Commodities Are Mixed in the Early Hours on August 16
Commodities are mixed in the early hours on August 16. Crude oil prices fell lower for two consecutive trading weeks amid oversupply concerns.
Commodities were weak in the early hours of Tuesday, August 15, with a firm dollar. Crude oil prices fell lower for two consecutive trading weeks.
Commodities were weak in the early hours on Monday. Crude oil prices fell lower for two consecutive trading weeks amid oversupply concerns.
The European Central Bank left the policy rates, its quantitative easing program, and its forward guidance unchanged at its recent meeting.
While IAMGOLD (IAG) has consistently had a lower valuation multiple than its peers historically, the discount seems to have fallen lately.
IAMGOLD’s (IAG) Westwood project is located in southwest Quebec, Canada. This site started production in 1Q13 and achieved commercial production in 2014.
IAMGOLD’s (IAG) Essakane mine is situated in Burkina Faso, West Africa. It’s 90% owned by IAMGOLD and 10% owned by the government of Burkina Faso.
IAMGOLD’s (IAG) Rosebel mine is located in northeastern Suriname, South America. This mine started commercial production in 2004.
IAMGOLD’s (IAG) 2Q17 production was 223,000 ounces of gold—growth of 26,000 ounces or 13% year-over-year (or YoY).
IAMGOLD Corporation (IAG) reported its 2Q17 results after the market closed on August 9. The conference call to discuss the results with analysts took place the next day.
After losing momentum last week, crude oil started this week on a weaker note by pulling back on Monday, August 7.
At 6:45 AM EST on August 9, the West Texas Intermediate crude oil futures contracts for September 2017 delivery were trading at $49.45 per barrel.
Franco-Nevada and Hecla Mining have year-to-date gains of 24.6% and 3.6%, respectively.
On August 2, 2017, Silver Wheaton, Coeur Mining, Barrick Gold, and IamGold had volatilities of 30.8%, 45.6%, 28.1%, and 50.4%, respectively.
Primero and Goldcorp have seen the highest correlation with gold, while Goldcorp has the lowest correlation.
Silver Wheaton has the highest correlation with gold, while Franco-Nevada has the lowest correlation.
Most mining shares saw a downturn in their price on August 3 as precious metals also fell. The past few weeks were beneficial for miners.
Precious metal miners closely follow fluctuations in gold. However, on July 27, 2017, gold prices rebounded and many miners fell.
When reading the platinum market, it’s important to look at the relative performance of platinum and gold by using the gold-platinum ratio.
Palladium is the precious metal with the highest returns on a YTD basis. It has risen 28.6% YTD. The other three precious metals have been slower.