VanEck Vectors Gold Miners ETF
Why Harmony Gold Rose Strongly after Beating Estimates
Harmony Gold’s (HMY) revenues came in higher than analysts’ estimates while its all-in sustaining costs were lower than market expectations.
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.
Gold Has Outperformed Other Asset Classes
Why Gold’s Resilience Continues in July Following the June 23 Brexit vote when the UK chose to withdraw from the European Union, bond yields fell to record lows and gold rallied to two-year highs, reaching $1,375 per ounce on July 6. In the US, subsequent strong economic results in manufacturing, retail sales, and housing created […]
How Did AngloGold Reduce Its Costs despite Lower Production?
AngloGold Ashanti that for the last three years, its management’s focus has been on the widening of its margins on a sustainable basis.
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.
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.
Financial Leverage Is Less of a Concern for Coeur Mining’s Investors
Coeur Mining (CDE) repaid $109.3 million of its debt in 3Q16. After this, the company’s interest expenses fell 26% quarter-over-quarter and 35% year-over-year.
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.
Understanding Miners’ Correlation to Gold
Precious metals mining shares that have high correlations with gold include Royal Gold, GoldCorp, New Gold, and Newmont Mining.
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.
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.
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.
Gold Demand: India Supersedes China Once Again
India and China are close competitors for the title of number-one gold buyer. Together, the countries make up about 50% of the total global demand for gold.
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.
Why Miners Have Outshined Precious Metals
Mining stocks are often known to amplify the returns in precious metals. Small losses for metals can bring exponential losses to metal miners, and vice versa.
How Rebounding Equities Are Affecting Precious Metals
Compared to the substantial gains in precious metals on Tuesday, the gains yesterday were muted. How come?
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.
Economists Disagree with Trump’s Fiscal and Trade Deficit Views
Donald Trump has been vociferous about cutting taxes. He intends to reduce the current seven tax brackets to three.
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 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.
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).
Why Mining Company Stocks Are Rising Year-to-Date
Mining companies saw massive YTD rises in 2016 despite their poor performances in the last quarter. GDX saw a YTD rise of 21.4%.
Is There a Significant Upside to Goldcorp’s Production Guidance?
In 2015, Goldcorp (GG) achieved record gold production of 3.5 million ounces. This is a solid 24% growth YoY. The company achieved its production guidance of 3.3–3.6 million ounces.
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.
Are Gold and Volatility Moving Together?
The rise in precious metals over the last few months has been due to insecurity among investors, given the political climate.
The Federal Reserve Minutes Pushed Gold Higher
As the Federal Reserve released minutes from its December meeting, gold prices jumped higher.
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.
Fed Meeting Is Over: What’s Next for Precious Metals?
The Fed kept interest rates unchanged at its July 27, 2016, meeting. Precious metals took guidance from it and most likely began looking forward to the Bank of Japan’s meeting.
Will Interest Rates Have a Substantial Impact on Gold?
The Federal Reserve is expected to raise the interest rate in its March 2018 meeting for what would be the sixth time since late 2015.
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).
India’s Slumping Gold Imports Are Bad News for Gold Investors
India imported gold worth $1.97 billion in June—a fall of 37% YoY (year-over-year). That’s quite low compared to a rise of 10.50% YoY in May.
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.
Royalty and Streaming Companies Have the Least Correlation to Gold
The business model of royalty/streaming companies is quite different from that of other precious metal miners.
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.
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.
Gold Prices: Driven by Delayed Interest Rate Hike and Weak Dollar
Gold prices gained 1.71% YTD (year-to-date)—despite the US Dollar Index increasing by almost 9% YTD. Prices are in a long-term downtrend.
Gold Gains on US-Mexico Trade Deal—What’s the Upside?
Gold prices (GLD) recorded their first weekly gain last week after six weeks of continued losses. What changed?
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 Trade Almost Flat due to Uncertainty in Greece
COMEX-traded gold futures for June delivery rose marginally by 0.19% on May 18 and closed at $1,227.60 per ounce. Gold prices extended their rally on Monday.
Which Silver Stock Is Seeing Upgrades These Days?
On October 3, 2016, Deutsche Bank (DB) upgraded Coeur Mining (CDE) from “sell” to “hold.” The firm also increased its target price from $7.50 to $11.
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.
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.
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.
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.
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.
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.
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.
Watch These Drivers in Assessing Yamana’s Future Valuation
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x.
Analyzing Newcrest Mining’s Rising Costs and Falling Gold Prices
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.
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.
Gold Appears to Be Solid for the Short Term
If the uncertainty in the Eurozone increases, gold may rally. On the other hand, a sooner-than-expected rate hike would likely push down non-yielding assets such as gold.
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.
Gold Prices Are Expected to Trade in a Narrow Range
The Fed rate hike expectation has been one of the biggest factors driving gold prices for some time. Interest rates have been near zero since 2008.
Is Gold Falling Due to Unwarranted Optimism?
Last year was a volatile year for the gold market. Softer demand from China and India, coupled with Trump’s victory, had immensely affected the precious metal.
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.
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.
Gold Demand Is Waning: What Investors Can Expect
The outlook for gold demand in India is expected to remain weak due to weaker monsoons and a lack of festivities. This puts pressure of the gold demand.
What’s in Store for South African Miners after the Fed’s Rate Hike?
AngloGold Ashanti (AU) stock has been under pressure in 2017 and is down 2% year-to-date through March 16, 2017.
Which South African Gold Miner Has Received an Upgrade?
Sibanye Gold (SBGL) entered into an agreement with Stillwater Mining (SWC) to acquire all its stock in December 2016.
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.
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.
Why Investors Should Take a Look at Gold in H2 2018
Gold prices have gone through a rough patch recently with prices closing near their seven-month lows.
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.
How Silver Prices Are Influencing Major Silver Miners
Mining companies like First Majestic Silver (AG), Silver Wheaton (SLW), Pan American Silver (PASS), Coeur Mining (CDE), and Hecla Mining (HL) are primarily into silver exploration.
Can Management Changes Break Gold’s Price Ceiling?
The gold mining industry is on a track to reverse its traditional method of mining to generate better shareholder returns.
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.
Royalty and Streaming Companies May Underperform as Gold Rises
The business models of royalty and streaming companies is quite different from those of other precious metals miners. Royalty companies don’t own mines.
How Strong Does AngloGold’s 2H16 Need to Be to Reach Its 2016 Guidance?
AngloGold’s 1H16 production was somewhat lower than expected due to safety stoppages in South Africa and poor recoveries at Kibali in the DRC.
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.
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.
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.
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.
Platinum Touched Its Six-and-a-Half-Year Low in 2015
As automobile catalysts comprise ~44% of the demand for platinum, the Volkswagen scandal curbed the demand for diesel-fueled cars that use platinum as a catalyst. This pulled down the already depressed platinum and comparatively strengthened palladium.
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.
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.
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.
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.
Australian Miners Hit by Declining Gold Prices, Rising US Dollar
Slumping commodity markets are prompting miners to respond to lower asset prices. Major North American miners including Barrick Gold (ABX) have already put a few mines up for sale.
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.
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.