Value of low-grade ore stockpile at the Peñasquito mine dropped, raising average costs by $64/oz. and negatively affecting adjusted earnings by $0.04/share.
Asset bubbles go as far back as finance and speculation themselves. In the past, there have been bubbles in everything from tulips to railroads that have made or broke fortunes.
David Harquail joined well-known investors ‘Lucky’ Pierre Lassonde and Seymour Schulich in 1987, when Franco-Nevada was just getting its legs. He’s been with the company ever since, currently serving as CEO.
I have always been in favor of mining companies holding back the sale of a portion of their metals when prices dip. Furthermore, they should hold reserves beyond the amount needed to run daily operations in gold and silver, not fiat cash.
