I have no interest in the major gold producers (or minor ones for that matter), but I find it odd that companies like Barrick Gold (TSX: ABX) and Kinross (TSX: K) are hitting lows when they are so wildly profitable.
Kinross is down by about half, but they have geopolitical issues which can justify some of the decrease. However, Barrick is down 20% (which is uncharacteristic of the stock, which is one of the lowest volatility stocks out there) and they continue to rake in the cash – selling prices of $1,700/Oz and total costs of about $740/Oz from their last quarterly report. The market is probably trying to price a significant increase in cash costs over the medium term.
I continue to be leery about commodity-based firms at this time.