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Barrick CEO blasts investor 'short-termism,' defends focus on reinvestment

May 05, 2021 9:25 PM ETBarrick Gold Corporation (GOLD), NEM, ABX:CA, NGT:CANEM, GOLDBy: Carl Surran, SA News Editor31 Comments
  • Barrick Gold (NYSE:GOLD) CEO Mark Bristow lashes out against "short-termism" among investors who fail to appreciate the need to reinvest for the longer-term to find more gold.
  • "The rise in the gold price has prompted a resurgence of the short-termism

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Comments (31)

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Jon12483 profile picture
Barrick is part of the swamp. They have no vision, and sell to the Comex and SLV at those fraudulent spot prices. Avoid Barrick!
Investors Review Newcrest profile picture
Barrick is making another acquisition this Q2
DeadManInvesting profile picture
Barrick management is always entertaining. In January 1990, the shares were at $16.49. "Long-term" thinking in the corporate suite has really delivered for shareholders.
adriano321 profile picture
NEM is the best of breed major presently. Bristow does make some salient points about maintaining a longterm focus in the midst of a prevalent casino mentality with many investors.
SeriousUsername profile picture
I wonder if he really has a bunch of capital intensive but profitable opportunities lined up or if thats just talk.
Chip Chipperson profile picture
Wonder why Mark didn't blast Buffet? What a sniveling coward.
ContyC profile picture
What a great strategy! Reinvest all the money in new mines to flood the market with excessive supply and crash the price, and then write down the value of the mines. This way, the profits from curent high prices are lost in bad investments instead of being paid as dividends. Happens every cycle with those retarded mining CEOs.
@ContyC Sounds as though you should be a mining CEO
Catduck profile picture
Are we here to make money or what??
Azred profile picture
New York needs to knock the shit off. Constant plays on “fear” the “would iffs” the constant “market dips” but never good enough, anyway - is making a lot of us sick for just a little consistency. And, Ppl are turning more & more to Crypto currency that feel the same way!
It’s not investors who are blasting them it’s the bottom feeding & penny pinching traders. They are the lowest form of the sector right up their with the price manipulators.
edaskew profile picture
As per usual, they will piss away investors capital to enrich themselves. I’ve seen this movie before.
Heard Mark speak once, was really impress and he has wicked wit to boot which indicated his intelligence level.

The mining space generally lacks thinkers and entrepreneurs. Most are there to maximize their compensation, particularly the Boards which are composed off menus and pick lists. That's where the trouble of the industry all starts. No long term strategy.

The shareholders end up being served by greedy mediocrity boards who appoint their friends as officers and over pay them so that they in-turn can be over paid as well. I can go on.

In the commodity business, the discipline goes out the door as soon as prices rise as the C-Suite believe they are responsible for the increase in the commodity price. We are entering the stage where many of them want to cash out their risk free options and restricted share units. Can anyone blame pigs for eating the whole trough now and now saving for tomorrow?
Bous Investments profile picture
He should be paying a better dividend. Failure to operate the firm in a efficient way.
SuperPac profile picture
@Bous Investments
What does ''better dividend'' (whatever that means) have to do with a firm's operating or capital efficiency??
Joshua Hall profile picture
I get his point but the issue is roughly half of mining exploration is gold focused and the majors have plenty of Resources that are economic at higher prices.
Loved the Barrons interview in early April: " I act like an owner cause I am a big owner." (To the tune of 5 million shares). GT
@Gran Torino He has some serious skin in the game!
investwisely23 profile picture
He sounds upset.
arok79 profile picture
amen to this CEO. call it like he sees it. bravo!
Carson7 profile picture
Mark Bristow is one of the best, creative, CEO’s. Let him run the company as he sees fit and you will be greatly rewarded…..
@Carson7 he wants to have a long term plan so he can overpay himself longer...
The Stewardship Fund profile picture
I appreciate the long term thinking, but Barrick may well benefit from committing to an improved dividend strategy as well IMO.
@CaptainSpiff money paid out as dividends is money that can’t be reinvested by the company. CEOs who reinvest in the company are building for the future.

When a company is paying dividends, it is often because the CEO can’t think of a better way to spend that money (a CEO who lacks vision); in many cases, it is because it is afraid of losing shareholders (a CEO who could be replaced by an algorithm).
The Stewardship Fund profile picture
@jaug1 I understand that; however Barrick is raising the dividend significantly this year, with the understanding that it will go back down next year. I feel the lack of consistency probably keeps the price down more than the exact size of the dividend.
@CaptainSpiff i rather Barrick buys back share than paying dividends. It’s money not invested back to the business but at least it reduces future payouts.

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