Intermediate gold miners
Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization. However, they are still generally liquid, unlike their junior counterparts (GDXJ). Their geographical diversification is usually lower than that of senior gold miners.
Outperforming gold prices
As a group, these miners have outperformed gold prices YTD (year-to-date). As of September 5, 2017, the average gain in this group was 22.1%, compared with a 16.3% gain in gold prices (GLD).
Investors, however, should notice that there are huge variations among the performances of the five intermediate miners.
Performing at extremes
Iamgold announced an 80% increase in its Rosebel’s reserves in July 2017. In September 2017, it announced that the Samaracca is exceeding its initial targets. These announcements are very positive for the company’s production and cost outlook. (Read the series Can IAMGOLD’s Keep Up Its Stock Performance after Q2 Earnings? for an in-depth analysis of the company.)
Eldorado, on the other hand, has had negative news. Its flagship properties in Kisladag, Turkey, ran into technical difficulties, while the issues at its Greek mines have been ongoing.