https://newsletter.en.creamermedia.com
Financial|Indaba|Joburg Indaba|Mining
Financial|Indaba|Joburg Indaba|Mining
financial|indaba|joburg-indaba|mining

Excessive dividend demand is ripping heart out of mining’s future

23rd October 2020

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

Mining majors are putting emphasis on dividends over capital investment and it will come back to haunt them. Those with long enough memories will recall what happened to Rand Mines, which ended up with a strategy of dying with dignity.

Every single day that mining companies take something out of the ground, that value disappears forever, and unless they do something to replace that value, they are going to end up withering and dying. Mining doyen Sir Mick Davis spelt that out clearly at this month’s Joburg Indaba. But has the penny dropped? Investors, wounded after the 2008 global financial collapse, are continuing to demand dividends to excess, which will come back to haunt them.

It is absolutely essential that investors wise up to mining investments requiring cash to go into giving mining companies an infinite horizon. Mining company CEOs need to go all out to get through to investors and tell them that their current excessive insistence on dividend declarations will end up in share decline and losses for the pension and provident fund monies that they are meant to manage judiciously.

To watch Creamer Media's latest video reports, click here
 

Edited by Creamer Media Reporter

Comments

Showroom

Hanna Instruments (Pty) Ltd
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 15 November 2024
Magazine round up | 15 November 2024
15th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.087 0.178s - 178pq - 2rq
Subscribe Now