Latest Goldcorp Inc News and Updates
Yellen Wants to Keep Negative Rates on the Table, Helping Gold
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.
How Much Could Brexit and Volatility Control Gold?
Fears in the overall financial market about a Brexit, the possible exit of Britain from the European Union, have abated. This helped gold fall.
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%.
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.
Key Insights from Goldcorp’s 3Q17 Earnings
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.
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.
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.
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.
These Gold Miners Surprised Us with Unit Costs in 3Q17
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).
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.
Will Falling Gold Prices Lead to More Carnage for Miners?
Gold continues to trade at its five-year low. It’s hovering in the range of $1,100–$1,150 per ounce. Gold futures on COMEX lost 5.90% on a YTD basis.
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.
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).
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.
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.
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.
What Does Inflation’s Retreat Mean for Gold?
Inflation hedge Investors tend to hold gold in their portfolios as insurance against inflation. When inflation is high, the value of paper currency, in terms of the goods and services it can buy, falls. As investors want something that doesn’t lose its value, gold usually has a direct relationship with inflation. Demand for gold increases as inflation […]
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.
Gold Fell as US Interest Rates Soared
Investors were somewhat pessimistic about gold during the last quarter of 2016. Most of the fluctuations were due to the news of the interest rate hike.
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).
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.
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.
An Overview of OPGSX’s Precious Metal Holdings
OPGSX may also invest up to one-fifth of its portfolio directly into gold or silver bullion and other precious metals.
Goldcorp Has One of the Industry’s Strongest Project Pipelines
Goldcorp (GG) has one of the strongest project pipelines in the industry. These projects underpin the company’s 20% growth in reserves by 2021.
VGPMX Has Underperfomed the Market
Vanguard Precious Metal and Mining Investment Fund (VGPMX) lags in diversification, as it’s a pure sector fund.
C1 Santa Luz Gets Go-Ahead, But Will It Be Positive for Yamana Gold?
On July 28, Yamana Gold (AUY) announced the recommissioning of C1 Santa Luz, a project located in Bahia, Brazil. It was put on care and maintenance in 2014.
Will Goldcorp’s All-In Sustaining Costs Be Higher than Peers’?
Goldcorp continued with its lower cost trend, as the key cost metric AISC (all-in sustaining costs) fell 21% YoY and remained almost flat QoQ in 3Q15.
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.
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.
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.
Why Gold’s Safe-Haven Demand Remains Tepid
Gold is often touted as the safe-haven asset that investors embrace in times of economic and political uncertainty.
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.
Which Senior Gold Miners Are Analysts Betting On?
As a group, the average gains of North American senior gold miners (GDX) (RING) have been muted.
Gold Prices Remain Almost Flat Despite the Appreciating Dollar
This series analyzes gold prices and market fundamentals. June gold futures trading on the COMEX slightly declined by 0.02% on May 22, 2015.
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.
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.
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.
Factors That Impact Goldcorp’s Earnings Estimates
Wall Street analysts expect Goldcorp’s revenues to fall 2.3% to ~$3.4 billion in 2017.
Analysts’ Estimates: Could NEM’s Near-Term Profitability Decline?
Although 2017 has not been very good for Newmont Mining stock due to short-term issues, its outlook remains strong.
Which Senior Gold Miners Could Gain following the Fed’s Decision?
Senior gold miners are large miners with established positions. While there are variations between different miners, as a group, they usually follow gold prices.
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.
Behind Goldcorp’s 5-Year Plan: What’s Influencing the Analysts
Goldcorp’s (GG) management has unveiled a plan to create value for the company over the next five years.
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.
Inside Gold Production in 2016
Goldcorp’s gold production fell 16% YoY in 4Q16 to 761,000 ounces.
Forget Newmont’s 3Q16 Costs—They’re Going Much Lower
For 3Q16, Newmont Mining (NEM) reported AISC (all-in sustaining costs) of $925 per ounce, which is 5% higher YoY and 6% higher quarter-over-quarter.
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.
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.
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.
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.
How Barrick Gold Plans to De-Lever Its Balance Sheet in 2017
Barrick Gold has reiterated that strengthening its balance sheet is its top priority. The company achieved debt reduction of $2.0 billion in 2016.
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.
Which Stocks Are Uptrending in Their Correlations to Gold?
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.
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.
How Gold Miners Could Benefit from Deregulation
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.
Comparing price movements in other commodities versus gold price
Gold is related to silver, oil, and copper. Relationships between commodities are examined to establish if one commodity’s price can fuel another commodity’s price. For example, it’s universally acknowledged that gold and silver prices are related. Silver’s price depends on gold’s price.
These Issues Impacted Kinross’s Costs in 2Q16
Kinross reported AISC of $988 per ounce in 2Q16, which is an improvement of 2.3% YoY (year-over-year) but is higher sequentially by 2.6%.
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.
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.
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.
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.
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.
Comp: Which Gold Miner Looks Undervalued at the Current Levels?
The best bet is to go for gold miners with healthy balance sheets, increasing production profiles, low costs, and good cash flows.
Free Cash Flow in Gold, and What It Could Mean for Miners
Barrick Gold delivered FCF of $385.0 million in 4Q16 and $1.5 billion in 2016. The 2016 FCF was a annual record for the company.
Goldcorp Underperformed GDX: Why?
Goldcorp (GG), a Canada-based gold producer, underperformed the VanEck Vectors Gold Miners Index ETF (GDX) year-to-date.
Do Goldcorp’s Earnings Estimates Reflect Analysts’ Increasing Optimism?
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).
Why China’s real interest rates are increasing
When we combine the nominal rate of 3% and inflation of 2% for August, we arrive at 1% real rate of interest for savings. This rate is increasing. The increase is a result of inflation.
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.
Charting the Race in Gold Reserves among Senior Gold Miners
Barrick’s five core mines, which are expected to produce 70.0% of its volumes for 2017, have an average grade of 1.8 grams per ton.
Upside for Yamana Gold after Its Q3 Earnings
Yamana Gold released its third-quarter results before the markets opened on October 26. The company held a conference call the same day.
Senior Gold Miners’ Earnings Beats and Misses in 3Q17
All the gold miners (RING)(GDX) we’re covering in this series except for Barrick Gold (ABX) reported earnings beats in 3Q17.
Is the Gold-Silver Ratio Headed South?
The gold-silver ratio was trading at 78.7 on Monday, April 11, 2016. The gold-silver ratio is trading close to its 100-day moving average.
These Gold Miners Could Have Serious Upside Potential
Gold prices closed 2016 with a rise of 8.5% for the year, but gold prices had been 27% higher at one point in the year.
Is Agnico Eagle Mines’ Premium Valuation Multiple Justified?
Currently, Agnico Eagle Mines (AEM) is trading at a forward EV-to-EBITDA multiple of 11.2x, the highest among the senior miners (GDX).
Understanding Newmont’s Scope for Cost Improvement
For 1Q17, Newmont reported AISC (all-in sustaining costs) of $900 per ounce, which is 8.7% higher year-over-year and 2% lower quarter-over-quarter.
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.
Newmont on the Street: Analyst Recommendations after the 1Q17 Results
Of the 18 analysts covering Newmont Mining (NEM), ten have issued “buy” recommendations, while eight have issued “hold” recommendations on the stock.
Gold: A Macro Influenced Currency
A few of the macro indicators that affect gold and precious metals prices are the interest rate, inflation rate, trade balance, and the US dollar.
Newmont Sees Little Effect from the Sale of the Batu Hijau Mine
Newmont Mining tries to achieve higher production every quarter. Its gold production was 1.3 million ounces in 2Q16, compared to 1.2 million ounces in 2Q15.
Why Did Barrick Gold Slash Its Production Guidance for 2017?
In 1Q17, ABX’s gold production totaled ~1.3 million ounces, representing a rise of 2.3% YoY (year-over-year).
Gold Miner Leverage: Comparing the Books after 4Q16
Investors in the gold mining industry need to know a company’s debt levels, as high debt can strain a company’s credit rating.
Foreign Exchange and Fuel Tailwinds Could Help Newmont in 1Q15
Investors should watch out for any tailwinds or headwinds that could impact Newmont’s costs in 1Q15.
Must-know: Fed taper impacts the balance sheet and gold prices
After the 2008 global financial crisis, the Fed’s balance sheet expanded from ~$850 million to more than $4.4 billion. The Fed buys long-term securities. Long-term securities provide banks with excess reserves for lending.
When will gold prices stop breaking support levels?
On March 6, 2015, gold prices hit a three-month low and settled just above the important support level.
Can Goldcorp Beat Barrick Gold in Cost Reduction?
Barrick Gold achieved AISC of $732 per ounce in 4Q16—flat YoY, but a sequential rise of 4.0%.
Valuations in Gold: Where’s the Upside among Miners Today?
Among senior gold miners, Goldcorp is trading at the highest multiple of 10.3x—a premium of 31% compared to the peer average.
Which Gold Miners Are Ray Dalio and John Paulson Betting On?
Hedge funds increased their net positions in the SPDR Gold Shares ETF during the first quarter.
Understanding the Latest Upgrades and Downgrades for Senior Gold Miners
Along with analyst ratings, it’s important to look at the recent changes to recommendations and target prices.
Newmont Mining Rejects Barrick Gold’s Hostile Acquisition Bid
In a press release today, Newmont Mining said that Barrick’s unsolicited negative premium proposal is not in shareholders’ best interest.
Lagunas Norte: AISC down due to lower sustaining capex
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).