|Bid||9.96 x 27000|
|Ask||9.97 x 21500|
|Day's Range||9.73 - 10.26|
|52 Week Range||9.73 - 18.35|
|PE Ratio (TTM)||12.73|
|Forward Dividend & Yield||0.12 (0.89%)|
|1y Target Est||14.36|
Gold stocks have fallen nearly 19% from their highs in 2018 as measured by the VanEck Vectors Gold Miners ETF ( GDX), which holds 49 stocks. The individual mining stocks have fallen even more than the ETF in some cases and, based on technical analysis, are facing even steeper declines. Gold miners’ revenue is tied to the price of gold, and should prices fall, revenue drops, causing earnings to decline.
In the senior gold miner space, Newmont Mining (NEM) has the highest forward EV-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple of 8.1x. Goldcorp (GG) follows it with a multiple of 6.8x. While the premiums of all the gold miners have waned relative to their historical averages due to weaker precious metal prices, GG’s production growth has remained muted for the last two years, and its costs have trended higher.
At the end of Q2 2018, Goldcorp’s net debt and adjusted net debt totaled $2.4 billion and $2.3 billion, respectively. Thus, the net debt to EBITDA (earnings before interest, tax, depreciation, and amortization) for the company was closer to 1.7x during the second quarter. Now it’s focusing on the deleveraging and strengthening its balance sheet further to prepare the company for the next phase of the capital investment cycle, which is expected to start after 2020 with the buildup of the next generation of mines.
Goldcorp (GG) achieved AISC (all-in sustaining costs) of $850.00 per ounce in Q2 2018, which was 6.3% higher YoY (year-over-year) and 5.0% higher sequentially. Its AISC was also higher than its fiscal 2018 guidance of $800.00 per ounce, plus or minus 5.0%.
Barrick Gold Corporation (ABX) (ABX) and NOVAGOLD RESOURCES INC. (NG.TO) (NYSE American:NG) are pleased to announce that the U.S. Army Corps of Engineers (the Corps) and the U.S. Bureau of Land Management (BLM) have issued a single Federal Record of Decision (ROD) for the Donlin Gold project following completion of the federal National Environmental Policy Act process. Along with the ROD, the Corps issued a combined permit under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act.
Goldcorp (GG) has one of the strongest project pipelines in the industry. Goldcorp provided an update on the progress of these projects in its Q2 2018 earnings call. At Penasquito, the Pyrite Leach Project (or PLP) is 98.0% complete.
Goldcorp (GG) produced 571,000 ounces of gold in Q2 2018, a decline of ~10.0% year-over-year (or YoY). On the other hand, its Cerro Negro and Eleonore mine ramp-up partially offset the decline from the above-mentioned factors. The company should see weak production growth in the third quarter as well, as it has modified the production plan for lower mill throughput and mill acreage.
Goldcorp (GG) reported its Q2 2018 earnings on July 25, 2018, after the market closed and held its earnings conference call on July 26. It reported adjusted EPS of $0.02, which missed the consensus estimate by $0.05. Its revenues of $793 million missed the analyst estimate by ~9%. Lower production and foreign exchange currency costs were mainly responsible for the miss. The company reported that it lost $0.20 per share due to deferred tax balances. Goldcorp also missed analysts’ expectations for its Q1 2018 earnings.
, said Barrick was only interested in two kinds of mines: tier one assets and strategic assets. Answer, does it qualify on these three measures [500,000 ounces, mine life more than 10 years, better half of cost curve]? Addressing Barrick’s current portfolio, Mr Thornton said it was also clear it owned assets that were neither tier one or strategic, highlighting Hemlo in Canada, Lagunas in Peru and KGCM, the biggest open gold mine in Australia as examples.
John Thornton is taking a page from the late Peter Munk’s playbook in recognizing the value of copper in Barrick Gold Corp.’s portfolio. The world’s largest gold miner almost destroyed itself with a top-of-the-cycle foray into copper in 2011. Executive Chairman Thornton is considering copper-growth options once again, but this time with Chinese partners.
John Thornton threw that rulebook out when he took over struggling Barrick Gold Corp., the world’s largest gold producer. The former Goldman Sachs Group Inc. president was an industry amateur, as were most of his top hires. Mr. Thornton, 64 years old, spends only two or three days a month at Barrick’s Toronto headquarters.
Kinross Gold’s (KGC) liquidity position at the end of the second quarter wasn’t much different than it was at the end of the first quarter. It ended the second quarter with cash and cash equivalents of $918.7 million. Investors should note that this liquidity position is more significant since the company doesn’t have any debt maturity until 2021.
Compared to its closest peers, Kinross Gold (KGC) has been a high-cost gold producer. Higher costs make its cash flows more leveraged against changes in revenue. As a result, Kinross is highly leveraged to gold prices compared to its peers (GDX) Goldcorp (GG), Barrick Gold (ABX), and Newmont Mining (NEM).
Free cash flow (or FCF) generation helps a business’s long-term prospects and helps generate shareholder value. 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 (ABX) generated FCF of -$172.0 million in the second quarter, which broke its streak of 12 consecutive quarters of positive FCF.
Yamana Gold (AUY) released its Q2 2018 results after the market closed on July 26 and held a conference call the next day. Its EPS of $0.20 and revenue of $431.5 million were in line with market expectations. While its earnings didn’t surprise investors, the company’s production was higher than expected, boosting its stock by a whopping 10.1% on July 27.
When precious metal prices (GLD)(SLV) started sliding, stocks with high financial leverage such as Barrick Gold (ABX), Newmont Mining (NEM), and Kinross Gold (KGC) declined. Most of those assets were subsequently written off due to poor economics, infrastructure issues, and weaker precious metal prices. Barrick Gold has been focusing on reducing its debt.
Barrick Gold (ABX) reported AISC (all-in sustaining costs) of $856 per ounce and cost of sales of $882 per ounce in the second quarter. Its cost of sales reached 22.0%, and its AISC was 21.0% higher YoY (year-over-year). These costs were also higher than the company’s guidance ranges for the full year. However, some of these higher costs were anticipated by the company.
Production growth is a crucial variable for miners. Barrick Gold (ABX) produced ~1.07 million ounces of gold in the second quarter, which reflects a decline of ~25.0% YoY (year-over-year). Barrick Gold (ABX) has maintained its production guidance of 4.5 million–5.0 million ounces of gold in 2018.
Barrick Gold (ABX) reported its second-quarter earnings on July 25 after the market closed and held its conference call the next day. The company reported adjusted EPS of $0.07, which missed analysts’ expectations by $0.04.
Canadian mining company Barrick Gold Corp (NYSE: ABX ) has succeeded in restructuring, decentralizing and strengthening its balance sheet, but now faces five new challenges, according to RBC Capital Markets. ...
Southern Ecuador is home to some promising mineral reserves, but the region had been abandoned in early 2000's due to restrictive government oversight. With new legislators, the area is again open to foreign investment, and large companies are making substantial investments in well-explored deposits. One of the most promising mines, Fruta Del Norte, was sold for $1.2 billion, and now a similar concession just 40 km away is being explored by another junior miner, Lucky Minerals (LJ).
Its recent earnings report surprised to the upside and it does have a great collection of classic brands. Toy sales are also declining due to the rise in computer and mobile gaming. Until this all shakes out, it’s best to avoid even the best of the old-school toy companies.
Barrick Gold (ABX) reported its Q2 2018 earnings yesterday after the market closed. The company reported adjusted EPS of $0.07, which missed analysts’ expectations by $0.04. Its revenues amounted to $1.71 billion, which missed expectations by 6.0%. The results stood in contrast to the company’s Q1 2018 earnings beat. The stock’s momentum in after-hours trading was weak after the miss.