For much of September, gold has been trading at its highest price in years, and yet gold mining companies, large, small and in-between, find themselves under attack from their largest investors.
Specifically it looks at 47 companies, of varying size, and ranks their expenses as a percentage of cashflow, or EBITDA. Expenses include general and administrative as listed on income statements, and stock-based compensation. Shareholders Gold Council Among senior gold producers, Evolution Mining Ltd., Barrick Gold Corp. and AngloGold Ashanti Ltd. ranked the best, in that order, with ratios of 4.5 per cent, 4.6 per cent and 4.8 per cent. The worst performers by this metric were Polymetal International Plc., Kinross Gold Corp. and Agnico Eagle Mines Ltd., coming in at 17.5 per cent, 11 per cent and 10.3 per cent.
It recommends that mid-tier gold producers “pursue nil-premium mergers of equals” to create more efficient management structures.