Gold believers losing faith in mining companies

New York

THE red-hot market for gold mining companies has made the shares too expensive for some investors, even though they remain bullish on the outlook for bullion.

Earlier this year, fund managers including George Soros gobbled up shares of producers such as Barrick Gold Corp and Newmont Mining Corp in a bet that the surprise rally in the price of the metal would spark a surge in profit. After a five-year slump marked by mine closures and losses, the companies were cheap.