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<p>[QUOTE=&quot;GoldFinger1969, post: 2086869, member: 73489&quot;]<b><span style="color: #b30000">The gold price went up 6-fold between 2002 and 2011</span></b> and virtually all mining companies saw their stock prices go DOWN or do nothing.</p><p><br /></p><p><b><span style="color: #b30000">Tens of billions of CAPX on gold mines have been written off</span></b>. Entire projects have been mothballed.&nbsp; Stock prices have round-tripped back 10-12 years, even though the price of gold is 4x higher.</p><p><br /></p><p><b><span style="color: #ff0000">These guys undertook tons of CAPX when gold was over $1,500/oz.&nbsp; </span></b>Net debt was a few billion for most of the 2000&#039;s....today a bunch of the biggest gold firms has closer to $30 billion in debt and debt/EBITDA (a measure of leverage) ratios double a decade ago.</p><p><br /></p><p><b><span style="color: #ff0000">These guys ALL have to produce to service their debt.</span></b>&nbsp; They all want SOMEONE ELSE to stop producing and mining -- not them. It&#039;s a game of chicken but they all may get run down trying to cross the road.<img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie7" alt=":p" unselectable="on" unselectable="on" /></p><p><br /></p><p><b>Mark Twain once said that a gold mine was a hole in the ground with a liar near the opening.</b> <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />&nbsp; You look at how the CEOs of these companies have been stewards of their shareholders capital and you know what Twain was talking about.[/QUOTE]</p><p><br /></p>

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