The Conversation (0)
In a recent article, Peter Koven of the Financial Post posits that while one might expect to see activist investors taking advantage of the poor gold market, in fact they “don’t see any more hope for this sector than anyone else does right now.”
In a recent article, Peter Koven of the Financial Post posits that while one might expect to see activist investors taking advantage of the poor gold market, in fact they “don’t see any more hope for this sector than anyone else does right now.”
As quoted in the market news:
‘If you take over the board and take over the company, how are you going to create value at a gold price like this?’ said Wes Hall, head of Kingsdale Shareholder Services.
‘You don’t want to put good money after bad by spending money on a proxy fight, winning the proxy fight, and the company is still a piece of shit.’
Activists want to target companies that are poorly run and could turn around quickly with a change at the top (Canadian Pacific Railway Ltd. is a prime example). But this market has not distinguished between well-run and poorly run mining companies: they have all been slaughtered, leaving little opportunity to create value by replacing management.
