Why is Newcrest stock price stagnating during this price surge?

Discussion in 'Stocks & Derivatives' started by Aurora et luna, Feb 20, 2020.

  1. Aurora et luna

    Aurora et luna Well-Known Member Silver Stacker

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    Why is Newcrest stock price flat lining during this current price surge?
    The last time I looked at this stock a few months ago it was around $37 a share with the gold price at a much lower level.
     
  2. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    I've been asking myself the exact same question. EVN and RRL are also lagging in what seems like an obviously under-priced sector with both Gold going up in USD *PLUS* the AUD hitting new lows. These stocks should be pumping on an obvious safe-haven play just like NST has been doing.

    To answer your question though - I think it is not necessarily Newcrest but a phenomena of the sector. NCM is just the worst.
     
  3. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Is it because as gold goes higher, other mines are processing their old tailings and bringing more gold to market>
     
  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Because it is well known the management of Newcrest is actively pissing on its future profits by increasing salary, bonuses and expansion into low reward ventures in every boom
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Agree. The market hasn’t caught on yet.

    It’s also symptomatic of the changes in the direction that the analysis of stocks has taken recently because of the move from active to passive investments combined with a general unwillingness amongst advisers to consider gold an investment vehicle.

    In other words, they’re in denial and will need to be dragged kicking and screaming into this new place of “barbaric relics” before they’ll even publicly acknowledge that gold is still on the table. ;)
     
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  6. fishduck

    fishduck Active Member Silver Stacker

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    Just curious, as investors, do you prefer mining companies sell all the gold they mine or hold some above ground as reserves?
     
  7. SilverDJ

    SilverDJ Well-Known Member

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    Everyone is moving to SLR :D
    Seriously SLR is going to join the ranks of the big boys in the next couple of years, it's going gang-busters. They are actually doing sensible things with their huge hordes of cash and gold.
     
    Last edited: Feb 21, 2020
  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Sell. Then use the funds to improve productivity, driving down the cost of mining and driving up the price of shares. And not giving it back to shareholders unless they have absolutely no better use for it.

    No point growing cattle or grain if you don't send it to market.
     
  9. SilverDJ

    SilverDJ Well-Known Member

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    This has split the SLR shareholder community.
    They have $200M+ cash in the bank plus more in gold, no debt, and income streams coming out their ears, yet they have never declared a dividend.
    Some argue a token dividend will go a long way to get the notice of institutional investors and hence raise the share price. And others argue the money is better spent investing in the business and building the share price that way.
    Both are possible of course.
     
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  10. Slimey

    Slimey Well-Known Member

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    Rupert Murdoch made it clear to his shareholders many, many decades ago. You can have capital growth or dividends, but not both, so choose. They chose growth. Much smarter
     
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  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Spending it on raising the price of shares? Like a stock buyback. :p
     

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