- 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 which has plagued the market, with some investors focusing on short-term gains rather than sustainable growth," undermining the mining industry's ability to grow by demanding a bigger share of profits from high gold prices, the CEO tells the Financial Times.
- If fund managers demanded higher capital returns, governments in countries where the company mines also will seek a higher share of the money, Bristow said.
- Barrick shares have lagged Newmont (NYSE:NEM), falling 30% over the past year vs. a 2% gain for its top rival, but investors see Newmont as offering a clearer plan to return money to shareholders than Barrick, pledging to return 40%-60% of incremental free cash flow to its shareholders if gold stays above $1,200/oz.
- Barrick today reported stronger than expected Q1 earnings and said it would return $750M to shareholders this year in dividends.
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