Mining is difficult

While I prepare for a capital expenditure led cycle which will aide the case for higher commodity prices, positioning your investments for such a ‘theme’ won’t be as simple as owning equity in any or many mining companies.

The hoo-ha that we heard about the price of #gold hitting new highs through the month of December 2023 seems now muted.

Today is an example of the risks involved with mining production when combined with the market’s (or analysts) expectation of valuation.

Australia’s Evolution Mining and Canada’s Barrick Gold Corporation both reported their quarterly mining production and their stock prices fell 20% and 9% respectively.

We also saw some commensurate declines amongst some peers.

January 17, 2024

by Rob Zdravevski

rob@karriasset.com.au