Stock price of 6 major miners as of today over last 10 years:
IAG: -44%, AU: -57%, GG: +72%, ABX: -22%, NEM: -46%, GFI: -70%
AND price of gold last 10 yrs. over +300% even in spite of last year.
IAG near 10 year low?
(numbers from google finance)
The 3 year numbers are even worse for IAG vs peers.
In IAG's case, they haven't cut costs enough and the CEO went on a buying spree during peak gold levels, destroying a once pristine balance sheet. Doesn't help that he is ineffective in communicating the true value of this company. How does a company trade at $1.3B when it has a niobium asset pegged at $1.8B alone, in addition to numerous operating mines and soon-to-be operating mines.
So basically reckless spending and an incompetent d-bag as CEO would be the problem...
I don't recall what they paid for Cotes but considering the measly deposits being found with increasing difficulty around the world today, if they paid around 600M, it will prove to be a bargain. 500K ounces/yr with a LOM of 15 years and they'll pull $10B worth of gold out of that mine without political risk, logistic issues etc. Even the best, most stable companies in the world tend to buy at the top. As long as the assets are good quality, it usually works out over time.