@TaviCosta Not as simple. Capex were postponed affecting the cost curve of Newmont and maybe, just maybe the market does buy gold staying at +$4000 for a foreseeable future, hence limiting the trend of the last 2 years of margins improvements. This is not my scenario but one must stay open.
@minenergybiz This is because NEM’s net margins increased by 14% Q/Q (at the same pace as the price of gold over the same period). So no leverage achieved in the second quarter. Investors are reluctant to pay more unless the price of gold improves from these levels. Rightfully so.
“The most difficult subjects can be explained to the most slowwitted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already – without a shadow of doubt – what is laid before him.”
Leo Tolstoy