Some people don't want to know the truth tyke, and few will hold a stock longer than a few months if it fails to perform, unless they fall in love with it and/or accept it as a fundamental plank of their religion...
Look at Barrick and its rivals in terms of cashflow per market cap, or oz produced on a market cap basis, or reserves per market cap and you will find that the others have just come up to approach Barrick's numbers, and that Barrick is currently number 2 wrt these measures. Barrick has had an inflated valuation for nearly a decade,...now the others have come up to Barrick's inflated valuations.
If POG stays where it is, these valuations will have to come down as most producers have little to negative growth and poor profitabilities. If it weren't for their ability to float new share issues over the last few years, most of these producers' balance sheets would look very sick,...dilution of shareholders saved their arse.
Barrick on the other hand has no net debt even though they didn't dilute shareholders. Their balance sheets shine above the others. They continue to have one of the most active exploration and development profiles in the gold industry, partnering with dozens of juniors all over the world.
Don't think any of us here have recommended a purchase of Barrick at any time,...so I have no idea what some of the meatheads who come here to claim someone has, are talking about,...except for the fact that they never understood what we said, and have little understanding of mining, exploration, forward selling of production to lock in base price, and the basics of financing construction of mine projects.
How can one argue with a religion? |
