On October 11, 2017, Randgold Resources, Pan American Silver, Barrick Gold, and Kinross Gold had implied volatility readings of 25.0%, 34.0%, 29.1%, and 41.6%, respectively.
Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.
Mining shares had a mixed pattern in their price reactions on Wednesday, October 11, 2017.
The inverse relationship between precious metals and the dollar is evident since these metals are dollar-based assets.
The agricultural activity in Brazil has been rising in the past few years, which has been a catalyst for fertilizer demand growth in the country.
India is another major market for NPK (nitrogen, phosphate, and potash) fertilizers. The country is partly self-sufficient in nitrogen fertilizers.
Recently, China has been moving towards a zero growth policy. The country aims to reach zero growth in using agricultural chemicals by 2020.
Among the three NPK (nitrogen, phosphate, and potash) fertilizers, phosphate fertilizers have had the worst recovery.
Nitrogen prices have been subdued for most of this year—compared to a few years ago. The global market continues to experience excess capacity.
Potash prices have bounced back stronger this year. Granular potash prices in Brazil have risen as much as 17% YoY to $274 as of the week ending October 6.
So far, agricultural fertilizer stocks haven’t delivered impressive returns this year. Most of the stocks have been in negative territory in 2017.
While copper bears have been overshadowed by the bulls this month, they might like their chances in 4Q17.
Copper’s supply-side dynamics are different from some of the other metals. Copper miners need to replenish their falling reserves with new mines.
Copper prices have regained momentum in October after showing weakness in the last month. So far, copper has risen 4.9% in October.
Most precious metals saw a down day on Tuesday, October 10, despite the upward movement in precious metals.
Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).
Precious metal mining companies saw a mixed day on Tuesday, October 10, 2017, as precious metals climbed.
On October 11, 2017, PPG Industries (PPG) was trading at a one-year forward PE multiple of 17.1x, compared with Sherwin-Williams’ (SHW) multiple of 22.5x.
PPG Industries (PPG) is actively being tracked by 22 analysts from different brokerage firms. Among these, 55% have recommended a “buy” for the stock.
As of October 11, 2017, analysts are expecting PPG Industries (PPG) to report adjusting EPS (earnings per share) of $1.55, which would be a 0.60% fall YoY.