|Bid||12.77 x 800|
|Ask||0.00 x 2900|
|Day's Range||13.02 - 13.37|
|52 Week Range||11.07 - 18.35|
|PE Ratio (TTM)||10.84|
|Forward Dividend & Yield||0.12 (0.93%)|
|1y Target Est||15.75|
Barrick (ABX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Midas Gold Corp. (MAX.TO) (MDRPF) (“Midas Gold” or the “Company”) today announced that it has increased the size of its board of directors from seven to eight and appointed Mark Hill, Chief Investment Officer with Barrick Gold Corporation (ABX) (ABX) (“Barrick”) to fill the additional position. The increase in board size and the appointment of a Barrick nominee to the board of directors is in accordance with the terms of the investor rights agreement entered into with Barrick in conjunction with the strategic investment by Barrick in Midas Gold that was completed on May 16, 2018.
Goldcorp Inc. Chief Executive Officer David Garofalo says he’s happy with his company’s portfolio of assets, but that doesn’t mean he doesn’t have a wish list. In an ideal world, the company would have an asset in Nevada’s Carlin Trend. Barrick and Newmont are there and we should be there,” he said in an interview in Toronto, adding he’d also like to acquire something in Peru.
While gold stocks seemingly offer a viable solution, their overall performance has been unusually disappointing. When it does, today’s beaten-up and undervalued gold stocks could witness a robust revival. While I don’t begrudge the equities sector enjoying its resilient bull market, the underperformance in gold stocks doesn’t quite jibe.
Despite the ongoing slump in the precious metals market, it seems that there could be hope going forward. The price targets of Wall Street analysts have portrayed some silent optimism.
In this part of the series, we’ll analyze the correlation of the mining stocks to gold. Gold is the most dominant of the four precious metals, and silver, platinum, and palladium are known to closely track the movement in gold. Also, precious metals, though they belong to the equity segment of the market, are more dependent on where precious metals move, especially gold.
Hedge funds increased their net positions in the SPDR Gold Shares ETF (GLD) during the first quarter. Gold miners haven’t kept the pace with broader equities and gold prices. In Can Gold Stocks Catch Up to Broader Equities and Gold Prices? we’ve highlighted what could help these miners catch up.
US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011. Yesterday was also an up-day for US yields. The two-year Treasury note yield (SHY)(GOVT) hit a new multiyear high of approximately 2.6%—its highest level since August 11, 2008.
One of the most crucial factors causing a slump in the price of precious metals is the revival of the US dollar. The DXY, which prices the dollar against a basket of six major world currencies, rose 0.68% on May 15. The DXY gained 3.8% over the last month.
After reviving compared to their previous losses, the four precious metals are in negative territory again. The revival of the US dollar had a negative impact on precious metals and mining stocks during the past few weeks. The settling of the market’s unrest could have also caused a withdrawal of haven bids.
Gold ETF investors bought 173.4 tons of gold in 2017, which was 9% higher year-over-year. In 2018 year-to-date, the inflows in gold-backed ETFs have been strong. In times of increased volatility, investors are repositioning their portfolios to include more gold as a volatility hedge. Expectations of a global trade war triggered by President Trump’s import tariffs could lead investors to seek a haven in gold.
Barrick’s investment supports Midas Gold’s continued efforts to complete a feasibility study and permitting of the Stibnite Gold Project, a world class mining operation that can address legacy environmental impacts and generate economic benefits for the local community. Additional transaction details can be found in Midas Gold’s news release dated May 9, 2018 and in Midas Gold’s filings made on SEDAR, available at www.sedar.com. Haywood Securities Inc. acted as financial advisor to Midas Gold. DuMoulin Black LLP acted as Canadian legal counsel to Midas Gold and Davies Ward Phillips & Vineberg LLP acted as Canadian legal counsel to Barrick.
The deal between PVDC and AES Andres is likely to reduce the average cost of sales of the Pueblo Viejo mine and benefit Barrick Gold (ABX).
When analyzing precious metals and precious metal mining companies, it’s essential to analyze the relationship between precious metals. There have been considerable ups and downs in precious metals since the beginning of 2018. Year-to-date, gold has risen 1.1%, and silver has fallen 2.2%.
All four precious metals appreciated on May 10, as forecast by RSI (relative strength index) scores the previous day. Gold rose 0.73% to $1,320.80 per ounce. Silver rose ~1.4% to $16.70, platinum rose 0.98% to $926.50, and palladium rose 2.4% to $1,002. Technicals and macroeconomic events boosted precious metals.
Canada's main stock index rose to a more than three-month high on Monday, helped by gains in energy and financial shares. * At 9:44 a.m. ET (1344 GMT), the Toronto Stock Exchange's S&P/TSX Composite Index rose 56.12 points, or 0.35 percent, to 16,039.44. * Shares of Thomson Reuters rose 2 percent, boosting the financial index, after brokerage Canaccord Genuity upgraded the news and information company to "buy" from "hold".
Global miners Glencore and Barrick Gold expect to receive a prospecting licence for a nickel joint venture in Tanzania after the government cancelled its retention licence, Barrick said. The retention licence of the undeveloped Kabanga nickel project was one of 11 licences cancelled as part of enforcement of a new mining regulations which were approved in January. Retention licences are granted to mining companies that want to hold the rights to a deposit, but cannot develop that area immediately due to technical constraints, adverse market conditions or other economic factors.
Barrick Gold Corporation (ABX) (ABX.TO) (Barrick or the “Company”) today announced that Pueblo Viejo Dominicana Corporation (“PVDC”), operator of the Pueblo Viejo mine, has signed a 10-year natural gas supply contract with AES Andres DR, S.A. in the Dominican Republic that will enable the conversion of the Quisqueya I power generation facility from heavy fuel oil to natural gas. PVDC is a joint venture between Barrick (60 percent) and Goldcorp Inc. (40 percent).
Executives at Barrick Gold Corp. and Glencore Plc expect to receive a new license for their joint venture Kabanga nickel project in Tanzania, having held “productive” talks with the government during the past several months, Barrick said Sunday. Under changes to Tanzania’s mining license structure put into place in January, Barrick and Glencore have applied for a prospecting license to replace the retention license they previously held on the undeveloped project. The retention license was due to expire in 2019, and the new license would be good for four years, Barrick spokesman Andy Lloyd said by email.
Compared to its closest peers, Kinross Gold (KGC) has been a high-cost gold producer. As a result, Kinross is highly leveraged to gold prices compared to its peers (GDX) Goldcorp (GG), Barrick Gold (ABX), and Newmont Mining (NEM). In this part of the series, we’ll see how Kinross is trying to improve its unit costs.
Barrick Gold Corporation (TSX:ABX) delivered a less impressive 7.27% ROE over the past year, compared to the 13.16% return generated by its industry. ABX’s results could indicate a relatively inefficientRead More...
In this final part of the series, we’ll look at the correlation between gold and four mining stocks: Randgold Resources (GOLD), Yamana Gold (AUY), Coeur Mining (CDE), and Barrick Gold (ABX). Mining stocks generally move with gold prices. Among these four miners, Yamana Gold has shown the highest correlation with gold this year, while Randgold has the lowest correlation on a year-to-date basis.