|Bid||0.00 x 47300|
|Ask||0.00 x 38500|
|Day's Range||8.23 - 8.37|
|52 Week Range||7.90 - 12.00|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.06 (0.69%)|
|1y Target Est||14.38|
Most mining companies with operations in South Africa are facing infrastructure issues and labor concerns. South African miners are also facing issues due to safety regulations at their mines following several accidents due to controllable and uncontrollable circumstances. This is also true of Gold Fields (GFI), which has mines in Ghana and South Africa.
HALIFAX , June 12, 2018 /CNW/ - Zonte Metals Inc. (ZON.V) ("Zonte" or the "Company") is pleased to provide an update related to its ongoing exploration program at the Cross Hills Iron Oxide Copper-Gold Project. Over the past several months, and as part of a larger program, Zonte has been carrying out high-resolution ground magnetometer surveys on select portions of the Cross Hills Project. The most recent area of focus has been about 12 kilometres south of Dunns Mountain, where the Company has previously identified a high-priority target.
NEW YORK, June 08, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Proteostasis ...
Today, WallStEquities.com takes a close look at the Gold space, which is engaged in the exploration and production of gold from mines. Gold companies are generally structured as corporations and have profits that are positively correlated with the price of gold. Lined up for review this morning are four stocks: Alamos Gold Inc. (NYSE: AGI), AngloGold Ashanti Ltd (NYSE: AU), B2Gold Corp. (NYSE AMER: BTG), and Barrick Gold Corp. (NYSE: ABX).
Another element that could have possibly boosted gold prices is the forward-looking estimates of higher inflation. The Fed’s assertion that it would let inflation (TIPS) move above its target of 2% is positive for gold. Gold is often considered to be a hedge against inflation.
The US Dollar Index (or DXY), which prices the dollar against a basket of six major world currencies, was up 0.36% on the day, and it’s risen almost 3.3% in the last month. The US dollar (UUP) remains a core determinant for gold and other precious metals. During the last month, gold and silver have fallen 2.5% and 1.4%, respectively.
In this part of the series, we’ll analyze mining stocks’ correlation with gold. Gold dominates the four precious metals, and silver, platinum, and palladium are known to closely track its movement.
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.
Gold dipped as dollar gains strength triggered by rise in U.S. Treasury yields. Prospects of a rate hike in June will likely weigh on gold prices.
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.
Markets were full of geopolitical tensions in April, boosting precious metals and miners’ stock prices. However, the US dollar later strengthened and the market unrest subsided, impacting precious metals and mining stocks.
South African miners have traditionally traded at a discount to their global counterparts (GDX), primarily due to South Africa’s laws, labor concerns, and infrastructure challenges. Among these miners, Gold Fields (GFI) has the highest valuation multiple of 3.8x—a premium of 16.0% to the peer average. Sibanye Gold (SBGL) has a forward multiple of 3.5x—a premium of 7.4% to the peer average.
Silver traded at $16.40 per ounce, its RSI level was 42.2, and its implied volatility was 17.2%. The drop in gold and silver was primarily due to the revival of the US dollar (UUP). The chart above depicts the inverse relationship between gold and the dollar over the last month.
AngloGold Ashanti Ltd. remains upbeat on its African assets even as new mining rules threaten profits at two of the company’s key mines. The world’s third-largest gold producer is mired in disputes with the governments of Tanzania and the Democratic Republic of Congo over law changes that raise taxes in the countries, where AngloGold gets the bulk of its African metal from. “Storms do come and go - we have seen that happen in other jurisdictions, not just in Africa, even in Latin America,” Venkatakrishnan said in a phone interview.
Could Newmont Mining Outshine Peers in 2018? Newmont Mining (NEM) has one of the best project pipelines in the sector (GDX)(GDXJ)—it may be stronger than Kinross Gold’s (KGC), Barrick Gold’s (ABX), and AngloGold Ashanti’s (AU). Newmont is poised to overtake Barrick as the world’s largest gold producer in 2018.
Gold rose 0.62% on Thursday, May 3, after a flat day on Wednesday. Gold futures for May expiration closed at $1,312.10 per ounce. Its RSI level was 30.9, which indicates that there could be a possible rebound in price.
During the last month, the market unrest had a significant effect on precious metals, which caused them to rise. However, the previous week was choppy for precious metals, and the US dollar rebounded substantially, which had a negative impact. Most mining companies also faced the adverse effects of the precious metals slump.
In addition to the US dollar playing on precious metals, US interest rates and the Federal Reserve’s decisions have also historically had a substantial impact on these safe havens. The rising interest rates may be a concern for equities, as companies face a higher borrowing cost. The below chart shows the relationship of gold (GLD) to the US two-year and ten-year interest rates (SHY) (IEF).
Precious metals had yet another down day on Wednesday, slumping for the second day in a row. Gold was down 0.77% on Wednesday to close at $1,321.2 an ounce. It touched its lowest mark of $1,320, and its RSI level was at 48.6. The implied volatility in gold remained at 10.3%. Silver was also down 1.2%. Silver’s losses have exceeded gold’s losses in the last few days. The RSI level for silver was at 53.3, and its volatility was at 17.1%.
Recent market unrest had a significant effect on precious metals, which increased. However, the US dollar has strengthened recently, which has had a negative impact on precious metals. The settling of the market unrest could have also caused a withdrawal of haven bids.
In this part of our series, we’ll be looking at the correlation of gold to four mining stocks: AngloGold Ashanti (AU), Hecla Mining (HL), Kinross Gold (KGC), and Eldorado Gold (EGO). Mining stocks mostly move with gold prices but not always. Among these four miners, AngloGold has shown the highest correlation to gold, while Eldorado Gold has had a negative correlation to gold on a YTD (year-to-date) basis.
Newmont Mining (NEM) is one of the very few gold mining stocks to have given a positive return year-to-date. As of April 17, it has returned 10.9%, compared to a loss of 1.5% for the VanEck Vectors Gold Miners ETF (GDX). Its strong project pipeline is the major driver behind its consistent-to-increasing production profile.
The recent unrest in the markets has had a significant effect on precious metals and mining companies. The US dollar has a prominent role in influencing dollar-denominated precious metals and mining stocks.
Recent market unrest has had a significant effect on precious metals and the US dollar, which influences dollar-denominated precious metals and mining stocks. In this part of the series, we’ll look at miners’ RSI (relative strength index) scores and implied volatility. The miners we’ve selected for our analysis are Wheaton Precious Metals (SLW), Randgold Resources (GOLD), AngloGold Ashanti (AU), and IAMGOLD (IAG). In the last 30 days, miners’ performance has been mixed. GOLD and AU have fallen 2.5% and 0.11%, respectively, while SLW and IAG have risen 6.8% and 13.2%.