VanEck Vectors Junior Gold Miners ETF
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 […]
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%.
Analyzing the Mixed Performance of Miners on June 19
Goldcorp (GG), Yamana Gold (AUY), and Hecla Mining (HL) have fallen 4.1%, 15.7%, and 1.1% year-to-date, respectively. However, Gold Fields (GFI) has risen 14.6% year-to-date.
How Analysts Rate Senior Gold Miners after Their 1Q17 Announcements
Among the senior gold miners (GDX), analysts are the most bullish on Newmont Mining (NEM), giving it 53% “buy” and 42% “hold” ratings.
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.
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 […]
Keeping a Tab on Rating Changes in Senior Gold Mining
Berenberg noted that recent developments at Barrick, in addition to its deleveraging and strong free cash flow generation, are positives for the stock.
Will Gold Keep Clinging to US Interest Rates?
Investors are cautious about investing in gold after the sudden surge over the past three months. The Market sentiment in gold seems to be far from bearish.
Inside the May Correlation Trends for Precious Metals
As global tumult grips markets and investors turn to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals.
Inside Barrick Gold’s Earnings: Why Analysts Have Lowered Estimates
After outperforming peers by a wide margin, Barrick Gold (ABX) has lagged behind so far in 2017.
Is Newmont’s Project Pipeline Strong Enough to Support Growth?
Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018.
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.
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.
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.
Inside Gold Production in 2016
Goldcorp’s gold production fell 16% YoY in 4Q16 to 761,000 ounces.
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.
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).
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.
Why Barrick Gold’s Production Matters: What Could Lead to a Downgrade
Barrick Gold (ABX) produced ~1.43 million ounces of gold in 2Q17, which represents a growth of 7% on a year-over-year basis.
Gold Reserves Fell in 2016, But Will 2017 Be Any Better?
Gold miners face the problem of compensating for every ounce they take out of the ground.
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.
Health in Gold: Which Miners Are in Tip-Top Shape
Barrick and Newmont—two of the largest gold miners—were the first to be punished by investors based on high financial leverage.
Newmont Mining Is ahead of Its Debt Reduction Target
On October 27, 2016, Newmont Mining (NEM) announced an offer to purchase for cash notes due 2022 worth $500 million.
Where’s Newmont’s Debt Reduction Plan Now?
Last year, Newmont repaid $1.3 billion in debt, which brought its net debt at the end of 2016 to $1.9 billion and represents a huge reduction of 46% year-over-year.
Which Gold Miners Can Pursue Mergers and Acquisitions?
After peaking in 2011, gold prices fell for four straight years, which led gold miners to cut back on sustaining and growth capital, lower exploration spends, and divest assets.
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.
The Biggest Gold Buyer: India Is Back!
Indian jewelers have called off their 43-day strike, which began as a reaction to a 1% excise duty on gold jewelry.
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.
Barrick Gold on the Street: How Analysts Are Reacting to the Quarterly Miss
Barrick Gold has 46.0% “buy” ratings, 46.0% “hold” ratings, and 8.0% “sell” ratings. Its target price implies an upside of 29.0% based on its current price of $16.90.
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.
Which Gold Miners Benefitted Most from the 1H16 Gold Rush?
Gold prices rose 23% in the first half of 2016, making gold one of the best-performing investments so far this year.
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.
These Silver Miners Could Offer a Free Cash Flow Upside in 4Q16 and Beyond
FCF generation is vital for precious metal miners because it helps them invest in long-term value projects, optimize financial leverage, and offer returns.
Gold Price Leverage at Full Play at Sibanye: How Far Can It Go?
Since the start of 2016, Sibanye Gold has successfully played its operating leverage to the upside. While gold prices have risen by 16% year-to-date, Sibanye’s stock price has risen by a whopping 127%.
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.
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.
Outlook: IAMGOLD’s Stock Momentum after Q2 2018 Results
IAG is guiding for gold production of 850,000–900,000 ounces for 2018.
Is Newmont Mining Poised for Growth in 2018 and Beyond?
Future growth visibility boosts stocks. For miners, project pipelines and past execution are key factors in determining future production.
As Gold Prices Rally, What Else Is Driving Gold Mining Stocks?
Gold prices have risen 15% year-to-date as of April 13, making gold the best-performing investment in 2016 so far. But there’s more to the story than prices alone.
The Re-Emergence of Seasonal Gold Demand Trends
With selling pressure removed, normal gold demand trends may re-emerge Historically, there is a seasonal pattern to gold prices dependent on physical demand trends. Often, there is weakness in the summer when jewelry demand, primarily from China and India, is low and trading volumes decline. Seasonal strength often occurs from August to January, beginning with […]
How Gold Stocks Have Performed This Year
Gold and gold miners didn’t start off the year on a good note.
Gold’s Modest Response to Europe’s Localized Risks
It seems that every time new, scary headlines emerge, press articles declare that gold no longer serves as a safe haven.
Diversified Gold Exposure with the VanEck Vectors Gold Miners ETF
The rationale behind choosing the passively managed approach is evident in the genesis of GDX, which launched in 2006 as the first gold miners ETF offered in the U.S.
Precious Metals and Mining Stock: What the Correlation Looks Like
As the price of gold rebounded on July 5, 2017, so did the stocks of many miners.
Why gold rallied after the ECB announced its stimulus program
Gold and its ETFs—like the SPDR Gold Trust (GLD)—had already climbed. However, gold rallied due to the ECB’s massive stimulus program.
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.
Reading the Performance of the Giant Miners
Most mining companies reversed their 2015 losses during the first few months of 2016 and had posted substantial gains. There is a high correlation between mining stocks and precious metals.
How Mining Stocks Moved in January 2017
Some investors expected choppy markets for precious metal mining companies after Trump’s victory, but that didn’t happen. Miners often follow precious metals.
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.
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.
Are Gold Miners Beating Their Key Moving Averages in 2016?
Silver has outperformed gold over the past month. Gold and silver have risen 21% and 25.2%, respectively, since the beginning of the year.
Ineffective Monetary Policies Are Inflating Asset Prices
Ineffective monetary policies creating potential future issues Policy makers seem to be focused on solutions to previous problems without realizing that excesses are going to create additional issues. For example, an odd thing happened after Brexit—stocks ignored the risks Brexit posed to the global economy and the S&P 500® [1. S&P 500® Index (S&P 500) consists […]
How Gold Mining Industry Has Revived Itself
The last ten years have been a roller coaster ride for the gold (GLD) (GDXJ) (GDX) mining industry.
Key things to look out for when you invest in junior gold stocks
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.
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.
AEM Beats Q1 Earnings and Revenue Estimates, Wall Street Bullish
Agnico Eagle Mines (AEM) released its Q1 2019 results yesterday and held the accompanying conference call today.
Which Gold Equities Could Grow after Q1 Results Are Released
Agnico Eagle Mines’ (AEM) forward multiple of 10.3x, the highest among senior and intermediate gold miners, is 12% higher than its trailing-five-year average and 75% higher than its peers’ (GDX) (GDXJ).
Assessing Gold Miners’ Free Cash Flow This Year and Beyond
Investors are usually interested in gold mining companies’ (GDX) (GDXJ) ability to generate FCF (free cash flow), as it helps them invest in future growth.
Analysts Love These Gold Stocks
In the senior and intermediate gold miner space (GDX) (GDXJ), excluding royalty and streaming companies, analysts are most bullish on Agnico Eagle Mines (AEM), with ~78.0% recommending “buy” and 22.0% recommending “hold.”
Deutsche Bank Upgraded Barrick Gold
Barron’s reported that Deutsche Bank (DB) analyst Chris Terry has increased gold’s (GLD) (IAU) target price to $1,350 per ounce for 2019.
Wall Street Ratings: Gauging Gold Miners’ Upside Potentials
Among senior and intermediate gold miners (GDX) (GDXJ), analysts are most bullish on Agnico Eagle Mines (AEM).
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%.
What Will Be Key to Barrick Gold’s Performance in 2019?
Barrick Gold underperformed its senior and intermediate peers as well as the broader benchmark index during the first quarter of 2019.
Can IAMGOLD Hold On to Positive Wall Street Sentiment in 2019?
IAMGOLD (IAG) comes third, after Wheaton Precious Metals (WPM) and Agnico Eagle Mines (AEM), as far as the most “buy” ratings for gold stocks are concerned.
Which Senior Gold Miners Are Analysts Loving Lately and Why?
In this series, we’ll consider recommendations, target prices, estimates, and potential upsides and downsides for senior gold miners.
Which Gold Miners Are in Sound Financial Health after 2018?
Not many investors were concerned about gold miners’ (GDX) (GDXJ) financial health when precious metal prices were high.
Gold Miners Fell Short of Replacing Their Reserves in 2018
To achieve production growth in the long term, gold miners (GDX) (GDXJ) have to replace every ounce they take out of the ground.
Are Slowing Production Pipelines Fueling Gold Miner M&A Activity?
The production growth of most of the miners (GDX) (JNUG) is either in decline or flat at best.
Could Kinross Gold’s Balance Sheet Support Its Future Growth?
Kinross Gold’s (KGC) liquidity position at the end of the fourth quarter of 2018 reflected its strategic investments.
A Look at Kinross Gold’s Reserves and Resources Update
Kinross Gold (KGC) has maintained its gold price assumption of $1,200 per ounce for estimating reserves and $1,400 per ounce for estimating resources since 2011.
Why Kinross Gold’s Production Growth Could Remain Muted for Years
Kinross Gold (KGC) produced 610,152 gold equivalent ounces in the fourth quarter, a decline of 6.5% YoY (year-over-year).
Barrick Gold’s Merger Could Drive Its Production Going Forward
Production growth is a crucial variable for miners. Along with realized metal prices, production growth drives a company’s top line.
Newmont Mining: Upside to Its Project Pipeline
Newmont Mining has already declared commercial production for three projects this year. The latest project is Subika Underground.
Which Gold Stocks Are Primed for a Valuation Upside after Q4?
The EV-to-EBITDA (enterprise value-to-EBITDA) multiple is a good measure of valuation for capital-intensive industries.
Assessing Gold Miners’ Free Cash Flows in 2018 and Beyond
Analysts expect Barrick Gold (GOLD) to generate significant FCF amounting to $519 million in 2018.
Gold-Backed ETFs Started 2019 on a Positive Note—More Upside?
According to the World Gold Council, holdings in gold-backed ETFs and similar products rose by 69 tons in 2018, equivalent to $3.4 billion worth of inflows.
Could South African Miners’ Difficulties End in 2019?
South African miners (GDXJ) have traditionally traded at discounts to their global counterparts (GDX).
What’s Next for Gold after the Newmont-Goldcorp Merger?
Whereas several gold (GLD) mining companies are likely to see M&As (mergers and acquisitions), Agnico Eagle Mines (AEM) may not be one of them.
Newmont and Goldcorp Merger to Create World’s Leading Gold Miner
Newmont and Goldcorp announced that they have entered an agreement in which NEM will acquire all of the outstanding GC shares in a stock-for-stock transaction valued at $10 billion.
The Gold Equities Credit Suisse Favors in 2019
Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,275 per ounce in 2019 and $1,300 in 2020.
How Gold Mining Exposure Can Hedge Your Portfolio
The gold mining industry hasn’t seen a very positive trend in the last ten years.
What Could Help Gold Get Its Shine Back?
During market distress, when other asset classes suffer, gold is often the only asset class that flourishes.
How Might Kinross Gold’s Balance Sheet Support Its Future Growth?
Kinross Gold’s (KGC) liquidity position at the end of the third quarter was reflected its strategic investments.
What Would It Take for KGC to Increase Production Sustainably?
Kinross Gold (KGC) produced 586,260 gold equivalent ounces in the third quarter, a 10% fall YoY (year-over-year).
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’s Driving Production Growth for Barrick Gold?
Production growth is a crucial variable for miners. Along with realized metal prices, it drives a company’s top line.
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.
Yamana Gold Will Sell the Gualcamayo Mine for $85 Million
Yamana Gold (AUY) announced that it entered into an agreement to sell its Gualcamayo mine in Argentina to Mineros SA.
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.
Can Randgold Acquisition Help Analyst Sentiment for Barrick Gold?
About 77% of analysts have recommended a “hold” for Barrick Gold, and 9% have recommended a “sell.”
Why New Gold Bulls Have Gone Extinct
As of September 24, New Gold (NGD) has fallen 75%, significantly underperforming its peers.
Can Tahoe Resources Regain Analysts’ Lost Favor?
YTD (year-to-date), Tahoe Resources (TAHO) has had the worst performance of all silver miners with losses of 44%.
What’s Baked into Analysts’ Pan American Silver Ratings?
Pan American Silver (PAAS) stock has outperformed its peers as well as silver prices YTD.
Can Iamgold Catch Up on Valuations after Q2 2018?
IAG stock is currently trading at a forward EV-to-EBITDA multiple of 4.8x, a discount of 27% to its peers.
Barrick Gold’s Production Growth Profile Is Declining
Barrick Gold (ABX) produced ~1.07 million ounces of gold in the second quarter, which reflects a decline of ~25.0% year-over-year.
Can Trade and Tariff Policies Brighten the Outlook for Gold?
In March this year, President Trump announced a 25% tariff on imported steel and a 10% tariff on imported aluminum.
Why Gold Gold Stayed Resilient in May
Gold remained resilient in May, as the U.S. dollar strengthened considerably. The U.S. Dollar Index (DXY)1 gained 2.4% and closed the month at its highs for the year.
What’s the Correlation of Miners in 2018?
The revival in precious metals on Friday caused a rebound in miners. But the fall on Monday again caused mining stocks to plummet.