3:31 PM Gold Company Makes Huge Blunder By Investing In U.S. Shale Assets | |
Something took place in the gold industry that I thought would never happen. In a stunning press release, Franco-Nevada Gold announced that it was taking a financial stake in U.S. shale energy assets. Why on earth is one of the top gold royalty companies investing in an industry in which it has no expertise… especially in the shale oil industry??
Furthermore, didn’t Franco-Nevada Chairman Pierre Lassonde read about how BHP Billiton lost tens of billions of dollars investing in U.S. shale assets? According to the article dated July 28th, BHP sells US onshore oil and gas assets for heavy loss: BHP has managed to unload its contentious US onshore oil and gas assets, but at a very heavy loss. In a statement to the ASX, BHP announced it had sold its interests in four large fields to energy giant BP and another US energy player for $US10.8 billion ($14.6 billion), a heavy discount to the $50 billionit has ploughed into the venture since 2011. When BHP Billiton began investing $50 billion in U.S. Shale assets in 2011, its profits were $23 billion that year. However, by 2016, BHP’s horrible shale portfolio helped turn its profits into a $6.3 billion loss.
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