|Bid||0.00 x 2900|
|Ask||0.00 x 3000|
|Day's Range||20.03 - 20.55|
|52 Week Range||17.28 - 24.86|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.21|
|Expense Ratio (net)||0.53%|
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.
Which Gold Miners Have Shown Upside Potential since Q3? Goldcorp (GG) produced 503,000 ounces of gold during the third quarter, a fall of ~20.5% YoY (year-over-year). Barrick Gold (ABX) produced ~1.15 million ounces of gold in the third quarter, a fall of ~7.0% YoY.
Among the gold miners (RING) (GDX) we’re discussing in this series, Newmont Mining (NEM) and Barrick Gold (ABX) beat analysts’ earnings expectations in the third quarter. However, even for these two, the results weren’t out-and-out beats, as they slipped on top line expectations.
Gold prices (GLD) saw their first monthly gain in the last seven months in October, when prices rose 2.1%. The gain was preceded by gold’s longest monthly losing streak since January 1997.
Kinross Gold’s (KGC) liquidity position at the end of the third quarter was reflected its strategic investments. The company had cash and cash equivalents of $500 million in the third quarter compared to $918.7 million at the end of the second quarter. This liquidity position is significant given that 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).
Kinross Gold (KGC) released its third-quarter earnings results after the market closed on November 7 and held its conference call the next day. It reported EPS of -$0.04, a $0.04 miss on analysts’ consensus estimate. Its revenue of $754 million also missed analysts’ expectation by 4.3%.
Newmont Mining (NEM) has a forward enterprise value-to-EBITDA multiple of 7.9x, the highest among senior gold miners. Senior miners Kinross Gold (KGC), Barrick Gold (ABX), and Goldcorp (GG) are trading at forward multiples of 4.1x, 6.5x, and 6.2x, respectively. The fall in precious metals prices since the start of the year has depressed the multiples of most gold miners.