28.61 +0.05 (0.18%)
After hours: 7:34PM EDT
|Bid||0.00 x 1300|
|Ask||28.65 x 1000|
|Day's Range||28.03 - 28.74|
|52 Week Range||25.91 - 36.08|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.54%|
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 ...
Iamgold’s Q2 2018 Results Were a Mixed Bag: Is Outlook Better? Historically, Iamgold (IAG) has traded at a lower valuation than its peers. However, after its significant turnaround in 2017 and year-to-date, its discount compared to its peers has decreased. Among Iamgold’s (IAG) close peers, Agnico Eagle Mines (AEM), Yamana Gold (AUY), Eldorado Gold (EGO), and New Gold (NGD) have forward multiples of 11.3x, 5.7x, 6.7x, and 4.6x, respectively.
Goldcorp (GG) produced 571,000 ounces of gold in Q2 2018, a decline of ~10.0% year-over-year (or YoY). On the other hand, its Cerro Negro and Eleonore mine ramp-up partially offset the decline from the above-mentioned factors. The company should see weak production growth in the third quarter as well, as it has modified the production plan for lower mill throughput and mill acreage.
Iamgold’s Q2 2018 Results Were a Mixed Bag: Is Outlook Better? Iamgold’s (IAG) Westwood mine had a pivotal year in 2017 since it resumed operating at its normal production level in Q2 2017. Along with Essakane and Rosebel, the Westwood mine delivered lower production in Q2 2018.
The Federal Reserve’s tighter policy stance has also stalled gold’s rally. The Federal Reserve, the world’s major central bank, is raising rates in contrast to the rest of the world’s central banks, which are still following a loose monetary policy. For the week ended August 3, speculators were net long on the US dollar for the seventh straight week.
Kinross Gold’s (KGC) liquidity position at the end of the second quarter wasn’t much different than it was at the end of the first quarter. It ended the second quarter with cash and cash equivalents of $918.7 million. Investors should note that this liquidity position is more significant since the company doesn’t have any debt maturity until 2021.
Kinross Gold (KGC) produced 602,049 gold equivalent ounces in Q2 2018, a 13% fall YoY (year-over-year). Higher production at Bald Mountain was partially offset by decline resulting from the above factors. In the Americas region, Bald Mountain’s production declined sequentially due to the timing of the ounces recovered from the heap leach pads.
Barrick Gold (ABX) reported its Q2 2018 earnings yesterday after the market closed. The company reported adjusted EPS of $0.07, which missed analysts’ expectations by $0.04. Its revenues amounted to $1.71 billion, which missed expectations by 6.0%. The results stood in contrast to the company’s Q1 2018 earnings beat. The stock’s momentum in after-hours trading was weak after the miss.
What Could Drive Investors’ Attention Back to Gold? Gold equity valuations are attractive, yet few investors are interested in gold stocks in the current environment. In order to attract investors in the next cycle, we feel companies must show that all of these changes are fundamental and lasting, rather than window dressing to cope with low gold prices.
What Could Drive Investors’ Attention Back to Gold? The chart shows that the return on invested capital (ROIC) for senior gold companies fell below industry peers from 2012 to 2015. A number of factors have contributed to the gold industry’s turnaround.
IAMGOLD (IAG) was the best-performing gold stock of 2017, returning 51.4% for the year. It significantly outperformed the VanEck Vectors Gold Miners ETF (GDX) as well as the SPDR Gold Shares ETF (GLD). Although it hasn’t performed as well in 2018, it has given positive returns, outperforming the SPDR Gold Shares ETF (GLD) and the VanEck Vectors Gold Miners ETF (GDX) year-to-date.
What Could Drive Investors’ Attention Back to Gold? The gold price has shown weakness ahead of every Fed rate increase since the hiking cycle started in December 2015. Gold has also rallied immediately after every rate increase, except for two.
Finally, the Fed raised rates for the second time this year on June 13 and upped its guidance to four rate increases in 2018. This lent additional strength to the U.S. dollar, putting pressure on gold. During June, gold fell $45.35 (3.5%), ending the month near its low for the year at $1,253.17 per ounce. Gold stocks outperformed gold in June, as the NYSE Arca Gold Miners Index (GDMNTR)2 and the MVIS Global Junior Gold Miners Index (MVGDXJTR)3 both fell 0.2%.
What Could Drive Investors’ Attention Back to Gold? Gold was also caught in the June metals selloff. Copper and zinc suffered sharp falls amid concerns that the Trump administration’s tariff policies will likely dampen demand.
Eldorado Gold (EGO) stock suffered a great deal in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey. The falling production at its flagship mine in Turkey also impacted the stock negatively. The company’s stock price fell ~56.0% in 2017 in addition to the YTD (year-to-date) decline of 24.5%.
The Dow is trying to make it five up sessions in a row, while gold heads in the other direction. The metal’s retreat has hampered gold mining shares, but our call of the day from a “True Contrarian” suggests sticking with those stocks.
Gold hasn’t exactly glittered over the last few weeks. After hitting a recent high back in March, the uber-popular SPDR Gold Shares (NYSEARCA:GLD) has spent the rest of the year falling, and is now about 8% lower. All in all, a variety of factors and issues have continued to pressure the metal itself and the various gold stocks that produce it.
It seems that every time new, scary headlines emerge, press articles declare that gold no longer serves as a safe haven.2 The Italian political crisis is the latest case in point. The evolving situation in Italy is supportive of gold, as shown by its resilience against a strong move in the U.S. dollar. However, anyone expecting a big move from gold fails to understand the fundamentals of the gold market. Gold responds to genuine global systemic risks. These are risks that can have a negative financial impact on just about everyone personally and/or professionally, i.e. ...
Keith Bliss of DriveWealth LLC joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves after Bank of America Merrill Lynch released its weekly fund flows report.