7.85 0.00 (0.00%)
After hours: 4:39PM EDT
|Bid||7.88 x 1000|
|Ask||7.90 x 2000|
|Day's Range||7.66 - 7.99|
|52 Week Range||6.71 - 10.24|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 24, 2018 - Apr 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||10.50|
Among the stocks we’ve discussed throughout this series, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 4.7x. The stock is trading at a huge discount of 60% to its trailing-five-year average. Tahoe Resources’ stock price, as well as analysts’ corresponding estimates, took a severe dive after the Guatemalan government’s decision to suspend its Escobal mine license on July 5, 2017. Its valuation multiple has also fallen 27% since July.
First Majestic Silver’s (AG) stock price has seen the highest fall among its peers (SIL) YTD (year-to-date) in 2018. Analysts expect First Majestic Silver to see revenue of $347.7 million in 2018, which implies a YoY (year-over-year) rise of 37.8%. Analysts’ estimates for 2019 imply another rise of 26.1% YoY.
The woes relating to its Guatemalan mine license led Tahoe Resources (TAHO) to underperform significantly in 2017. While a year ago, 86% of the analysts covering TAHO gave it “buy” ratings, currently this amount has halved to 43%. On July 5, 2017, the government of Guatemala decided to revoke Tahoe Resources’ permit to operate its Escobal mine.
Coeur Mining’s (CDE) YTD (year-to-date) operational performance has been strong. Among major silver miners, it has given the highest return and has been the exception, providing positive returns. As we learned in the previous article, the iShares Silver Trust ETF (SLV) has returned -3.8% YTD, and the Global X Silver Miners ETF (SIL) has returned -8.2% in the same period.
Of late, the most crucial factors affecting gold prices are the US dollar and the potential change in the US interest rate. Precious metals are highly sensitive to movements in Treasury rates, as gold and Treasuries are competitors as haven assets. As investors await the Federal Reserve’s meeting in a few days, there’s a high chance that the interest rate will rise.
Are Upcoming Interest Rate Hikes Already Priced into Gold? Mining stocks are known to have a strong correlation with gold, as gold is the most crucial of all the four precious metals. For our correlation analysis, we’ll look at Randgold Resources (GOLD), Yamana Gold (AUY), Coeur Mining (CDE), and Barrick Gold (ABX). Mining-based funds also have a high correlation with precious metals.
Precious metals were facing a down day as an extension to the losses from Thursday, March 8’s, losses. The decline in gold and other precious was mainly due to the strength of the US dollar against other currencies. The US dollar had risen almost 0.4% against the yen after the tumble last week, which followed the fear of trade wars due to tariffs.
Coeur Mining, Inc.’s Senior Vice President and Chief Financial Officer, Peter C. Mitchell, will participate in the 30th Annual ROTH Capital Partners Conference in Orange County, California on Monday, March 12, 2018.
Coeur Mining, Inc. is pleased to announce that it has commenced production at its high-grade Silvertip mine in British Columbia, Canada, following the successful commissioning of mill operations.
Production growth is an important variable for miners. Barrick Gold (ABX) produced ~1.34 million ounces of gold in 4Q17, which reflects a decline of 11.8% YoY (year-over-year). The total production in 2017 came in at 5.32 million ounces.
Coeur Mining, Inc. today announced that it has closed the sale of all of the outstanding capital stock of its wholly-owned Bolivian subsidiary, Empresa Minera Manquiri, S.A.
Palladium was the only precious metal to rise with a gain of 0.74% for the day. Gold and silver were at $1,328 and $16.5 an ounce, respectively. The loss in precious metals over the past week was likely due to the rebound in the US dollar.
Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on February 16. Index (PMI) data, output in the Basic Materials sector is rising.
Coeur Mining, Inc. today released a re-scoped mine plan and preliminary economic assessment for its Rochester silver-gold mine in Nevada.
Will Inflationary Pressure Give Gold Some Buoyancy? Precious metals’ reaction was also due to economic numbers indicating the health of the US economy in general. Last week, the CPI number—which measures changes in prices for goods and services purchased by consumers—was standing at 0.5%.