26.17 0.00 (0.00%)
After hours: 4:52PM EST
|Bid||0.00 x 1400|
|Ask||0.00 x 800|
|Day's Range||26.04 - 26.70|
|52 Week Range||25.91 - 36.08|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.47|
|Expense Ratio (net)||0.54%|
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? Among intermediate gold miners (GDXJ), Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.6x, which implies a whopping premium of 76.0% to its close peers. AEM’s strong operational consistency and its exploration program support a higher multiple for the stock.
Historically, IAMGOLD (IAG) has traded at a lower valuation than its peers. Due to its significant turnaround in 2017, the stock’s multiple rerated in 2017, and it’s since reverted back due to IAG’s weak operational performance.
Production growth is a crucial variable for miners. Barrick Gold (ABX) produced ~1.15 million ounces of gold in the third quarter, a fall of ~7.0% YoY (year-over-year). Improved throughput and grades at Barrick Nevada and the completion of debottlenecking improvements at Pueblo Viejo aided this improvement.
Yamana Gold’s (AUY) valuation multiples, which represent how much investors are willing to pay for a stock based on analysts’ estimates, have ranged between 4.3x and 9.8x over the last five years. Currently, Yamana Gold is trading at a forward EV-to-EBITDA multiple of 5.3x.
The EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is a good valuation measure for capital-intensive industries. The chart above compares gold miners’ EV-to-forward-EBITDA multiples and EBITDA margins one-year forward. Among the senior and intermediate gold miners, Agnico Eagle Mines (AEM) has the highest forward multiple of 10.3x, almost in line with its last-five-year average multiple.
Eldorado Gold (EGO) stock dropped significantly in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey. The stock continues to be pummeled due to these issues in 2018.
By October 17, Agnico Eagle Mines (AEM) has lost 20.3% of its value YTD (year-to-date), while the VanEck Vectors Gold Miners ETF (GDX) had fallen 14.3%. Among senior and intermediate miners (GDX)(GDXJ), Newmont Mining (NEM), AngloGold Ashanti (AU), Barrick Gold (ABX), and Goldcorp (GG) have performed better than AEM. Agnico Eagle is known to deliver consistent results throughout its cycles.
New Gold (NGD) stock has had the worst stock performance YTD (year-to-date) among the miners in our survey. Until October 17, 76% of its market value has been eroded in 2018. This is a significant underperformance to its peers (GDXJ)(NUGT).
Among the senior and intermediate miners (GDX) (GDXJ), New Gold (NGD), Barrick Gold (ABX), and Eldorado Gold (EGO) have the fewest “buy” ratings at 0.0%, 14.0%, and 17.0%, respectively.
In the senior and intermediate gold miner space (GDX)(GDXJ), analysts are the most bullish on IAMGOLD (IAG), with ~75.0% of analysts assigning it a “buy.” About 25.0% of these analysts rated it as a “hold,” and there were no “sell” ratings. Agnico Eagle Mines (AEM) comes next with 72.0% “buy” ratings. Yamana Gold (AUY) closely follows Agnico with 71.0% “buy” ratings.
Agnico Eagle Mines’ (AEM) operating performance in 2017 was quite strong. Rising 10.0%, its stock almost matched the benchmark gold miners’ index’s (GDX) performance. In 2018, however, it has been weaker.
Analysts’ Views: Is It Time to Look at Gold Miners? Of the 21 analysts covering Barrick Gold (ABX), only 14.0% recommend a “buy” for the stock, the lowest percentage of “buy” recommendations among the senior miner stocks (GDX). The decline in analysts’ optimism is mainly due to consistent issues at some of its mines.
Based on analytics tool Kensho, we have highlighted a few ETFs that have outshined and lagged when the 10-year Treasury note yield rose 25 basis points or more over a span of 30 days.
In the world of physically backed gold ETFs, the SPDR Gold Shares ( GLD) is the world's largest. As is often the case when gold declines, shares of gold miners overshoot the commodity's decline. The VanEck Vectors Gold Miners ETF ( GDX), the largest gold miners ETF, is down 20.9% this year.
According to the consensus compiled by Thomson Reuters, 22 analysts are currently covering Barrick Gold (ABX). Only 14% of them have recommended a “buy” for the stock, which is just higher than the “buy” recommendations for New Gold (NGD) among major gold miner stocks (GDX). About 77% of analysts have recommended a “hold” for Barrick Gold, and 9% have recommended a “sell.” Its target price of $14.10 implies an upside of 28% based on its current market price.
New Gold (NGD) stock has had one of the poorest showings YTD (year-to-date). As of September 24, it has fallen 75%, significantly underperforming its peers (GDXJ) (NUGT) Eldorado Gold (EGO), Iamgold (IAG), Alamos Gold (AGI), and Randgold Resources (GOLD), which have fallen 38.4%, 33.4%, 28.1%, and 31.1%, respectively.
How Do Analysts Rate Silver Miners? YTD (year-to-date), Tahoe Resources (TAHO) has had the worst performance of all silver miners with losses of 44%. Among the silver miners we are covering in this series, Tahoe has the lowest percentage of “buy” ratings.
How Do Analysts Rate Silver Miners? Pan American Silver (PAAS) stock has outperformed peers as well as silver prices YTD. As of September 14, it has fallen 6.9% compared to falls of 17.3% and 27.7% for the iShares Silver Trust (SLV) and the Global X Silver Miners ETF (SIL), respectively.
According to David Rosenberg, the chief economist of Gluskin Sheff, 14 economic reports in August thus far have missed expectations. Among those that have missed the expectations are home sales and Markit PMI (purchasing managers’ index). Rosenberg said in a tweet, “Here we have nearly 3 misses for every beat, and yet the bullish chatter on the economy shows no signs of abating.
In this article, we’ll look at the market sentiments for these companies. We’ll look at analysts’ recommendations, target prices, and potential upsides or downsides for these gold miners.
With gold prices slumping, mining stocks and the related exchange traded funds are feeling the heat. Over the past month, the VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded ...
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 second quarter was ~$1 billion compared to $1.9 billion at the end of 2016. The improvement was due to its EBITDA improvement and net debt reduction.
What Could Drive Newmont Mining Stock in the Rest of 2018? Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018. For more on this, please read Barrick Gold versus Newmont Mining: Comparing Miners in 2018 and Beyond.
Gold prices are faltering and that is plaguing exchange traded funds tracking shares of gold miners. On Wednesday, the VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated ...