RECENT Basic Materials RESEARCH
Freeport-McMoRan (FCX) is having a dismal run in November. Based on the closing prices on November 15, the stock has lost 2.5%.
In order to analyze the performance of the precious metals market, it’s important to look at the core mining stocks and their technical details.
With earnings season behind us, it’s time to look at analysts’ updated ratings for some of the key agribusiness stocks.
Kinross Gold (KGC) reported its 3Q17 results on November 8, 2017, after the markets closed. Its EPS (earnings per share) was $0.07, which was $0.05 higher than market expectations.
On November 6, 2017, Axalta Coating Systems (AXTA) announced that it will be expanding its portfolio in the industrial market.
Copper is having a strong year like most of the other industrial metals. Copper has risen 23.8% in 2017 and built on its 2016 gains.
The gold–silver spread stood at 75 on November 7, 2017, indicating that it took 75 ounces of silver to buy a single ounce of gold on that day.
IAG reported EPS (earnings per share) of $0.07 for 3Q17, beating the consensus estimate by $0.06. Its revenues missed the estimate by $4.1 million.
Albemarle (ALB) announced its 3Q17 earnings on November 8, 2017. It reported adjusted EPS (earnings per share) from continuing operations of $1.08, an increase of 18.7% YoY.
We’re towards the end of the 3Q17 earnings season. Most aluminum producers have already released their 3Q17 results.
Overall, 2017 has been a strong year for metals and mining companies. Metals have built on 2016 gains, while copper and aluminum have moved higher.
Vale (VALE) released its 3Q17 results on October 26, reporting earnings per share of $0.40, compared with the analysts’ estimate of $0.32.
Goldcorp and AngloGold Ashanti have seen YTD losses of 3.7% and 12.1%, respectively. Randgold Resources and IamGold have YTD gains of 19.5% and 45.7%.
In the week ending November 3, agricultural fertilizer stocks were broadly positive.
Kinross Gold’s correlation has risen from a three-year correlation of 0.69 to a one-year correlation of 0.77, which suggests that Kinross has moved in the same direction as gold 77% of the time.
CF Industries (CF) released its earnings on November 1 after the markets closed. The company reported a loss per share of $0.37.
On October 30, 2017, Axalta (AXTA) and AkzoNobel confirmed that they are engaged in talks about a possible merger involving Axalta and Akzo’s paints and coatings business.
Mosaic reported its earnings on October 31, 2017. It reported an EPS of $0.65 per share, which included an impact of $0.22 per share from notable items.
Goldcorp (GG) reported its 3Q17 results after the market closed on October 25, 2017. It reported EPS (earnings per share) of $0.13, which beat analysts’ expectations by $0.02.
Before investors park their money in mining stocks, there are a few key indicators they should consider.