How Analysts Are Rating CENX Leading Up to Its 4Q16 Results
In this article, we’ll analyze how analysts are rating Century Aluminum leading up to its 4Q16 earnings.
According to data compiled by Thomson Reuters, analysts expect Century Aluminum (CENX) to post revenue of $346 million in 4Q16 and $371 million in 1Q17.
Previously, we looked at analysts’ estimates for Century Aluminum’s (CENX) 4Q16 revenue. In this article, we’ll look at the key drivers of the company’s 4Q16 profitability.
Century Aluminum (CENX) is expected to release its 4Q16 earnings after the market closes on February 23, 2017.
Precious metal prices have risen due to uncertainty since Donald Trump won the US presidential election.
Donald Trump’s victory in the 2016 US presidential election initially shook fear into precious metal investors.
The iShares MSCI Global Gold Min and the VanEck Vectors Junior Gold Miners have risen due to the recent revival in precious metals.
Gold has seen a YTD (year-to-date) gain of almost 7% as of February 15, 2017.
While Goldcorp’s historical premium valuation has been due to its lower leverage and quality assets in safe jurisdictions, that premium is waning.
Goldcorp’s (GG) all-in sustaining costs (or AISC) in 4Q16 were $747 per ounce, a fall of 24% year-over-year (or YoY) and 8% quarter-over-quarter.
Goldcorp (GG) reported a stronger-than-expected 4Q16, outlining a clear path to production growth and cost improvement in the quarter.
Goldcorp’s gold production fell 16% year-over-year in 4Q16 to 761,000 ounces. The company’s management had guided for 2.8 million–3.1 million ounces of gold production in 2016.
After years of cutting back on sustained capital expenditure, gold miners started to refocus on production growth in 2016, as gold prices (GLD) remained buoyant.
Goldcorp (GG) reported its 4Q16 results after the market closed on February 15, 2017. It held a conference call the next day to discuss the results.
Barrick Gold’s (ABX) management has defined value creation for shareholders in terms of FCF (free cash flow) per share.
High financial leverage is one of the biggest investor concerns for Barrick Gold (ABX).
Barrick Gold is very competitive as far as AISC is concerned. In fact, it’s the lowest-cost senior gold producer.
Barrick Gold (ABX) reported a 6.5% fall in reserves for 2016, which totaled 85.9 million ounces.
In 4Q16, ABX’s gold production was ~1.5 million ounces, a fall of 11.0% year-over-year. The fall was mainly due to asset sales in 2015 and 1Q16.
Barrick Gold (ABX) reported its 4Q16 results on February 15, 2017. Adjusted EPS was $0.22, which was higher than the consensus estimate of $0.20.