Goldcorp Inc

On August 24, in an interview with CNBC, Mario Gabelli encouraged value investing. He is the CEO, chairman, and founder of GAMCO Investors.

The merger will combine Newmont Mining’s 68.5 million ounces and Goldcorp’s 52.8 million ounces to form the world’s largest asset base.

After the dividend, Paulson and VanEck agreed on the Newmont Mining and Goldcorp merger. The merger was finally completed on April 18.

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.

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).

Among senior and intermediate gold miners (GDX) (GDXJ), analysts are most bullish on Agnico Eagle Mines (AEM).

Yamana Gold (AUY) and Agnico Eagle Mines (AEM) outperformed the Gold Miners Index (GDX) and gold (GLD) in the first quarter of 2019.

Newmont Mining stock returned 3.2% in the first quarter, almost half the gains in the VanEck Vectors Gold Miners ETF in the same period.

Goldcorp’s (GG) fourth-quarter EPS came in at $0.07, which beat the consensus estimate of $0.04.

Barrick Gold underperformed its senior and intermediate peers as well as the broader benchmark index during the first quarter of 2019.

Gold prices (GLD) gained just 0.6% in the first quarter compared to the gain of 13% in the S&P 500 Index (SPY).

Analysts’ ratings According to Thomson Reuters, of the 15 analysts covering Newmont Mining (NEM), 67.0% have given the stock a “buy” rating, 20.0% say “hold,” and 13% have a “sell” rating on the stock. Its target price implies a potential upside of 15.3% based on its current price of $34.9. In the last three months, Newmont’s “buy” ratings have […]

Currently, 18 analysts are covering Agnico Eagle Mines (AEM), as per the consensus compiled by Thomson Reuters.

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 a press release, Newmont Mining (NEM) said this one-time special dividend will be paid to Newmont shareholders of record as of April 17, 2019.

Today, Newmont Mining (NEM) announced a conditional special dividend to shareholders if its proposed merger with Goldcorp (GG) goes through.

In this article, we’ll look at individual gold miners’ valuations and compare them to their histories and their peers.

Now that we’ve considered analysts’ revenue estimates for senior gold miners (GDX), in this article, let’s take a look at analysts’ EBITDA estimates.

In this article, we’ll consider analysts’ estimates for senior gold mining companies’ (GDX) (JNUG) revenues going forward.

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

After the Newmont Mining and Goldcorp merger was announced, investors were disappointed with the proposed premium announcement.

In a letter to Newmont Mining’s CEO, Paulson & Co. said it doesn’t favor Newmont Mining’s $10 billion merger with Goldcorp (GG).

If a company has high debt but has the capacity to repay it through its earnings, then the debt likely won’t be much trouble for the company.

At the end of the fourth quarter of 2018, Barrick Gold had a cash balance of ~$1.6 billion and a $3 billion undrawn credit facility.

Not many investors were concerned about gold miners’ (GDX) (GDXJ) financial health when precious metal prices were high.

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.

FCF (free cash flow) generation is quite important for gold mining companies (SGDM) (GDX).

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

To achieve production growth in the long term, gold miners (GDX) (GDXJ) have to replace every ounce they take out of the ground.

The production growth of most of the miners (GDX) (JNUG) is either in decline or flat at best.

Goldcorp’s (GG) production for the fourth quarter came in at 630,000 ounces of gold, a YoY decline of 2.5%.

Barrick Gold (GOLD) opened the earnings season for gold miners with earnings on February 13.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets YTD.

Of the 20 analysts covering Kinross Gold (KGC) as per the consensus compiled by Thomson Reuters, 40% have given it “buy” ratings, and 55% have given it “holds.”

Kinross Gold’s (KGC) liquidity position at the end of the fourth quarter of 2018 reflected its strategic investments.

Kinross Gold (KGC) reported all-in sustaining costs of $961 per ounce in the fourth quarter, reflecting a decline of 5.7% YoY (year-over-year).

The Tasiast expansion project is very important for Kinross Gold (KGC) when it comes to replacing its maturing production.

Kinross Gold (KGC) produced 610,152 gold equivalent ounces in the fourth quarter, a decline of 6.5% YoY (year-over-year).

Kinross Gold (KGC) reported adjusted EPS of $0.01 in 2018, beating analysts’ consensus estimate by $0.01.

On February 25, Barrick Gold (GOLD) put in an unsolicited bid to acquire Newmont Mining (NEM).

Goldcorp’s (GG) production for the fourth quarter came in at 630,000 ounces of gold, a YoY decline of 2.5%.

On January 14, Newmont Mining (NEM) and Goldcorp (GG) announced a merger.

In a press release today, Newmont Mining said that Barrick’s unsolicited negative premium proposal is not in shareholders’ best interest.

Among senior miners (GDX), Barrick Gold (GOLD) has the highest EV-to-EBITDA multiple of 8.4x—a premium of 29% to its historical multiple.

Barrick Gold’s FCF was $37 million in the fourth quarter—85% lower YoY. In 2018, the FCF was $365 million—down 45% YoY.

Production growth is a crucial variable for miners. Along with realized metal prices, production growth drives a company’s top line.

In the fourth quarter, Barrick Gold produced 1.26 million ounces of gold—up 9.7% sequentially but down 6% YoY (year-over-year).

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

Among senior gold miners (GDX), Newmont Mining (NEM) has the second-highest forward enterprise value-to-EBITDA multiple of 8.1x.

In the fourth quarter, Newmont Mining (NEM) produced 1.44 million ounces—a rise of 8% YoY (year-over-year).

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

Today, Barrick Gold (GOLD) made an unsolicited bid for its rival Newmont Mining (NEM) in an all-share deal.

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

Today, Barrick Gold outlined a proposed framework for the resolution of the outstanding dispute between subsidiary Acacia Mining and the government of Tanzania.

Newmont Mining (NEM) is scheduled to release its Q4 2018 earnings on February 21 before the market opens.

After underperforming its peers (GDX) (NUGT) in 2018, Kinross Gold (KGC) has continued that underperformance this year.

Barrick Gold is scheduled to release its fourth-quarter results on February 13 before the market opens.

The EV-to-EBITDA (enterprise value-to-EBITDA) multiple is a good measure of valuation for capital-intensive industries.

Analysts expect Barrick Gold (GOLD) to generate significant FCF amounting to $519 million in 2018.

In this article, we’ll discuss what analysts expect for gold miners’ (RING) earnings in the fourth quarter of 2018.

Gold’s price has risen 2.2% year-to-date after falling ~1.9% in 2018. Gold saw its fourth consecutive positive monthly return in January.

Among senior gold miners (GDX), Barrick Gold (GOLD) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 8.2x.

In 2018, as gold prices (GLD) fell 1.9%, the VanEck Vectors Gold Miners ETF (GDX) multiplied that loss by falling 9.3%.

The consolidation in the gold sector has already taken a major step up, with two of the largest miners announcing mergers.

The Newmont-Goldcorp merger deal could offer significant synergies.

Newmont Mining (NEM) and Goldcorp (GG) held a conference call on January 14 to brief investors and analysts on their merger.

Newmont Mining (NEM) and Goldcorp (GG) held a joint conference call on January 14 to brief investors and analysts about their merger, in which Newmont and Goldcorp shareholders are to own ~65% and ~35% of the combined entity, respectively.

Newmont Mining (NEM) has agreed to pay a 17% premium to acquire stock from Goldcorp (GG), which has been struggling for over a year to meet market expectations.

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 Mining (NEM) and Goldcorp’s (GG) deal, the gold space’s latest mega-merger, may suggest miners are getting serious about turning things around for stakeholders.

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.

Among senior miners (GDX), Barrick (GOLD) has the second-highest EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 6.6x.

Most analysts are positive on Barrick (GOLD) regarding its merger with Randgold Resources.

Ray Dalio’s love for gold is well known.

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

While the valuations of broader equities have continued to increase, the valuations of gold stocks haven’t kept up.

Now that we’ve considered analysts’ revenue estimates for the senior gold miners under review, let’s take a look at analysts’ EBITDA estimates.

In this article, we’ll look at analysts’ estimates for those companies’ (GDX) (JNUG) revenues going forward.

In this article, we’ll look at the market sentiments for the gold mining companies under review in this series.

Barrick Gold (ABX) generated FCF of $319 million in the third quarter compared to -$172.0 million in the second quarter.

Newmont Mining’s (NEM) net debt at the end of the third quarter was ~$1.1 billion compared to $1.9 billion at the end of 2016.

Barrick Gold (ABX) and Newmont Mining (NEM) have come a long way as far as their financial leverages are concerned.

AISC (all-in sustaining costs) is an encompassing measure that helps us compare gold miners’ performances.

Kinross Gold’s (KGC) liquidity position at the end of the third quarter was reflected its strategic investments.

Kinross Gold (KGC) produced 586,260 gold equivalent ounces in the third quarter, a 10% fall YoY (year-over-year).

Kinross’s momentum in 2018 so far has been negative, with its stock down over 40% YTD (year-to-date) as of November 20.

Newmont Mining (NEM) has a forward enterprise value-to-EBITDA multiple of 7.9x, the highest among senior gold miners.

Newmont Mining saw its debt rise at the peak of the cycle due to expensive acquisitions, which have now been brought under control.

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.

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

At a time when growth is difficult to come by in the gold mining space, Newmont Mining has a strong project pipeline with very low execution risk.

IAMGOLD (IAG) generated revenue of $244.8 million in the third quarter, a YoY (year-over-year) fall of 9%.

Production growth is a crucial variable for miners. Along with realized metal prices, it drives a company’s top line.

While Barrick stock remains weak YTD (year-to-date), it surged following the announcement of its merger with Randgold Resources (GOLD).

Yamana Gold (AUY) announced that it entered into an agreement to sell its Gualcamayo mine in Argentina to Mineros SA.

Yamana Gold’s production for the third quarter was 246,788 ounces—an improvement of 11% YoY and 10% sequentially.

Yamana Gold released its third-quarter results before the markets opened on October 26. The company held a conference call the same day.

Goldcorp expects its fourth-quarter production to come in at 620,000 ounces, which could push its fiscal 2018 volumes to 2.28 million ounces.

Goldcorp (GG) reported its Q3 earnings on October 24. GG reported adjusted EPS of -$0.08, which missed the consensus estimate by $0.05.

Goldcorp (GG) reported its third-quarter earnings results after the market closed on October 24.