Big dog - wealth destroyer Big dog, Goldcorp inc. Last week they announced their last quarter earnings, and they landed a trifecta:
1. Three year forward production outlook reduced over 15%
2. Dividend reduced by over 65%
3. Big loss and $5 billion write down of their assets
Folks, this company is a wealth destroyer and going nowhere. Its got $3 billion debt, a questionable Board and management team, and corporate culture which seems to reward failure to deliver. If you have a look at their Board and management team, they have next to no skin in the game, and they are mostly career professionals on salaries and perks, being accountants, lawyers and economists. Where are the geologists and mining engineers? Its a mining company. Right?
They did a Rubicon on one of their mines, so now its not a producing asset. Heads should roll. But no, they all get to keep their well paid salaried positions.
The large cap gold miners should just be generally avoided. The bull market in the gold miners, is already starting to bifurcate, as smart money gravitates to the mid-tier and smaller cap miners, and aggressive well funded explorers, where the Board and management teams are aligned with the shareholders. And where geologists and engineers run the business, not lawyers and accountants.