By Jeff Lewis
(Reuters) – Gold bull John Paulson’s investor coalition on Thursday urged the world’s largest gold miners to immediately cut what it called excessive governance and administrative (G&A) costs and said smaller rivals should pursue no-premium mergers to boost shareholder returns.
Concerns over global growth and trade uncertainties have pushed gold prices to multi-year highs, stoking expectations of deals among miners and reviving anxieties over cost control. This month, gold
Major miners including Polymetal
Among mid-tier producers, Golden Star Resources
The investor group urged the smaller gold miners to seek nil-premium mergers to eliminate duplication and lower costs.
“If the gold producers brought down their G&A levels closer to other mining peers, then $13 billion of value could be unlocked for shareholders,” the report said.
The coalition was launched last fall by Paulson’s U.S. hedge fund Paulson & Co. It includes Adrian Day Asset Management, Apogee Global Advisors, AMG Fondsverwaltung AG, Delbrook Capital, Equinox Partners LP, Equity Management Associates, John Hathaway, Kopernik Global Investors, Livermore Partners, La Mancha and Sun Valley Gold.
(Reporting by Jeff Lewis; editing by David Evans)