GOLD - Barrick Gold CEO hits 'myopic' western funds for focus on quick returns - FT

2023-08-15 11:57:17 ET

Barrick Gold ( NYSE: GOLD ) CEO Mark Bristow criticized western fund managers for their short-sighted focus on making quick returns, in an interview Tuesday with Financial Times .

"The western world has become extremely myopic, driven by instant gratification," Bristow said, noting money from passive funds that track markets rather than actively pick stocks and assets that are "not conducive for mining investments" as they fail to support "pioneer-type opportunities."

The CEO cited Saudi Arabia's Public Investment Fund as an example of an investor considering projects that may not deliver short-term returns but would help production of vital metals for the clean energy transition.

Bristow criticized the short-term focus on quarterly earnings by large asset managers such as BlackRock and Vanguard for making it difficult to find the capital needed to move forward ith long-term projects such as Pakistan's $7B Reko Diq mine, which Barrick ( GOLD ) is developing but is unlikely to deliver returns for years.

Saudi Arabia's PIF and state mining company Ma'aden recently expressed interest in taking a stake in the mine, which Bristow said he would "absolutely" support.

More on Barrick Gold:

• Financial and valuation comparison to sector peers
• Analysis: Barrick Gold: Easy Comps In Q3 Make It A Buy Near Trough Multiples
• Stock price return: Down 6.5% YTD, up 1% in the past 12 months

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