Shareholder engagement is on the rise with the objective of aligning company incentives and goals with those of their shareholders.

Earlier in this decade shareholder returns suffered due to misguided acquisitions, indebtedness and poor operating performance. Although low gold prices have enforced financial and operating discipline on the gold industry, we never want to return to the poor business practices that characterized the boom years.

MVIS Global Junior Gold Miners Index vs.
NYSE Arca Gold Miners Index

Source: MV Index Solutions, 2019

While we have become more engaged with boards and managements with the goal of maintaining discipline throughout the gold cycle, we have also seen similar increases in engagement from other gold investors.

About the Author:

Joe Foster has been Portfolio Manager for the VanEck International Investors Gold Fund since 1998 and the VanEck – Global Gold UCITS Fund since 2012. Mr. Foster, an acknowledged authority on gold, has over 10 years of dedicated experience in geology and mining including as a gold geologist in Nevada. He has appeared in The Wall Street Journal, Barron's, and on Reuters, CNBC and Bloomberg TV. Mr. Foster has also published articles in a number of mining journals, including Mining Engineering and Geological Society of Nevada.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.