Since peaking in early August, the price of gold was on a generally declining trend for the balance of the year as real interest rates picked up. While easing gold prices weighed on the stock prices of miners during the quarter, the quality names we seek to own—including Barrick Gold (GOLD, Financial), Wheaton (TSX:WPM, Financial) and Newcrest (ASX:NCM, Financial)—have maintained a disciplined approach to capital deployment and balance-sheet management. We believe this reflects the fact that many industry assets have been consolidated into the hands of operators with truly professional management. These well-run companies have bolstered their balance sheets in recent years, positioning themselves to weather changes in the gold price, which can be volatile in the near term.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team's fourth-quarter 2020 commentary.
