Another problem stems from criticism of mining executives themselves. In the wake of growing output they are failing at providing adequate incentives for investment in gold mining equities. Rob McEwen, chief executive of McEwen Mining Inc, singles out Goldcorp, and suggests that while the price of gold has risen 133 percent in the past 6 years, the company is still trading at 2006 prices. He argues that gold miners need to offer greater dividend payouts to their shareholders. “If the seniors came along and started paying a 3 or 4 percent yield, they would broaden their appeal in this yield starved market”.
And so, alarmingly, in a cycle that has seen gold prices consistently rise; there has been little relative payout to those investing in gold-mining stocks. As a result the pursuit of stock options has become much more difficult. It would require a balancing assessment of foreign political environments, financial returns, and dividend payouts. In gold mining equities, the price of gold means very little.
There is only a handful of mining stocks that pay divy & usually low 1-2%. If one of these paid 4-5%, IMO would bring in lot of new buyers.
One mining stock that has good divy is SPCC & this has also seen some big ups/downs in share price. New one last 6-months has been HL at 1-2% yield.
I personally like reinvesting the divy & getting a few more shares per quarter at lows/highs of stock. Like this a lot better than company buying back shares, because most have a zillion shares out & buying back is a drop in the bucket.
The future will tell, but sounds like Rob Mc might put out nice divy when MUX starts making cash
Well, ... Mr. McEwen makes sense, if your one of those Large-cap PM companies and your showing exceptional growth and profit, its only fair and honest to remember and reward those that funded your venture, Rob says a lot of the right things and I think in the long-run, we will see that he's been up-front with his views and opinions.
We are in the same boat he's in, we have hard earned money in his bank.