Randgold Resources Ltd. (GOLD) has cut through the noise and focused on the key fundamentals for gold mining: strong management, a focus on minerals and assets, and then finally a look at the capital, says Douglas B. Groh, Portfolio Manager and Senior Research Analyst at Tocqueville Asset Management LP.
“They’re a lean team in that regard, and I think they’re a cohesive group of people, and because of that cohesion they’ve had a lot of success. So here if it’s the management, it’s also the overall culture of the company that’s really been a successful adjuvant for them. Additionally, I think they’re focused on geology and recognizing that that’s where the ultimate value comes from, it’s from the ore deposit and focusing in a disciplined way on ore deposits that have fantastic upside potential,” Groh said.
Groh says Randgold has established credibility and respect with the investor community through the prudent use of capital, by not issuing equity for the sake of issuing equity, only doing so when it enhances shareholder value.
“What’s exemplified in Randgold’s success is a very strong management team, very focused, very disciplined on what their skill set is all about in various geologies in Western Africa. They have South Africans as operators in Africa. They understand very well the continent they work in and how to operate in the various countries where they do operate from their experience,” Groh said.
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