After getting slaughtered last year, gold mining stocks are showing modest gains in 2014 and are also outperforming gold by a narrow margin. That’s the good news. The bad news? Gold miners are still burning through cash, making them unattractive investments.
“Understandably, many shareholders are toiling with the idea of buying into gold equities given the past 12-month’s decline in share prices,” said Johann Steyn, an analyst at Citigroup, in a note. “We continue our theme of ‘don’t be tempted.’”