Eldorado Gold Corp
What Could Drive IAMGOLD Corp.’s Valuation Going Forward?
IAG stock could continue to gain traction due to its high operational leverage, at least as long as the upward trend in gold prices continues.
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.
Understanding IAMGOLD’s 2Q17 Earnings Highlights
IAMGOLD’s (IAG) 2Q17 production was 223,000 ounces of gold—growth of 26,000 ounces or 13% year-over-year (or YoY).
Gold Continues to Plummet as Brexit Fears Ease
Gold futures for August expiration fell 0.2% to settle at $1,270 an ounce after touching $1,263.8 on Wednesday, June 22.
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%.
The Drivers for Barrick’s Free Cash Flow Decline in 2017
Generating free cash flow (or FCF) is very important for gold miners (GDX), as it helps long-term prospects for the business and helps generate shareholder value.
How Do US Economic Numbers Play on Gold?
Economic data from the United States on Tuesday, July 21, 2016, on home starts and building permits affected gold and other precious metals to a certain extent.
Mining Technical Indicators: What We Can (And Can’t) Assume
The RSI levels of our four mining giants above have risen recently due to higher stock prices.
How Closely Are Equities Tracking Gold?
Precious metals often run in the opposite direction of stocks. Whenever the risk appetite of investors is high, stocks tend to perform well.
Which Indicators Are Playing Precious Metals?
Besides geopolitical issues, the US dollar has also been playing an important role in the determination of the price movement for precious metals.
How Indian Demand Could Influence Gold Prices
India and China remain the top two consumers of gold (IAU) and silver (SLV).
How Miners Performed in 2017
Wheaton is above its 100-day moving average, while Coeur Mining and Eldorado are below their longer-term 100-day moving averages.
Are Analysts Turning Bullish on Gold Post-Brexit?
According to the median of 12 forecasts in a Bloomberg survey of analysts and traders, gold prices could reach as much as $1,424 per ounce by the end of the year.
Is Gold Still Dependent on the Inflation Numbers?
Janet Yellen, chair of the Federal Reserve, noted that the Fed is planning to change the annual stress tests it gives to US banks. The test results would reveal whether the banks can withstand a massive financial crisis.
How Economic Numbers Played on Gold on April 7
Besides the attack on Syria, the latest rise in gold was also backed by dampened expectations that the Fed will raise interest rates soon.
How Economic Numbers Are Affecting Gold and Miners
The New Home Sales figure stood at 592,000, higher than the expectation of 575,000. The higher sales were likely due to the better forecast for the economy.
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 […]
Barrick Gold Reports Negative Free Cash Flow in Q2 2018
Barrick Gold (ABX) generated FCF of -$172.0 million in Q2 2018, which broke its streak of 12 consecutive quarters of positive FCF.
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.
A Look at Gold as the Fed’s Rate Hike Looms
The Fed’s interest rate hike On December 14, 2016, the Fed finally raised interest rates by 25 basis points. More concerning from an investor’s point of view was the Fed’s targeted total hike of 75 basis points in 2017. The Fed’s first meeting for 2017 is on March 14 and 15. The market is quite certain that […]
Behind IAMGOLD’s 1Q17 Results
IAG’s 1Q17 adjusted EPS (earnings per share) of $0.01 beat the market’s expectation of -$0.01.
IAMGOLD Beat 3Q17 Estimates—But Can the Stock Momentum Continue?
IAG reported EPS (earnings per share) of $0.07 for 3Q17, beating the consensus estimate by $0.06. Its revenues missed the estimate by $4.1 million.
Eldorado Gold: The Worst-Performing Gold Miner in January
Eldorado Gold (EGO) is Canada’s second-largest gold mining company, whose price is trading at $2.22 per share as of January 28, 2016.
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.
Can AngloGold’s Project Pipeline Provide an Upside to Its Production?
AngloGold Ashanti’s 1Q16 production fell by 7.2% YoY to 861,000 ounces, mainly due to planned reductions at its Obuasi, Tropicana, and Morila mines.
What Future Growth Options Does AngloGold Really Have?
At its Siguiri gold mine in Guinea, AngloGold Ashanti (AU) is planning to invest about $115 million over the course of two years.
How Analysts See Iamgold’s Top Performance among Gold Mining Stocks
Of the 13 analysts covering IAG stock, 54% recommend a “buy,” while 46% recommend a “hold.” IAG doesn’t have any “sell” ratings.
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.
Will Yamana’s Chapada Mine Sale Improve Its Shareholder Returns?
Yamana Gold (AUY) announced today that it has agreed to sell its Chapada mine to Lundin Gold (LUNMF) for $1 billion.
How Are Analysts Rating Yamana after Its 3Q16 Results?
About 45% of analysts covering AUY have given it a “buy” recommendation. About 45% of analysts have issued a “hold.” Only 9% have issued a “sell.”
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).
Will These Intermediate Gold Equities See a Valuation Upside?
Among intermediate gold miners, Agnico Eagle Mines has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 12.0x.
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.
What Led to the Recent Divergence of Gold and Gold Mining Stocks?
The year-to-date stock performances of precious metal miners have been driven more by company-specific factors than by the direction of gold prices.
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.
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.
Eldorado Gold’s Q2 2018 Earnings and Its Issues in Greece
Eldorado Gold (EGO) stock suffered a great deal in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey.
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).
Geopolitical Tensions and Volatility: Impact on the Market
Geopolitical tensions, trade war fears, rate hikes, and market volatility have left investors restless.
What Gold Miners’ Technical Indicators Are Telling Us
While the current rise in precious metal prices has provided a tailwind for miners, for some of them, the gains might be more self-sustained.
Why IAMGOLD Has Climbed the Ranks among Analysts
Currently, IAMGOLD (IAG) has the third-highest number of “buy” recommendations among analysts at 75%.
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.
How IAG’s Westwood Mine Development Is Coming Along
IAMGOLD’s (IAG) Westwood reported 106% higher production in 3Q17 on a YoY (year-over-year) basis, coming in at 33,000 ounces.
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.
Analysts Have a Mixed View of Gold Miners ahead of Q2 Earnings
Among the senior and intermediate miners, Eldorado Gold (EGO) and New Gold (NGD) have the fewest “buy” ratings at 15% each.
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.
Can Federal Funds Futures Hint at the Direction of Gold Prices?
Federal funds futures, which are used to hedge the interest rate risk, are factoring in a maximum of one interest rate hike by the end of 2016.
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.
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.
How Strict Is the Gold-Regulated Market?
Bitcoin (ARKW) has seen its price plunge since the start of 2018 due to news that world leaders are planning to implement regulations on digital currencies.
Outlook: IAMGOLD’s Stock Momentum after Its Q3 2018 Results
IAMGOLD (IAG) was the best-performing gold stock of 2017, returning 51.4% for the year.
Gauging Market Sentiment before the US Elections
While Americans evaluate the promises of US presidential nominees Trump and Clinton, investors are busy evaluating their portfolios in light of either nominee’s victory.
Outlook: IAMGOLD’s Stock Momentum after Q2 2018 Results
IAG is guiding for gold production of 850,000–900,000 ounces for 2018.
Iamgold’s Westwood Mine: On Track for Full Ramp-Up by 2020
Westwood’s all-in sustaining costs for the second quarter were $1,129 per ounce, which was 13% higher YoY.
Why Is AngloGold so Confident in 2H16 after Its Slow Run Rate in 1H16?
AngloGold’s 2Q16 production was 3% higher QoQ at 884,000 ounces. Its 1H16 production was 47% of the midpoint of its annual production guidance.
Will Gold Miners Keep Up Their Recent Run?
While gold fell sharply in the last quarter of 2016, gold stocks weren’t far behind. The market capitalization–weighted NYSE Arca Gold Miners Index or GDM fell 20.2%.
How Closely Are Miners Tracking the Precious Metals?
As the precious metals retreated on Friday after seeing gains over the past one week, the negative sentiment also affected the mining equities.
Gold Falls to $1,062, Even amid Instability after Paris Attacks
On Wednesday, November 18, 2015, gold fell to $1,062 per ounce, the lowest level in almost six years. Silver, platinum, and palladium fell 0.61%, 0.82%, and 2.6%, respectively that day.
What’s Affecting Precious Metal Miners in April 2017?
As of April 5, 2017, the volatilities of Hecla Mining (HL), Kinross Gold (KGC), Eldorado Gold (EGO), and IAMGOLD (IAG) were 45.6%, 41.9%, 50.5%, and 47.8%, respectively.
How Did Rate Hike Fears Move Precious Metals?
Gold futures for February expiration slipped 0.3% and traded at $1,155.2 an ounce.
How Precious Metal Miners Are Moving in July 2017
Alacer Gold and Eldorado Gold are trading below their shorter-term 20-day and longer-term 100-day moving averages.
Why Did Miners Fall on August 24?
Most mining companies reversed their 2015 losses during the first few months of 2016 and have posted substantial gains. There is a high correlation between mining stocks and precious metals.
How Dollar Weakness Prompted Gold’s Rise
The most recent fall of the US dollar against the basket of six major world currencies gave further support to dollar-denominated precious metals.
As Investors’ Cash Positons Remains Strong, Where Does Gold Stand?
According to the most recent survey by Bank of America/Merrill Lynch (BAC), fund managers were cautious ahead of the US presidential election and concerns regarding the European Union.
Reading the RSI Levels of Miners at the End of November
As of November 24, 2017, Goldcorp, New Gold, Silver Wheaton, and Eldorado Gold had call-implied volatilities of 28.9%, 51.3%, 30.8%, and 50.4%, respectively.
What Should Gold Investors Do after the US Election Surprise?
Until the market settles down and the policies of the new administration are understood, uncertainty is likely to prevail in the market. This, in turn, should support precious metals such as gold, silver, platinum, and palladium.
Divergent: How Did Gold and Equities Perform in 2016?
Gold lost most of its sheen as 2016 drew to a close, and its last trading day of the year closed on a sour note. Gold futures for February expiration were down almost $5.20 on December 30, 2016, compared to the previous trading day.
Why Eldorado Gold Became the Least Impressive Gold Stock
Eldorado Gold (EGO) is one of the few gold stocks that have seen rapidly deteriorating sentiments from analysts in the last year.
Gold Prices: Cramer and Citigroup at Odds about Upside
Gold has been benefiting from the US-China trade war. However, some observers, such as Jim Cramer and Citigroup, disagree on what’s in store for gold.
Trump, Trade War, Powell: More Upside for Gold Prices?
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%.
Why Analysts’ Sentiments Are Turning Positive on IAMGOLD
Analysts’ sentiments toward IAMGOLD (IAG) have been changing for the better in the past few months.
Will Gold Miners Soar in the Second Half as Gold Rises?
Gold prices have seen a reversal in the last month or so. The SPDR Gold Shares ETF (GLD) gained 8.0% in June alone.
Why Wall Street Loves These Five Gold Stocks
Among miners, Eldorado Gold (EGO), New Gold (NGD), IAMGOLD (IAG), and Barrick Gold (GOLD) have seen the highest gains of 50.6%, 44.4%, 40.3%, and 36.4%, respectively.
What Made J.P. Morgan Upgrade Eldorado Gold?
J.P. Morgan (JPM) analyst John Bridges upgraded Eldorado Gold (EGO) on June 26 from “underweight” to “neutral.” Eldorado’s stock has gained 98% YTD as of June 26. The majority of these gains have come in the last one month as gold prices have made the stock’s impressive run even better.
Gold and Miners: To Buy or to Hold?
Since lower interest rate expectations, a weakening US dollar, and geopolitical factors pushed gold above its long-term resistance of $1,350 per ounce, technical factors seem to have taken over.
Credit Suisse Expects Gold Miners to Follow Gold Higher
Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,280 per ounce in 2019.
Gold: Analysts Are Bullish despite Weak Performance in 2019
Gold prices have fallen 3% YTD (year-to-date) as of April 26. Gold prices fell ~1.9% in 2018 and significantly underperformed broader markets.
Why Analysts Are Bearish on These Gold Equities
Among senior and intermediate miners (JNUG) (GDX), New Gold (NGD), Barrick Gold (GOLD), Eldorado Gold (EGO), and Kinross Gold (KGC) have the fewest “buy” ratings from analysts, at 0.0%, 16.0%, 38.5%, and 40.0%, respectively.
Checking In on Gold Miners Ahead of Their Q1 2019 Results
Gold prices have fallen 3.6% this year after falling ~1.9% in 2018, significantly underperforming broader markets.
Why Is Deutsche Bank Bullish on Gold?
Gold prices (GLD) have risen 0.5% YTD (year-to-date) until April 12—compared to the gain of 16.1% in the S&P 500 Index (SPY).
EGO Skyrocketed in Q1—Could This Outperformance Continue?
Eldorado Gold (EGO) significantly outperformed its peers (JNUG) (GDXJ) as well as gold (GLD) in the first quarter with a gain of 60.8%.
Yamana and Agnico Eagle: Is There More Upside in 2019?
Yamana Gold (AUY) and Agnico Eagle Mines (AEM) outperformed the Gold Miners Index (GDX) and gold (GLD) in the first quarter of 2019.
How Gold and Gold Miners Performed in Q1
Gold prices (GLD) gained just 0.6% in the first quarter compared to the gain of 13% in the S&P 500 Index (SPY).
The Five Gold Stocks Wall Street Is Loving Lately
Gold miners usually act as a leveraged play on gold prices. In 2018, the VanEck Vectors Gold Miners ETF (GDX) fell 9.3%, amplifying the 1.9% fall in gold prices (GLD).
Can KGC’s Projects Aid Its Production Profile in the Medium Term?
The Tasiast expansion project is very important for Kinross Gold (KGC) when it comes to replacing its maturing production.
Analyzing Barrick Gold’s Free Cash Flow Upside in 2019
Barrick Gold’s FCF was $37 million in the fourth quarter—85% lower YoY. In 2018, the FCF was $365 million—down 45% YoY.
Analysts Aren’t So Bullish on These Gold Stocks
Among senior and intermediate miners, New Gold, Barrick Gold, Eldorado Gold, and Kinross Gold have the fewest “buy” ratings.
Which Five Gold Stocks Are Analysts Loving So Far in 2019?
In 2018, as gold prices (GLD) fell 1.9%, the VanEck Vectors Gold Miners ETF (GDX) amplified that loss by falling 9.3%.
Is Now the Time to Heed Dalio’s Gold Allocation Advice?
Ray Dalio’s love for gold is well known.
Why Ray Dalio Recommends Holding 5%–10% in Gold
Dalio’s Bridgewater Associates built its position in gold ETFs mainly after the second quarter of 2017.
Some Bright Spots in Other Dull Intermediate Gold Miner Stocks
Among intermediate gold miners, Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.6x.
The Market Has Restored IAG’s Discount—Is a Turnaround Possible?
Historically, IAMGOLD (IAG) has traded at a lower valuation than its peers.
What Would It Take to Restore Investors’ Confidence in IAMGOLD?
IAMGOLD (IAG) reported its third-quarter earnings results after the market closed on November 6.
Can Yamana Gold Narrow the Valuation Gap More?
Yamana Gold is trading at a forward EV-to-EBITDA multiple of 5.3x. Yamana Gold is trading at a 17% discount to its last five-year average multiple.
What Could AEM Address during Its Q3 2018 Earnings Call?
By October 17, Agnico Eagle Mines (AEM) has lost 20.3% of its value year-to-date, while the VanEck Vectors Gold Miners ETF (GDX) had fallen 14.3%.
Could New Gold’s Q3 2018 Results Decide Its Future?
New Gold plans to announce its third-quarter results after the market closes on October 24, followed by a conference call to discuss the results on October 25.