Goldcorp Inc

When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.

Fears in the overall financial market about a Brexit, the possible exit of Britain from the European Union, have abated. This helped gold fall.

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.

Goldcorp (GG) reported its 3Q17 results after the market closed on October 25, 2017. It reported EPS (earnings per share) of $0.13, which beat analysts’ expectations by $0.02.

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

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.

AISC (all-in sustaining costs) are an encompassing measure that helps compare miners’ performance—a vital metric for investors. They show the company’s margin cushion at prevailing gold prices (GLD)(IAU).

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.

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.

OPGSX may also invest up to one-fifth of its portfolio directly into gold or silver bullion and other precious metals.

As a group, the average gains of North American senior gold miners (GDX) (RING) have been muted.

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.

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

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.

It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.

A record number of junior companies attended the Precious Metals Summit. We are finding companies with attractive development projects in North America and West Africa as well as some exciting discoveries that merit watching.

Goldcorp (GG) has given negative returns in 2017. Its stock has lost 6.1% of its value as compared to a gain of 12.8% in the iShares Gold Trust (GLD) and 11.1% in the VanEck Vectors Gold Miners ETF (GDX).

All the gold miners (RING)(GDX) we’re covering in this series except for Barrick Gold (ABX) reported earnings beats in 3Q17.

Investors should watch out for any tailwinds or headwinds that could impact Newmont’s costs in 1Q15.

Among senior gold miners, Goldcorp is trading at the highest multiple of 10.3x—a premium of 31% compared to the peer average.

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

All-in sustaining costs (or AISC) came in at $554 per ounce, a reduction of $142 per ounce from the same period last year. The reduction was mainly due to lower sustaining capital expenditure (or capex).

Gold and the U.S. dollar were associated when the gold standard was being used. During this time, the value of a unit of currency was tied to the specific amount of gold. The gold standard was used from 1900 to 1971. The separation was made in 1971. The U.S. dollar and gold were freed. They could be valued based on supply and demand.

In 3Q15, Goldcorp (GG) posted record gold production of 922,200 ounces—2% growth quarter-over-quarter and 42% growth year-over-year.

The Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Silver (AGQ), both leveraged mining funds, both have recovered and jumped 19.4% and 24.9%, respectively, on a five-day trailing basis.

Gold and gold miners didn’t start off the year on a good note.

Though an increase in rates may initially dim the luster of the metal, after the hike, gold may soar, uninterrupted by looming fears.

The last ten years have been a roller coaster ride for the gold (GLD) (GDXJ) (GDX) mining industry.

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.

A cap was put in place to stop the currency’s appreciation. An appreciating local currency is detrimental to exporters.

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).

In this series, we’ll consider recommendations, target prices, estimates, and potential upsides and downsides for senior gold miners.

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.

Barrick Gold (GOLD) reported AISC of $788 per ounce and a cost of sales of $980 per ounce in the fourth quarter.

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

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

Gold ended the day almost flat on Wednesday, May 2, and closed at $1,304.90 per ounce.

Most mining stocks have risen during the past month due to the revival in precious metals prices.

On January 12, 2018, precious metals were once again on a rising streak, which also led to increasing prices for mining shares.

Gold is the most influential precious metal, and most miners follow its price trends.

The PowerShares DB Gold Fund (DGL) and the VanEck Merk Gold Trust (OUNZ) rose 2.2% over the five trading days leading up to December 27, 2017.

Newmont Mining’s mean consensus revenue for 2017 is $7.3 billion. This implies year-over-year (or YoY) growth of 8.1%.

As NEM’s all-in sustaining costs (or AISC) have fallen 22.0% since 2012, its FCF has improved by $3.60 per share.

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

Precious metals and miners saw some relief on December 13 after the Fed raised rates as expected. Sibanye Gold (SBGL), Aurico Gold (AUQ), and Goldcorp (GG) rose 3.5%, 3.6%, and 5.8%, respectively.

Investors have their eyes set on the interest rates. A rise in the interest rates causes the demand for precious metals to fall.

RGLD, GG, SBGL, and GOLD reported RSI levels of 52.5, 62.7, 49.2, and 81.4, respectively.

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

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 […]

For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year.