Barrick Gold Corp
Gold and Silver Fell on July 22
At 2:50 PM EDT on July 22, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) gained ~1%, ~2.0% ,and ~0.77%, respectively.
Polyus Gold International: A Russian Mining Giant
Polyus Gold International is the largest gold producer in Russia. It ranks among the top ten gold miners. It produced 1,696,000 ounces of gold in 2014.
Yellen Wants to Keep Negative Rates on the Table, Helping Gold
When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.
Barrick Gold Won’t Sell More Assets to Reduce Debt
Investors have been punishing Barrick Gold (ABX) and other gold miners for a long time due to their high debt.
How Much Could Brexit and Volatility Control Gold?
Fears in the overall financial market about a Brexit, the possible exit of Britain from the European Union, have abated. This helped gold fall.
What Caused the Fall in Precious Metals?
Gold prices plummeted on Wednesday, January 25, 2017, and gave the lowest close in recent weeks.
Watch for These Valuation Catalysts in Gold Miners’ 3Q17 Earnings
Of all the miners (GDX) we’ve discussed in this series, Agnico Eagle Mines (AEM) has the highest EV-to-forward-EBITDA multiple of 12.0x.
Do Central Bank Gold Holdings Point to a Bright Future for Gold?
Central banks have been net buyers of gold since the beginning of the financial crisis of 2008.
Why investors should watch ETF holdings closely
Outflows from exchange-traded funds (or ETFs) led to an ~28% fall in gold prices in 2013. They sold a combined 881 tons of gold. Investors should monitor the change in ETF holdings.
Goldcorp’s cost reduction compared to its peers
Goldcorp’s (GG) all-in sustaining costs (or AISC) are falling. In 2013, its AISC was $1,031 per ounce. It expects the AISC to be in the range of $950–$1,000 for 2014.
Key Insights from Goldcorp’s 3Q17 Earnings
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.
Low crude oil prices impact gold
Cheaper oil means lower inflation. This means gold should be affected negatively since it’s usually considered a hedge against inflation.
Gold Rose amid Increased Demand for Safe-Haven Assets
These economic concerns and monetary stimulus expectations have decreased the probability of an interest rate hike by the US Federal Reserve, and the chances of an interest rate hike in July dropped to zero.
How Analysts Rate Senior Gold Miners after Their 1Q17 Announcements
Among the senior gold miners (GDX), analysts are the most bullish on Newmont Mining (NEM), giving it 53% “buy” and 42% “hold” ratings.
What Does Giant Miners’ Performance Indicate?
For mining companies, 2016 brought a ray of hope. Gold had the best quarterly performance in 30 years and silver climbed to its 11-month high.
Assessing variables that drive the outlook for gold prices
Physical buying from China and India should support the demand for gold. But a rate hike by the Fed could be the catalyst that could take gold down.
Palladium Trades at Multiyear Low Owing to Chinese Slump
Palladium has seen six out of seven down trading days as of January 12. The recent stock market slump in China, which caused global tumult, hurt palladium.
These Gold Miners Surprised Us with Unit Costs in 3Q17
AISC (all-in sustaining costs) are an encompassing measure that helps compare miners’ performance—a vital metric for investors. They show the company’s margin cushion at prevailing gold prices (GLD)(IAU).
Did the Precious Metals Rally Cause Miners to Run to the Hills?
Even though precious metals miners have seen a remarkable rally in their prices, many fund managers have begun unloading their holdings in gold equities.
How US labor conditions impact gold investors
It’s important to keep an eye on labor conditions since they offer a look at the future direction of gold prices and ultimately gold-backed ETFs.
A Look at Gold Miners’ Liquidity Positions
Along with a good solvency position, Kinross Gold (KGC) also has a comfortable liquidity position with a current ratio of 3.9x.
Lagunas Norte: Increasing Barrick’s cost per unit
Lower ore grade increases the amount of waste stripping required—in order to extract some volume of ore—as a result of mining more tons of waste.
Will Falling Gold Prices Lead to More Carnage for Miners?
Gold continues to trade at its five-year low. It’s hovering in the range of $1,100–$1,150 per ounce. Gold futures on COMEX lost 5.90% on a YTD basis.
Gold Trading around $1,300, Silver Declines
At 8:45 AM Eastern time, gold futures contracts for June delivery were trading at $1,298.75 per ounce, a gain of 0.23%. Silver was trading at $17.59 per ounce, a loss of 0.37%.
Why Is Gold Struggling at a 1-Week Low on August 8?
At 2:40 PM EST on August 8, the COMEX gold futures contract for December delivery was trading at $1,341.35 per ounce—a drop of ~0.23%.
How the Dollar’s High Jump Pushes Precious Metals Down
The US dollar rose sharply on November 4. Precious metals have overall seen a volatile past month, but on November 4, palladium dropped the most by 12.10%.
Why Is Gold Trading at Its Lowest Price Levels in 3 Weeks?
The market is anticipating the speech by the Federal Reserve chair, Janet Yellen, at the annual central bankers meeting to be held in Jackson Hole, Wyoming, on August 26.
Why US public debt increased year-over-year in FY14
U.S. public debt is the amount owed by the federal government in terms of outstanding treasury securities. For September 2014, U.S. debt to GDP was 102.9%.
Which Gold Miners Could Offer Valuation Upsides after Q2 2018?
The average ratio of the NYSE Arca Gold Miners Index and the S&P 500 Index (SPY) is 0.18 compared to the ten-year average of 0.68.
Why the US real interest rates stabilized in September
Real interest rates are adjusted for inflation. As real interest rates rise, other investments usually become more attractive. This reduces the demand for gold and vice versa.
Investors Should Know These Updates from Barrick Gold in 2Q16
Barrick Gold delivered FCF (free cash flow) of $181 million in 1Q16, making it the fourth consecutive quarter of positive FCF.
Once Again, Soros Makes Money off the UK’s Woes
Four days before the UK (EWU) decided to leave the European Union (VGK), Soros warned the markets of a “Black Friday” and a crash in the pound.
Why Investors Are Waiting for These Updates from Agnico Eagle Mines
AEM stock rose 10.0% in 2017, compared with the 12.8% gain seen by the SPDR Gold Shares and the VanEck Vectors Gold Miners ETF’s 11.1% gain.
Why execution is key to Barrick’s share price going forward
Barrick’s high financial leverage is a key investor concern. Resolving this could lead to rerating of Barrick stock, a positive for Barrick’s share price.
Newmont Mining’s Project Pipeline Update in 3Q17
Newmont Mining is expected to complete the expansion at Northwest Exodus in 2018.
Keeping a Tab on Rating Changes in Senior Gold Mining
Berenberg noted that recent developments at Barrick, in addition to its deleveraging and strong free cash flow generation, are positives for the stock.
What Does Inflation’s Retreat Mean for Gold?
Inflation hedge Investors tend to hold gold in their portfolios as insurance against inflation. When inflation is high, the value of paper currency, in terms of the goods and services it can buy, falls. As investors want something that doesn’t lose its value, gold usually has a direct relationship with inflation. Demand for gold increases as inflation […]
What Goldcorp’s healthy prospects mean for investors
Goldcorp’s asset portfolio is located in politically stable, low-risk jurisdictions in the Americas. This is one of Goldcorp’s key advantages. Many gold miners are facing political instability and taxation issues.
Why India’s real interest rates are moving up, affecting gold
Tracking China and India’s inflation figures can give you insight into gold prices’ future direction. It also provides you a look into gold-backed exchange-traded funds (or ETFs) like the SPDR Gold Shares (GLD).
Implications of Fed Decisions on Precious Metals and the Dollar
A rate hike and the dollar are closely tied to each other since a higher interest rate would mean more money flowing into the United States.
Inside Barrick Gold’s Earnings: Why Analysts Have Lowered Estimates
After outperforming peers by a wide margin, Barrick Gold (ABX) has lagged behind so far in 2017.
What Factors are Impacting Yamana Gold’s Valuation?
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x.
Must-know: Why central bank policies impact gold price
Central bank policies can have a significant impact on gold price. Central banks are a large gold holder. They own ~30,500 tons of gold. This is close to 20% of the gold ever mined. As a result, their policies on gold sales, gold purchases, and other monetary policies can have a significant impact on gold price.
Volatility: Risks and Rewards Go Hand in Hand
The Sharpe ratio is calculated using standard deviation as its volatility measure.
Goldcorp Has One of the Industry’s Strongest Project Pipelines
Goldcorp (GG) has one of the strongest project pipelines in the industry. These projects underpin the company’s 20% growth in reserves by 2021.
What Do Revenue Estimates for Gold Mining Companies Point to in 2Q16?
Wall Street analysts estimate revenue of $2.0 billion in 2Q16 for Barrick Gold (ABX), which is slightly higher than the $1.9 billion ABX earned in 1Q16.
Are Dividends Back on Table for AngloGold in 2016?
AngloGold’s FCF (free cash flow) almost tripled to $108 million in 1H16, and 2Q16 was also the company’s third consecutive quarter of FCF generation.
Why increasing money supply is related to inflation
Money supply is the total amount of currency and other liquid instruments in circulation in an economy. Money supply data is usually collected and published by the country’s central bank.
As Senior Gold Miners Underperform, Which Stocks Do Analysts Like?
North American senior gold miners (RING) had a strong run in 2016, with an average gain of 72% in the group as a whole.
Must-know: An overview of Newmont Mining
Newmont Mining Corporation (NEM) is the world’s second largest gold producer and the only gold company included in the S&P 500 Index.
Gold prices hold above the key support of $1,160
Gold April futures contracts are trading in a downward trending channel. Gold prices settled just above the key support on March 9, 2015.
Goldcorp’s Bright Outlook Pushes It onto Analysts’ Radar
Goldcorp stock has lost 4.7% year-to-date through the end of September, underperforming its close peers.
Will Barrick Gold See Any Upside Going Forward?
Barrick Gold (ABX) stock has fallen 30% year-to-date, and it has underperformed relative to its peers in the gold sector. This is mainly due to the firm’s high debt profile.
Which Senior Gold Miners Are Analysts Betting On?
As a group, the average gains of North American senior gold miners (GDX) (RING) have been muted.
Why IMF Is Worried about the US’s Expanding Debt Profile
The US had a budget deficit of $215 billion in February 2018, the largest in six years.
Analysts Are Optimistic about Coeur Mining
Market sentiment for Coeur Mining Coeur Mining (CDE) is a high-cost producer compared with peers (RING) (SIL). While it has initiated several measures to bring down its costs in the last few years, they remain high. Higher costs make CDE more leveraged to gold and silver prices than other low-cost producers such as Barrick Gold (ABX) […]
Why an increase in real interest rates makes gold lose its sheen
Gold doesn’t give any returns besides appreciation. Appreciation doesn’t always happen. As a result, gold has to compete against assets that yield something. When the return on the alternate assets begins to rise, the demand for gold falls. In a scenario where the real interest rates are rising continuously, the demand for gold—as an investment—will start falling.
Understanding Barrick Gold’s 1Q17 Miss
For 1Q17, ABX reported adjusted EPS (earnings per share) of $0.14, which was lower than the consensus estimate of $0.20.
Gold Inches Higher on Weaker Dollar and Global Uncertainties
After falling for two consecutive trading days, gold regained its strength on Wednesday, June 29, amid increasing concerns over the stability of the global markets.
Barrick’s Cortez mine: Production down year-over-year
The Cortez mine is one of the largest and lowest-cost mines in the world, with huge upside exploration potential. It is Barrick’s largest-producing mine and contributes close to 15% of the total production.
Is Newmont’s Project Pipeline Strong Enough to Support Growth?
Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018.
Factors That Impact Goldcorp’s Earnings Estimates
Wall Street analysts expect Goldcorp’s revenues to fall 2.3% to ~$3.4 billion in 2017.
Analysts’ Estimates: Could NEM’s Near-Term Profitability Decline?
Although 2017 has not been very good for Newmont Mining stock due to short-term issues, its outlook remains strong.
Which Senior Gold Miners Could Gain following the Fed’s Decision?
Senior gold miners are large miners with established positions. While there are variations between different miners, as a group, they usually follow gold prices.
Behind Goldcorp’s 5-Year Plan: What’s Influencing the Analysts
Goldcorp’s (GG) management has unveiled a plan to create value for the company over the next five years.
Kinross Gold Is Financially Comfortable after Its Acquisitions
Kinross Gold had $2.5 billion in liquidity as of September 30, 2015, including $1 billion in cash and $1.5 billion in undrawn credit facilities.
Citi Upgrades Barrick Gold—Why the Stock Needs More to Lift Off
Citigroup’s (C) Alexander Hacking upgraded Barrick Gold to “neutral” from “sell” on August 28 and lowered its target price from $12 to $11.
Is Newmont Ready to Start Long Canyon before Schedule?
Newmont Mining (NEM) has four projects in final stages, all of which will start production either this year or next.
What Falling Miner RSI Levels Suggest
The RSI levels of our four select mining giants have all increased lately due to their higher stock prices.
Inside Gold Production in 2016
Goldcorp’s gold production fell 16% YoY in 4Q16 to 761,000 ounces.
Copper Stabilizes While Gold Trades near Two-Year High
Copper prices stabilized on Monday, July 4, amid expectations of stimulus from central banks.
Newmont’s Project Pipeline Remains Strong: What’s the Upside?
Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018.
How Has Purchasing High-Yield Debt Helped AngloGold?
AngloGold’s net debt fell by 32% in 1H16 over 1H15, mostly due to the sale of its Cripple Creek & Victor mine to Newmont Mining for $820 million.
Production at Pueblo Viejo increases due to ramp-up
Barrick Gold’s 60% share in 3Q14 production at Pueblo Viejo was 168,000 ounces, an increase of 49% from the year-ago level. The increase is because of the full ramp-up of the mine following modifications to the facilities.
Gold prices retreat from $1,153 levels
Gold prices for April futures contracts continued trading in a downward trend. Prices broke the key support level on March 10, 2015.
Why Barrick Gold’s Production Matters: What Could Lead to a Downgrade
Barrick Gold (ABX) produced ~1.43 million ounces of gold in 2Q17, which represents a growth of 7% on a year-over-year basis.
Must-know: Why US debt to GDP and gold price move together
Debt to gross domestic product (or GDP) is the ratio that shows how much a country owes versus how much it earns. Investors use this ratio to measure a country’s ability to make future payments on its debt. This impacts the country’s borrowing costs and government bond yields.
Inside the Analyst Estimates for AngloGold
Wall Street analysts covering AngloGold Ashanti (AU) are estimating revenue of $1 billion for 2Q16, which implies a YoY growth of 4% and QoQ growth of 7.5%.
Gold Reserves Fell in 2016, But Will 2017 Be Any Better?
Gold miners face the problem of compensating for every ounce they take out of the ground.
How Barrick Gold Plans to De-Lever Its Balance Sheet in 2017
Barrick Gold has reiterated that strengthening its balance sheet is its top priority. The company achieved debt reduction of $2.0 billion in 2016.
These Factors Could Turn Newmont Mining’s Fortunes around in 2019
Newmont Mining reported EPS of $0.33, which beat the consensus estimate by $0.14. Its revenue of $1.73 billion, however, missed the mark.
Next Catalysts That May Affect Newmont’s Valuation Multiple
Newmont Mining has a valuation multiple of 8.6x, with an expected EBITDA margin of 40% for 2017. At the start of 2016, it was trading at a multiple of 6.6x.
Technical analysis update – GDX and GDXJ
GDX consists of publicly-traded global companies. The companies are primarily involved in gold mining. It has assets worth $7.2 billion.
How Gold Miners Could Benefit from Deregulation
A record number of junior companies attended the Precious Metals Summit. We are finding companies with attractive development projects in North America and West Africa as well as some exciting discoveries that merit watching.
Comparing price movements in other commodities versus gold price
Gold is related to silver, oil, and copper. Relationships between commodities are examined to establish if one commodity’s price can fuel another commodity’s price. For example, it’s universally acknowledged that gold and silver prices are related. Silver’s price depends on gold’s price.
These Issues Impacted Kinross’s Costs in 2Q16
Kinross reported AISC of $988 per ounce in 2Q16, which is an improvement of 2.3% YoY (year-over-year) but is higher sequentially by 2.6%.
Why Stanley Druckenmiller Dissolved His Position in Barrick Gold
Druckenmiller has sold the firm’s position in Barrick Gold, which shows that he might have a strong outlook on the equity market.
Must-know: Why gold is important in China
In 2013, China passed India as the largest gold consumer. China’s private sector gold demand reached a record level of 1,132 tons in 2013. China’s middle class has been increasing. This supports gold demand. Recent research from the World Gold Council (or WGC) shows that there are 300 million people in China’s middle class. In just five years, China’s middle class is expected to grow to 500 million.
What Does Wall Street Have to Say about Gold Mining Companies ahead of 2Q16 Earnings?
Analyst recommendations and ratings are some of the most important market indicators investors can study. Ratings show how bullish or bearish analysts are.
Can Goldcorp Continue Its Outperformance after a Weak 1Q18?
Goldcorp posted 1Q18 earnings per share of $0.08, missing the consensus by $0.03 and much lower than its 1Q17 earnings per share of $0.20.
Health in Gold: Which Miners Are in Tip-Top Shape
Barrick and Newmont—two of the largest gold miners—were the first to be punished by investors based on high financial leverage.
Gold on the Street: What Analysts Are Saying about Miners Now
Among senior gold miners, analysts are most bullish on Newmont Mining, with 60.0% “buy” and 35.0% “hold” recommendations.
Newmont Revises Dividend Policy on Higher Gold Prices, Strong Free Cash Flow
Newmont Mining generated positive free cash flow of $240 million in 3Q16, which represents a rise of 51% as compared to the same period last year.
Comp: Which Gold Miner Looks Undervalued at the Current Levels?
The best bet is to go for gold miners with healthy balance sheets, increasing production profiles, low costs, and good cash flows.
Free Cash Flow in Gold, and What It Could Mean for Miners
Barrick Gold delivered FCF of $385.0 million in 4Q16 and $1.5 billion in 2016. The 2016 FCF was a annual record for the company.
What Led to Yamana Gold’s 3Q16 Earnings Miss?
Yamana Gold reported 3Q16 EPS of $0.02, missing the consensus estimate by $0.02. Its revenue of $464 million was lower than the estimate of $507 million.
What Factors Drove Newmont’s Free Cash Flow Generation in 2Q17?
Newmont Mining (NEM) achieved positive free cash flow of $346 million in 2Q17, compared with $199 million in 1Q17.
Do Goldcorp’s Earnings Estimates Reflect Analysts’ Increasing Optimism?
Goldcorp (GG) has given negative returns in 2017. Its stock has lost 6.1% of its value as compared to a gain of 12.8% in the iShares Gold Trust (GLD) and 11.1% in the VanEck Vectors Gold Miners ETF (GDX).
Why China’s real interest rates are increasing
When we combine the nominal rate of 3% and inflation of 2% for August, we arrive at 1% real rate of interest for savings. This rate is increasing. The increase is a result of inflation.
Strong US Dollar Is Pushing Gold Prices Lower
COMEX-traded gold futures contracts for June delivery settled at $1,186.50 per ounce on Wednesday, May 27, 2015. Gold prices declined for the fourth session.