Yamana Gold Inc

Cheaper oil means lower inflation. This means gold should be affected negatively since it’s usually considered a hedge against inflation.

Although 2017 has not been very good for Newmont Mining stock due to short-term issues, its outlook remains strong.

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.

After falling 18% in 1Q17, physical demand for gold seems to have picked up in 2Q17.

Hedge funds increased their net positions in the SPDR Gold Shares ETF during the first quarter.

Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization, but they are still generally liquid.

Oil is widely used in mining exploration, and a surge in oil prices may squeeze miners’ margins, leading to a fall in their share prices.

Although every gold miner talks about only doing merger and acquisition (or M&A) strategies that are in shareholders’ best interests, GG sticks to its strategy—unlike most of its peers.

The junior mining space is very risky, given very limited options in terms of mines and their involvement in early stages. So it’s very important to identify the right junior stock.

Gold hit a fresh six-year high on Friday as trade tensions between the US and China escalated. The SPDR Gold Shares ETF (GLD) closed up 2%.

Many gold miners (RING) are set to release their first-quarter results shortly. Analysts expect Barrick Gold’s (GOLD) EBITDA to rise 6.2% YoY (year-over-year) in the first quarter.

Barrick has reduced its debt more than 57% in the last four years from $13.4 billion at the end of 2014 to $5.7 billion at the end of 2018.

Newmont Mining (NEM) reported its fourth-quarter earnings results before the market opened on February 21.

Monetary policies have been crucial in determining the movement in precious metals.

Despite the ongoing slump in the precious metals market, it seems that there could be hope going forward.

Besides ongoing geopolitical concerns, a crucial factor that gold keeps looking to for directional moves is the US dollar.

Precious metals prices shot up on January 19, 2018, with concerns looming over the shutdown the of the US government.

Mining stocks tend to take their cues from gold.

Most mining stocks have risen over the past one month due to the revival in gold prices.

Agnico, Randgold, Yamana, and Barrick have call implied volatilities of 24.3%, 21.1%, 38.8%, and 22.8%, respectively.

The rise in inflation could be a positive sign for the current scenario.

All four precious metals had an up day on December 20, 2017. Gold increased 0.43% on the day and closed at $1,267.80 per ounce.

Newmont Mining (NEM) is expecting its newest mines to add production at just $750 per ounce.

In this article, we’ll aim to study the correlations of Yamana Gold (AUY), Pan American Silver (PAAS), Coeur Mining (CDE), and Barrick Gold (ABX) with gold.

Gold, silver, and platinum all had a down day on Tuesday, December 13, mainly due to speculations over the Federal Reserve’s pending interest rate decision.

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 […]

The possible interest rate hike is taking a lot of market participants’ attention. Many policymakers are also focusing on inflation numbers.

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

Precious metal slump All four precious metals saw a down day on Monday, November 20. Gold fell 1.6% to $1,275.30 per ounce, after touching a one-month high on Friday, November 17. The fall in precious metals was most likely due to the rise in the US dollar. The US Dollar Index rose 0.45% on Monday. Gold, silver, platinum, […]

If we look at the one-year correlation of miners, Barrick Gold has the lowest correlation with gold, while Yamana has the highest.

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.

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.

While China and Russia have the fifth and sixth largest gold reserves globally, the movements in them are the most watched by gold investors the world over mainly because these economies have been quite vocal about adding gold reserves.

On a YTD (year-to-date) basis, the correlations of the above mining stocks appear to be weak when compared with last year.

All four precious metals rose on Monday, October 30, as multiple speculations in the market gripped investors’ attention.

On October 26, 2017, Royal Gold, Newmont, Sibanye, and Yamana had call implied volatilities of 24.8%, 25.9%, 63%, and 48.4%, respectively.

Gold stock indices also traded near their highs for the year, but then followed the gold price lower. During September the NYSE Arca Gold Miners Index (GDMNTR) retreated 6.5%.

As of October 24, 2017, Silver Wheaton (SLW), Yamana Gold (AUY), Barrick Gold (ABX), and AngloGold Ashanti (AU) had implied volatility readings of 30.8%, 48.4%, 29.1%, and 40.9%, respectively.

The gold-platinum spread was ~1.38 on October 23. The RSI (relative strength index) level for the gold-platinum spread is now at 93.9.

Most of the mining shares saw a downside move in the price on October 19, 2017, but gold and silver had an up day.

Analysts expect Barrick Gold’s (ABX) EBITDA to fall 17% YoY in 3Q17 to $988 million.

The Physical Silver Shares (SIVR) and Physical Swiss Gold Shares (SGOL) witnessed rises on Friday, October 16, climbing 0.98% and 0.81%, respectively.

Among the four miners that we’re analyzing here, Sibanye Gold has the lowest correlation with gold on a one-year basis, while Gold Fields has the highest.

Later in the day on September 20, after rising gold prices fell on the US Federal Reserve’s indication of one more interest rate hike in 2017.

On September 18, gold fell 1.1% and closed at $1,306.90 per ounce. Of the precious metals, silver fell 3.1% and closed at $17.10 per ounce.

Despite just 0.7% expected growth in revenues for 2017, Agnico Eagle Mine’s EBITDA is expected to grow 5.6% YoY in 2017.

Precious metals have been buoyed by tension in North Korea. If North Korea does another missile test, it could prompt investors to move to haven assets such as gold, silver, Treasuries, and major currencies.

Precious metals have maintained upward movement over the past month as geopolitical tensions hover.

Yamana Gold has the highest correlation with gold, while Pan American Silver has the lowest correlation.

Newmont Mining had $5.5 billion in liquidity, including $3.1 billion in cash at the end of 2Q17. It has one of the best credit ratings in the sector.