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.
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.