KGC's management has pursued reckless expansion and does not have a history of returning value to shareholders. Look at the writedowns with the Tasiast project. While it may rise with gold, I really don't believe in the management team so I'm personally staying away from KGC.
Just a lot of emphasis on maintaining a strong balance sheet and not going ahead with projects unless it provides a sufficient rate of return. Nothing not-expected
See the IAMGold website, the Presentation is out.
CC to start in 30 min
1st Quote: "With the ramp-up of contribution from the Doyon division, we are on track to meet our annual production guidance."
2nd Quote: "Cash costs2 for the first quarter 2013, inclusive of joint venture operations, were $787 an ounce compared to $679 an ounce in the same quarter 2012, but $63 below the bottom of the 2013 guidance range.
I accept the revenue miss is dissapointing, but this is partly to be expected due to the drop in the gold price. Going forward they're going to meet expectations so I can't see the big problem. Also digging a bit deeper: "Throughput was lower due to unscheduled maintenance which resulted in the mill being shut down for seven days, and a harder rock blend." for Rosebel. The market has already priced in terrible earnings, I mean it's down close to 70% in half a year!!!! I believe this is positive for the stock. Go check out the other gold stocks that have reported earnings, most have been so, so much worse!!
The stock was double last year same Qtr. Don't you think the market has already priced in these results being bad? I mean the revenue number was bad, but it could have been so much worse.
Quotes " With the ramp-up of contribution from the Doyon division, we are on track to meet our annual production guidance."
"Cash costs2 for the first quarter 2013, inclusive of joint venture operations, were $787 an ounce compared to $679 an ounce in the same quarter 2012, but $63 below the bottom of the 2013 guidance range."
Iamgold Corporation (NYSE: IAG) reports Q1 EPS of $0.15 versus the estimated $0.14 , beating by $0.01 . EPS were Down 40% from the same quarter last year. Revenue came in at $305.30M versus the estimated $381.28M . Sales were Down 24% year over year.
I hear you tradegeek. The relentless selling in the gold miners has already priced in dreadful results. Selling crescendoed on Friday. Buy fear sell greed! These gold miners like HMY and IAG are trading half book. No brainer to add them to the long term portfolio at these prices. The last time HMY was at this price was in the year 2000!!
Sentiment: Strong Buy
"The company has an estimated 175 million ounces of gold resources. Given the company's current fully diluted market capitalization, this means that Harmony Gold's gold in the ground is selling for just $12.34 per ounce. "
Sure it's been a bad Qtr, but that was already priced in. Bouncing now. Trading half book too! IAG and HMY are the best gold miners out there at the moment.
I'm also in IAG at 5.07 average, up close to 10% now.
Sentiment: Strong Buy
It seems like most "investors" I talk to nowadays just want that quick buck. It doesn't matter how much risk they take, just look at the explosion of the 3x etfs.
The reality is stocks like IAG move up steadily when the public/retail investor think the stock is boring and simply move to the next crazy momentum stock.
With HFTs in the market, the stats are against you. Buy cheap companies (HFTs are all based on financial models, which can be wrong! But trying to trade against them is a losers game) , sell at fair value.
You think IAG's management is bad? They're actually trying to cut costs and have a very stock balance sheet. Look at stocks like Kinross and ABX who have racked up huge amounts of debt to fuel projects when gold was at its high. I personally think IAG is the best mining stock out there. (It's the biggest position in my portfolio by far)
I agree, a share buy-back (Or a riskier expansion/buy-out of a few juniors) would be a far better alternative at the moment.
Well I really mean when it starts getting fair valued. I'm a value investor and love to find stocks that are trading deep below book, with strong cash flows and cash balances. I agree that gold has been hit since people believe the Fed will taper, but the reality is Yellen is next who's an even bigger dove. I can't see them ending QE any time soon.