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overtheedge
Member since May 2012
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Gold giants shrink to fit as Paulson pushes breakup - Chris Powell - GATA

"Shareholders have grown cold on further expansion as valuations in the industry declined."

Of course, but shareholder sentiment in NOT the reason for this decision. Drops in disposable income or perceived disposable income is the primary cause for this decision only.

If Joe Consumer's billfold is empty, he can't invest in anything. If Joe Consumer thinks there is a chance that what little he has left in his billfold might be the last, he won't invest in anything.

It takes a massive amount of investor dollars to build a large mine. The shareholders that matter can see the lack of available investment monies. Ergo, tighten up and shed black-holes. And then maybe we can ride this out.

Commented 4254 days ago

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Beginning of the headline :By Liezel Hill Bloomberg News Wednesday, March 20, 2013 http://www.bloomberg.com/news/2013-03-20/gold-giants-shrink-to-fit-as-pa... The 10 biggest gold companies, led by Barrick Gold Corp., spent more than $100 billion in the past 20 years buying new mines and projects around the globe. Now they're feeling pressure to throw the strategy into reverse. Gold Fields Ltd. spun off most of its South African assets in February. Billionaire hedge-fund investor John Paulson is calling for a breakup of J... Read More

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