…back on January 23rd, 2018:
The gold mining stocks that are set for a “spectacular year,” include senior producers and large intermediates, Rule noted.“They’ll move because expectations for them are so low. They are
becoming rational capital allocators and all of a sudden they are
generating free cash,” he said.
So, let’s see how those senior producers and large intermediates are doing in 2018:
- Newmont (NEM): Down 20%
- Goldcorp (GG): Down 30.8%
- Barrick (ABX): Down 11.2% (that even after the Randick deal, ABX was down 30% a few weeks ago)
- Agnico (AEM): Down 23.9%
- Kinross (KGC): Down 38.9%
We could continue. I suppose spectacular losses or spectacular destruction of shareholder equity is one way we could applaud Rule for his prediction.