Unlike nitrogen prices, potash prices were broadly higher on a YoY (year-over-year) basis in 2Q17.
Calendar 2Q17 remained subdued for the nitrogen fertilizer pricing environment. Cheap energy costs have driven capacity buildups and flattened the cost curve.
It’s not surprising that nitrogen producers’ margins contracted in 2Q17.
Nitrogen shipments saw a median YoY (year-over-year) growth of 1% to 8.2 million metric tons in 2Q17.
For many companies, the shipment volumes for fertilizers saw modest growth YoY in 2Q17, but an extended weakness in price realization offsets growth in shipments.
Overall, fertilizer companies saw lackluster earnings in 2Q17, much of which came from the ongoing weakness in fertilizer prices.
At 7:15 AM EST on August 17, the WTI crude oil futures contracts for September 2017 delivery were trading at $46.66 per barrel—a fall of ~0.26%.
Goldcorp is looking to be closer to the oversold level. It is trading at an RSI of 40, which is the lowest among its peers.
Goldcorp (GG) has the highest EV-to-forward-EBITDA multiple among the senior gold miners (GDX) at 9.5x, a premium of 33% to its peers.
Kinross Gold’s (KGC) revenue estimate for 3Q17 is $821 million, implying a sequential fall of 5.5% and a yearly fall of 9.8%.
Among the senior gold miners, analysts are most optimistic about Newmont Mining (NEM). It has the highest percentage of “buy” ratings at 63%.
Yamana Gold’s (AUY) net-debt-to-forward EBITDA ratio is 2.8x, which is higher than its peers’ ratios.
Barrick Gold’s (ABX) FCF was 84% lower year-over-year in 2Q17 at $43 million.
Newmont Mining had $5.5 billion in liquidity, including $3.1 billion in cash at the end of 2Q17. It has one of the best credit ratings in the sector.
Barrick Gold (ABX) and Newmont Mining (NEM) have significantly improved their balance sheets by paying off debt through their cash flows and proceeds from selling non-core assets.
Newmont Mining’s net debt-to-adjusted EBITDA improved to 0.6x in 2Q17 from 0.7x at the end of 1Q17 and 1.3x at the end of 2015.
Barrick Gold (ABX) maintained its cost supremacy with its AISC coming in at just $710 per ounce, an improvement of 9.2% year-over-year.
Newmont Mining’s (NEM) gold production totaled nearly 1.4 million ounces in 2Q17, which represents 13.0% growth YoY.
Goldcorp noted that due to the disposal of some non-core assets and acquisition of some assets, its reserves have increased from 42 million ounces to 50 million ounces.
Newmont Mining (NEM), which started the gold miners’ 2Q17 earnings season on July 25, reported earnings per share of $0.46, soundly beating the consensus estimate of $0.26.