|Bid||9.36 x 1000|
|Ask||0.00 x 47300|
|Day's Range||9.41 - 9.59|
|52 Week Range||8.42 - 15.55|
|Beta (3Y Monthly)||0.59|
|PE Ratio (TTM)||106.07|
|Forward Dividend & Yield||0.08 (0.87%)|
|1y Target Est||14.04|
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.
IAMGOLD (IAG) generated revenue of $244.8 million in the third quarter, a YoY (year-over-year) fall of 9%. The fall was the result of both lower realized gold prices and lower sales and volumes at the Rosebel and Westwood mines.
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.
Barrick Gold (ABX) reported its third-quarter earnings results after the market closed on October 24. In the third quarter, Barrick produced 1.15 million ounces of gold, up 7.4% sequentially, mainly due to better throughput and grades at Barrick Nevada. While the company has maintained its copper and gold production guidance for the year, it expects its gold production to come in at the lower end of 4.5 million–5.0 million ounces.
NEW YORK, Oct. 31, 2018 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
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.
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) by-product AISC (all-in sustaining costs) for the third quarter were $739 per unit in gold equivalent ounces. Yamana Gold is guiding for by-product AISC of $725–$745 per gold equivalent ounce for 2018. During the conference call, Yamana Gold mentioned that while it isn’t updating the unit cost guidance, it’s providing directional information. The company expects its fourth quarter to have the highest production in the year with an anticipated improvement in unit costs.
VANCOUVER, Oct. 29, 2018 /PRNewswire/ - GOLDCORP INC. (TSX:G, NYSE:GG) ("Goldcorp") is pleased to announce the Government of Canada intends to support its Borden Project as the recipient of a $5 million investment designed to spur innovation in cleaner, more sustainable mining. The Borden Project located in Chapleau, Ontario, will be the first underground mine in Canada to replace all diesel mobile equipment with battery electric vehicles. "We believe the days of diesel use for underground mining equipment are numbered and electrification of our mobile fleet is a logical way to significantly reduce the mine's environmental footprint," said David Garofalo, Goldcorp's President and CEO.
VANCOUVER , Oct. 29, 2018 /CNW/ - GOLDCORP INC. (TSX:G, NYSE:GG) ("Goldcorp") is pleased to announce the Government of Canada intends to support its Borden Project as the recipient of a $5 million investment designed to spur innovation in cleaner, more sustainable mining. The Borden Project located in Chapleau, Ontario , will be the first underground mine in Canada to replace all diesel mobile equipment with battery electric vehicles. "We believe the days of diesel use for underground mining equipment are numbered and electrification of our mobile fleet is a logical way to significantly reduce the mine's environmental footprint," said David Garofalo , Goldcorp's President and CEO.
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.
Yamana Gold (AUY) released its third-quarter results before the markets opened on October 26. The company held a conference call the same day. Yamana Gold’s EPS of $0.02 beat the consensus estimate by $0.01. The company’s revenues of $416.8 million missed the consensus expectations by ~11%.
Goldcorp Inc. (GG) is trading at levels last seen in 2002, as illustrated in the price chart below. Goldcorp's market capitalization is $7.4 billion, and the 52-week range is $8.42 to $15.55. Warning! GuruFocus has detected 6 Warning Signs with GG.
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.
Higher costs and lower production dent Goldcorp's (GG) Q3 results. Also, the company lowered production guidance for 2018.