|Bid||9.50 x 800|
|Ask||9.98 x 1000|
|Day's Range||9.68 - 9.92|
|52 Week Range||7.08 - 12.00|
|Beta (3Y Monthly)||-0.36|
|PE Ratio (TTM)||227.44|
|Forward Dividend & Yield||0.06 (0.62%)|
|1y Target Est||14.02|
Gold ETFs have seen renewed buying interest from investors in October on increased market volatility and the equity market sell-off. According to a report by the World Gold Council (or WGC), the holdings in gold-backed ETFs saw inflows of 16.5 tons in October to total 2,346 tons. This marked the first inflow in four months for gold ETFs.
As Positive Catalysts for Gold Emerge, Which Miners May Benefit? South African miners have traditionally traded at a discount to their global counterparts, primarily due to South Africa’s laws, labor concerns, and infrastructure challenges. Among these miners, Sibanye Gold (SBGL) is trading at the highest EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 4.2x—a premium of 23.0% to the peer average.
Since the generation of free cash flow (or FCF) creates shareholder value and helps a business’s long-term prospects, it’s important for investors to track gold miners’ (GDX) abilities to generate FCF. Barrick Gold (ABX) has a strategy of value over volume, which prioritizes profitable production. The company defines value creation for shareholders in terms of FCF per share. Barrick Gold generated FCF of $319 million in the third quarter compared to -$172.0 million in the second quarter.
Historically, we have generated alpha for our investors by anticipating M&A action, overweighting companies we believe are acquisition targets and underweighting possible acquirers. While we were correct in our assessment, we didn’t get the benefit of Barrick’s performance after the deal was announced. Prior to Morila, Randgold was involved in other African mines that hadn’t fared so well.
AngloGold Ashanti Ltd. (AU) rose 4.61% to $10.43 on the New York Stock Exchange after releasing third-quarter production results on Monday. The miner said that despite a 14.6% year-over-year decline in gold production to 851,000 ounces, the all-in sustaining cost also decreased 14.1% to $920 per ounce of metal sold. The decline in the AISC reflects cost improvements from operations at the Mponeng mine in South Africa, the Kibali mine in the Democratic Republic of Congo, the Iduapriem mine in Ghana and at the Tropicana mine in Western Australia.
Newmont Mining (NEM) stock has declined ~14.4% year-to-date—most of these losses occurred after its second-quarter earnings. While its earnings were a beat on market expectations, the overall sentiment in the precious metals and mining space was negative.
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.
Below is a list of names for those charts we believe are showing technical characteristics of either bullish or bearish reversal patterns that occurred over the past week. Bullish reversals imply institutional accumulation and the potential for higher prices.
Gold usually loses to stocks, and gold-mining stocks can often be even worse. But gold stocks can still serve a place in your portfolio if you buy the right ones.
HALIFAX , Oct. 11, 2018 /CNW/ - Zonte Metals Inc. (ZON.V) ("Zonte" or the "Company") is pleased to provide an update on the recent Induced Polarization (IP) survey at the Cross Hills Iron Oxide Copper Gold (IOCG) Project. Company appoints John Hayes to the Advisory Board. A four-line, 5.2km survey, spaced 100m apart, has been completed over the Dunns Mountain target.
Zonte Metals discovers extensive mineralization at its Dunns Mountain Target on the Cross Hills IOCG Project
According to the consensus compiled by Thomson Reuters, Harmony Gold (HMY) has “buy” ratings from only 30% of the analysts covering the stock. While its percentage of “buy” ratings are in the bottom five for gold miners, analysts’ optimism for the stock has improved in the last year. A year ago, HMY stock had only 10% “buy” recommendations.
AngloGold Ashanti Ltd.’s new chief executive officer, Kelvin Dushnisky, said his goal of unlocking value at the world’s third-largest gold producer will involve focusing on its best assets and selling those that aren’t core to the business. Dushnisky, 55, took over at AngloGold on Sept. 1 as the Johannesburg-based miner considers its future in its home country, which now accounts for about 12 percent of total output, and grapples with regulations that threaten profits at operations in Tanzania and the Democratic Republic of Congo. The former president of Barrick Gold Corp. ruled out “fire sales,” but said he would focus on assets that generate the most value.
Labor groups representing more than 60 percent of workers at AngloGold Ashanti Ltd., a major South African gold producer, signed a three-year wage deal with the company. The Association of Mineworkers and Construction Union, UASA and Solidarity unions said they accepted the deal Monday. The sides agreed to raise pay by 6.5 percent for the first year and increases at the same rate or inflation -- whichever is higher -- for each of the following two years, Solidarity General Secretary Gideon du Plessis said in a statement.
HALIFAX , Sept. 10, 2018 /CNW/ - Zonte Metals Inc. (ZON.V) ("Zonte" or the "Company") is pleased to provide an update related to its ongoing exploration program at the Cross Hills Iron Oxide Copper-Gold (IOCG) Project. Over the summer the Company completed additional exploration on the Cross Hills IOCG Project, including prospecting, mapping and additional high resolution ground magnetic surveys. Surface grab samples are presently in the laboratory and the Company is awaiting the results, which will be released once received and interpreted.
DAKAR, Aug 30 (Reuters) - Operations have resumed at AngloGold Ashanti's Siguiri gold mine in Guinea after a workers strike halted activities for a day, a company vice president said on Thursday. "There ...
AngloGold Ashanti Ltd. (AU) jumped 1.52% to $7.35 per share on the New York Stock Exchange on the heels of posting results for the first half of fiscal 2018 before the opening bell on Monday. The South African gold producer posted an outflow of $51 million for the first half versus an outflow of $161 million in the comparable period of 2017. Warning! GuruFocus has detected 3 Warning Signs with AU.
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.
Three gold mining stocks are trading cheaply since their share prices are close to a 52-week low. Goldcorp is trading around $10.74 per share on the New York Stock Exchange. The current share price is only 36 cents above the 52-week low of $10.38 and nearly 45% below the 52-week high of $15.55.
Along with gold, gold miner stocks (GDX) (NUGT) are also seeing a lot of selling pressure lately. Gold equities are essentially a leveraged play on gold prices and as such, they usually move in the direction of gold prices with greater intensity. On August 15, the VanEck Vectors Gold Miners ETF (GDX) has lost 20.0% of its value YTD, almost double the losses seen by the SPDR Gold Shares ETF (GLD).
NEW YORK, NY / ACCESSWIRE / August 20, 2018 / AngloGold Ashanti Limited (NYSE: AU ) will be discussing their earnings results in their H1 Earnings Call to be held on August 20, 2018 at 9:30 AM Eastern ...