Kinross Gold Corp
Could Gold Catch a Bid if Equities Stay Weak in 2018?
What the markets have long been fearing has finally come true, at least in part. The S&P 500 (SPY) (SPX) hit a record high on January 26, 2018. Since then, the index has fallen ~8% as of February 6, 2018.
Why Do Analysts Love Agnico Eagle Mines?
Analysts’ ratings for Agnico Eagle Mines Of the 18 analysts covering Agnico Eagle Mines (AEM), 72.0% recommended a “buy,” while the remaining 28.0% recommended a “hold.” Among its mining peers (RING)(GDX), AEM has more “buy” recommendations than Yamana Gold (AUY), Barrick Gold (ABX), Newmont Mining (NEM), and Kinross Gold (KGC), which have “buy” ratings from 71.0%, 14.0%, 58.0%, […]
Which Gold Miners Popped and Dropped in 2017?
The North American gold miners’ results season is slated to begin on October 25. In this series, we’ll see how analysts view their revenues, earnings, and free cash flows.
What’s up with Kinross’s Upgrades?
For Kinross Gold, the analyst recommendations are equally divided between “buy” and “hold” at 44% each, while 11% of the analysts recommend a “hold.”
Watch for These Valuation Catalysts in Gold Miners’ 3Q17 Earnings
Of all the miners (GDX) we’ve discussed in this series, Agnico Eagle Mines (AEM) has the highest EV-to-forward-EBITDA multiple of 12.0x.
The Outlook for Gold amid Volatility
As of May 17, 2017, the price of gold has risen ~10% year-to-date. It’s been very volatile lately. In this series, we’ll look at the factors responsible for gold’s gain and reversal in 2017.
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.
Financial Leverage Is Less of a Concern for Coeur Mining’s Investors
Coeur Mining (CDE) repaid $109.3 million of its debt in 3Q16. After this, the company’s interest expenses fell 26% quarter-over-quarter and 35% year-over-year.
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.
What Could Affect Goldcorp Stock in 2017?
Goldcorp’s 4Q16 results beat market expectations, mainly due to lower costs and higher gold prices. The market was happy with the company’s results.
How Analysts Expect Gold Miners’ Earnings to Progress
Now that we’ve considered analysts’ revenue estimates for the senior gold miners under review in this series, let’s take a look at analysts’ EBITDA estimates.
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.
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.
Precious Metal Moves on Thursday, September 28
Gold touched a one-month low on Thursday, September 28, due to the rise of the US dollar over the speculation of another rate hike in December 2017.
Which Gold Miners Could Grow Their Productions Going Forward?
After making discretionary cuts on exploration and capex for many years, gold miners (GDX) (JNUG) have started to refocus on production growth.
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).
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.
Why Miners Fell on Monday, January 29
SLW and ABX saw YTD (year-to-date) losses of 2.8% and 0.83%, respectively, while GG has a YTD gain of 12%.
How Do US Economic Numbers Play on Gold?
Economic data from the United States on Tuesday, July 21, 2016, on home starts and building permits affected gold and other precious metals to a certain extent.
A Look at Gold Miners’ Liquidity Positions
Along with a good solvency position, Kinross Gold (KGC) also has a comfortable liquidity position with a current ratio of 3.9x.
Newmont Mining’s Valuation Multiple: More Upside Potential?
Among senior gold miners (GDX), Newmont Mining (NEM) has the second-highest forward enterprise value-to-EBITDA multiple of 8.1x.
Behind Mining Stock Technical Indicators as of Monday, October 16
AGI, SLW, ABX, and KGC currently have RSI levels of 50.3, 74.3, 44.4, and 50, respectively.
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).
Kinross Gold Stock and Geopolitical Concerns after Q2 2018
After significantly outperforming peers in 2017, Kinross Gold (KGC) has underperformed this year.
Gold Performance Versus Other Investments in 1H17
Factors impacting gold in 1H17 are a weaker US dollar, geopolitical uncertainties, higher interest rates, and expectations for Trump’s agenda.
Investors Should Know These Updates from Barrick Gold in 2Q16
Barrick Gold delivered FCF (free cash flow) of $181 million in 1Q16, making it the fourth consecutive quarter of positive FCF.
Gold Prices at a 4-Month Low—Is More Downside Ahead?
Gold prices touched an almost four-month low in early December. After breaching $1,300 per ounce in September due to geopolitical tensions, gold prices have mostly been on a downtrend.
What Factors Could Be Playing Precious Metals?
Gold was trading moderately high on Wednesday, October 25, 2017. It rose a marginal 0.04% and closed at $1,276.30 per ounce. Silver and palladium, however, had a down day.
Newmont Mining’s Project Pipeline Update in 3Q17
Newmont Mining is expected to complete the expansion at Northwest Exodus in 2018.
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 […]
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).
How US Employment Numbers Played Precious Metals This Week
Gold prices dropped from its seven-week high level of $1,276.10 per ounce on August 1. Gold futures for September expiration fell 0.08% on August 2 and ended at $1,274.20 per ounce.
Implications of Fed Decisions on Precious Metals and the Dollar
A rate hike and the dollar are closely tied to each other since a higher interest rate would mean more money flowing into the United States.
A Look at Gold as the Fed’s Rate Hike Looms
The Fed’s interest rate hike On December 14, 2016, the Fed finally raised interest rates by 25 basis points. More concerning from an investor’s point of view was the Fed’s targeted total hike of 75 basis points in 2017. The Fed’s first meeting for 2017 is on March 14 and 15. The market is quite certain that […]
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.
What Factors are Impacting Yamana Gold’s Valuation?
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x.
What Were the Main Factors in Kinross’s Production Guidance?
For Kinross’s fiscal 2016 production guidance, the grade reduction at the Kupol and Chirano mines was considered.
Why Goldcorp Is on Many Analysts’ Wish Lists
Currently, 20 analysts are tracking Goldcorp (GG) stock. About 70% of them are recommending a “buy,” and 25% are recommending a “hold.”
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.
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.
Inside Mining Stocks at the End of May: Implied Volatility and RSI
The iShares Silver Trust and the iShares Gold Trust have gained 2.9% and 0.91%, respectively, in the past five days, likely due to the precious metal rebound.
Increased Volatility and Gold Investors
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.
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.
What Led to Weaker Production Performance for Kinross in 2Q16?
Kinross Gold (KGC) produced 671,267 GEOs (gold equivalent ounces) in 2Q16, which represents a 1% YoY (year-over-year) rise but a sequential decrease of 2%.
Gold Prices Trade Almost Flat due to Uncertainty in Greece
COMEX-traded gold futures for June delivery rose marginally by 0.19% on May 18 and closed at $1,227.60 per ounce. Gold prices extended their rally on Monday.
Gold in 2017: Which 5 Miners Have Made Money?
The performance of gold and silver in 2017 is weaker than most other industrial metals. There are many factors that explain the weaker performance of precious metals.
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.
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.
Watch These Drivers in Assessing Yamana’s Future Valuation
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x.
Can Newmont Mining Continue Its Outperformance Going Forward?
Newmont’s gold all-in sustaining costs were 16% lower YoY. The company’s ongoing portfolio rationalization efforts should also lead to even leaner assets.
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.
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.
Kinross Gold Is Financially Comfortable after Its Acquisitions
Kinross Gold had $2.5 billion in liquidity as of September 30, 2015, including $1 billion in cash and $1.5 billion in undrawn credit facilities.
Baupost Group opens PBF position, raises MU and THRX share, and sells AIG, AUY, and KGC—13F Flash F
The Baupost Group, LLC, is a hedge fund founded and run by Seth Klarman in 1982. Why sell Kinross Gold Corp. (KGC)?
Is Newmont Ready to Start Long Canyon before Schedule?
Newmont Mining (NEM) has four projects in final stages, all of which will start production either this year or next.
Which Gold Stocks Do Analysts Love and Hate?
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.
Why Did Gold Prices and Gold Mining Stock Performances Diverge in 1H17?
Gold miners in 2017 seem to be driven more by company-specific factors than by the direction of gold prices.
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.
Gold Prices Trade Flat: Sluggish Demand and Improving US Economy
COMEX-traded June gold futures fell marginally by 0.50% and closed at $1,183 per ounce on May 11. Gold prices traded almost flat—led by weak Asian demand.
Kinross Gold’s Earnings Beat: Can It Sustain the Price Momentum?
On August 2, 2017, Kinross Gold (KGC) achieved another earnings beat, reporting EPS of $0.04, beating earnings expectations by $0.02 for 2Q17.
Are Equity Markets’ Valuations Stretched?
The International Monetary Fund (or IMF) also warned that the downside risks to the world financial stability have increased over the past six months.
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.
These Factors Could Propel Gold to the $1,400 Mark
In the absence of earnings growth to justify the current valuations of US equities, many investors may begin looking for trade that is less crowded.
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.
Stock Reactions: All Beats, No Misses for Senior Gold Miners in 2Q17
Newmont Mining (NEM), which started the gold miners’ 2Q17 earnings season on July 25, reported earnings per share of $0.46, soundly beating the consensus estimate of $0.26.
Could the Temporary Suspension at Tasiast Impact Kinross’s Phase 1 Expansion?
Kinross’s Phase 1 at Tasaist should increase mill throughput capacity from 8,000 to 12,000 tons per day, reduce operating costs, and increase production.
Why Gold Miners Have Not Magnified Gold’s Gains in 2017
Due to leverage, the performance of gold miners usually magnifies the direction of the gold prices, but the scenario in 2017 has been slightly different.
Next Catalysts That May Affect Newmont’s Valuation Multiple
Newmont Mining has a valuation multiple of 8.6x, with an expected EBITDA margin of 40% for 2017. At the start of 2016, it was trading at a multiple of 6.6x.
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%.
What Does Wall Street Have to Say about Gold Mining Companies ahead of 2Q16 Earnings?
Analyst recommendations and ratings are some of the most important market indicators investors can study. Ratings show how bullish or bearish analysts are.
Baupost Group opens PBF position, raises MU and THRX share, and sells AIG, AUY, and KGC—13F Flash D
The Baupost Group, LLC, is a hedge fund founded and run by Seth Klarman in 1982. Why sell American International Group (AIG)?
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.
Australian Miners Hit by Declining Gold Prices, Rising US Dollar
Slumping commodity markets are prompting miners to respond to lower asset prices. Major North American miners including Barrick Gold (ABX) have already put a few mines up for sale.
Baupost Group opens PBF position, raises MU and THRX share, and sells AIG, AUY, and KGC—13F Flash E
The Baupost Group, LLC, is a hedge fund founded and run by Seth Klarman in 1982. Why sell Yamana Gold Inc. (AUY)?
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.
Newmont Revises Dividend Policy on Higher Gold Prices, Strong Free Cash Flow
Newmont Mining generated positive free cash flow of $240 million in 3Q16, which represents a rise of 51% as compared to the same period last year.
What Led to the Recent Divergence of Gold and Gold Mining Stocks?
The year-to-date stock performances of precious metal miners have been driven more by company-specific factors than by the direction of gold prices.
Higher Auto Sales in the US Fail to Boost Platinum and Palladium
Platinum futures for April expiry fell by almost 5.4% over the first five trading days of 2016. Palladium futures for March expiry fell by 12.5% YTD.
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.
What Factors Drove Newmont’s Free Cash Flow Generation in 2Q17?
Newmont Mining (NEM) achieved positive free cash flow of $346 million in 2Q17, compared with $199 million in 1Q17.
Goldcorp Underperformed GDX: Why?
Goldcorp (GG), a Canada-based gold producer, underperformed the VanEck Vectors Gold Miners Index ETF (GDX) year-to-date.
Here’s What Might Help Kinross Gold Outperform in 2018
Apart from royalty and streaming companies, Kinross Gold (KGC) is one of the best-performing miners (GDX) (RING) in 2017.
Newmont on the Street: How Analysts’ Ratings Are Panning out after 2Q17
In the senior gold mining space (GDX), analysts are most bullish on Newmont Mining (NEM), which has “buy” ratings from 58.0% of its analysts.
How Yamana Gold Could Improve Its Production in 4Q16?
Yamana Gold produced 328,604 ounces of gold in 3Q16—3% higher YoY but still lower than market expectations, mainly due to weaker production at El Peñón.
Mixed Results for the Metals and Mining Sector on August 2
At 3:20 PM EST, the PowerShares DB Base Metals (DBB) gained ~0.51%, while the SPDR S&P Metals & Mining ETF (XME) fell ~0.73%.
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.
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.
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).
Do Newmont Mining’s Latest Ratings Show Analyst Optimism?
Newmont Mining (NEM) has 61% “buy” recommendations from the 18 analysts covering the stock.
How Are Gold Miners Managing Their Geographic Exposure?
While Newmont Mining (NEM) has favorable geographic exposure, its geopolitical risk will decline significantly with its recent Batu Hijau sale.