Materials

We’ll briefly analyze mining stocks’ correlation with gold. Gold is the most crucial of the precious metals, and mining stocks tend to increasingly take their price changes from gold.

Potash prices Potash prices remained firm for the week ending December 1. In most of the regions discussed below, the weekly prices of potash fertilizers were flat to positive. Weekly movements Last week, the granular potash prices in the Cornbelt region of the US (MOO) rose ~1.2% week-over-week to $234 per metric ton from $231 […]

Correlation analysis A correlation study of mining stocks to precious metals is important. It gives insights about miners’ potential price movement. Although the mining shares are essentially part of the market’s equity segment, they’re more coordinated with metals’ movement. Gold is the most dominant precious metals. We’ll discuss how Yamana Gold (AUY), Pan American Silver (PAAS), Coeur […]

Gold Fields, Coeur Mining, Hecla Mining, and IamGold have call implied volatilities of 40.4%, 46.7%, 33.6%, and 44.3%, respectively.

Often, gold, silver, platinum, and palladium react to the overall risk in the market.

All four precious metals saw a down day on Monday, December 4, 2017, after the US dollar, in which the four metals are priced, rose $0.39%, propelled by the Senate passing its tax reform bill.

Henry Hub (MOO) natural gas prices saw a negative week-over-week trend, a continuation of the trend from the previous week.

Copper bulls had a nice run since July. Copper underperformed several industrial metals in 1H17. However, copper has been on an uptrend in 2H17.

On November 28, 2017, H.B. Fuller (FUL) announced that it has started a new Automotive Competency Center in Mannheim, Germany.

Coeur Mining (CDE) reported AISC (all-in sustaining costs) of $15.18 per ounce for 3Q17.

Coeur Mining (CDE) achieved silver equivalent ounces of 9.5 million for 3Q17. That is comprised of silver production of 4 million ounces and 93,293 ounces of gold.

Coeur Mining (CDE) was one of the stocks to gain significantly in 2016, rising ~270%. The situation in 2017 has reversed completely.

The drivers for Cleveland-Cliffs’ (CLF) top and bottom lines are quite different from the miners we’ve discussed in the previous parts of this series such as Rio Tinto (RIO), BHP (BHP), and Vale (VALE).

Last week, the granular MOP (muriate of potash) prices in NOLA (New Orleans) in the US (NANR) rose by as much as 45 basis points week-over-week to $203 per metric ton.

In the previous part of this series, we discussed how the momentum in Chinese steel production in 2017 has come on the back of strong steel prices.

The prices for DAP (diammonium phosphate) in most of the regions of the world saw positive momentum last week.

Iron ore prices in 2017 so far have been a roller coaster ride. Prices reached a peak of $95 per ton in February only to slump to a low of $53 per ton in July and take off soon after.

The gold-platinum ratio was ~1.4 on November 22, 2017.

In September 2017, palladium prices overtook the price of platinum.

Last week, the average weekly natural gas prices were broadly lower week-over-week at the Henry Hub in the US (MOO).

It’s important for investors to keep tabs on iron ore port inventories in China. Inventory levels show the balance between demand and supply for iron ore.

PotashCorp owns 28% of Arab Potash and can appoint three of the latter’s 12 board members. It can also reportedly appoint senior management positions.

Antero Resources (AR) and Gulfport Energy (GPOR) are among the natural gas–weighted stocks that had the highest correlations with natural gas prices in the trailing week.

China’s total vehicle sales rose 2.0% in October 2017 compared to October 2016.

The CFTC reported that hedge funds’ net long positions in US natural gas futures and options contracts rose by 33,734 contracts to 75,297 on November 7–14.

The potash prices in the Cornbelt region were flat at $231 per metric ton. It was the sixth consecutive week that potash prices were mostly unchanged.

Correlation analysis Mining stocks’ performance usually depends on precious metal prices. Correlation analysis can give investors some perspective on how mining stocks relate to precious metals, especially gold. In this part of our series, we’ll look at four miners—Royal Gold (RGLD), Goldcorp (GG), Franco-Nevada (FNV), and Randgold Resources (GOLD)—and their correlation with gold. On Monday, the ETFS Physical […]

In 3Q17, DWDP’s interest expense was reported at $283 million as compared to the $220 million in 3Q16 on a proforma basis.

Last week, urea prices at the Yuzhny location fell as much as 4.1% week-over-week to $256 per metric ton from $267 per metric ton a week ago.

In this series, we’ll look at the key developments that impacted mining companies last week. We’ll also look at some of the company-specific developments that impacted mining stocks.

When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.

December natural gas (GASL) (BOIL) futures were below their 50-day and 100-day moving averages of $3.12 per MMBtu and $3.16 per MMBtu on November 16, 2017.

The EIA reported that US gas inventories fell by 18 Bcf (billion cubic feet) to 3,772 Bcf on November 3–10, 2017.

New Gold and Goldcorp have seen upward trends in their correlations with gold, while Newmont Mining has seen its correlation decline.

Precious metal miners saw mixed performance on Tuesday, November 14. Gold and silver saw an up-day while platinum and palladium were low.

Mining stocks’ performance usually depends on precious metals’ performance. However, the two can deviate. Correlation analysis can give investors some perspective on how mining stocks relate to gold and silver.

Besides the impact of interest rates, there are also other global indicators that could play on precious metals—the most important being the US dollar.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) have seen YTD (year-to-date) gains of 6.4% and 9%, respectively.

On November 6, 2017, H.B. Fuller (FUL) provided its acquisition plans for Adecol Indústria Química, a Brazilian company.

On November 7, Agnico-Eagle Mines (AEM), Yamana Gold (AUY), Hecla Mining (HL), and Harmony Gold (HMY) had implied volatility readings of 33.6%, 48.4%, 36.3%, and 53.3%, respectively.