Franco-Nevada Corporation

Royalty and streaming companies Royalty and streaming companies’ business model differs greatly from that of other precious metal miners (RING), mainly because royalty and streaming companies do not own mines. These companies make upfront payments to gain a right to a fixed percentage of future silver or gold mine production. Additional payments are then made […]

India and China, the two largest consumers of gold, make up about 50% of gold’s global demand. Gold is treated more as a commodity in these two countries.

Mining companies saw massive YTD rises in 2016 despite their poor performances in the last quarter. GDX saw a YTD rise of 21.4%.

Factors impacting gold in 1H17 are a weaker US dollar, geopolitical uncertainties, higher interest rates, and expectations for Trump’s agenda.

Mining stocks with a higher correlation to precious metals will likely be impacted more by global indicators that influence precious metals.

As the Federal Reserve released minutes from its December meeting, gold prices jumped higher.

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.

The business model of royalty/streaming companies is quite different from that of other precious metal miners.

Newcrest Mining is based in Australia. It’s engaged in the exploration, mining, and sale of gold and copper. It produced about 2,396,000 ounces of gold in 2014.

RGLD is being covered by 13 Wall Street analysts right now, of which 54% recommend a “buy” for the stock, while 46% recommend a “hold.”

Free cash flow The generation of FCF (free cash flow) is important for precious metal mining companies (RING) (SIL). It helps them invest in projects that can drive long-term value, optimize their financial leverage, and provide shareholder returns. Silver mining companies are constantly trying to reduce their costs and capital expenditures in order to generate FCF. Hecla […]

Gold miners in 2017 seem to be driven more by company-specific factors than by the direction of gold prices.

Royalty and streaming mining companies (RING) (SIL) have business models that are considered quite conservative because they don’t own mines.

The business models of royalty and streaming companies is quite different from those of other precious metals miners. Royalty companies don’t own mines.

Royalty and streaming companies are quite different than other precious metal miners in terms of business model.

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.

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.

The turbulence in worldwide markets has helped precious metals, especially gold and silver, to reach new highs that we haven’t seen in the last few months.

Gold prices have been on a roller coaster ride, given the on and off situation with North Korea. A missile test and gold’s safe-haven appeal have propelled prices higher, and then they’ve fallen back again.

The US dollar and precious metals are usually inversely related to each other.

Gold has been falling since touching its one-and-a-half month peak last week after Republican representative Donald Trump was elected president of the United States.

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.

The US added 138,000 jobs in May 2017, after adding 174,000 jobs in April (revised downward from 211,000 previously).

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.

When it comes to investing in stocks, Berkshire Hathway’s (BRK.A) chair, Warren Buffett, and Bridgewater’s founder, Ray Dalio, have similar advice.

Royalty and streaming mining companies’ valuation multiples (GOAU) (NUGT) are usually higher than those of their mining peers.

Dalio’s Bridgewater Associates built its position in gold ETFs mainly after the second quarter of 2017.

Royalty and streaming mining companies’ (GOAU) (SIL) multiples are usually higher than those of their mining peers.

According to the COT report for the week ended August 10, money managers were net short on gold for the eighth straight week.

According to the COT report for the week ended August 3, money managers were net short on gold for the seventh straight week.

The primary reason for the fall in precious metals on Monday was the US dollar, which strengthened against the basket of other world currencies.

The Global X Silver Miners ETF (SIL) and the VanEck Vectors Gold Miners ETF (GDX) have fallen about 7.6% and 1.8%, respectively, during the last month.

Besides overall market volatility, the most important determinant of precious metal prices, especially gold’s (IAU) (SLV), is the US dollar.

Over the past three years, AEM, FNV, and ABX have seen a declining correlation to gold.

Over the past three years, PAAS, AUY, and GOLD have seen declining correlations with gold, while FNV saw a mixed correlation to gold.

US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011.

In this part of the series, we’ll focus on the gold-platinum spread, which compares the price performances of the two metals.

In addition to the US dollar playing on precious metals, US interest rates and the decisions by the Federal Reserve have also historically had a substantial impact on these safe havens.

Among these four miners, Newmont has shown the highest correlation to gold, while Franco Nevada has seen the lowest correlation on a YTD (year-to-date) basis.

In this part of our series, we’ll look at the correlation between gold and four mining stocks: Franco-Nevada (FNV), Coeur Mining (CDE), Kinross Gold (KGC), and Eldorado Gold (EGO).

Goldcorp (GG), Randgold Resources (GOLD), Hecla Mining (HL), and Franco-Nevada (FNV) are trading at $13.30, $101.70, $3.55, and $68.16, respectively.

It was widely expected that precious metals and miners would react negatively after the FOMC (Federal Open Market Committee) meeting.

On Wednesday, March 14, 2018, precious metals fell, but miners had a mix of ups and downs.

Precious metal miners had a reasonably good start to 2018. Overall, on a YTD (year-to-date) basis, precious metals’ reactions have been mixed.

The US Dollar Index averaged 96.6 in 2017. A Reuters poll estimates that the US Dollar Index could end this year at ~88.7.

Precious metal mining stocks tend to take their cues from gold prices. Gold is the most crucial of the four precious metals, and its direction becomes the direction for the other three metals most of the time.

Despite the impressive rise of bitcoin in 2017, its increased price volatility and complex mining process have limited its demand.

Another critical factor that has been affecting the price movement of precious metals is overall market volatility.

On Friday, February 9, gold prices saw some sign of revival as equities continued tumbling and haven bids pulled precious metals higher.

The iShares MSCI Global Gold Mining ETF (RING) and the VanEck Vectors Junior Gold Miners ETF (GDXJ) have risen 5.0% and 1.1%, respectively, during the last one-month period.

Looking ahead for 2018, industry analysts stated in a Bloomberg article that they expect gold to perform better early in the year led, by the “January effect.”

As we know, precious metals are closely tied to movements in US interest rates. Bonds and equities are both yield-bearing assets, so a rise in yields often causes a slump in demand for assets such as gold and silver.

Gold is a non-yield bearing asset that reacts negatively to rises in the interest rate.

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

New Gold, Agnico-Eagle Mines, Franco-Nevada, and Cia de Minas Buenaventura have call-implied volatilities of 45.2%, 24.4%, 21.7%, and 31.2%, respectively.

Precious metal mining companies have witnessed a rebound in their prices alongside precious metals.

Due to its solid performance YTD (year-to-date) and bright outlook, Royal Gold (RGLD) is attracting a lot of interest from the analyst community.

A brief analysis of mining stocks is crucial when investors are parking their money in the precious metals market, specifically in mining companies.

Precious metals rebounded after the Fed increased the interest rate on December 13.

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.

Although the US dollar has been the most important element contributing to changes in precious metals, the upcoming December meeting of the Federal Reserve has taken all of investors’ attention.

Gold is the most dominant among the four precious metals. It’s important that investors analyze how miners are moving compared to precious metals.

While geopolitical tensions, low US inflation, and uncertain policy reforms have been supporting gold, the other key factors have been working against it.

Gold remains the most dominant among the four precious metals. It’s crucial that investors analyze how the miners are moving versus precious metals.

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 […]

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 Sprott Gold Miners (SGDM) and Global X Silver Miners (SIL) have fallen 0.21% and 1.9%, respectively, on a 30-day-trailing basis.

Gold touched its three-week high level on Thursday, November 9, of $1,289.5 and closed at $1,287.5 per ounce.

The past week has been beneficial for precious metals—gold, silver, platinum, and palladium rose 0.42%, 1.5%, 0.63%, and 1.5%, respectively.

Gold prices (GLD) have risen ~10.5% as of November 7, 2017, YTD (year-to-date).

When investors want to park their money in miners, it’s crucial that they analyze the correlations of mining stocks with gold.

On November 1, Alamos Gold, B2Gold, Newmont Mining, and Franco-Nevada had implied volatility readings of 46.9%, 54.8%, 25.9%, and 25.5%, respectively.

Franco-Nevada and Silver Wheaton have seen an upward trend in their correlations with gold.

On a YTD (year-to-date) basis, RGLD, AEM, and FNV have risen 38.3%, 7.3%, and 33.3%, respectively, while Goldcorp has seen a YTD loss of 3.4%.

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

Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).

All the four precious metals saw an up day on Monday, October 9, 2017.

Credit Suisse (CS) downgraded Franco-Nevada (FNV) from “outperform”’ to “neutral” on September 25, 2017.

On September 29, Alamos, First Majestic Silver, Franco-Nevada, and Pan American had call implied volatilities of 46.9%, 54.6%, 25.5%, and 34%, respectively.

The negative sentiment toward gold prevailed on Friday, September 29, the last trading day of the month. Gold futures for November expiration fell 0.3%.

North Korean tensions Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has the right to take countermeasures, including shooting down US bombers outside of its airspace. The ongoing unrest in the Korean peninsula has led to a global […]

B2Gold and Royal Gold have seen downward-trending correlations with gold, while Franco-Nevada and Randgold have seen mixed correlation trends.

Among the four major streaming companies we’re looking at in this part, Franco-Nevada (FNV) has the highest forward EV-to-EBITDA multiple of 28.8x, a 35.0% premium to its peers.

In this part of our series, we’ll look at the relationships that some miners have with the precious metals they mine.

Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD basis, while Sibanye Gold has the lowest correlation to gold.

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

On September 1, 2017, Franco-Nevada, Randgold Resources, Yamana, and AngloGold had volatilities of 34.0%, 37.9%, 58.2%, and 51.5%, respectively.

China’s gold demand increased ~10% year-over-year in 1H17.

Franco-Nevada and Hecla Mining have year-to-date gains of 24.6% and 3.6%, respectively.

The probability of the Fed hiking rates again in 2017 may not be very strong after the weak employment data. However, there’s still a strong possibility of a few rate hikes in 2018.

Silver Wheaton has the highest correlation with gold, while Franco-Nevada has the lowest correlation.

Precious metal miners closely follow fluctuations in gold. However, on July 27, 2017, gold prices rebounded and many miners fell.

The US dollar has been on a downward swing over the past week.

Another element that was crucial in determining the directional movement of precious metals was the two-day Federal Reserve meeting.

In this article, we’ll look at the technicals of Agnico Eagle Mines (AEM), Silver Wheaton (SLW), Franco-Nevada (FNV), and Randgold Resources (GOLD).

Royal Gold’s correlation fell from a three-year correlation of ~0.75 and a year-to-date correlation of ~0.72 with gold.

The platinum industry is now headed for its third-straight year of surplus, likely due to the higher demand for petroleum-based cars.

In this article, we’ll take a look at the variables that determine how attractive particular mining stocks or shares are or could become.

The rise and fall of precious metals also significantly impact mining-based leveraged funds like the Direxion Daily Gold Miners (NUGT) and Proshares Ultra Silver (AGQ).

Gold fell again on Friday, June 9, 2017, for the third consecutive day. It touched a low of $1,264.80 per ounce and then settled at $1,269.50.