|Bid||3.80 x 0|
|Ask||3.85 x 0|
|Day's Range||3.76 - 3.90|
|52 Week Range||3.51 - 5.90|
|PE Ratio (TTM)||12.43|
|Earnings Date||Nov 7, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.75|
The analyst at JPMorgan Chase & Co. (JPM) took action on gold mining stocks on Monday. JPMorgan maintained its neutral rating on Barrick Gold Corp. (ABX). The stock closed up 2.4% Monday, and the market capitalization is $12.09 billion.
Compounded with the drop in the price of gold, mixed earnings reports sent several gold mining companies' stocks south in the final days of summer.
Kinross Gold Corp. (KGC) was flat on Thursday and closed at $2.80 per share on the New York Stock Exchange following the news that Credit Suisse has reinstated its coverage on the Canadian gold stock with a neutral rating. Warning! GuruFocus has detected 3 Warning Signs with KGC. The rating of Credit Suisse is preceded by four ratings that Kinross Gold Corp. received over the last 12 months.
Kinross Gold (KGC) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market and want to begin learning about how toRead More...
Moving averages help traders and investors make market entry or exit decisions. Usually, if a stock is trading below its moving averages, it indicates that the stock is oversold, and vice versa. As we can see in the above table, all the gold miners we’re reviewing in this series are trading at discounts to their 50-day and 20-day moving averages based on their closing prices on August 17.
Now that we’ve considered analysts’ revenue estimates for the senior gold miners under review (GDX) in this series, let’s take a look at analysts’ EBITDA estimates.
FCF (free cash flow) generation is important for gold mining companies (SGDM) (GDX). This excess cash helps miners optimize their financial leverages, invest in projects that can drive long-term value, and provide shareholder returns.
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.
AISC (all-in sustaining costs) is an encompassing measure that helps us compare gold miners’ performances. Barrick Gold (ABX) reported AISC of $856 per ounce and a cost of sales of $882 per ounce in the second quarter. Its cost of sales reached 22.0%, and its AISC was 21.0% higher YoY (year-over-year).
After making discretionary cuts on exploration and capex for many years, gold miners (GDX) (JNUG) have started to refocus on production growth. Newmont Mining (NEM) has approved eight projects since mid-2014. It’s also still on track to reach commercial production at Subika Underground in the fourth quarter.
What Could Drive Newmont Mining Stock in the Rest of 2018? Newmont Mining (NEM) has a forward EV-to-EBITDA multiple of 7.6x, which is the highest among the senior gold miners. Senior miners Kinross Gold (KGC), Barrick Gold (ABX), and Goldcorp (GG) are trading at forward multiples of 3.7x, 5.5x, and 6.3x, respectively.
Goldcorp (GG) produced 571,000 ounces of gold in the second quarter, a fall of ~10.0% YoY (year-over-year). Barrick Gold (ABX) produced ~1.07 million ounces of gold in the second quarter, reflecting a fall of ~25.0% YoY. Part of Barrick Gold’s lower production was expected due to lower ore grades, recovery at the Barrick Nevada oxide mill, and scheduled maintenance shutdowns at the Barrick Nevada and Pueblo Viejo autoclaves.
What Could Drive Newmont Mining Stock in the Rest of 2018? Investors are usually interested in the company’s FCF (free cash flow) progression, as it enables miners (GDX)(RING) to optimize their financial leverage, invest in projects supporting long-term value, and provide shareholder returns. In this context, we’ll look at Newmont Mining’s (NEM) FCF generation in 2018 and its future capability to generate cash.
What Could Drive Newmont Mining Stock in the Rest of 2018? In the second quarter, Newmont Mining (NEM) produced 1.16 million ounces, marking a 14.0% decline YoY (year-over-year). Newmont Mining (NEM) maintained its gold production guidance of 4.9 million–5.4 million ounces in 2018 and 2019.
Newmont Mining (NEM) reported its second-quarter earnings before the market opened on July 26 and held its conference call the same day. The company reported EPS of $0.26, which beat the consensus expectations by $0.02. Its revenues of $1.66 billion, however, missed expectations by 7.0%.
Canada's main stock index rose on Monday as rising metal prices led to gains in material stocks, with hopes of resolution in the U.S.-China trade dispute boosting the sentiment. * At 9:34 a.m. ET , the ...
In the senior gold miner space, Newmont Mining (NEM) has the highest forward EV-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple of 8.1x. Goldcorp (GG) follows it with a multiple of 6.8x. While the premiums of all the gold miners have waned relative to their historical averages due to weaker precious metal prices, GG’s production growth has remained muted for the last two years, and its costs have trended higher.
At the end of Q2 2018, Goldcorp’s net debt and adjusted net debt totaled $2.4 billion and $2.3 billion, respectively. Thus, the net debt to EBITDA (earnings before interest, tax, depreciation, and amortization) for the company was closer to 1.7x during the second quarter. Now it’s focusing on the deleveraging and strengthening its balance sheet further 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.
Goldcorp (GG) achieved AISC (all-in sustaining costs) of $850.00 per ounce in Q2 2018, which was 6.3% higher YoY (year-over-year) and 5.0% higher sequentially. Its AISC was also higher than its fiscal 2018 guidance of $800.00 per ounce, plus or minus 5.0%.
Goldcorp (GG) has one of the strongest project pipelines in the industry. Goldcorp provided an update on the progress of these projects in its Q2 2018 earnings call. At Penasquito, the Pyrite Leach Project (or PLP) is 98.0% complete.
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.