Iamgold Corp

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 prices have seen a reversal in the last month or so. The SPDR Gold Shares ETF (GLD) gained 8.0% in June alone.

Among miners, Eldorado Gold (EGO), New Gold (NGD), IAMGOLD (IAG), and Barrick Gold (GOLD) have seen the highest gains of 50.6%, 44.4%, 40.3%, and 36.4%, respectively.

Kinross Gold stock has fallen 3.1% this year as of May 28.

The report from Bloomberg about the potential sale of all or parts of IAMGOLD’s business comes as the gold sector is going through a wave of consolidation.

On May 16, Bloomberg reported that IAMGOLD (IAG) could be exploring the possible sale of all or parts of its business.

IAMGOLD’s (IAG) gold production for Q1 came in at 185,000 ounces, a decline of ~19% from Q1 2018.

IAMGOLD (IAG) released its Q1 2019 results yesterday after markets closed.

Gold prices have fallen 3% YTD (year-to-date) as of April 26. Gold prices fell ~1.9% in 2018 and significantly underperformed broader markets.

Yamana Gold is scheduled to release its first-quarter results on May 1 after the market closes. The company will hold a conference call on May 2.

Newmont’s gold production rose by 2% YoY to 1.23 million ounces.

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.”

Gold prices have fallen 3.6% this year after falling ~1.9% in 2018, significantly underperforming broader markets.

Analysts expect Newmont to report revenues of $1.83 billion for the first quarter. This estimate implies growth of 0.5% year-over-year.

Yamana Gold (AUY) announced today that it has agreed to sell its Chapada mine to Lundin Gold (LUNMF) for $1 billion.

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).

Eldorado Gold (EGO) significantly outperformed its peers (JNUG) (GDXJ) as well as gold (GLD) in the first quarter with a gain of 60.8%.

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

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.

Yamana Gold (AUY) stock has outperformed its peers (GDX) year-to-date.

Let’s look at Wall Street analysts’ recent ratings and recommendations for gold miners ahead of their fourth-quarter earnings results.

Among intermediate gold miners, Agnico Eagle Mines has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 12.0x.

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

Analysts’ sentiments toward IAMGOLD (IAG) have been changing for the better in the past few months.

Currently, IAMGOLD (IAG) has the third-highest number of “buy” recommendations among analysts at 75%.

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.

Based on 13F filings, despite weaker gold prices, hedge funds maintained their investments in gold in the third quarter.

Among intermediate gold miners, Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 10.6x.

Historically, IAMGOLD (IAG) has traded at a lower valuation than its peers.

CEO Steve Letwin stated during IAMGOLD’s third-quarter earnings call that it’s focused on becoming a low-cost producer.

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

IAMGOLD (IAG) reported its third-quarter earnings results after the market closed on November 6.

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.

IAMGOLD (IAG) was the best-performing gold stock of 2017, returning 51.4% for the year.

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.

In the senior and intermediate gold miner space (GDX)(GDXJ), analysts are the most bullish on IAMGOLD (IAG), with 75.0% of analysts assigning it a “buy.”

While gold miners have been out of favor for a long time, that may be about to change. As uncertainty in the market is increasing, gold prices are poised to rise.

As of September 24, New Gold (NGD) has fallen 75%, significantly underperforming its peers.

On August 15, the VanEck Vectors Gold Miners ETF (GDX) has lost 20.0% of its value YTD, almost double the losses seen by the SPDR Gold Shares ETF (GLD).

Like positions in the SPDR Gold Shares ETF (GLD), institutional holdings in the VanEck Vectors Gold Miners ETF (GDX) fell sequentially during the second quarter.

IAG stock is currently trading at a forward EV-to-EBITDA multiple of 4.8x, a discount of 27% to its peers.

Westwood’s all-in sustaining costs for the second quarter were $1,129 per ounce, which was 13% higher YoY.

After record production of 109,000 ounces in Q1 2018, Iamgold’s (IAG) Essakane mine reported weaker production in Q2 2018.

Iamgold (IAG) generated revenues of $277.4 million in Q2 2018, which represents a YoY (year-over-year) growth of 1.1%.

Iamgold (IAG) reported its Q2 2018 results after the market closed on August 8. Its EPS was $0.03, beating the consensus estimate.

IAG is guiding for gold production of 850,000–900,000 ounces for 2018.

Among the senior and intermediate miners, Eldorado Gold (EGO) and New Gold (NGD) have the fewest “buy” ratings at 15% each.

After the revival on Friday, June 29, Monday was another choppy day. Let’s look at the technicals for four miners.

The correlation between gold and the S&P 500 (SPX) is 0.18 on a year-to-date basis.

New Gold (NGD) stock has had one of the poorest showings YTD (year-to-date).

Eldorado Gold (EGO) is one of the few gold stocks that have seen rapidly deteriorating sentiments from analysts in the last year.

In this part of the series, we’ll look at miners’ RSI (relative strength index) scores and implied volatilities.

Before the Fed’s minutes were released on May 23, gold was trading lower due to the increased pressure from the surging US dollar.

On May 22, there was a sense of relief for Eldorado Gold stock. Eldorado Gold stock skyrocketed and closed 16.8% higher yesterday.

Besides overall market volatility, the most important determinant of precious metal prices, especially gold’s (IAU) (SLV), is the US dollar.

After the massive slump in gold prices as US Treasury yields rose, the trading range for gold seems to have corrected lower.

On May 15, gold dropped about 2.1% and closed at $1,288.90 per ounce.

Markets were full of geopolitical tensions in April, boosting precious metals and miners’ stock prices.

Whereas palladium has been the strongest among the four precious metals over the last month, it has fallen 7.2% year-to-date, possibly due lower car demand in China.

Another crucial factor behind precious metals’ rise was the US dollar index, which fell 0.42% on May 10.

The four precious metals have revived compared to their previous losses over the past five trading days.

New Gold (NGD), Agnico Eagle Mines (AEM), Wheaton Precious Metals (SLW), and IAMGOLD (IAG) have fallen 25.8%, 7.4%, 3.7%, and 2.4%, respectively, year-to-date.

IAG stock is currently trading at a forward EV-to-EBITDA multiple of 5.2x, which implies a 13.2% premium to its average multiple from the last five years.

Westwood’s all-in sustaining costs (or AISC) decreased 10.0% year-over-year to $873.00 per ounce in 1Q18.

IAG is guiding for Essakane to produce 380,000–395,000 ounces of gold in 2018.

ABX, HL, EGO, and IAG have implied volatilities of 26.3%, 43.5%, 60.4%, and 40.1%, respectively.

Yamana Gold’s (AUY) valuation multiple has varied widely between 4.3x and 9.8x over the last five years.

In this article, we’ll look at the primary technical readings of a select group of miners.

Palladium has been the weakest among the four precious metals on a YTD (year-to-date) basis.

In addition to the US dollar playing on precious metals, US interest rates and the decisions by the Federal Reserve have also historically had a substantial impact on these safe havens.

IAMGOLD (IAG) was the best-performing gold stock of 2017, returning 51.4% for the year. It significantly outperformed the VanEck Vectors Gold Miners ETF (GDX) as well as the SPDR Gold Shares (GLD).

Gold prices rose ~3% year-to-date (or YTD) after rising ~13% in 2017. But what about the miners?

Precious metals had another up day as gold futures for April expiration rose 0.48% on Friday, April 13, closing at $1,344.80 per ounce.

While gold miners have been out of favor for a long time, that might be about to change. Since the uncertainty in the market is increasing, gold prices are poised to rise.

According to the US Bureau of Labor Statistics, the US consumer price index (or CPI) rose 2.4% year-over-year (or YoY) in March 2018.

A crucial factor that continues to affect gold is the US dollar.

The most recent data for the US Consumer Price Index (or CPI) was weaker than expected.

So far in this series, we’ve looked at various factors impacting gold’s outlook in 2018. The most recent factor supporting gold prices is the fear of a full-blown trade war.

In its first meeting under new Chief Jerome Powell, the US Federal Reserve increased interest rates by a quarter of a point.

As per the U.S. Bureau of Labor Statistics, the US Consumer Price Index (or CPI) rose 0.2% in February, compared to a 0.5% rise in January 2018.

In general, most mining companies rose on Friday, March 23, following gold and silver.

Out of all the silver miners (SIL) under discussion in this series, Hecla Mining (HL) has among the fewest “buy” ratings.

Miners had a good start to 2018 with an upswing in prices due to the revival of precious metals.

Besides interest rate hikes, some other crucial factors affecting gold are the fluctuations in the US dollar and equity movements.

With more interest rate hikes likely to come in 2018, analysts expect precious metals and miners to underperform.

All four precious metals saw a down day on Monday, March 5. Gold, silver, platinum, and palladium were down 0.23%, 0.33%, 0.31%, and 0.81%, respectively.

Precious metal miners had a reasonably good start to 2018. Overall, on a YTD (year-to-date) basis, precious metals’ reactions have been mixed.

Although Yamana Gold (AUY) stock fell in the first three quarters of 2017, it turned around and rose 28% in the last three months.

Gold Fields, Barrick Gold, Hecla Mining, and IAMGOLD are trading below their 20-day and 100-day moving averages.

Bitcoin (ARKW) has seen its price plunge since the start of 2018 due to news that world leaders are planning to implement regulations on digital currencies.

Bitcoin’s extremely volatile nature makes it difficult for it to serve as a store of value asset.

IAMGOLD (IAG) has many organic growth opportunities. It’s pursuing expansion opportunities at existing deposits and expects initial resource estimates at Monster Lake, Nelligan, and Eastern Borosi.

IAMGOLD’s (IAG) Westwood project had a pivotal year in 2017, as it resumed operating at the normal production level in 2Q17.

IAMGOLD’s (IAG) reserves increased 86% year-over-year (or YoY) in 2017 to 14.5 million ounces.

IAMGOLD (IAG) generated revenues of $1.10 billion in 2017, which is growth of 11% year-over-year (or YoY).

IAMGOLD (IAG) reported its 4Q17 and 2017 results after the market closed on February 21.

Much of the attention in precious metal movements is based on fluctuations in the US interest rate.

Miners had a good start to 2018. They saw higher prices due to precious metals’ revival. As precious metals fell, so did the mining stocks.

Intermediate gold miners Compared with senior gold miners, intermediate gold miners are smaller in terms of production and market capitalization. However, they are all generally liquid, unlike their junior counterparts (GDXJ). Intermediate miners’ geographical diversification is usually lower than that of senior gold miners. Underperforming gold As a group, these miners have underperformed gold and the VanEck […]