How Royalties and Innovative Debt and Equity Financings are Changing the Investment Landscape
The New Normal
read more
Hedging On The Up
Sean Russo and Dave Rowe outline the hedging strategies of Australian gold producers from the 1980’s to today.
Kim and co architects of tarnished gold
Much has been written in the past week or so about the presentation made at the recent Denver Gold Forum by Paulson and Co partner, Marcelo Kim. In short, Kim took aim at outrageous amounts of CEO pay at the big end of the gold mining industry despite the parlous shareholder returns and various investment blunders delivered by most of that same group.
Many a miner’s dirty little secret
The vast majority of gold mining companies globally make a very big thing about being non-hedgers. They have it on their website home page and it often features heavily in all investor communications. Rather like the shop windows that have the “no cash kept on premises”, they are strongly declaring no “financial derivatives inside”.
Gold’s insiders, and outsiders
Over the past four to five years there has been a stark and growing difference between the way in which Australian and North American gold mining companies sell their gold and manage the associated risks of having high and largely fixed costs, and often high debt, against a totally variable, market driven, revenue line.