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Assessing Gold Miners’ Free Cash Flow This Year and Beyond

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Analysts’ estimates for FCF

Investors are usually interested in gold mining companies’ (GDX) (GDXJ) ability to generate FCF (free cash flow), as it helps them invest in future growth. Analysts expect Barrick Gold’s (GOLD) FCF to rise significantly YoY (year-over-year) this year, to $484 million from $365 million, due to higher post-merger production driving revenue.

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Kinross Gold

This year, analysts expect Kinross Gold’s (KGC) FCF to turn positive and rise to $3.6 million. Its FCF was negative last year due to spending on construction at its new projects. However, with most construction complete, the company’s FCF should resume growth.

Yamana Gold and Agnico Eagle Mines

Yamana Gold’s (AUY) FCF is also expected to turn positive this year after negative FCF for a few years, rising to $118.0 million. With its Cerro Moro mine complete, its FCF is expected to recover.

Agnico Eagle Mines (AEM) is expected to generate positive FCF of $137 million this year after a few negative years. Several of its projects are coming online this year, and as the company’s capex requirements decline and its projects start contributing to its cash flows, AEM’s FCF could grow.

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