Investors are increasingly showing impatience with mining companies, as Vancouver-based Goldcorp Inc. learned on Thursday
As gold prices have stagnated in the second half of 2018, never matching the US$1,300 per ounce price that dominated the first six months of the year, investors have increasingly shown impatience with mining companies, as Vancouver-based Goldcorp Inc. learned on Thursday.
With a $101 million loss in the third quarter, compared to $111 million profit the previous year, the company’s stock fell 18.40 per cent to $11.09 Thursday — a price it hasn’t closed at since 2001.
The first 30 minutes of Goldcorp Inc.’s quarterly earnings call on Thursday proceeded without mention of the stock trouble until one analyst suddenly unleashed on the company’s management.
“I’m trying to think about the accountability on management, how shareholders are expected to understand this — the stock’s down 35 per cent,” said Peter Jacobs, an analyst with Stifel RMG Group. “And it’s almost as if it’s business as usual, just another failed gold mining stock.”
“So, what would you tell a shareholder who feels extremely burned?” Jacobs asked. Chief executive David Garofalo thanked him, and made the case that his company is investing in the future and will produce gold at lower costs, that it has grown its reserve base and its pipeline of projects.