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<p>[QUOTE=&quot;Collector1966, post: 1251836, member: 17919&quot;]The problem with holding stock in big mining companies is that those companies are under pressure from Wall Street to grow grow grow. And yet, because they are in the business of extracting non-renewable resources, they must reach a point where they can no longer grow at the rate that is expected of them, and if they cannot continuously find new reserves, they will start to decline. When that happens, they get kicked in the teeth by Wall Street.</p><p><br /></p><p>The company you mentioned may have $1B in cash, but it also has 800 million common shares outstanding (which works out to about $1.25 cash per share), it only pays a very small dividend (about the same as bank CDs) and the P/E ratio is 22 which seems to be high for a company which by its very nature cannot continue growing indefinitely.[/QUOTE]</p><p><br /></p>

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