More matter with less art

Rick Rule’s wise words about the large precious metals producer companies…

…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.

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