|Bid||16.880 x 0|
|Ask||16.900 x 0|
|Day's Range||16.250 - 16.920|
|52 Week Range||12.540 - 19.490|
|Beta (3Y Monthly)||-0.50|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 12, 2019 - Feb 18, 2019|
|Forward Dividend & Yield||0.16 (0.94%)|
|1y Target Est||13.71|
The COMEX gold futures contract has been trading around its "reversion to the mean" since the week of June 17, 2016, and this 200-week simple moving average is now $1,235.1 per troy ounce. Barrick Gold Corporation ( ABX), Yamana Gold Inc. ( AUY), Goldcorp Inc. ( GG) and Newmont Mining Corporation ( NEM) have been lagging gold futures, so investing in these stocks makes sense as an alternative asset allocation given the high probability that the stock market is forming a global bear market. Gold futures and Barrick Gold are in correction territory, while the other gold mining stocks Yamana Gold, Goldcorp and Newmont Mining are in bear market territory.
Gold miners as a whole are looking inexpensive compared to broader equities. The average ratio of the NYSE Arca Gold Miners Index (GDX) and the S&P 500 Index (SPY) is 0.20 compared to the ten-year average of 0.68. While broader equities’ valuations have continued to increase, the valuations of gold stocks haven’t kept the pace, and the ratio has fallen.
Not only did the price of gold rise during the month, but two of the largest gold miners in the world, Barrick Gold (NYSE: ABX) and Randgold Resources (NYSE: GOLD) rose 13 and 11 percent respectively. VantagePoint’s artificial intelligence and intermarket analysis signals make 1-3 day forecasts accurate up to 86 percent of the time. The blue line is a predicted moving average and the black is a 10-day moving average.
IAMGOLD (IAG) generated revenue of $244.8 million in the third quarter, a YoY (year-over-year) fall of 9%. The fall was the result of both lower realized gold prices and lower sales and volumes at the Rosebel and Westwood mines.
The rises in Barrick Gold’s (ABX) and Randgold Resources’ (GOLD) stock prices following their merger announcement suggest that investors are happy with the merger and its potential synergies. On November 5, more than 99% of ABX’s shareholders approved its all-stock acquisition of GOLD. The question, however, remains as to whether the issues ailing Barrick Gold will all go away with this merger.
John Thornton has been at the helm of Barrick as Chairman since 2014, when the company was burdened with a mountain of debt and an uncertain future. Since then, Barrick has experienced a remarkable turnaround. Randgold has a flat, decentralized management structure.
On September 24, Barrick Gold (ABX) agreed to acquire Randgold Resources (GOLD) in a share-for-share deal. Along with owning five of the top ten tier-one gold assets, the combined company will have two high-potential tier-one assets in Fourmile and Turquoise Ridge. Randgold’s CEO, Mark Bristow, will become the CEO and president of the new Barrick Gold, while Thornton will become the executive chair.
Randgold Resources shareholders on Wednesday approved a $6.1 billion all-stock takeover by Barrick Gold, clearing one of the final hurdles to creating the world's largest gold company. Votes were 95.2 ...
Unlike at most companies, geologists play a central role in Randgold. Geologists tend to be free-spirited, nonconformist, and sometimes a bit eccentric. There is only so much geologic information to be gained from the surface of the earth, yet the geologist must decipher millions of years of geologic history to generate drill targets.
Since the generation of free cash flow (or FCF) creates shareholder value and helps a business’s long-term prospects, it’s important for investors to track gold miners’ (GDX) abilities to generate FCF. Barrick Gold (ABX) has a strategy of value over volume, which prioritizes profitable production. The company defines value creation for shareholders in terms of FCF per share. Barrick Gold generated FCF of $319 million in the third quarter compared to -$172.0 million in the second quarter.
Some miners (GDX), including Barrick Gold (ABX), Newmont Mining (NEM), and Kinross Gold (KGC), were especially affected by peak cycle acquisitions and the resulting write-downs. Most of this debt reduction has been driven by the sale of its noncore assets. At the end of the third quarter, Barrick Gold’s total debt was $5.7 billion compared to $6.4 billion at the end of the first quarter.
In the week following the announcement, Randgold rose 10.4% and Barrick was up 5.8%, while the NYSE Arca Gold Miners Index was down 1.3%. The Barrick–Randgold merger was unique in that Barrick Gold didn’t pay a huge premium for Randgold. The two companies announced that Barrick Gold would be taking over the latter for $6.0 billion, which represented a negligible premium over Randgold’s stock price.
Combined, these are the most significant gatherings of institutional investors and gold companies in the world. As usual, we found some interesting discoveries and developments to follow up on with the smaller companies that attended the Precious Metals Summit. Fortunately, there was a heavy presence of corporate development teams from gold producers globally at the event.
Barrick Gold (ABX) reported AISC (all-in sustaining costs) of $785 per ounce and a cost of sales of $850 per ounce in the third quarter. Its AISC were 1.7% higher YoY (year-over-year) due to lower ounces sold, and its costs improved 8.3% sequentially. Its costs in the third quarter were in line with its guidance.
Barrick Gold Corp. (ABX) closed up 0.30% to $13.21 per share traded on the New York Stock Exchange on Monday following the release of shareholder voting results on its merger with Randgold Resources Ltd. (GOLD). Randgold Resources Ltd. was also up 0.34% to $82.60 per share on the Nasdaq. The extraordinary meeting of Barrick Gold Corp.'s shareholders has almost unanimously approved the merger with Randgold Resources Ltd.
Production growth is a crucial variable for miners. Barrick Gold (ABX) produced ~1.15 million ounces of gold in the third quarter, a fall of ~7.0% YoY (year-over-year). Improved throughput and grades at Barrick Nevada and the completion of debottlenecking improvements at Pueblo Viejo aided this improvement.
Barrick Gold (ABX) reported its third-quarter earnings results after the market closed on October 24. In the third quarter, Barrick produced 1.15 million ounces of gold, up 7.4% sequentially, mainly due to better throughput and grades at Barrick Nevada. While the company has maintained its copper and gold production guidance for the year, it expects its gold production to come in at the lower end of 4.5 million–5.0 million ounces.
Barrick Gold will look to sell unwanted gold assets to mid-tier gold companies following its merger with Randgold Resources, according to incoming chief executive Mark Bristow. The combined company will look to sell a range of mines including its stake in Australia’s Kalgoorlie and reinvest some of the money in its Nevada operations, Bristow, current CEO of Randgold, said. Barrick will target a range of upcoming mid-tier gold companies such as Endeavour and B2B Gold as buyers for its assets, Mr Bristow said.
Randgold Resources said on Tuesday it would mediate in a tax dispute between Tanzania and Acacia Mining, a firm in which Randgold investors will have a stake if its planned merger with Barrick Gold is approved by shareholders. Randgold Chief Executive Mark Bristow, who will lead the group after the Barrick tie-up, also told Reuters that Barrick could dispose of its Zambian copper mine after the merger.
The merger between Barrick and Randgold will also provide momentum for further consolidation within the gold industry, which needs to better compete for global investors, Bristow said in an interview after the release of his company’s third-quarter results. Key InsightsIt’s clear that Bristow, who will become CEO of new Barrick, will employ the same game plan that made Randgold the darling of gold-mining investors.
Randgold said profit rose to $73.2m in the quarter from $60.2m a year earlier as gold production held steady at 308,628 ounces and costs fell. Randgold shareholders are set to vote on Wednesday on the acquisition by Barrick Gold, which was announced in September. Mark Bristow, chief executive of Randgold, will become CEO of the combined group, which will become the largest listed global gold producer with a market capitalisation of $18bn.
Randgold Resources said on Tuesday third-quarter profit rose 25 percent on the previous quarter helped by lower costs a day before its shareholders vote on a $6.1 billion tie-up with Barrick Gold. The London-listed miner said profit for the period reached $73.2 million while cash costs fell 18 percent versus the previous quarter to $181.6 million. Gold production slipped 1.5 percent to 308,628 ounces compared to the previous quarter as an eight-week labour strike at the Tongon mine was offset by higher output at its other mines.