|Bid||31.00 x 4000|
|Ask||34.73 x 800|
|Day's Range||32.37 - 33.15|
|52 Week Range||29.06 - 42.04|
|Beta (3Y Monthly)||-0.29|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 20, 2019 - Feb 25, 2019|
|Forward Dividend & Yield||0.56 (1.70%)|
|1y Target Est||40.83|
Ray Dalio, chair and chief investment officer of Bridgewater Associates, has maintained the fund’s stake in the SPDR Gold Shares ETF (GLD) and the second-largest physical gold-backed ETF, the iShares Gold Trust ETF (IAU). Bridgewater Associates kept its holdings at 3.91 million shares in GLD and 11.31 million shares in IAU in the third quarter, according to Fintel.
The COMEX gold futures contract has been trading around its "reversion to the mean" since the week of June 17, 2016, and this 200-week simple moving average is now $1,235.1 per troy ounce. Barrick Gold Corporation ( ABX), Yamana Gold Inc. ( AUY), Goldcorp Inc. ( GG) and Newmont Mining Corporation ( NEM) have been lagging gold futures, so investing in these stocks makes sense as an alternative asset allocation given the high probability that the stock market is forming a global bear market. Gold futures and Barrick Gold are in correction territory, while the other gold mining stocks Yamana Gold, Goldcorp and Newmont Mining are in bear market territory.
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? Among senior gold miners (GDX), Newmont Mining (NEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 7.6x. At a time when growth is difficult to come by in the gold mining space, Newmont Mining has a strong project pipeline with very low execution risk.
Unlike at most companies, geologists play a central role in Randgold. Geologists tend to be free-spirited, nonconformist, and sometimes a bit eccentric. There is only so much geologic information to be gained from the surface of the earth, yet the geologist must decipher millions of years of geologic history to generate drill targets.
Some miners (GDX), including Barrick Gold (ABX), Newmont Mining (NEM), and Kinross Gold (KGC), were especially affected by peak cycle acquisitions and the resulting write-downs. Most of this debt reduction has been driven by the sale of its noncore assets. At the end of the third quarter, Barrick Gold’s total debt was $5.7 billion compared to $6.4 billion at the end of the first quarter.
Barrick Gold (ABX) reported AISC (all-in sustaining costs) of $785 per ounce and a cost of sales of $850 per ounce in the third quarter. Its AISC were 1.7% higher YoY (year-over-year) due to lower ounces sold, and its costs improved 8.3% sequentially. Its costs in the third quarter were in line with its guidance.
NEW YORK, Nov. 06, 2018 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
If all goes according to plan, Barrick Gold will have fewer mines and workers one year after acquiring Africa-focused Randgold Resources, the Canadian miner's executive chairman said on Monday, as its investors approved the deal. Votes were 99.8 percent in favor of the $6.1 billion, no-premium transaction, Barrick said, confirming a Reuters report. After Randgold's Nov. 7 vote, the all-stock deal is seen closing Jan. 1, 2019.
Stock futures for Canada's main index edged higher on Monday, ahead of U.S. congressional midterm elections. December futures on the S&P/TSX index were up 0.22 percent at 7:00 a.m. ET. Reserve assets total ...
Barrick Gold Corp, which is being formed by Barrick's $6.1 billion takeover of Randgold Resources, is in talks with Newmont Mining to combine their Nevada gold mining operations, sources told Reuters. Last month's tie-up between Barrick and Africa-focused Randgold Resources revived speculation about a joint venture between Newmont and Barrick in Nevada, something the two mining firms had explored in 2014 without reaching a deal.
Barrick Gold Corp. Executive Chairman John Thornton said his company isn’t paying a premium under its agreement to buy Randgold Resources Ltd. The decision came after the company has been criticized for its “undisciplined growth and poor returns” in the past. Investors’ patience is being tested as mining companies struggle to strike a balance between protecting shareholder value and adding assets that could boost their output. Judging by the rally in Barrick and Randgold shares Monday, improving production prospects may be enough to keep them happy for now.
Newmont Mining Corporation announced it will release its 2019 guidance and updated longer term outlook on Wednesday, December 5, 2018 and will hold a conference call at 10:00 a.m.
Up front, I can tell you that I’m not a fan of Barrick Gold (NYSE:ABX). Indeed, as I wrote back in April, Barrick Gold has been a colossal failure. The point of gold mining stocks like ABX is to get leverage to the price of gold.
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.
At the end of the third quarter, Goldcorp’s net debt and adjusted net debt totaled $2.6 billion and $2.4 billion, respectively. Although the company previously stated that it expects its net debt to be zero or close to it by 2021, it didn’t mention its net debt during its latest earnings call. Now it’s focusing on deleveraging and strengthening its balance sheet to prepare the company for the next phase of the capital investment cycle, which is expected to start after 2020 with the buildup of the next generation of mines.
Yamana Gold (AUY) announced that at the end of the third quarter, it entered into an agreement to sell its Gualcamayo mine in Argentina to Mineros SA.
Yamana Gold’s (AUY) production for the third quarter was 246,788 ounces, which is an improvement of 11% YoY (year-over-year) and 10% sequentially. The production was higher than management’s expectations for the quarter. The Cerro Moro mine reached commercial production towards the end of the second quarter. Due to Yamana Gold’s higher-than-expected production for the first nine months of the year and the favorable ramp-up of the Cerro Moro mine, the company increased the gold and copper production guidance for 2018.
Goldcorp (GG) achieved AISC (all-in sustaining costs) of $999.00 per ounce in the third quarter, which was 20.8% higher YoY (year-over-year) and 17.5% higher sequentially. Its AISC was higher than expected due to the lower production of gold, as discussed previously in this series, as well as lower metals production including reduced by-products from the low-grade stockpile at Peñasquito. Along with lowering its production guidance, Goldcorp increased its cost guidance.
We discussed analysts’ revenue estimates for gold miners in the previous part of this series. In this part, we’ll discuss what analysts expect for these gold miners’ (RING) earnings. In line with lower revenues, Barrick Gold’s (ABX) EBITDA are also expected to fall.
Goldcorp (GG) has quite a strong project pipeline in the gold industry. Goldcorp provided an update on the progress of these projects in its third-quarter earnings call. Peñasquito’s Pyrite Leach Project was fully constructed by the end of the third quarter and is undergoing pre-commissioning activities.