In one of the most significant divergences observed across the mining sector, gold miners - which in the year 2000 commanded a 50% market premium over copper miners, have seen their relative valuations erode and now trade at a 25% discount relative to copper miners. We've tracked nineteen gold and pure play copper companies over a fifteen year period and discuss how and why the copper sector has outperformed despite gold prices rising faster than copper prices over the analysis period.
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Insight | Jun 2015
Value creation in the mining sector: A long term divergence between copper and gold producers
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