Agnico Eagle Mines Ltd
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.
The Outlook for Gold amid Volatility
As of May 17, 2017, the price of gold has risen ~10% year-to-date. It’s been very volatile lately. In this series, we’ll look at the factors responsible for gold’s gain and reversal in 2017.
Behind Kinross’s Production Growth in 2017
Kinross Gold (KGC) produced 671,956 GEOs (gold equivalent ounces) in 1Q17, which represents a 2.3% year-over-year decline and a sequential drop of 10.0%.
Why Yamana Could Fall Harder than Its Peers if Gold Pulls Back
Historically, Yamana Gold has lagged behind its peers. Due to its high financial leverage, it’s a higher beta play on gold compared to its peers.
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.
Gold ETFs and Miners Taking Cues from Rate Hike Conundrum
Investments in the precious metals sector—including mining—substantially depend on the rate hike conundrum.
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.
Newmont Mining: Analyzing Its Production Drivers
In the fourth quarter, Newmont Mining (NEM) produced 1.44 million ounces—a rise of 8% YoY (year-over-year).
Did the Fall in the Dollar Boost Precious Metals?
Precious metals saw an upward swing on Tuesday, November 1, 2016. The rise in precious metals was most likely due to the slight fall of the US dollar.
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.
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 Is IAMGOLD’s Valuation Discount Slipping?
Lower historical multiple Historically, IAMGOLD (IAG) has traded at a lower valuation as than its peers. But after the transformation it has shown so far in 2017, its discount has fallen. While the average five-year discount to its intermediate peers (GDXJ) is about 35%, its current discount is 20%. Reasons for contraction of discount IAG stock is now trading […]
How the Surging US Dollar Has Kept Precious Metals in Its Grip
Gold prices once again retreated on Friday, November 25, by $10.3 to close at $1,179 an ounce—the lowest level that gold has seen since February.
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 Were the Main Factors in Kinross’s Production Guidance?
For Kinross’s fiscal 2016 production guidance, the grade reduction at the Kupol and Chirano mines was considered.
An Overview of OPGSX’s Precious Metal Holdings
OPGSX may also invest up to one-fifth of its portfolio directly into gold or silver bullion and other precious metals.
C1 Santa Luz Gets Go-Ahead, But Will It Be Positive for Yamana Gold?
On July 28, Yamana Gold (AUY) announced the recommissioning of C1 Santa Luz, a project located in Bahia, Brazil. It was put on care and maintenance in 2014.
Will Goldcorp’s All-In Sustaining Costs Be Higher than Peers’?
Goldcorp continued with its lower cost trend, as the key cost metric AISC (all-in sustaining costs) fell 21% YoY and remained almost flat QoQ in 3Q15.
Inside Mining Stocks at the End of May: Implied Volatility and RSI
The iShares Silver Trust and the iShares Gold Trust have gained 2.9% and 0.91%, respectively, in the past five days, likely due to the precious metal rebound.
Behind IAMGOLD’s 1Q17 Results
IAG’s 1Q17 adjusted EPS (earnings per share) of $0.01 beat the market’s expectation of -$0.01.
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.
What Upside Does the Sale of Batu Hijau Provide to Newmont?
On June 30, 2016, Newmont Mining (NEM) announced the much-awaited stake sale in its Batu Hijau copper-gold mine in Indonesia.
What Led to Weaker Production Performance for Kinross in 2Q16?
Kinross Gold (KGC) produced 671,267 GEOs (gold equivalent ounces) in 2Q16, which represents a 1% YoY (year-over-year) rise but a sequential decrease of 2%.
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.
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.
Which Intermediate Gold Miners Have Cost Advantages in 2H15?
All-in sustaining costs make up a comprehensive and important cost metric for gold mining companies. A lower AISC is better for gold miners.
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.
How Mining Stock Volatility Numbers Are Moving Now
First Majestic, New Gold, Agnico, and Silver Wheaton now have RSI scores of 60.5, 56.2, 57.6, 59.6, respectively.
How Does a Negative Interest Rate Policy Affect Gold Investments?
Under a negative interest rate policy, people are charged on their deposits with banks, and banks are charged for their deposits with the central bank.
Can Newmont Mining Continue Its Outperformance Going Forward?
Newmont’s gold all-in sustaining costs were 16% lower YoY. The company’s ongoing portfolio rationalization efforts should also lead to even leaner assets.
Factors That Impact Goldcorp’s Earnings Estimates
Wall Street analysts expect Goldcorp’s revenues to fall 2.3% to ~$3.4 billion in 2017.
Inside the Analyst Ratings for Kinross after Its 2Q16 Results
As of July 28, 2016, Kinross Gold was trading at $5.03 per share. About 32% of Wall Street analysts covering the stock have issued “buy” recommendations.
Inside Yamana Gold’s Financial Deleveraging Efforts
Yamana Gold (AUY) is committed to reducing its net debt by $300 million by the end of 2017.
Gold Prices Decline as the US 10-Year Treasury Yield Strengthens
COMEX-traded gold futures for June delivery fell marginally by 0.24% and closed at $1,190.30 per ounce on Wednesday, May 6, 2015. Gold prices were down.
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.
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.
Which Intermediate Gold Stock Do Analysts Favor Now?
Intermediate gold miners’ (RING) (GDXJ) stock performances were better than those of senior gold miners in 1H17.
Which Gold Stocks Do Analysts Love and Hate?
Gold price’s reversal this year has created opportunities in gold stocks. The SPDR Gold Shares ETF (GLD) had gained 11% year-to-date as of Friday.
Forget Newmont’s 3Q16 Costs—They’re Going Much Lower
For 3Q16, Newmont Mining (NEM) reported AISC (all-in sustaining costs) of $925 per ounce, which is 5% higher YoY and 6% higher quarter-over-quarter.
Which Intermediate Gold Miners Look Undervalued at Current Levels?
Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization, but they’re still generally liquid, unlike their junior counterparts (GDXJ).
How Yamana Gold Can Narrow the Valuation Gap with Peers
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x. Yamana Gold is now trading at a forward EV-to-EBITDA multiple of 5.1x.
Weighing the Affects of Financial Leverage on Gold Miners in 2015
Because gold mining is a capital-intensive industry, gold miners raise debt to fund their capital expenditures—a risky funding source, given interest.
Gold sinks on Greek bailout extension
Agreement on the Greek bailout extension sent gold reeling to under $1,200 per ounce. Highly indebted Greece now has four months to get its ducks in a row.
Evaluating Gold Production for Intermediate Gold Miners in 2Q15
Gold production is an important metric for gold miners, because miners generally try to increase gold production in order to reduce costs amid low prices.
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.
Will Goldcorp’s Liquidity Continue to Increase in 2016?
Goldcorp (GG) has significantly improved its liquidity YoY (year-over-year) from $1.9 billion in 3Q14 to $3.3 billion in 3Q15.
Would You Buy a Silver or Gold Nest?
Often, haven bids for gold outnumber bids for silver. But the recent surge of silver has proved differently.
Analysts on Gold: What’s in Store for the Rest of 2017
It’s always important to watch what analysts are forecasting for gold prices for in short and long terms. This helps investors understand gold’s price outlook.
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.
Gold Prices Soar: Which Stocks Do Analysts Favor?
Kirkland Lake is first among analysts’ favorite gold stocks with 91% “buy” and 9% “hold” ratings. The target price implies a potential upside of 16%.
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 Are Gold ETFs Losing Their Allure?
With declining gold prices, the most famous gold ETF, the SPDR Gold Shares ETF (GLD), has also lost its allure. It’s trading at lower volume.
How Yamana Gold Could Improve Its Production in 4Q16?
Yamana Gold produced 328,604 ounces of gold in 3Q16—3% higher YoY but still lower than market expectations, mainly due to weaker production at El Peñón.
Gold Prices Drop Again: Led by the Strong Dollar
Lower gold prices impact gold mining stocks. The US Dollar Index appreciated against the major currencies and increased by 0.06% on May 7, 2015.
Upside for Yamana Gold after Its Q3 Earnings
Yamana Gold released its third-quarter results before the markets opened on October 26. The company held a conference call the same day.
Is Agnico Eagle Mines’ Premium Valuation Multiple Justified?
Currently, Agnico Eagle Mines (AEM) is trading at a forward EV-to-EBITDA multiple of 11.2x, the highest among the senior miners (GDX).
Understanding Newmont’s Scope for Cost Improvement
For 1Q17, Newmont reported AISC (all-in sustaining costs) of $900 per ounce, which is 8.7% higher year-over-year and 2% lower quarter-over-quarter.
Newmont on the Street: Analyst Recommendations after the 1Q17 Results
Of the 18 analysts covering Newmont Mining (NEM), ten have issued “buy” recommendations, while eight have issued “hold” recommendations on the stock.
Newmont Sees Little Effect from the Sale of the Batu Hijau Mine
Newmont Mining tries to achieve higher production every quarter. Its gold production was 1.3 million ounces in 2Q16, compared to 1.2 million ounces in 2Q15.
Analyzing VGPMX’s Geographical Focus
The VGPMX has performed poorly in the market in 2015. Top-weighted holdings Nevsun Resources and Dominion Diamond have fallen by 33% and 54%, respectively.
Why Did Barrick Gold Slash Its Production Guidance for 2017?
In 1Q17, ABX’s gold production totaled ~1.3 million ounces, representing a rise of 2.3% YoY (year-over-year).
Kinross Was Weak in West Africa in 2015: Could Things Get Better?
Kinross Gold’s (KGC) West Africa operations consist of the Tasiast mine in Mauritania and the Chirano mine in Ghana.
Assessing Free Cash Flows of Intermediate Gold Miners in 2015
FCF is important in that it is used for debt repayment, capital expenditures, and dividends or buybacks. FCF is directly related to gold industry prospects.
Declining US unemployment rate a boost to the economy
The US unemployment rate is now two times lower than it is in the Eurozone, where the jobless rate currently sits at 11.2%.
Should You Avoid Intermediate Gold Miners with High Leverage?
Intermediate gold miners aren’t far behind senior gold miners in terms of mimicking gold price trends.
Which Gold Miners Are Ray Dalio and John Paulson Betting On?
Hedge funds increased their net positions in the SPDR Gold Shares ETF during the first quarter.
Why IAMGOLD Has Climbed the Ranks among Analysts
Currently, IAMGOLD (IAG) has the third-highest number of “buy” recommendations among analysts at 75%.
Gold Prices Are Steady around $1,180 per Ounce
June gold futures contracts increased marginally by 0.19% and closed at $1,188.80 per ounce on May 28, 2015. Gold prices increased marginally.
Gold Miners’ Key Valuation Catalysts as 4Q16 Results Draw Near
Valuation for capital-intensive industries The EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is a good valuation measure for capital-intensive industries. It helps investors compare companies with varying capital structures. Higher multiples The chart above compares gold miners’ EV-to-forward EBITDA multiples and EBITDA margins for 2017. Among North American intermediate gold […]
Lagunas Norte: AISC down due to lower sustaining capex
All-in sustaining costs (or AISC) came in at $554 per ounce, a reduction of $142 per ounce from the same period last year. The reduction was mainly due to lower sustaining capital expenditure (or capex).
What Led Yamana Gold to Increase Its Cost Guidance for 2016?
Yamana Gold’s (AUY) gold cash costs for 2Q16 were $664 per ounce, as compared to $577 per ounce in 2Q15.
Must Know: An Overview of Kinross Gold Corp.
In this series, we’ll analyze the various business aspects of Kinross Gold. We’ll also look at various key drivers that impact Kinross’s investors.
Watch for These Catalysts in Intermediate Gold Miners’ Q4 Results
Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization, but they’re still generally liquid, unlike their junior counterparts.
Can Barrick Gold Reverse Its Year-to-Date Performance in 4Q17?
ABX reported a decline in quarterly output at its major gold mines, which was expected due to the ongoing disruptions at its Tanzanian mines.
Interpreting Analyst Recommendations for Intermediate Gold Miners in 2015
Tahoe Resources appears to be a favorite in gold among analysts because it had the highest percentage of “buy” recommendations at a whopping 86%.
What Could Drive Upside to Newmont’s Production in the Medium Term?
Newmont Mining’s gold production was 1.25 million ounces of gold in 3Q16, as compared to 1.21 million ounces in 3Q15 and 1.3 million ounces in 2Q16.
What Led Newmont to Upgrade Its Production for 2017?
Newmont Mining’s (NEM) attributable gold production in 2Q17 came to nearly 1.4 million ounces, or 13% higher than in 2Q16.
Gold Miner Stocks: What’s Driving Long-Term Production Growth?
After years of cutting back on sustained capital expenditures, gold miners have started to refocus on production growth as gold prices (GLD) remain buoyant in 2016.
What to Expect from Eldorado Gold’s Q3 Conference Call
Eldorado Gold (EGO) stock lost significantly in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey.
What Do Analysts Recommend for Kinross after 4Q15?
About 29% of Wall Street analysts covering the stock have “buy” recommendations for Kinross.
Will Softer Inflation Keep the Fed from More Interest Rate Hikes?
Investors hold gold in their portfolios as a hedge against inflation. When inflation is high, the value of money in terms of paper currency usually falls.
Which Gold Mining Companies Could Generate Free Cash Flow in 2Q16 and Beyond?
Analysts estimate that Barrick Gold will have positive FCF of $292 million in 2Q16 and ~$1.1 billion in 2016. Barrick generated $471 million in FCF in 2015.
What Drove the Earnings Miss for Yamana Gold in 2Q16?
Yamana Gold (AUY) reported 2Q16 EBITDA of $148 million, which is lower than consensus expectations of $167 million.
What’s Driving Analysts’ Earnings Estimates for Newmont Mining?
Newmont Mining (NEM) is one of the very few gold mining stocks to have given a flat-to-positive return this year.
Eldorado Gold Stock Skyrocketed on May 22
On May 22, there was a sense of relief for Eldorado Gold stock. Eldorado Gold stock skyrocketed and closed 16.8% higher yesterday.
As Good as Gold: Analyzing Gold Miners’ Production Growth
In 3Q15, Goldcorp (GG) posted record gold production of 922,200 ounces—2% growth quarter-over-quarter and 42% growth year-over-year.
Net Debt-to-EBITDA Expectations for Intermediate Gold Miners in 2015
In 2015, the average net debt-to-EBITDA ratio of the six intermediate gold miners we’ve been evaluating in this series is 0.9x—a similar level to 2014.
An Overview of Gold Miner Performance in 2015
Gold miners’ stocks have underperformed most of the market indices and gold itself. GDX has significantly underperformed GLD since 2008.
Yamana Gold: Analysts’ Sentiments before Its Q1 Results
Among senior and intermediate gold miners (GDX) (GDXJ), Yamana Gold (AUY) is third based on the highest “buy” ratings from the analysts.
These Kinross Projects Could Provide an Upside to Production
Kinross Gold’s Phase-1 expansion at the Tasiast mine is expected to increase mill throughput capacity from 8,000 tons to 12,000 tons per day.
Weighing Liquidity against Leverage for Intermediate Gold Miners
Eldorado is the best-placed mining company in terms of short-term liquidity, whereas Sibanye Gold’s current ratio is the poorest-placed, as it is very low.
Why Agnico and Goldcorp Have Higher Valuations than Competitors
Agnico Eagle Mines (AEM) and Goldcorp (GG) check almost all of the right boxes for senior gold miners. That’s probably why they’re trading at a higher multiple than their peers.
World’s largest gold producer: Barrick Gold
Barrick Gold Corporation (ABX), the world’s largest gold producer, produces and sells gold as well as significant amounts of copper. Barrick has the largest quantity of gold reserves.
Inside IAMGOLD’s Essakane Mine: What Caused Improved Costs in 1Q17
Essakane produced 93,000 ounces of gold in 1Q17, which represents a YoY rise of 6%, mainly due to a 27% increase in throughput.
Why Are Intermediate Gold Miners so Exuberant?
Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization, but they are still generally liquid.
Analyst Insight: Is Newmont Mining Warming Up for a Good 2018?
Newmont Mining’s stock has not seen any rating change from analysts since July 2017 when Argus upgraded it from “hold” to “buy” with a target price of $43.
Why Kinross Gold’s Rebound Potential Seems Limited Right Now
Kinross’s momentum in 2018 so far has been negative, with its stock down over 40% YTD (year-to-date) as of November 20.
How Are Goldcorp’s Project Pipelines Doing?
Goldcorp (GG) has one of the strongest project pipelines in the industry. It plans to compound returns by focusing on its existing mines with organic growth.
Investing in gold? Watch the US Dollar Index
Tracked by the Federal Reserve, the weekly US Dollar Index measures the value of the dollar compared to the currencies of its significant trading partners.