Why Buy a SA Gold Share?. February 2013. Normal health warning!. I will try to equally offend everybody. This is a ‘cut and paste’ presentation, but I have no doubt the originators of the slides would prefer not to be associated with this!
Why Buy a SA Gold Share?
Investors had no choice but to buy shares if they wanted
Moms and Pops – 3G‘s (Believe in God, Guns and Gold)
Specialist Gold Fund Managers
Net Purchases (tonnes)
We had no ‘cooking clue’ of what we were selling ……….
“None of us are as stupid as all of us”
Time will tell whether ETF buyers are better investors than Central Bankers
This overhang is going to result in a hangover
There is no longer any justification for a Gold Multiple
PE : 6 - Caters for depleting nature and uncertainty
8 - If revenue is hedged
10 - If a credible growth story
12 -Bubble territory
GOLD STOCKS ARE OVER VALUED NOT UNDER VALUED
Most majors are diversifying across the value chain of exploration, developing, operating and harvesting.
Investors want choice!
We gave you what you wanted
You got paid well, we got paid even better and we have no investors left.
ETF’s ARE THE NEW GO TO STOCKS !!
And now the CFO’s who oversaw this are running the companies!
“A system that improves thru external shocks is
Anti-Fragile” Nassim Nicholas Taleb
“Idiocy – Never underestimate the power of stupid people in large groups”
The other side of the coin is that the managers of the South African mining industry have been indolent. They have rested on hard-won laurels as the experts in deep-level hard-rock mining for too long. They have failed conspicuously to adapt to the new technologies that have been advanced with singular success elsewhere.
Entrepreneurial flair has been absent. An Ernest Oppenheimer, even in the vastly changed circumstances of the 21st century, would never have been permitted the Rip van Winkel approach of modern-day managers.inintransigence.
David Gleason BusinessDay 5 Feb 2013
Breaking up the majors may result in:
Let‘s live in hopeand die in despair!
Hope may not bewarrantedatthis time?
“I apologize for the mess my generation has imposed on yours.
I wish I could have left you a better legacy.
I just hope I have left you a measure of courage to face what we have done, and a measure of hope to do something about it.”
Nancy Kline Time to Think