Nov 09, 2018 Guest(s): Marin Katusa Chairman, Katusa Research
Gold miners have suffered of late, owing in part to poor capital allocation choices from management, said Marin Katusa, chairman of Katusa Research.
"I've known David Garofalo [CEO of Goldcorp], and they announced today they're doing a massive buyback of shares. They've had a horrible quarter...they've been such poor allocators of capital. And, if you're a shareholder, are you investing in the company to reduce the number of shares, or would you rather have them grow and improve their margins?" Katusa told Kitco News on the sidelines of the Silver & Gold Summit in San Francisco, "Because, as an investor, I can place my own capital, I don't need management to place the shareholders' money."
Katusa said that investors should focus on political risks, margins, and what their investment time frame is when making investment decisions in the mining sector.