?
- Industry Return on Capital Has Been Lower than Cost Of Capital
- Cumulative Impairments Since 2010 Have Totaled $85 Billion
- Analysis of M&A Suggests Serial Value Destruction
- Return On Invested Capital Has Been Inadequat
Industry Spends More Than It Earns Despite Flat Production
See the full PDF below.
