|Bid||20.13 x 900|
|Ask||20.49 x 900|
|Day's Range||20.08 - 20.36|
|52 Week Range||17.28 - 24.86|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.21|
|Expense Ratio (net)||0.53%|
According to a report by the World Gold Council (or WGC), holdings in gold ETFs rose for the second consecutive month in November to 21.2 tons to a total of 2,365 tons. It also said that the global gold-backed ETF flows are now positive in US dollar (UUP) terms for the year. ETF flows were positive for the first time in four months. The renewed buying interest from investors was on account of increased market volatility and the equity market sell-off.
Could Market Risks Bring Investors Back to Gold in 2019? Last week turned out to be great for gold prices (GLD). As equity and bond markets continued to struggle, gold made the best of the situation.
The contradictory statements from White House officials, Trump’s tweets, and the arrest of the Huawei CFO in Canada dimmed the outlook for a permanent trade deal between the US and China (FXI). Equity markets also took cues from the bond market, which portended a slowdown ahead.
Based on the recent action in the shiny metal, it has once again returned to its place as a diversifier and safe haven for those worried about inflation.
Take gold stocks for instance. When the S&P 500 peaked back in September, the gold miners industry sat down across from stocks on a teeter-totter. From a price perspective, the Gold Miners ETF (NYSE:GDX) is looking up.
As we’ve discussed in this series, market uncertainty is increasing. Looming earnings deceleration, trade policy uncertainty, and the Fed’s tightening have been major factors weighing on investors’ minds. For most of this year, gold (GLD) has not been a safe-haven asset, as the US dollar (UUP) (USDU) has continued strengthening and the Fed’s rate hike outlook has remained strong.
Which Gold Miners Have Shown Upside Potential since Q3? As we discussed in As Positive Catalysts for Gold Emerge, Which Miners May Benefit? gold miners are looking inexpensive compared to broader equities. The average ratio of the NYSE Arca Gold Miners Index and the S&P 500 Index (SPY) is 0.20 compared to the ten-year average of 0.68.
Paulson & Co. Inc. (“Paulson”), one of the largest, long-term shareholders in Detour Gold Corporation (DGC.TO) ("Detour Gold" or the "Company”) announced today that Institutional Shareholder Services (“ISS”), an independent proxy advisory firm, has recognized that following a prolonged period of value destruction, Detour Gold’s Board of Directors has exhibited characteristics of entrenchment, and only started to react when Paulson and other shareholders began to publicly advocate for change. A number of large shareholders have conveyed their belief to Paulson that real change for the better will only take place when the core, long-term directors – including former Chair and current Interim CEO, Michael Kenyon (who is receiving 2x the salary of the former CEO), current Chair, Alex Morrison and the Chair of the Technical Committee, Ed Dowling (who has overseen technical failures of the mine) are removed and replaced.
MORRIS: That’s interesting. Well, now let’s move on to the companies. I’ve heard you say a number of times that you think the industry is in great shape, they’ve contained their cost. The companies are in great shape. Can you tell us a little bit more about your view of the companies’ position right now financially?
Is Gold Positioned for a Bullish Turn as We Enter 2019? FOSTER: We’re at the point in the cycle I think investors should think of some defensive measures. MORRIS: One other thing I wanted to talk to you about today, is that there’s been some recent merger activity, and I remember hearing that you’d actually looked at the recent developments as pretty positive overall, for the industry, and could be another positive catalyst for gold miners.
Which Gold Miners Have Shown Upside Potential since Q3? In this article, we’ll take a look at senior gold miners’ technical indicators. Moving averages help traders and investors make market entry or exit decisions.
Can you think right now if some of the current geopolitical events in the world, and something that in your mind might trigger a resumption of a new bull market for gold out of this space, and off this space?
Now that we’ve considered analysts’ revenue estimates for the senior gold miners under review (GDX) in this series, let’s take a look at analysts’ EBITDA estimates.
In the previous article, we looked at analysts’ ratings for senior gold mining companies. In this article, we’ll look at analysts’ estimates for those companies’ (GDX) (JNUG) revenues going forward.
Which Gold Miners Have Shown Upside Potential since Q3? Among the senior gold miners under our review (GDX) (GDXJ), analysts are most optimistic about Goldcorp (GG). A year ago, only 40% of analysts had “buy” ratings on the stock.
GLD, the largest gold ETF by assets, entered Wednesday with a year-to-date loss of 7 percent before gaining 0.37 percent on above-average volume. Higher interest rates are seen as a drag on gold because the yellow metal and the related ETFs don't pay a coupon or interest, leaving little incentive for income-starved investors to embrace bullion in rising rate environments.
FCF (free cash flow) generation is important for gold mining companies (SGDM) (GDX), as this excess cash helps miners optimize their financial leverages, invest in projects that can drive long-term value, and provide shareholder returns.
One of the ratios by which we can gauge a mining company’s debt-repayment capacity is the net debt-to-forward-EBITDA ratio, which indicates the number of years it would take for a company to repay its debt.
U.S. markets are staging a long-awaited rebound this week, bouncing higher for a third straight session Wednesday after a particularly nasty short Thanksgiving trading week. That might pull investors' attention back away from conventionally defensive assets like gold.
Which Gold Miners Have Shown Upside Potential since Q3? One way to assess a company’s liquidity is to calculate its current ratio. Newmont Mining (NEM) is doing the best on this front with a ratio exceeding 4.0x.
Which Gold Miners Have Shown Upside Potential since Q3? As precious metals prices started weakening, investors shifted their focus from high-leverage miners (GDX) (GDXJ) to low-leverage miners with sound growth plans, leading miners to trim their balance sheets. Newmont Mining’s (NEM) net debt at the end of the third quarter was ~$1.1 billion compared to $1.9 billion at the end of 2016.
Which Gold Miners Have Shown Upside Potential since Q3? Since high debt levels can strain a company’s credit rating and growth decisions, it’s important to look at its financial leverage. Barrick Gold (ABX) and Newmont Mining (NEM) have come a long way as far as their financial leverages are concerned.
Which Gold Miners Have Shown Upside Potential since Q3? After making discretionary cuts on exploration and capex for many years, gold miners (GDX) (JNUG) have started to refocus on production growth. Newmont Mining (NEM) has approved eight projects since mid-2014.